WORLD BANK GROUP
November 14 2012 ISEL
Douane
Jean-François ARVIS INTERNATIONAL TRADE DEPARTMENT
LOGISTICS PERFORMANCE INDEX
CONNECTING TO COMPETE 2012
How does the World Bank help?
Border management
Improvement in border management in a broad sense:
integration of customs, product standards, tax, rules of origin, etc.
Trade Infrastructure
Improvement in the management of key trade related infrastructure, especially gateways and multimodal facilities
Logistics services
Improvement of the quality/professionalism of private logistics services, through technical/economic regulation and capacity building
Regional Regional trade facilitation including transit systems
Indicators Performance monitoring and indicators: e.g., data on time, cost, and reliability along corridors
Action plan Development and implementation of comprehensive action plan addressing all of the above
Advise governments on reforms
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FIATA
World Bank
Governments
Countries
Indicators essential for
reforms
Become more competitive Logistics providers increase level of
services as they will operate in better, faster and more reliable environments
Where does the World Bank come in?
Carry private sector voice to governments!
Advice on
reforms
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The Logistics Performance Index
www.worldbank.org/lpi
The Logistics Performance Index
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• Measures the trade
logistics efficiency of a country
• Fundamental premise:
Efficient logistics drives
economic performance
and competitiveness
The Logistics Performance Index
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• First report 2007, every 2 years
• Source of data: online survey of logistics service firms (freight forwarders, express carriers)
• Rate logistics performance for up to 8 markets on a 1-5 scale
• LPI a weighted average of scores (using principal
component analysis)
• Domestic LPI data reported by
firms for own country
Built on more than 6,000 country
assessments by over 1000 logistics professionals worldwide
Primary data gathered for 155 countries (143 for domestic LPI indicators)
69% of respondents based in developing countries;
82% have less than 250 employees
Partnership with the private sector
The Logistics Performance Index
LPI Questionnaire Structure
General module
International
QualitativePerformance
Domestic
QualitativePerformance
Domestic
QuantitativePerformance
International LPI
Evaluate 8 overseas markets
Domestic LPI
Evaluate Country of work
Country A
Country 8 Country 1 Country 2
Country 4 Country 3
Country 5
Country 6
Country 7
LPI Questionnaire Structure
General module
International
QualitativePerformance
International LPI
Evaluate 8 overseas markets
Country A
Country 8 Country 1 Country 2
Country 4 Country 3
Country 5 Country 6 Country 7
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 consignments
Timeliness of shipment delivery
Six dimensions of country performance:
LPI Results
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Good News:
All countries performing better
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With the right investment and policies, lower income countries can also be high performers
LPI score as percentage of highest LPI score by LPI quintile, 2007, 2010, and 2012
0 10 20 30 40 50 60 70 80 90 100
Bottom quintile
Fourth quintile
Third quintile
Second quintile
Top quintile
Percent
2007 2010 2012
0 2 4 6 8 10 12
Low income Lower middle income
Upper middle income
High income non-OECD
High income OECD
Percentage change
Customs Infrastructure Quality of logistics services
Percentage change in LPI scores over 2007–2012,
by LPI component and income group
LPI 2012
Countries are improving around the world
Logistics friendly
Logistics unfriendly Partial performers Consistent performers
More than income: the “logistics gap”
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0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Low income
Lower middle income
Upper middle income
High income non-OECD
High income
OECD
Percent Top quintile
Second quintile Third quintile Fourth quintile Bottom quintile
20% of LICs are in the 3
rdquintile
15% of LMICs are in the 2
nd10% of UMICs are in the 1st tier, but
another 10% are in
the bottom tier
Country LPI Rank South Africa 23
China 26
Turkey 27
Malaysia 29
Bulgaria 36
Thailand 38
Chile 39
Tunisia 41
Brazil 45
Mexico 47
TOP 10 COUNTRIES
LOWER MIDDLE INCOME
Country LPI Rank
India 46
Morocco 50
Philippines 52
Vietnam 53
Egypt, Arab Rep. 57
Indonesia 59
Yemen, Rep. 63
Ukraine 66
Pakistan 71
Guatemala 74
TOP 10 COUNTRIES LOW INCOME
Country LPI Rank
Benin 67
Malawi 73
Madagascar 84
Niger 87
Tanzania 88
Guinea-Bissau 94
Togo 97
Central African Republic 98
Cambodia 101
Zimbabwe 103
TOP 10 COUNTRIES UPPER MIDDLE INCOME
LPI Ranks
Improvements can be obtained with the right investment and engagement
0 10 20 30 40 50 60 70 80 90
Turkey Bulgaria Tunisia Morocco Vietnam Egypt Indonesia Pakistan Malawi Tanzania
% of Highest Performer 2012
% of Highest Performer 2010
% of Highest Performer 2007
LPI Questionnaire Structure
Domestic
QualitativePerformance
Domestic
QuantitativePerformance
Domestic LPI
Evaluate Country of work
Country A
Logistics environment, Core logistics processes, Institutions and Performance time and cost data:
Quality data for infrastructure, Service providers and processes Customs administration, Border procedures and time
Time/cost data for import and export transactions
Environment, Processes, Institutions, Time and Cost
Domestic logistics environement
Domestic LPI
Customs ahead of other border agencies
0%
10%
20%
30%
40%
50%
60%
70%
Logistics friendly Consistent
performers Partial performers Logistics unfriendly Customs Other border agencies
Percentage of respondents indicating the quality and competence of customs and other border agencies is high or very high
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Median import lead time and average clearance time (days), by LPI quintile
0 0,5 1 1,5 2 2,5 3 3,5 4
0 2 4 6 8 10 12
Bottom quintile (lowest performance)
Fourth quintile (low performance)
Third quintile (average performance)
Second quintile (high performance)
Top quintile (highest performance)
Lead time (port/airport) - import Lead time (land) - import
Clearance time without physical inspection Clearance time with physical inspection
Doing Business
Important initiative by the IFC (10 years)
Measure “red tape” is several areas:
starting a business, payments… one section “trading across border”
Three dimensions for each areas “number of days, cost, and number of documents”
Tries to focus on information that is
objective and not too variable (ideally
single respondent)
LPI and DB – separate but complementary
LPI DB
Source of data 3
rdcountry providers of logistics services
In-country entities with knowledge of business regulations
Concept Performance outcomes Analytic breakdown in component procedures Frequency Every 2 years, since 2007 Yearly, since 2003
Significance Several indices of performance
Metric of broader business regulatory environment Questionnaire Short online Detailed
Countries 155 183
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Both indices provide basic input for policy makers.
Neither are in-depth analysis.
Red tape affecting import and export transactions, by LPI quintile
0 0,5 1 1,5 2 2,5 3 3,5 4 4,5 5
Bottom quintile (lowest performance)
Fourth quintile (low performance)
Third quintile (average performance)
Second quintile (high performance)
Top quintile (highest performance)
No. of import agencies No. of export agencies No. of import documents No. of export documents
The Logistics Performance Index
www.worldbank.org/lpi
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