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What is the Logistics Performance Index? …

ConnectingtoCompete2014 Trade Logistics in the Global EconomyThe Logistics Performance index and Its IndicatorsWhat is the Logistics Performance Index? Based on a worldwide survey of global freight forwarders and express carriers, the Logistics Performance index is a benchmarking tool developed by the world bank that measures Performance along the Logistics supply chain within a country. Allowing for comparisons across 160 countries, the index can help countries identify challenges and opportunities and improve their Logistics Performance . The world bank conducts the survey every two Logistics is indispensable to integrate global value chains and reap the benefit of trade opportunities for growth and poverty reduction. The ability to connect to the global Logistics web depends on a country s infrastructure, service markets, and trade processes.

Connecting to Compete 2014 Trade Logistics in the Global Economy The Logistics Performance Index and Its Indicators Jean-François Arvis The World Bank

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Transcription of What is the Logistics Performance Index? …

1 ConnectingtoCompete2014 Trade Logistics in the Global EconomyThe Logistics Performance index and Its IndicatorsWhat is the Logistics Performance Index? Based on a worldwide survey of global freight forwarders and express carriers, the Logistics Performance index is a benchmarking tool developed by the world bank that measures Performance along the Logistics supply chain within a country. Allowing for comparisons across 160 countries, the index can help countries identify challenges and opportunities and improve their Logistics Performance . The world bank conducts the survey every two Logistics is indispensable to integrate global value chains and reap the benefit of trade opportunities for growth and poverty reduction. The ability to connect to the global Logistics web depends on a country s infrastructure, service markets, and trade processes.

2 Government and the private sector in many developing countries should improve these areas or face the large and growing costs of is the fourth edition of connecting to compete , a report summarizing the findings from the new dataset for the 2014 Logistics Performance index (LPI) and its component indicators. The 2014 LPI also provides expanded data on import and export supply chains in 123 countries, including information on time, cost, and reliability and ratings on domestic infrastructure quality, the Performance of core services, and the friendliness of trade clearance procedures. The 2014 LPI and its indicators encapsulate the firsthand knowledge of movers of international trade.

3 This information is relevant for policymakers and the private sector seeking to identify priorities for reform of their soft and hard trade and Logistics infrastructure. Findings include: The gap between the best and worst performers is slowly narrowing, thanks to improvements in infrastructure and border clearance. A mature Logistics services market is distinctive of the high-performing countries. To achieve efficient border clearance, improvements are needed in customs and other control agencies. Countries that implement sound reforms tend to outperform their peers at a given development stage. A new generation of reforms tends to be more complex and span across many sectors.

4 The attention to green Logistics is growing but remains concentrated in high-income score 0 No data1 is the lowest score; 5 is the highest to compete 2014 Trade Logistics in the Global EconomyThe Logistics Performance index and Its IndicatorsJean-Fran ois Arvis The world BankDaniel Saslavsky The world BankLauri Ojala Turku School of EconomicsBen Shepherd The world BankChristina Busch The world BankAnasuya Raj The world bank 2014 The International bank for Reconstruction and Development/The world Bank1818 H Street NWWashington, DC 20433 Telephone: 202-473-1000 Internet: : rights reservedThe findings, interpretations, and conclusions expressed herein are those of the authors and do not necessarily reflect the views of the Executive Directors of the International bank for Reconstruc-tion and Development/The world bank or the governments they world bank does not guarantee the accuracy of the data included in this work.

5 The boundar-ies, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The world bank concerning the legal status of any territory or the endorse-ment or acceptance of such and PermissionsThe material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The International bank for Reconstruction and Development/The world bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center Inc.

6 , 222 Rosewood Drive, Danvers, MA 01923, USA; telephone: 978-750-8400; fax: 978-750-4470; Internet: other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The world bank , 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2422; e-mail: you have any questions or comments about this report, please contact:International Trade UnitThe world Bank1818 H Street NW, Room MC3-300, Washington, DC 20433 USAT elephone: 202-473-8922E-mail: site: , , or report was designed, edited, and typeset by Communications Development Incorporated, Washington, DC. connecting TO compete 2014 TRADE Logistics IN THE GLOBAL ECONOMY iiiForewordThis is the fourth edition of connecting to Com-pete: Trade Logistics in the Global Economy.

7 It features the Logistics Performance index (LPI), which the world bank has produced every two years since 2007. The LPI measures the on-the-ground efficiency of trade supply chains, or Logistics Performance . This year s edition covers 16 0 chains are the backbone of inter-national trade and commerce. Their Logistics encompasses freight transportation, warehous-ing, border clearance, payment systems, and in-creasingly many other functions outsourced by producers and merchants to dedicated service providers. The importance of good Logistics per-formance for economic growth, diversification, and poverty reduction is now firmly Logistics is performed mainly by private operators, it has become a public policy concern of national governments and regional and international organizations.

8 Supply chains are a complex sequence of coordinated activities. The Performance of the whole depends on such government interventions as infrastructure, lo-gistics services provision, and cross-border trade the first edition, the LPI has shown that good policies matter to develop efficient supply chains but also that many developing countries still lag behind. The Logistics gap ev-ident in the first three editions still prevails and underscores the importance of consistent poli-cies across sectors (trade, customs, and transpor-tation, for instance). The agenda and priorities are evolving. The imperative of facilitating trade through more transparent and consistent border clearance is now universally recognized and set in stone in December 2013 s world Trade Organization Agreement on Trade Facilitation in Bali, Indonesia.

9 New challenges of environ-mental sustainability, spatial planning, and the regulation and organization of services are re-ceiving more attention, and not only in rich and emerging LPI and its components help countries understand the challenges that they and their trading partners face in making their national Logistics perform strongly. The LPI comple-ments, rather than substitutes for, the in-depth country assessments that many countries have undertaken in recent years, and many of them with world bank support. The LPI scores are not to be overemphasized, however a coun-try s actual ranking or score should not be in-terpreted in isolation, but instead whether it ranks among the best or worst performers. The LPI allows leaders in government, business, and civil society to better assess the competi-tive advantage created by good Logistics and to understand the relative importance of different interventions.

10 We hope that this fourth edition of connecting to compete will continue to sup-port this broad community of policymakers and D. LewisDirector, Economic Policy, Debt and Trade DepartmentPoverty Reduction and Economic Management Network (PR EM)The world bank GroupJose Luis IrigoyenDirector for the Transport, Water, Information and Communications Technologies, and Infrastructure Finance DepartmentSustainable Development Network (SDN)The world bank Group iv connecting TO compete 2014 TRADE Logistics IN THE GLOBAL ECONOMYThis report was prepared by the world bank s Economic Policy, Debt, and Trade Depart-ment, under the guidance of Jeffrey D. Lewis (Director) and Mona Haddad (Sector Man-ager). The project leaders and main authors were Jean-Fran ois Arvis (jarvis1@ ) and Daniel Saslavsky (dsaslavsky@ ).


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