World Bank’s Activities in

Trade Logistics and Security

November 13, 2003

Gerald Ollivier

Transport Specialist

The World Bank

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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

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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

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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…

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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

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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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WWW.GFPTT.ORG

A new GFP/UNTF web tool to : Share agendas of common interest

Pool resources and expertise

Share knowledge and ideas

Act together accordingly

Please visit and register. It’s ready to receive your content!

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The GFP Approach

Facilitation Audit

Measurement: Facilitation Indicators

Customs: Efficiency/Performance

Education and Training: www.gfp-dli.org