Connecting Landlocked Developing Countries to Markets Trade Corridors in the 21st Century

by Arvis, Jean-Francois; Smith, Graham; Carruthers, Robin

• ISBN13: 9780821384169
• ISBN10: 0821384163
• Format: Paperback
• Copyright: 2011-04-01
• Publisher: World Bank Publications

Summary

This book aims to help the policymaker and development community in general to understand the nature of the problems and policy dilemmas that landlocked countries face to trade with the rest of the World. This volume presents an important breakthrough in the literature, by focusing on a new conceptual framework that challenges the previous paradigm based on physical infrastructure and state-led access solutions, embodied in many treaties. By recognizing that the main access problems for landlocked countries occur in the territory of the transit country, this volume provides a new approach to understand the set of incentives that drive the political economy and shape the institutions governing goods#xE2;#xAC;" transit along corridors. Overall, the policy levers available to overcome these barriers are based on universally applied principles, recognizing the need for re-engineering current transit regimes which have been implemented with little success outside Europe. A risk-approach to border control and technology use, along with trust building between private operators and public agencies, all point toward the need to encourage and formally recognize higher-quality trucking companies. Meanwhile, other modes of transportation represent an alternative to road transit, but they also entail disadvantages, suggesting that their role is likely to remain limited to niche segments, specific commodities and exceptional market circumstances.

Table of Contents

Foreword	p. xiii
Foreword	p. xv
Acknowledgments	p. xvii
About the Authors	p. xix
Abbreviations	p. xxi
Landlocked Developing Countries and Trade Corridors: An Overview	p. 1
A Renewed Development Priority	p. 2
Transit Neighbors and Trade Corridors	p. 4
A New Conceptual Framework: Transit Systems and Corridor Performance	p. 7
Structure of This Volume	p. 9
Notes	p. 11
References	p. 11
The LLDC Access Problem and the Performance of Trade Corridors	p. 13
Economic Potential of LLDCs	p. 14
The Corridor Supply Chain and Its Bottlenecks	p. 17
Unreliability of LLDC Corridors Carries a High Cost	p. 21
Market Structure and Competition in Logistics Services	p. 24
Unnecessary Overhead and Informal Payments	p. 27
Investing in Infrastructure: Does It Actually Promote Trade?	p. 27
Supply Chain Linkages: Exports vs. Imports, Extra- vs. Intra-regional Trade	p. 30
Notes	p. 31
References	p. 31
The Complex Political Economy of Trade Corridors	p. 33
LLDC Relationship with the Transit Country: Beyond Dependence	p. 34
Transit Corridors: A History of Public-Private Partnership with Mutual Benefits	p. 45
How LLDC Traffic Benefits Transit Countries	p. 48
Landlocked Countries Aspire to a Transit Role	p. 50
Transit Systems: From Vicious to Virtuous Cycles	p. 52
Note	p. 55
References	p. 55
Moving Goods on Corridors: Transit Regimes	p. 57
Role of the Transit Regime	p. 58
The Basics of Transit	p. 59
Key Concepts and Practices in Transit	p. 62
Regionally Integrated Transit and Carnet Systems	p. 65
Global Standards and International Legal Agreements Relevant to Transit	p. 73
Conclusions	p. 77
Notes	p. 77
References	p. 77
Improving Transit Regimes and International Cooperation	p. 79
Implementing Transit Regimes in Developing Regions	p. 79
Integration of Transit: An Unreached Goal	p. 84
Too Many Legal Instruments?	p. 87
Reengineering the Transit Regime: A Priority for LLDC Corridors	p. 88
Pilot Transit Regime Improvement Program: The Douala Corridor	p. 92
Technology Helps Manage Transit Trade	p. 94
Conclusions: Progress Toward Global Standards	p. 96
Notes	p. 97
References	p. 98
Improving Road Freight Transport	p. 99
Importance of Road Transport in Transit Countries	p. 100
Structure of Road Freight Industries	p. 102
Contracting Between Clients and Trucking Companies	p. 106
Procedures for Movement of Trucks and Drivers Across Borders	p. 107
Quota Systems and Bilateral Transit Agreements	p. 109
Facilitating Truck Movement Through Transit Countries	p. 114
Recommendations	p. 118
Notes	p. 120
References	p. 120
Alternative Transport Modes and the Role of Logistics Intermediaries	p. 123
Rail Transport: Underused Potential	p. 125
A Regional Perspective on Railway Services to LLDCs	p. 130
Air Freight: A Niche Market for LLDCs	p. 139
An Overview of Inland Waterway Transport	p. 143
Development of Logistics Services	p. 149
Recommendations	p. 156
Notes	p. 158
References	p. 159
Managing Trade Corridors	p. 161
Four Corridor Management Model	p. 162
Efficicent Corridor Management	p. 165
Monitoring the Performance of Trade Corridors	p. 170
Total Logistics Costs on a Transit Corridor	p. 174
Designing the Monitoring System for Corridor Performance	p. 175
Corridor Monitoring in Practice: Observatories in Africa	p. 178
Conclusions	p. 180
Notes	p. 180
References	p. 181
Bringing Together the Solutions	p. 183
Building Trust	p. 185
Making Transportation and Logistics Services Work for Trade	p. 185
Redefining or Improving Transit Systems	p. 186
Developing Global Initiatives to Promote Common Approaches for Redesigning Transit Regimes and Monitoring Trade Corridor Performance	p. 188
Note	p. 188
Landlocked Developing Countries (LLDCs), Their Transit Neighbors, and Main Trade Corridors, by Region	p. 189
Assessment and Policy Recommendations by Region	p. 199
Eastern and Southern Africa	p. 200
Western and Central Africa	p. 204
Latin America	p. 209
Central Asia	p. 213
South Asia	p. 21608
Other LLDCS: Armenia, Lao PDR, FYR Macedonia, and Moldova	p. 220
Overview of the Policy Recommendations: Impact and Ease of Implementation	p. 225
Trade Growth and Logistics Performance: LLDCs and Transit Neighbors	p. 229
References	p. 235
Survey Findings on LLDC Logistics Performance	p. 237
Global Enabling Trade Report 2010	p. 237
Connecting to Compete: The Logistics Performance Index (LPI) 2010	p. 239
Doing Business in Landlocked Economies 2009	p. 240
Comparing the Experience of Countries by Region	p. 240
The Penalties by Region of Being Landlocked	p. 241
Notes	p. 245
References	p. 245
Measuring Transit Corridor Performance Parameters	p. 247
Locations at Which Measurements Will be Made	p. 248
The Products and Their Transport Unit and Transport Route	p. 249
The Cost and Replicability of Making the Measurements	p. 250
Note	p. 251
Reference	p. 251
Maps of LLDCs and Transit Corridors, by Region	p. 253
Appendix References	p. 260
Index	p. 261
Boxes
Almaty Programme of Action (2003) Focus Areas	p. 5
Spread in Delays and Predictability of Supply Chains	p. 22
Infrastructure Investment in Africa and Asia: NEPAD and the Asian Highway Network	p. 28
Connecting Malawi to Markets: A Private Sector Choice	p. 38
Instruments for Charging Transit Traffic for Road Use	p. 49
General Requirements With Respect to Seals	p. 62
Legal Instruments Governing Transit Regimes	p. 74
India-Nepal Bilateral Transit Agreement	p. 89
Authorized Economic Operators (AEOs)	p. 90
Impact of Information Technology: Streamlining Transit Information at Beitbridge	p. 95
IRU Training Courses	p. 104
UNECE Resolution R.E. 4	p. 110
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