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World Bank’s Activities in
Trade Logistics and Security
November 13, 2003
Gerald Ollivier
Transport Specialist
The World Bank
2
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
3
Outline
Global Economic Prospect Chapter: Reducing Trading Costs in a New Era of Security
Trade Logistics Activities Selected TF/Security projects Coordination through Global Facilitation
Partnership (www.gfptt.org)
0
10
20
30
40
50
East Asia South Asia EasternEurope &
Central Asia
Sub-SaharanAfrica
Latin America& Caribbean
Middle East& NorthAfrica
2000 Forecast 2015 MDG 2015
2000
Millennium Development Goals
Poverty targets to be reached in most regions, but…
Percent of population living below $1 /dayPercent of population living below $1 /day
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World trade trends: developing countries are exporting more manufactures…
0
10
20
30
40
50
60
70
80
90
1981 1982 1982 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Manufacturing exports (%)
Resources exports (%)
Agricultural exports (%)
Composition of exports: 1981-2001
Middle- income countries
0
10
20
30
40
50
60
70
80
90
1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Low- income countries
Resources exports (%)
Agricultural exports (%)
Manufacturing exports (%)
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Facilitating trade in less efficient countries would bring significant gains
Source: Calculations based on table 4 in Wilson, Mann, Source: Calculations based on table 4 in Wilson, Mann, and Otsuki, “Trade Facilitation and Capacity Building: Global Perspective,” 2003, mimeo.and Otsuki, “Trade Facilitation and Capacity Building: Global Perspective,” 2003, mimeo.
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Reducing Trading Cost in new Era of Security
Security measures may drive up costs (delays, Security measures may drive up costs (delays, spoilage, investments..)spoilage, investments..)
Cost/benefit assessment neededCost/benefit assessment needed
Needs to be combined with streamlined Needs to be combined with streamlined procedures/advance data transferprocedures/advance data transfer
Difficult for developing countries (flexibility)Difficult for developing countries (flexibility)
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GEP ConclusionsGEP Conclusions
A coordinated approach is requiredA coordinated approach is required
Across modes/supply chain (WCO/UNECE)Across modes/supply chain (WCO/UNECE)
Across countriesAcross countries
Between public and private partners (STAR, BASC, CTPAT)Between public and private partners (STAR, BASC, CTPAT)
Share information on activities to cut duplicationShare information on activities to cut duplication
Share costs to ensure long term approachShare costs to ensure long term approach
More technical assistance requiredMore technical assistance required
Definition of high-risk areas (least trade distortion/max Definition of high-risk areas (least trade distortion/max benefits) benefits)
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The Trade Logistics Agenda
Trade Facilitation and Competitiveness Transit Logistics/Ports/Airports Border Crossing and Clearance
Management Customs Reform Multimodal Transport Transport Security in all of the above
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Trade Facilitation and Competitiveness
Economic Benefits of Trade Facilitation
Logistics Costs and Export Earnings: Geography, Competitiveness and Poverty
Facilitation Performance and Competitiveness Index
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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
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Border Crossing Management
Single Window Environment
Adjacent Border Posts
Border Monitoring Systems/Integrated Border Management
Inland Clearance Facilities
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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
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Multimodal Transport
Legal Aspects Regulatory Framework Liability Regime of MTO Implementation/Amendments of/to MTO
Regimes Infrastructure
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Transport SecurityImplications of changed global environment: US Regulations: CSI, 24 hour-Rule IMO Revised Standards: ISPS Code New EU Guidelines Supply Chain Security Concept ICAO regulations and standards (airport and aviation
security)
Integrate Security with Facilitation
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FY04 Work Program
Trade Logistics Indicators Country Level Project Level
Customs Modernization Handbook (security/integrity)
Menu-Based Project Guidelines Customs Transit and Multimodal Transport Port Logistics Transport Security
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FY04 Work Program (2) LLDCs: the Almaty Programme of Actions Regional Operations
Africa: Corridor Observatories (UEMOA, ECOWAS, NCTTCA, SADC), Investment Projects (Kenya, Madagascar), TTFAs in IF Diagnostics
Middle-East North Africa: Logistics Survey (Morocco, Tunisia, Egypt, Jordan)
Europe Central Asia: CAR Logistics Survey (CIS 7), Investment Projects (Russia, Kazakhstan)
South Asia: Afghanistan TTF and Customs Project East Asia and Pacific: Indochina Logistics (Cambodia,
Laos, Vietnam) Latin America and Caribbean: CA Logistics Survey
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Potential World Bank TF & Security Projects
Projects that incorporate: Port and Facility Infrastructure
Development Equipment Advice and Procurement Training/Technical Assistance Integrity Awareness and Training Consultants to Advise Country Through
Process
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ExampleHonduras Port Security
Project
GOALS: Meet IMO Standards and Improve Overall
level of port security Retain Competitive Status of Honduran
Ports Conduct In-depth Security Review of Ports Provide Recommendations to Country Assist Country with Implementation
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ExampleEastern Caribbean Project
GOALS: In Response to Post 9/11 Concerns for
Tourism to Caribbean region Airport and Seaport Security
Enhancements Fencing/Road Improvement Security/Screening Equipment Training and Technical Assistance Project Management and Implementation
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Act together accordingly
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