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Trade Logistics for Development: The Challenges

Trade Logistics for Development: The Challenges. Marc H. Juhel Transport and Logistics Adviser The World Bank. September 26, 2003. Global Recovery from the global downturn. Source: World Bank data and projections. And integration with global markets is associated with faster growth….

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Trade Logistics for Development: The Challenges

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  1. Trade Logistics for Development: The Challenges Marc H. Juhel Transport and Logistics Adviser The World Bank September 26, 2003

  2. Global Recovery from the global downturn Source: World Bank data and projections

  3. And integration with global markets is associated with faster growth… Average annual per capita growth, 1980-99 Source: World Bank, Global Economic Prospects, 2001

  4. The MDGs: Poverty targets Percent of population living below $1 /day 2000 Millennium Development Goals

  5. Poverty targets to be reached in most regions, but… Percent of population living below $1 /day 2000 Millennium Development Goals

  6. World trade trends: developing countries are exporting more manufactures… Composition of exports: 1981-2001 Middle- income countries Low- income countries Manufacturing exports (%) Manufacturing exports (%) Agricultural exports (%) Resources exports (%) Resources exports (%) Agricultural exports (%)

  7. But not all news are good… • Roughly one-third of developing countries have not benefited significantly from growth in international trade. • Some countries with solid export growth have not translated that into significant poverty reduction. • Developing countries could have done better if protection did not discriminate against products in which they have comparative advantage.

  8. Singapore issues (investment and competition policy, trade facilitation and transparency in government procurement): • Recognition of the relevance of these issues for promoting growth and increasing competitiveness of developing countries. • Concerns that adding these issues to the agenda may crowd-out other themes of greater priority for developing countries. • Alternative tracks: commence negotiations vs. to focus on further clarification of issues.

  9. Clearing customs takes longer in developing countries Note: This is based on a sample of countries in each area; see figure 5.1 in chapter 5. Source: International Exhibition Logistics Associates Available at http://www.icla.org

  10. Facilitating trade in less efficient countries would bring significant gains Source: Calculations based on table 4 in Wilson, Mann, and Otsuki, “Trade Facilitation and Capacity Building: Global Perspective,” 2003, mimeo.

  11. 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

  12. The Trade Logistics Agenda • Trade Facilitation and Competitiveness • Transit Logistics and Ports • Border Crossing and Clearance Management • Customs Reform • Multimodal Transport • Transport Security

  13. Trade Facilitation and Competitiveness • Economic Benefits of Trade Facilitation • Logistics Costs and Export Earnings: Geography, Competitiveness and Poverty • Facilitation Performance and Competitiveness Index

  14. 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

  15. Border Crossing Management • Single Window Environment • Adjacent Border Posts • Border Monitoring Systems • Inland Clearance Facilities

  16. 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

  17. Multimodal Transport • Legal Aspects • Regulatory Framework • Liability Regime of MTO • Implementation/Amendments of/to MTO Regimes

  18. Transport Security • US Regulations: CSI, 24 hour-Rule • IMO Revised Standards: ISPS Code • Supply Chain Security Concept • Security with Facilitation

  19. A Partnership Approach • Strengthen the Network: GFP Steering Committee (WCO, WTO, UNCTAD, ICC, Donors,WB,…) • Consolidate Funding for Short-Term Actions on the Ground: Single or Multi-Donor TFs managed by GFP Steering Committee • WB Trade Logistics Group: Diagnosis/Identification and Project Preparation with TF funding and GFP members contribution • Project Implementation with WB/IFIs support and GFP follow-up

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