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Wednesday, November 7, 2007

World Bank Sees Big Gains From Easing Trade Flows

“Reducing the cost of moving goods across borders could boost the incomes of developing countries more than a new world trade pact that cuts tariffs and agricultural subsidies, World Bank officials said Monday.

‘The bottom line is logistics can make you or break you as a country in today's globalized and just-in-time world,’ Uri Dadush, World Bank Development Prospect Groups Director, said at a briefing to discuss the Bank's first survey of how efficiently countries move goods.

World Bank researchers asked more than 800 logistics professionals to assess the performance of 150 countries in areas such as custom procedures, quality of infrastructure, ability to track and trace shipments and delivery timelines. …The study showed a country's supply chain is only as strong as its weakest link, said Danny Leipziger, World Bank Vice President for Poverty Reduction and Economic Management. …”
AP adds that “Singapore, a major global and logistics hub, ranked first in …Connecting to Compete: Trade Logistics in the Global Economy, a study based on a world survey of freight forwarders and express carriers, [that] indicates that making it easier to connect firms, suppliers and consumers is crucial in a world where predictability and reliability are becoming more important than costs, the Bank said. …

Among the seven most industrialized nations in the survey, Germany was third, Japan sixth, Britain ninth, Canada 10th, the United States 14th , France 18th and Italy 22nd out of a total of 150 countries covered. The Bank said there are also significant differences among developing countries with similar incomes. …Another finding of the survey is that developing countries where trade has been made central to their economy perform better than others with similar incomes. …”

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