Connecting Landlocked Developing Countries to Markets

Jean-Francois Arvis

Description

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' 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.

Sujets

• Landlocked country
• Trade facilitation

Informations

• Publié par: world-bank-publications
• Publié le: 01 avril 2011
• Nombre de lectures: 21
• EAN13: 9780821384176
• Langue: English
• Poids de l'ouvrage: 1 Mo

Extrait

DIRECTIONS IN DEVELOPMENT
Trade
Connecting Landlocked
Developing Countries to Markets
Trade Corridors in the 21st Century
Jean-François Arvis
Robin Carruthers
Graham Smith
Christopher WilloughbyConnecting Landlocked Developing
Countries to Markets Connecting Landlocked
Developing Countries to
Markets
Trade Corridors in the 21st Century
Jean-François Arvis, Robin Carruthers, Graham Smith,
and Christopher Willoughby© 2011 The International Bank for Reconstruction and Development / The World Bank
1818 H Street NW
Washington DC 20433
Telephone: [phone]
Internet: www.worldbank.org
All rights reserved
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This volume is a product of the staff of the International Bank for Reconstruction and
Development / The World Bank. The findings, interpretations, and conclusions expressed in this
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ISBN: 978-0-8213-8416-9
eISBN: 978-0-8213-8417-6
DOI: 10.1596/978-0-8213-8416-9
Library of Congress Cataloging-in-Publication Data
Arvis, Jean-François, 1960-
Connecting landlocked developing countries to markets : trade corridors in the 21st century /
Jean-Francois Arvis, Graham Smith, Robin Carruthers.
p. cm.
Includes bibliographical references and index.
ISBN 978-0-8213-8416-9 — ISBN 978-0-8213-8417-6 (electronic)
1. Developing countries—Economic conditions. 2. Landlocked states. 3. Developing countries—
Commerce. 4. Transportation—Developing countries. 5. Transit, International—Developing coun-
tries. 6. Transit by land (International law) I. Smith, Graham, 1945- II. Carruthers, Robin.
III. Title.
HC59.7.A8338 2010
382—dc22
2010017086
Cover photograph: Graham Smith
Cover design: Naylor Design, Washington, D.C.Contents
Foreword by Cheick Sidi Diarra xiii
Foreword by Bernard Hoekman and José Luis Irigoyen xv
Acknowledgments xvii
About the Authors xix
Abbreviations xxi
Chapter 1 Landlocked Developing Countries and
Trade Corridors: An Overview 1
A Renewed Development Priority 2
Transit Neighbors and Trade Corridors 4
A New Conceptual Framework:
Transit Systems and Corridor Performance 7
Structure of This Volume 9
Notes 11
References 11
Chapter 2 The LLDC Access Problem and the
Performance of Trade Corridors 13
Economic Potential of LLDCs 14
The Corridor Supply Chain and Its Bottlenecks 17
vvi Contents
Unreliability of LLDC Corridors Carries
a High Cost 21
Market Structure and Competition in
Logistics Services 24
Unnecessary Overhead and Informal Payments 27
Investing in Infrastructure: Does It
Actually Promote Trade? 27
Supply Chain Linkages: Exports vs.
Imports, Extra- vs. Intra-regional Trade 30
Notes 31
References 31
Chapter 3 The Complex Political Economy
of Trade Corridors 33
LLDC Relationship with the Transit Country:
Beyond Dependence 34
Transit Corridors: A History of Public-Private
Partnership with Mutual Benefits 45
How LLDC Traffic Benefits Transit Countries 48
Landlocked Countries Aspire to a Transit Role 50
Transit Systems: From Vicious to Virtuous Cycles 52
Note 55
References 55
Chapter 4 Moving Goods on Corridors: Transit Regimes 57
Role of the Transit Regime 58
The Basics of Transit 59
Key Concepts and Practices in Transit 62
Regionally Integrated Transit and
Carnet Systems 65
Global Standards and International Legal
Agreements Relevant to Transit 73
Conclusions 77
Notes 77
References 77
Chapter 5 Improving Transit Regimes and International
Cooperation 79
Implementing Transit Regimes in
Developing Regions 79
Integration of Transit: An Unreached Goal 84Contents vii
Too Many Legal Instruments? 87
Reengineering the Transit Regime: A Priority
for LLDC Corridors 88
Pilot Transit Regime Improvement Program:
The Douala Corridor 92
Technology Helps Manage Transit Trade 94
Conclusions: Progress Toward Global Standards 96
Notes 97
References 98
Chapter 6 Improving Road Freight Transport 99
Importance of Road Transport in
Transit Countries 100
Structure of Road Freight Industries 102
Contracting Between Clients and
Trucking Companies 106
Procedures for Movement of Trucks and
Drivers Across Borders 107
Quota Systems and Bilateral Transit
Agreements 109
Facilitating Truck Movement Through
Transit Countries 114
Recommendations 118
Notes 120
References 120
Chapter 7 Alternative Transport Modes and the
Role of Logistics Intermediaries 123
Rail Transport: Underused Potential 125
A Regional Perspective on Railway
Services to LLDCs 130
Air Freight: A Niche Market for LLDCs 139
An Overview of Inland Waterway Transport 143
Development of Logistics Services 149
Recommendations 156
Notes 158
References 159
Chapter 8 Managing Trade Corridors 161
Four Corridor Management Models 162
Efficient Corridor Management 165viii Contents
Monitoring the Performance of Trade
Corridors 170
Total Logistics Costs on a Transit Corridor 174
Designing the Monitoring System for
Corridor Performance 175
Corridor Monitoring in Practice:
Observatories in Africa 178
Conclusions 180
Notes 180
References 181
Chapter 9 Bringing Together the Solutions 183
Building Trust 185
Making Transportation and Logistics Services
Work for Trade 185
Redefining or Improving Transit Systems 186
Developing Global Initiatives to Promote
Common Approaches for Redesigning
Transit Regimes and Monitoring Trade
Corridor Performance 188
Note 188
Appendix 1 Landlocked Developing Countries (LLDCs),
Their Transit Neighbors, and Main Trade
Corridors, by Region 189
Appendix 2 Assessment and Policy Recommendations
by Region 199
Eastern and Southern Africa 200
Western and Central 204
Latin America 209
Central Asia 213
South Asia 216
Other LLDCS: Armenia, Lao PDR,
FYR Macedonia, and Moldova 220
Overview of the Policy Recommendations:
Impact and Ease of Implementation 225
Appendix 3 Trade Growth and Logistics Performance:
LLDCs and Transit Neighbors 229
References 235