WORLD BANK GROUP. Monitoring the Effectiveness of AFT: Focus on Trade Facilitation. Outline

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1 WORLD BANK GROUP Monitoring the Effectiveness of AFT: Focus on Trade Facilitation Dominique Njinkeu Lead Trade Facilitation Specialist INTERNATIONAL TRADE DEPARTMENT January 26, 2010 Outline Preliminary remarks: data collection, purpose Project specific data collection: case of corridor monitoring Overall performance measurement: case of the LPI 1

2 I. Corridor :definition In the context of regional integration, a corridor is a set of transport infrastructures and services supporting an international trade route Generally, there is a port as gateway at one end, and a landlocked country at the other end I. Corridor: Port statistics Need for a global picture of trade flows for proper planning of development of ports. Inadequate data capture: from manual to electronic data capture in ports. Limited use of data prepared Limited information on performances and competition of ports 2

3 I: Corridor : Trade flows Trade flows are generally mixed, implying various levels of issues: Domestic Regional (intra-west Africa) Transit Overseas trade Landlocked Country Transit trade Domestic trade Port crossing Coastal Country Overseas trade Regional trade Border (land and/or port crossing involved Sea I. Corridor: Performance indicators Transit time (port dwell time, land transport time, country transit time) Traffic flows (transit volumes, regional volumes, daily border crossings) Delays (border crossing delays, terminal delays at port and at inland destination, control checkpoints, weighbridges) Operator efficiency (port handling productivity, annual distance per truck, etc ) Tariffs (prices, cost factors) 3

4 I. Corridor: institutional arrangment Forward Present organisation: Regional level REC (ECOWAS, UEMOA) Regional corridor committee National National Facilitation Committees National Corridor Committees Dakar Corridor Cotonou Corridor Tema Corridor Lome Corridor Abidjan Corridor Regional level How to tackle problems along a specific corridor, which by nature is spanning over several countries? Country A Country E Country B Country D Country C II. Logistics Performance Index Trade logistics increasingly determines competitiveness of firms on markets Link with trade and growth outcome: For countries at same level of per capita income, those with best logistics have better performance: 1% more GDP, 2% more trade Increasing logistics performance in low income countries to the middle-income average could boost trade by 15% The LPI provides most comprehensive data on country performance 4

5 II. LPI: six dimensions Efficiency of the clearance process Quality of trade and transport infrastructure Ease of arranging competitively priced shipments Logistics competence and quality of logistics services Tracking and tracing Timeliness II: LPI Questionnaire Structure International LPI Evaluate 8 overseas markets Domestic LPI Evaluate own country of work General module International Qualitative Performance Domestic Qualitative Performance Domestic Quantitative Performance The survey uses an anonymous, web-based questionnaire asking respondents to evaluate their country of work and eight overseas markets on several logistics dimensions. 5

6 II: LPI: Assessing impact Policy measures may have different outcomes as measured against the six LPI dimensions customs infra services timeliness affordable tracking Services liberalization PPP infra Physical infra Authorized operators Transit regime Single windows Border facilities (OSBP) Concluding remarks Data collected is crucial Project-specific and global performance Empower local stakeholders for data collection and utilization: Tracking/documenting implementation Create the institutional framework for using data collected to engineer changes 6

7 Contact Us The World Bank Group International Trade Department Web site with data See also: Contact: 7