trade logistics for development: challenges and actions november 6, 2003 marc h. juhel transport and...

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Trade Logistics for Development: Challenges and Actions November 6, 2003 Marc H. Juhel Transport and Logistics Adviser The World Bank

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Page 1: Trade Logistics for Development: Challenges and Actions November 6, 2003 Marc H. Juhel Transport and Logistics Adviser The World Bank

Trade Logistics for Development:

Challenges and Actions

November 6, 2003

Marc H. Juhel

Transport and Logistics Adviser

The World Bank

Page 2: Trade Logistics for Development: Challenges and Actions November 6, 2003 Marc H. Juhel Transport and Logistics Adviser The World Bank

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Global Recovery from the global downturn

Source: World Bank data and projectionsSource: World Bank data and projections

Page 3: Trade Logistics for Development: Challenges and Actions November 6, 2003 Marc H. Juhel Transport and Logistics Adviser The World Bank

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And integration with global markets is associated with faster growth…

Source: World Bank, Global Economic Prospects, 2001Source: World Bank, Global Economic Prospects, 2001

Average annual per capita growth, 1980-99

Page 4: Trade Logistics for Development: Challenges and Actions November 6, 2003 Marc H. Juhel Transport and Logistics Adviser The World Bank

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10

20

30

40

50

East Asia South Asia EasternEurope &

Central Asia

Sub-SaharanAfrica

Latin America& Caribbean

Middle East& NorthAfrica

2000 MDG 2015

2000

Millennium Development Goals

The MDGs: Poverty targets

Percent of population living below $1 /dayPercent of population living below $1 /day

44

Page 5: Trade Logistics for Development: Challenges and Actions November 6, 2003 Marc H. Juhel Transport and Logistics Adviser The World Bank

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10

20

30

40

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East Asia South Asia EasternEurope &

Central Asia

Sub-SaharanAfrica

Latin America& Caribbean

Middle East& NorthAfrica

2000 Forecast 2015 MDG 2015

2000

Millennium Development Goals

Poverty targets to be reached in most regions, but…

Percent of population living below $1 /dayPercent of population living below $1 /day

55

Page 6: Trade Logistics for Development: Challenges and Actions November 6, 2003 Marc H. Juhel Transport and Logistics Adviser The World Bank

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World trade trends: developing countries are exporting more manufactures…

Manufacturing exports (%)

Resources exports (%)

Agricultural exports (%)

Composition of exports: 1981-2001

Middle- income countries Low- income countries

Resources exports (%)

Agricultural exports (%)

Manufacturing exports (%)

0

10

20

30

40

50

60

70

80

90

1981 1982 1982 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 20010

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20

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40

50

60

70

80

90

1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Page 7: Trade Logistics for Development: Challenges and Actions November 6, 2003 Marc H. Juhel Transport and Logistics Adviser The World Bank

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But not all news are good…

Roughly one-third of developing countries have Roughly one-third of developing countries have not benefited significantly from growth in not benefited significantly from growth in international trade.international trade.

Some countries with solid export growth have Some countries with solid export growth have not translated that into significant poverty not translated that into significant poverty reduction.reduction.

Developing countries could have done better if Developing countries could have done better if protection did not discriminate against protection did not discriminate against products in which they have comparative products in which they have comparative advantage.advantage.

Page 8: Trade Logistics for Development: Challenges and Actions November 6, 2003 Marc H. Juhel Transport and Logistics Adviser The World Bank

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Singapore issues (investment and competition policy, Singapore issues (investment and competition policy, trade facilitation and transparency in government trade facilitation and transparency in government procurement):procurement):

Recognition of the relevance of these issues for Recognition of the relevance of these issues for promoting growth and increasing competitiveness promoting growth and increasing competitiveness of developing countries. of developing countries.

Concerns that adding these issues to the agenda Concerns that adding these issues to the agenda may crowd-out other themes of greater priority for may crowd-out other themes of greater priority for developing countries.developing countries.

Alternative tracks: commence negotiations vs. to Alternative tracks: commence negotiations vs. to focus on further clarification of issues.focus on further clarification of issues.

Page 9: Trade Logistics for Development: Challenges and Actions November 6, 2003 Marc H. Juhel Transport and Logistics Adviser The World Bank

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Clearing customs takes longer in developing countries

Note: This is based on a sample of countries in each area; see Note: This is based on a sample of countries in each area; see figure 5.1 in chapter 5.figure 5.1 in chapter 5.

Source: International Exhibition Logistics AssociatesSource: International Exhibition Logistics AssociatesAvailable at http://www.icla.orgAvailable at http://www.icla.org

Page 10: Trade Logistics for Development: Challenges and Actions November 6, 2003 Marc H. Juhel Transport and Logistics Adviser The World Bank

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Facilitating trade in less efficient countries would bring significant gains

Source: Calculations based on table 4 in Wilson, Mann, Source: Calculations based on table 4 in Wilson, Mann, and Otsuki, “Trade Facilitation and Capacity Building: Global Perspective,” 2003, mimeo.and Otsuki, “Trade Facilitation and Capacity Building: Global Perspective,” 2003, mimeo.

Page 11: Trade Logistics for Development: Challenges and Actions November 6, 2003 Marc H. Juhel Transport and Logistics Adviser The World Bank

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WB Address in Cancun

“… we are ramping up to be able to help any country that requests financing or policy advice for trade logistics. “

Shengman Zhang

WB Managing Director for Operations

Page 12: Trade Logistics for Development: Challenges and Actions November 6, 2003 Marc H. Juhel Transport and Logistics Adviser The World Bank

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The Trade Logistics Agenda

Trade Facilitation and Competitiveness

Transit Logistics and Ports

Border Crossing and Clearance Management

Customs Reform

Multimodal Transport

Transport Security

Page 13: Trade Logistics for Development: Challenges and Actions November 6, 2003 Marc H. Juhel Transport and Logistics Adviser The World Bank

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Trade Facilitation and Competitiveness

Economic Benefits of Trade Facilitation

Logistics Costs and Export Earnings: Geography, Competitiveness and Poverty

Facilitation Performance and Competitiveness Index

Page 14: Trade Logistics for Development: Challenges and Actions November 6, 2003 Marc H. Juhel Transport and Logistics Adviser The World Bank

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Transit Logistics

Port Efficiency

Bilateral and Regional Transit Agreements

Landlocked Developing Countries Access: Corridor Agreements

Transit Guarantee Systems : Customs/Insurance/Operators (TIR, TIF and similar)

Cost/Benefits of Transit Trade for Transit Countries

Page 15: Trade Logistics for Development: Challenges and Actions November 6, 2003 Marc H. Juhel Transport and Logistics Adviser The World Bank

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Border Crossing Management

Single Window Environment

Adjacent Border Posts

Border Monitoring Systems

Inland Clearance Facilities

Page 16: Trade Logistics for Development: Challenges and Actions November 6, 2003 Marc H. Juhel Transport and Logistics Adviser The World Bank

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Customs Reform

Streamlining and Harmonization of Procedures

Information Technology and Electronic Processing

Risk Assessment Methods: Security with Facilitation

Integrity Programs

Training/Capacity Building : Customs Officials/Private Operators

Page 17: Trade Logistics for Development: Challenges and Actions November 6, 2003 Marc H. Juhel Transport and Logistics Adviser The World Bank

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Multimodal Transport

Legal Aspects

Regulatory Framework

Liability Regime of MTO

Implementation/Amendments of/to MTO Regimes

Page 18: Trade Logistics for Development: Challenges and Actions November 6, 2003 Marc H. Juhel Transport and Logistics Adviser The World Bank

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Transport Security

US Regulations: CSI, 24 hour-Rule

IMO Revised Standards: ISPS Code

New EU Guidelines

Supply Chain Security Concept

Security with Facilitation

Page 19: Trade Logistics for Development: Challenges and Actions November 6, 2003 Marc H. Juhel Transport and Logistics Adviser The World Bank

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FY04 Work Program

Trade Logistics Indicators Country Level Project Level

Customs Modernization Handbook WCO Time Release Software Menu-Based Project Guidelines

Customs Transit and Multimodal Transport Port Logistics Transport Security

Page 20: Trade Logistics for Development: Challenges and Actions November 6, 2003 Marc H. Juhel Transport and Logistics Adviser The World Bank

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FY04 Work Program (2) LLDCs: the Almaty Programme of Actions Regional Operations

Africa: Corridor Observatories (UEMOA, ECOWAS, NCTTCA, SADC), Investment Projects (Kenya, Madagascar), TTFAs in IF Diagnostics

Middle-East North Africa: Logistics Survey (Morocco, Tunisia, Egypt, Jordan)

Europe Central Asia: CAR Logistics Survey (CIS 7), Investment Projects (Russia, Kazakhstan)

South Asia: Afghanistan TTF and Customs Project

East Asia and Pacific: Indochina Logistics (Cambodia, Laos, Vietnam)

Latin America and Caribbean: CA Logistics Survey