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WB: Global Trade Logistics Improving, But More Needed to Boost Recovery

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The capacity of countries to efficiently move goods and connect manufacturers and consumers with international markets is improving around the world, but much more progress is needed to spur faster economic growth and help firms benefit from trade recovery, according to a World Bank survey released on Friday.

Germany is the top performer among the 155 economies ranked in the Logistics Performance Indicators (LPI), which are included in the report Connecting to Compete 2010: Trade Logistics in the Global Economy.

The study is based on the most comprehensive world survey of international freight forwarders and express carriers.

"Economic competitiveness is relentlessly driving countries to strengthen performance, and improving trade logistics is a smart way to deliver more efficiencies, lower costs and added economic growth," said World Bank President Robert B. Zoellick, who is visiting Berlin January 13 -15 to discuss global development and economic issues.

"Streamlining the connections among markets, manufacturers, farmers and consumers offers tremendous growth and investment opportunities and should be a top focus for developing country growth strategies," said Zoellick. "As we issue this global report, I'm pleased to be in Germany, the top performer on efficient logistics."

According to the LPI, high income economies dominate the top logistics rankings, with most of them occupying important places in global and regional supply chains.

By contrast, the ten lowest performing countries are almost allfrom the low and lower income groups.

The report, composed by a team headed by World Bank Group economists Jean Francois Arvis and Monica Alina Mustra, notes that among developing economies logistics performance transcends the level of per capita income: Many countries perform better than what their income level would suggest.

The ten most significant over-performers include China (27), India (47), Uganda (66), Vietnam (53), Thailand (35), the Philippines (44), and South Africa (28).

Likewise, the countries with significant improvement in performance between the two surveys (the 2007 and 2010 LPI) are often those which implemented comprehensive logistics and trade facilitation reforms earlier, such as Colombia, Brazil, and Tunisia.

In terms of how developing countries are doing per region, South Africa (28) is the top performer from Africa; China (27) from East Asia; Poland (30) from Central and Eastern Europe; Brazil (41) from Latin America; Lebanon (33) from the Middle East; and India (47) from South Asia.

(Xinhua News Agency January 16, 2009)

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