1. What is the LPI?1. What is the LPI?

3. Main Findings and their Application3. Main Findings and their Application

4. LPI Survey 2008 and Beyond4. LPI Survey 2008 and Beyond

2. Implementation of the Survey2. Implementation of the Survey

Trade logistics is playing an increasingly Trade logistics is playing an increasingly important role important role

The LPI provides the most comprehensive The LPI provides the most comprehensive data on country performancedata on country performance

Logistics Performance Index Logistics Performance Index (LPI)(LPI)

and its indicatorsand its indicators

Unique and consistent resource for: policy Unique and consistent resource for: policy makers, reformers, and the trade facilitation makers, reformers, and the trade facilitation constituencyconstituency

InfrastructureInfrastructure

Customs and border processingCustoms and border processing

Logistics competence of local service Logistics competence of local service providersproviders

Domestic costsDomestic costs

TimelinessTimeliness

Tracking and TracingTracking and Tracing

Ease of arranging international shipmentsEase of arranging international shipments

Unique dataset to measure country performance across several dimensions of logistics:

World’s largest World’s largest freight forwardingfreight forwarding and and express carriersexpress carriers companies, and companies, and several several national/regional national/regional associations were associations were surveyed through a surveyed through a web-based web-based questionnairequestionnaire

Global Facilitation PartnershipThe GFP is instrumental in the

dissemination strategy

Global Facilitation PartnershipThe GFP is instrumental in the

dissemination strategy

World Bank

TSE

FIATAGlobal

Express

Other global

partners

Partnership with the private sectorPartnership with the private sector

Innovative methodologyInnovative methodologyAssessments from professionals outside the country, trading with Assessments from professionals outside the country, trading with itit

Assessment of domestic business environmentAssessment of domestic business environment

Numerical information (time and cost data)Numerical information (time and cost data)

Questionnaire designed with input from logistics professionalsQuestionnaire designed with input from logistics professionals

Primary data gathered for Primary data gathered for 150 countries150 countries

LPI Built upon 5500 country assessmentsLPI Built upon 5500 country assessments

www.worldbank.org/lpiwww.worldbank.org/lpi

Overall synthetic index Overall synthetic index (LPI) on a 1-5 scale, (LPI) on a 1-5 scale, Ranking and componentRanking and component

Logistics Business Logistics Business environmentenvironment

Numerical dataNumerical data

Available as:Available as: Rankings, Maps, Rankings, Maps, scorecardsscorecards

World MapWorld Map provides a color-coded map for the global view of the LPI index and the seven provides a color-coded map for the global view of the LPI index and the seven key dimensionskey dimensions

LPI RankingLPI Ranking presents performance scores of all countries on the LPI index, as well as on presents performance scores of all countries on the LPI index, as well as on the seven key dimensions, in a sortable table format the seven key dimensions, in a sortable table format

CountryCountryLPI LPI

RankRank ScoreScore

South AfricaSouth Africa 2424 3.533.53MalaysiaMalaysia 2727 3.483.48ChileChile 3232 3.253.25TurkeyTurkey 3434 3.153.15HungaryHungary 3535 3.153.15Czech RepublicCzech Republic 3838 3.133.13PolandPoland 4040 3.043.04LatviaLatvia 4242 3.023.02ArgentinaArgentina 4545 2.982.98EstoniaEstonia 4747 2.952.95

TOP 10 COUNTRIESTOP 10 COUNTRIES

LOWER MIDDLE LOWER MIDDLE INCOMEINCOME

CountryCountryLPILPI

RankRank ScoreScore

ChinaChina 3030 3.323.32ThailandThailand 3131 3.313.31IndonesiaIndonesia 4343 3.013.01JordanJordan 5252 2.892.89BulgariaBulgaria 5555 2.872.87PeruPeru 5959 2.772.77TunisiaTunisia 6060 2.762.76BrazilBrazil 6161 2.752.75PhilippinesPhilippines 6565 2.692.69El SalvadorEl Salvador 6666 2.662.66

TOP 10 COUNTRIESTOP 10 COUNTRIES

LOW INCOMELOW INCOME

CountryCountryLPILPI

RankRank ScoreScore

IndiaIndia 3939 3.073.07VietnamVietnam 5353 2.892.89Sao Tome and PrincipeSao Tome and Principe 5757 2.862.86GuineaGuinea 6262 2.712.71SudanSudan 6464 2.712.71MauritaniaMauritania 6767 2.632.63PakistanPakistan 6868 2.622.62KenyaKenya 7676 2.522.52Gambia, TheGambia, The 7777 2.522.52CambodiaCambodia 8181 2.502.50

TOP 10 COUNTRIESTOP 10 COUNTRIES

UPPER MIDDLE UPPER MIDDLE INCOMEINCOME

The LPI, on a 1 (worst) to 5 (best) scale) is aggregated by standard techniques (PCA)

LPI ScoresLPI ScoresLPI ScoresLPI Scores

Consistency & RobustnessConsistency & Robustness

LPI consistent with intuitive knowledge of LPI consistent with intuitive knowledge of country performance, very specific country performance, very specific rankingranking

Homogeneous respondent populationHomogeneous respondent population The LPI, on a 1 (worst) to 5 (best) scale) The LPI, on a 1 (worst) to 5 (best) scale)

is aggregated by standard techniques is aggregated by standard techniques (PCA), so as to reduce noise,(PCA), so as to reduce noise,

Confidence interval (+/- 10 %) provided, on Confidence interval (+/- 10 %) provided, on average 8 places in the ranking. average 8 places in the ranking.

Numerical OutcomesNumerical Outcomes

0 2 4 6 8 10 12 14

East Asia and Pacific

Europe and Central Asia

Latin America and the Caribbean

Middle East and North Africa

South Asia

Africa

OECD

days

Lead time exportLead time import

LPI scores for South AsiaLPI scores for South Asia

LPI – Seven Areas of LPI – Seven Areas of PerformancePerformance

CountryCountry LPILPI CustomCustomss

InfrastruInfrastructurecture

InternatiInternational onal

shipmenshipmentsts

LogisticLogistics s

competcompetenceence

TrackiTracking & ng & tracintracin

gg

DomestDomestic ic

logisticlogistics costss costs

TimelinTimelinessess

IndiaIndia

3.03.077 2.692.69 2.92.9 3.083.08 3.273.27 3.033.03 3.083.08 3.473.47

PakistanPakistan

2.62.622 2.412.41 2.372.37 2.722.72 2.712.71 2.572.57 2.862.86 2.932.93

BangladesBangladeshh

2.42.477 22 2.292.29 2.462.46 2.332.33 2.462.46 3.083.08 3.333.33

Sri LankaSri Lanka 2.42.4 2.252.25 2.132.13 2.312.31 2.452.45 2.582.58 3.083.08 2.692.69

BhutanBhutan

2.12.166 1.951.95 1.951.95 2.062.06 2.182.18 2.272.27 3.363.36 2.572.57

NepalNepal

2.12.144 1.831.83 1.771.77 2.092.09 2.082.08 2.332.33 3.253.25 2.752.75

AfghanistAfghanistanan

1.21.211 1.31.3 1.11.1 1.221.22 1.251.25 11 3.133.13 1.381.38

1.1

1.1

1.4

1.8

2.4

2.4

3.8

4.1

0.0 2.0 4.0 6.0

Singapore

United States

Nepal

Sri Lanka

Pakistan

India

Afghanistan

Bangladesh

Time takenbetween thesubmission of anaccepted Customsdeclaration andCustoms clearance

Time to Import / ExportTime to Import / Export

Performance of selected Performance of selected low income countrieslow income countries

Coordination of border crossing Coordination of border crossing government agenciesgovernment agencies

13%

13%

12%

11%

10%

3%

0% 5% 10% 15%

Europe & Central Asia

Latin America & Caribbean

Sub-Saharan Africa

East Asia & Pacific

Middle East & North Africa

South Asia

Data averages

Key FindingsKey Findings

Perceptions matter, professionals views are Perceptions matter, professionals views are significantsignificant

Performance depends upon infrastructure, border Performance depends upon infrastructure, border processes, and quality of services - areas where processes, and quality of services - areas where significant gaps are observed butsignificant gaps are observed but

… … the level of service (the level of service (predictability, reliabilitypredictability, reliability) ) ultimately matters most for traders and depends ultimately matters most for traders and depends upon the weakest link in the supply chainupon the weakest link in the supply chain

Private sector services as well as publicPrivate sector services as well as public

More than income level

LPI strongly associated with competitiveness LPI strongly associated with competitiveness outcomes: growth, trade expansion and outcomes: growth, trade expansion and diversification of exportsdiversification of exports

More than income: the “logistics More than income: the “logistics gap”gap”

0%

20%

40%

60%

80%

100%

Highincome:OECD

Highincome:

nonOECD

Uppermiddleincome

Low ermiddleincome

Low income

Dis

trib

uti

on

of

Co

un

trie

s

Q1 highest performance

Q2 high perfomance

Q3 average performance

Q4 low performance

Q5 w orst performance

China andChina and

ThailandThailand

IndiaIndia

Key Policy ImplicationsKey Policy ImplicationsExpand the traditional agendaExpand the traditional agendainfrastructure and customs IT, to areas such as infrastructure and customs IT, to areas such as logistics services or border agencies coordinationlogistics services or border agencies coordination

Synergies and comprehensiveness of reformsSynergies and comprehensiveness of reforms

Cross-cutting reforms supported by broad Cross-cutting reforms supported by broad cconstituenciesonstituenciesexporters, service operators, public agenciesexporters, service operators, public agencies

Typology and rankingsTypology and rankingscapacity to initiate a virtuous circle of performance capacity to initiate a virtuous circle of performance improvementimprovement

New thinking needed to address the case of the New thinking needed to address the case of the most severely constrained countries (e.g. LLDCs)most severely constrained countries (e.g. LLDCs)

Landlocked countriesLandlocked countries

LPI LDC Rank LPI coastal

High income 3.87 13 3.65

Europe & Central Asia 2.45 89 2.71

East Asia & Pacific 2.17 125 2.66

Latin America & Caribbean

2.44 89 2.58

Sub-Saharan Africa 2.23 121 2.40

South AsiaSouth Asia 1.841.84 147147 2.642.64

Afghanistan 1.21 150

Nepal 2.14 130

Bhutan 2.16 128

The Regional trade facilitation The Regional trade facilitation agendaagenda

LPI survey focused primarily on global LPI survey focused primarily on global connections connections Next surveys will gather more data on regional Next surveys will gather more data on regional

facilitation issuesfacilitation issues However, LPI survey confirms that the However, LPI survey confirms that the

region is lagging in areas directly region is lagging in areas directly dependent on the level of integration:dependent on the level of integration: Logistics of landlocked countries depending on Logistics of landlocked countries depending on

regional arrangementsregional arrangements Issue of coordination between border agenciesIssue of coordination between border agencies

Further evidence in specific regional work: Further evidence in specific regional work: systematic trans-shipment at the border, systematic trans-shipment at the border, weak transport services, absence of transit weak transport services, absence of transit regime…regime…

What is next?What is next?

The World Bank and its partners plan to The World Bank and its partners plan to replicate the survey (Mid Nov-Mid Jan)replicate the survey (Mid Nov-Mid Jan)

Improved and more friendly questionnaireImproved and more friendly questionnaire Increase the number of respondentsIncrease the number of respondents Involve additional sponsoring organizations, Involve additional sponsoring organizations,

including national associationsincluding national associations

Global launch of the LPI Nov 5Nov 5

www.worldbank.org/lpi

Why have South Asian countries performed poorly Why have South Asian countries performed poorly on trade logistics?on trade logistics?

What can be done to improve trade logistics?What can be done to improve trade logistics?

Are trade logistics for intra-regional trade more Are trade logistics for intra-regional trade more restrictive compared to global trade? Is there a role restrictive compared to global trade? Is there a role for regional cooperation to improve trade logistics?for regional cooperation to improve trade logistics?

DISCUSSIONDISCUSSION