Transcript WORLD BANK GROUP LOGISTICS PERFORMANCE INDEX AND DOING BUSINESS INDICATORS Souleymane COULIBALY LAC Trade Training Peruvian Delegation October 21, 2010 ECA Regional Trade Coordinator Geneva, June 14th,

WORLD BANK GROUP
LOGISTICS PERFORMANCE INDEX AND
DOING BUSINESS INDICATORS
Souleymane COULIBALY
LAC Trade Training Peruvian Delegation
October 21, 2010
ECA Regional Trade Coordinator
Geneva, June 14th, 2011
The Logistics Performance Index
and Doing Business Report
Two separate but complementary reports
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The Logistics Performance
Index
• Measures the trade
logistics efficiency of a
country
• Fundamental premise:
Efficient logistics drives
economic performance
3
The Doing Business Report
• Provides measures of the ease
of doing business (regulations)
for local firms in a given
country
• Fundamental premise:
economic activity requires
effective regulations in all
areas of setting up and
operating a business
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Agenda
1. Overview of LPI 2010
2. Overview of Doing Business 2011
3. LPI Results: CIS countries
4. DB Results: CIS Countries
5. Want to Learn More?
1. Overview LPI 2010
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The Logistics Performance
Index
• First report in 2007, every
three years
• Source of data is suppliers
of logistics services (freight
forwarders, express
carriers)
• Rates logistical
performance on a scale of
1 to 5
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LPI: Key messages
•
•
•
Trade logistics is an important element of
national competitiveness
A country’s performance is only as good as its
weakest link
The LPI dataset can be used to identify key
bottlenecks in your own country
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What are efficient logistics?
The LPI measures six dimensions of
country performance:
Efficiency of the clearance process
Quality of trade and transport infrastructure
Ease of arranging competitively priced shipments
Logistics competence and quality of logistics services
Ability to track and trace shipments
Timeliness of shipment delivery
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Why Logistics Matter:
Result when a low income country reaches LPI of
middle income average
Indicator/policy area
Increase in trade
(%)
Logistics Performance Index
15.2
All trade barriers reduced to 10%
8.4
Regulatory reform measures
7.4
Tariffs reduced to 5%
5.7
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Key Policy Implications:
•
Expand the traditional development agenda
beyond customs reform and infrastructure to be
comprehensive—processes, services, and
infrastructure.
•
Increase border agency coordination
•
Partner with the private sector
•
Reform must be tailored to each country’s
circumstances
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The Logistics Performance
Index
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2. Overview Doing Business 2011
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The Doing Business Report
•
First report in Sept 2003, yearly
•
Covers 183 countries
•
Surveys in-country specialists with
knowledge of regulatory system
•
Provides a basis for measuring,
understanding and improving the
regulatory environment for
business
•
creates methodology and a
database for policy makers
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The Doing Business Report
Doing Business does not measure
all aspects such as:
•
•
•
•
•
macroeconomic stability
corruption
level of labor skills
proximity to markets,
regulations specific to foreign
investment or financial markets
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Doing Business indicators – 11 areas of business
regulation (9 included in the ranking)
Start-up
 Starting a business Minimum capital requirement, procedures, time and
cost
 Registering property Procedures, time and cost
 Getting credit Credit information systems, Movable collateral laws
Expansion
 Protecting investors Disclosure and liability in related party transactions
 Enforcing contracts Procedures, time and cost to resolve a commercial
dispute
 Dealing with construction permits Procedures, time and cost
 Paying taxes Payments, time and Total Tax Rate
Operations
 Trading across borders Documents, time and cost
 Getting electricity (annex I) Procedures, time and cost
 Employing workers (annex II)
Closing
 Closing a business Time, cost and recovery rate
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Doing Business – Trading Across Borders index
What are best practices?
 Paper-free electronic
data interchange (EDI)
system
Risk - based inspection
systems (less than 10%
of cargo physically
inspected)
Electronic Single
Window for obtaining
trade documents and
approvals
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The Doing Business Report
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LPI and DB – separate but complementary
LPI
DB
Source of data
3rd country providers of
Logistics services
In-country entities with
knowledge of business
regulations
Concept
Performance outcomes
Analytic breakdown in
component procedures
Frequency
Every 3 years since 2007 Yearly since 2003
Significance
Several indices of
logistics performance
Metric of broader business
regulatory environment.
Countries
155
183
Both indices provide basic input for policy-makers.
Neither are in-depth analysis.
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3. LPI Results: CIS countries
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LPI 2010 – performance varies around the world
Logistics unfriendly
Partial performers
Consistent performers
Logistics friendly
No data
Countries are improving around the world
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More than income: the “logistics gap”
With the right
investment and
policies, lower
income countries
can also be high
performers
22
Overperformers and underperformers
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LPI 2010 Ranks
TOP 10 COUNTRIES
TOP 10 COUNTRIES
TOP 10 COUNTRIES
UPPER MIDDLE INCOME
LOWER MIDDLE INCOME
LOW INCOME
Country
South Africa
Malaysia
Poland
Lebanon
Latvia
Turkey
Brazil
Lithuania
Argentina
Chile
LPI Rank
Country
LPI Rank
28
29
30
33
37
39
41
45
48
49
China
Thailand
Philippines
India
Tunisia
Honduras
Ecuador
Indonesia
Paraguay
Syrian Arab Republic
27
35
44
47
61
70
71
75
76
80
Country
Vietnam
Senegal
Uganda
Uzbekistan
Benin
Bangladesh
Congo, Dem. Rep.
Madagascar
Kyrgyz Republic
Tanzania
LPI Rank
53
58
66
68
69
79
85
88
91
95
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25 countries achieved significant improvement in LPI
25
25 countries achieved significant improvement in LPI
25 countries improved between
2007 and 2010
 LICs: Afghanistan, Chad, Haiti,
Myanmar, Niger, Tajikistan,
Tanzania, and Uzbekistan
 LMICs: China, Djibouti,
Honduras, Philippines, and
Syria
 UMICs: Brazil, Colombia,
Costa Rica, Dominican
Republic, Kazakhstan,
Lebanon, Mexico, Poland,
Russian Federation, and
Uruguay
 HICs: Saudi Arabia and the
Czech Republic
Source: Logistics performance survey data, 2010 and 2007
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South Asia
2.8
Middle East
& North
Africa
CIS
South
America
2.4
East Asia &
Pacific
2.6
Central
America
High
income:
nonOECD
High
income:
OECD
Average 2010 LPI Score
LPI Scores by Region
3.8
3.6
3.4
3.2
3.0
Upper Middle Income
Lower Middle Income
Low Income
2.2
2.0
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LPI Scores
4.0
3.8
High Income:
OECD
Average 2010 LPI Score
3.6
Logistics
unfriendly
3.4
3.2
Consistent
performers
Partial
performers
3.0
2.8
Middle East and N.Africa
CIS Avg.
2.6
2.4
Low income
2.2
2.0
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% of the highest performer
75
LPI 2010
% Highest performer 2010
% Highest Performer 2007
70
Highest performer
Germany
100%
Lowest performer
Somalia
11%
% Highest Performer
65
60
55
LPI 2007
50
45
Highest performer
Singapore
100
Lowest performer
Afghanistan
7%
Tajikistan (131)
Turkmenistan (114)
Armenia (111)
Moldova (104)
Ukraine (102)
Russian Federation
(94)
Georgia* (93)
Kyrgyz Republic (91)
CIS Country (Rank LPI 2010)
Azerbaijan (89)
Uzbekistan (68)
Kazakhstan (62)
40
29
4
High income: OECD
South America
South Asia
East Asia & Pacific
Middle East & North Africa
CIS
3.5
3
2.5
2010 Average LPI Score
Timeliness
Tracking and Tracing
Logistics Quality and
Competence
International
Shipments
Infrastructure
2
Customs
Int'l LPI Components Score (1=Very low; 5=Very high)
Performance in the 6 areas of the LPI
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Infrastructure quality
High income: OECD
South America
South Asia
90%
80%
East Asia & Pacific
Middle East & North Africa
CIS
70%
60%
50%
40%
30%
20%
10%
ICT
Warehousing
Railroad
Roads
Airports
0%
Ports
Percentage of respondents indicating Quality of
Infrastrucutre is "Low" or "Very Low"
100%
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Quality of services I
90%
80%
High income: OECD
South America
South Asia
East Asia & Pacific
Middle East & North Africa
CIS
70%
60%
50%
40%
30%
20%
10%
Railroad
Road
Air
0%
Water
Percentage of respondents indicating Quality of Services
(Transport) is "Low" or "Very Low"
100%
TRANSPORT SERVICES
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Shippers
T&T
Associations
High income: OECD
South America
South Asia
Customs
Brokers
SPS/Health
60%
Standards
70%
Customs
Freigh Fwd.
Warehousing
Percentage of respondents indicating Quality of Services
is "Low" or "Very Low"
Quality of services II
East Asia & Pacific
Middle East & North Africa
CIS
50%
40%
30%
20%
10%
0%
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High income: OECD
South America
South Asia
Bribes are
source of Delay
(Always or
nearly always)
70%
Transparent
Customs
Clearance
Process (Hardly
ever)
80%
Timely
Clearance and
Delivery of
Imports (Hardly
ever)
Percentage of respondents
Border clearance procedures /
corruption
90%
East Asia & Pacific
Middle East & North Africa
CIS
60%
50%
40%
30%
20%
10%
0%
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Corruption
Logistics
regulations
High income: OECD
South America
South Asia
Private Logistics
Svcs
80%
ICT
infrastructure
90%
T&T
infrastructure
100%
Other border
clearance
procedures
Customs
Clearance
procedures
Percentage of respondents indicating improvements since
2005
Positive trends in logistics performance since 2005
East Asia & Pacific
Middle East & North Africa
CIS
70%
60%
50%
40%
30%
20%
10%
0%
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4. Doing Business Results:
CIS Countries
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Top 30 economies on the ease of Doing Business
2009/10
1. Singapore
16. Korea, Rep.
2. Hong Kong SAR, China
17. Estonia
3. New Zealand
18. Japan
4. United Kingdom
19. Thailand
5. United States
20. Mauritius
6. Denmark
21. Malaysia
7. Canada
22. Germany
8. Norway
23. Lithuania
9. Ireland
24. Latvia
10. Australia
25. Belgium
11. Saudi Arabia
26. France
12. Georgia
27. Switzerland
13. Finland
28. Bahrain
14. Sweden
29. Israel
15. Iceland
30. Netherlands
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Eastern Europe and Central Asia is the second
best performing region in 2008/09
CIS economies:
12 Georgia
13 Kyrgyz Republic
48 Armenia
54 Azerbaijan
59 Kazakhstan
68 Belarus
89 Moldova
123 Russian Federation
139 Tajikistan
145 Ukraine
150 Uzbekistan
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Kazakhstan improved the most in the ease of
doing business in 2009/10
Economy
Kazakhstan
Dealing with
Starting a
Registering
construction
business
property
permits

Peru


Vietnam


Cape Verde

Tajikistan

Zambia

Grenada

Brunei
Darussalam

Paying
taxes

Trading
across
borders
Enforcing
contracts
Closing a
business












Hungary
Protecting
investors


Rwanda
Getting
credit






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

Worldwide the pace of reforms making business
easier remains strong: 216 in 117 economies.
Eastern Europe and Central Asia again with the most improvements in
the ease of doing business in 2009/10, followed by East Asia and
Pacific
84%
OECD high
Income
Eastern
Europe and
Central Asia
67%
61%
75%
63%
Middle East and
North Africa
47%
Latin
America and
Caribbean
South Asia
East Asia and
Pacific
59%
Sub-Saharan
Africa
Percentage of countries with at least one positive reform in 2009/10
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90% of the economies in the ECA region
improved their business environment
While 85% of economies worldwide improved
business regulation over the last 5 years.
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21 of 25 economies in Eastern Europe & Central
Asia improved business regulations this year
6 economies eased trading across borders in the region
11
9
8
6
5
5
3
Paying taxes
Starting a
business
Closing a
business
Trading
across
borders
Dealing with
construction
permits
42
Getting
credit
Protecting
investors
1
1
Enforcing
Contracts
Registering
property
33 economies reformed making it easier to trade
across borders in 2009/10
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Implementation of electronic systems most popular
trade facilitation reforms in 2009/10
List of economies that made trading easier by types of reforms
Bahrain
Belarus
Brunei
Egypt
Israel
Kazakhstan
Latvia
Lithuania
Nicaragua
Pakistan
Peru
Philippines
Swaziland
Tunisia
U.A.E
Zambia
EDI system
implementation
Armenia
Egypt
Ethiopia
Fiji
Grenada
Mali
Peru
West Bank &
Gaza
Customs
administration
Burkina
Faso
Cambodia
Kazakhstan
Montenegro
Rwanda
Spain
Document
reduction
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Angola
Bahrain
Kenya
Nicaragua
Pakistan
Saudi
Arabia
Port
procedures
Armenia
Guyana
Kazakhstan
Peru
Risk based
inspections
Time to export and import in Eastern Europe &
Central Asia: still long, but improving
Traders in the
region typically
still face delays
over twice as long
as in OECD high
income economies
 But, average time
to export and
import in the
region dropped
over the years by 5
days for exporting
and 6 days for
importing
Note: Time to trade includes the 4 processes discussed in previous slide
45
Eastern Europe and Central Asia economies also
made improvements in number of required
documents
 Traders in OECD
high income
economies require
less than 5
documents on
average to export
and import
Whereas traders in
Eastern Europe and
Central Africa still
require on average
2-3 additional
documents
46
Emphasis on trade facilitation in many developing
economies
Note: shows number of cumulative reforms easing trade across borders since DB2007 (counted
as 1 reform per reforming economy per year)
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The trade facilitation reforms impacted lower
income countries the most
2006
-2.9
days
- 4.7
days
- 4.0
days
2010
48
- 0.9
days
Peru: the economy that most eased trade in 2009/10
New EDI system
Improved risk-based inspections
 Payment deferrals of import duties and taxes
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5. Want to Learn More?
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Contact Us
The World Bank Group
International Trade Department
www.worldbank.org/trade
www.worldbank.org/tradefacilitation
www.worldbank.org/tradelogistics
www.worldbank.org/lpi
www.worldbank.org/tradestrategy
Washington Office
1818 H Street NW
Washington DC 20433
Contact: [email protected]
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Thank you. For more information:
www.doingbusiness.org
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