logistics constraints and investment climate
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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 - PowerPoint PPT PresentationTRANSCRIPT
Logistics Constraints and Investment Climate
Uma Subramanian
Senior Economist
Investment Climate Unit
Private Sector Department
June 10, 2003
• 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
Investment Climate Assessments: Objectives
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
Investment Climate Assessments: Country Reports
Bolivia Bolivia BrazilBrazilEcuadorEcuadorHondurasHondurasNicaraguaNicaraguaPeruPeruVenezuelaVenezuela
Eritrea Eritrea Ethiopia Ethiopia KenyaKenyaMozambique Mozambique NigeriaNigeriaTanzaniaTanzaniaUgandaUgandaZambiaZambia
Bangladesh Bangladesh Bhutan Bhutan India India Nepal Nepal Pakistan Pakistan Sri LankaSri Lanka
CambodiaCambodiaChina China IndonesiaIndonesiaMalaysiaMalaysiaPhilippinesPhilippinesThailandThailand
Kyrgyz Rep.Kyrgyz Rep.MoldovaMoldovaPolandPolandSerbia (FRY)Serbia (FRY)TajikistanTajikistanUzbekistanUzbekistan
AlgeriaAlgeriaMorocco Morocco SyriaSyria
Entry Regulations Indicators - measure the procedures, time, cost and minimum capital requirements to register a business
formally
CountryNumber of Procedures
Duration (days)
Cost (% of GNI per capita)
Min. Capital (% of GNI per
capita)
Albania 11 62 62.5% 63.80%
Algeria 18 29 35.7% 81.80%
Argentina 14 63 10.6% 41.00%
Armenia 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%
Economic liberalization
Global markets with extensive
outsourcing - rapidly changing spatial
distribution of production, supply and
demand
“Just in time” deliveries
Global Emerging Trends
49.18 46.95
26.14
67.14
22.04
52.71
77.8981.49
35.62
65.1
33.37
59.82
0
10
20
30
40
50
60
70
80
90
EAP ECA LAC MENA SA AFRICA
Trade (% of GDP)
% o
f GDP
1990 2000
• 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
Share of Exports/Sale
0.7
38.8
25.9
50.5
15.07
0.0
10.0
20.0
30.0
40.0
50.0
60.0
Algeria Bangladesh China India Pakistan
Firms evaluating constraint as "major" or "very severe" (%)
24.2
19.4
9.95
27.0325.0
41.9
21.124.46
49.11
0.0
10.0
20.0
30.0
40.0
50.0
60.0
Algeria Bangladesh China Pakistan Mozambique
Transportation Customs and trade regulations
% of firms evaluating constraint as "moderate" or "major"
19.34
14.9217.92
2.99
12.00
19.19
24.69
51.00 50.00
21.23
27.74
40.24
0.00
10.00
20.00
30.00
40.00
50.00
60.00
Turkey Poland Moldova Azerbaijan Russia Tajikistan
Perc
enta
ge
C.Transportation G. Customs and Trade Regulations
Exports
8.6 8.8
5.5 5.1
9.24
17.00
14.2 14.0
8.19.3
17.71
21.38
0.0
5.0
10.0
15.0
20.0
25.0
Algeria Bangladesh China India Pakistan Mozambique
Avg. days to clear customs Longest day to clear customs
Imports
23.2
11.77.5
10.4
17.88
11.94
50.2
23.2
12.2
21.6
31.92
18.41
0.0
10.0
20.0
30.0
40.0
50.0
60.0
Algeria Bangladesh China India Pakistan Mozambique
Avg. days to clear customs Longest day to clear customs
Imports
3.673.08 3.18
2.56
6.87
10.07
5.56 5.91 5.77
4.15
13.55
16.44
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
Turkey Poland Moldova Azerbaijan Russia Tajikistan
Days
Avg. days to clear customs (days) Longest delay to clear customs (days)
Exports
1.94 2.42 1.96 1.96
8.49
9.91
3.04
5.18
2.783.33
16.63 16.26
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
Turkey Poland Moldova Azerbaijan Russia Tajikistan
Days
Avg. days to clear customs (days) Longest delay to clear customs (days)
Case : High Value Exports from Landlocked Country to Europe
CONSIGNMENT ATTRIBUTES
Commodity Type CarpetShipment Size 1 TEUOrigin Kathmandu, NepalDestination Munich, GermanyVia Bremen Port, GermanyShipment Value $90,000.00
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
CROSS BORDER PROCESSING
Cost Time Cost TimeCargo Transfer $261.00 164 $125.00 37
Customs Inspection $405.00 20 $202.33 7
TRADE RELATED LOGISTICS
Time Cost of Goods
Insurance or Pilferage & Damage
Documentation & Forwarding
Bank Processing for L/C
LOGISTICS COSTS $5,343 $4,629LOGISTICS TIME 903 623
Kathmandu-Bhairawa-Nautanwa-Moradabad-Mumbai (JNPT)-Bremen
Cost
$360.00
ROUTE 3-2 ATTRIBUTES
$864.09
$675.00
$450.00
Kathmandu-Birgunj/Raxaul-Calcutta Port-Bremen
Cost
$360.00
ROUTE 3-1 ATTRIBUTES
$1,252.45
$675.00
$450.00