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 (

2000 Millennium Development Goals Poverty targets to be reached in most regions, but… Percent of population living below $1 /day

5 World trade trends: developing countries are exporting more manufactures… Manufacturing exports (%) Resources exports (%) Agricultural exports (%) Composition of exports: Middle- income countries Low- income countries Resources exports (%) Agricultural exports (%) Manufacturing exports (%)

6 Facilitating trade in less efficient countries would bring significant gains 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.

7 Reducing Trading Cost in new Era of Security Security measures may drive up costs (delays, spoilage, investments..) Security measures may drive up costs (delays, spoilage, investments..) Cost/benefit assessment needed Cost/benefit assessment needed Needs to be combined with streamlined procedures/advance data transfer Needs to be combined with streamlined procedures/advance data transfer Difficult for developing countries (flexibility) Difficult for developing countries (flexibility)

8 GEP Conclusions A coordinated approach is required A coordinated approach is required  Across modes/supply chain (WCO/UNECE)  Across countries  Between public and private partners (STAR, BASC, CTPAT) Share information on activities to cut duplication Share information on activities to cut duplication Share costs to ensure long term approach Share costs to ensure long term approach More technical assistance required More technical assistance required Definition of high-risk areas (least trade distortion/max benefits) Definition of high-risk areas (least trade distortion/max benefits)

9 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

10 Trade Facilitation and Competitiveness Economic Benefits of Trade Facilitation Logistics Costs and Export Earnings: Geography, Competitiveness and Poverty Facilitation Performance and Competitiveness Index

11 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

12 Border Crossing Management Single Window Environment Adjacent Border Posts Border Monitoring Systems/Integrated Border Management Inland Clearance Facilities

13 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

14 Multimodal Transport Legal Aspects Regulatory Framework Liability Regime of MTO Implementation/Amendments of/to MTO Regimes Infrastructure

15 Transport Security Implications 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

16 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

17 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

18 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

19 Example Honduras 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

20 Example Eastern 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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23 The GFP Approach u u Facilitation Audit u u Measurement: Facilitation Indicators u u Customs: Efficiency/Performance u u Education and Training: dli.orgwww.gfp- dli.org