Transcript Logistics Constraints and Investment Climate

Logistics Constraints and
Investment Climate
Uma Subramanian
Senior Economist
Investment Climate Unit
Private Sector Department
June 10, 2003
Investment Climate Assessments: Objectives
• Identify features that matter most for growth and
productivity
• Benchmark performance relative to peers around the world
• Highlight action to improve business climate
• Promote informed dialogue to forge consensus on reform
priorities
• Track changes over time to gauge impact of reforms
Approaches
• Investment Climate Assessments
• Doing Business database and Indicators
• Diagnostics
ICA
• A standard core survey instrument linking
constraints to firm-level productivity.
• Quantitative questions in terms of dollars
and days
• Standardized sampling and implementation
across countries.
• Additional special modules
Kyrgyz Rep.
Moldova
Poland
Serbia (FRY)
Tajikistan
Uzbekistan
Algeria
Morocco 
Syria
Cambodia
China 
Indonesia
Malaysia
Philippines
Thailand
Investment Climate Assessments:
Country Reports
Bolivia 
Brazil
Ecuador
Honduras
Nicaragua
Peru
Venezuela
Eritrea 
Ethiopia 
Kenya
Mozambique 
Nigeria
Tanzania
Uganda
Zambia
Bangladesh 
Bhutan 
India 
Nepal 
Pakistan 
Sri Lanka
Entry Regulations Indicators - measure the procedures, time,
cost and minimum capital requirements to register a business
formally
Cost (% of GNI
per capita)
Min. Capital (%
of GNI per
capita)
62
62.5%
63.80%
18
29
35.7%
81.80%
Argentina
14
63
10.6%
41.00%
Arm enia
11
79
11.8%
17.20%
Australia
2
6
1.8%
0.00%
Austria
9
30
17.5%
128.80%
Azerbaijan
15
104
20.8%
0.00%
Bangladesh
7
30
77.6%
0.00%
Number of
Procedures
Duration
(days)
Albania
11
Algeria
Country
Global Emerging Trends
Economic liberalization
Global markets with extensive
outsourcing - rapidly changing spatial
distribution of production, supply and
demand
“Just in time” deliveries
1990
2000
90
81.49
77.89
80
67.14 65.1
70
59.82
% of GDP
60
50
49.18
52.71
46.95
40
35.62
33.37
26.14
30
22.04
20
10
0
EAP
ECA
LAC
MENA
Trade (% of GDP)
SA
AFRICA
• Ability of countries to participate in
global trends are critically dependent on
how they are able to deliver goods and
services in time and at low cost
• Knowledge of technological advances,
and adaptation of innovative approaches,
• Institutional capacity to implement
change
Logistics work under IC
Assessing Costs, Time, Variability
• Logistics Module : Firm level survey
• Diagnostics: “Plumbing” approach
• Development of indicators
% of firms evaluating constraint as "moderate" or "major"
C.Transportation G. Customs and Trade Regulations
60.00
51.00
50.00
50.00
40.24
Percentage
40.00
27.74
30.00
20.00
24.69
21.23
19.34
19.19
17.92
14.92
12.00
10.00
2.99
0.00
Turkey
Poland
Moldova
Azerbaijan
Russia
Tajikistan
Imports
Avg. days to clear customs (days)
Longest delay to clear customs (days)
18.00
16.44
16.00
13.55
14.00
12.00
Days
10.07
10.00
8.00
6.87
4.00
5.91
5.56
6.00
3.67
5.77
4.15
3.08
3.18
2.56
2.00
0.00
Turkey
Poland
Moldova
Azerbaijan
Russia
Tajikistan
Exports
Avg. days to clear customs (days)
Longest delay to clear customs (days)
18.00
16.63
16.26
16.00
14.00
12.00
Days
9.91
10.00
8.49
8.00
5.18
6.00
4.00
3.04
1.94
2.42
1.96
2.78
3.33
1.96
2.00
0.00
Turkey
Poland
Moldova
Azerbaijan
Russia
Tajikistan
Case : High Value Exports from
Landlocked Country to Europe
CONSIGNMENT ATTRIBUTES
Commodity Type
Shipment Size
Origin
Destination
Via
Shipment Value
Carpet
1 TEU
Kathmandu, Nepal
Munich, Germany
Bremen Port, Germany
$90,000.00
ROUTE 3-1 ATTRIBUTES
ROUTE 3-2 ATTRIBUTES
Kathmandu-Birgunj/RaxaulCalcutta Port-Bremen
Kathmandu-BhairawaNautanwa-Moradabad-Mumbai
(JNPT)-Bremen
TRANSPORT & HANDLING
Cost
Hours
Cost
Hours
Inland Transport
$480.00
117
$740.00
88
Cargo Handling
$260.00
74
$462.67
155
Ocean freight
$1,200.00
528
$750.00
336
Cargo Transfer
Cost
$261.00
Time
164
Cost
$125.00
Time
37
Customs Inspection
$405.00
20
$202.33
7
CROSS BORDER PROCESSING
TRADE RELATED LOGISTICS
Time Cost of Goods
Cost
$1,252.45
Cost
$864.09
Insurance or Pilferage &
Damage
$675.00
$675.00
Documentation &
Forwarding
$450.00
$450.00
Bank Processing for L/C
$360.00
$360.00
LOGISTICS COSTS
LOGISTICS TIME
$5,343
903
$4,629
623