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India: A logistics powerhouse in the making?

Karla Gonzalez Carvajal's picture
Photo: Daniel Incandela/Flickr
The numbers are in: India now ranks 44th in the latest edition of the World Bank’s Logistics Performance Index, a relatively high score compared to other countries at similar income levels. This number matters not just to the logistics sector, but to India’s economy as a whole. Indeed, logistics can directly impact the competitiveness of an entire market, as its ability to serve demand is inextricably linked to the efficiency, reliability and predictability of supply chains.

Broadly defined, logistics covers all aspects of trade, transport and commerce, starting from the completion of the manufacturing process all the way to delivery for consumption. To say that it is a complex business is an understatement.

First, there is always a delicate balance between the public arm, which provides the roads, railways and waterways, and lays down the rules and regulations, and the private sector, which has responsibility for carrying out logistics operations in a smooth and seamless manner. This fine interplay is further complicated by the globalization of manufacturing which—with many more ports of call in the logistic chain—is putting ever-increasing pressure on the sector. In addition, there are very practical challenges in integrating different modes of transport, in speeding up border crossings, and in dealing with trade protections–all of which impact external trade.

But as difficult as it might be, creating a well-functioning logistics sector is essential to any nation looking to compete in the global economy. India is a case in point. To fuel its global ambitions, the country has taken active steps to up its logistics game.

Eliminating Customs of Corruption: New Approaches in Cameroon & Afghanistan

Gerard McLinden's picture

Corruption continues to plague customs administrations around the world regardless of their level of development and despite intense public attention.

Recent high profile cases in many first world countries reinforce what we always knew—that no country is immune, and that there are no quick fix solutions available. The very nature of customs work makes it vulnerable to many forms of corruption, from the payment of informal facilitation fees to large scale fraud and other serious criminal activities.

But this blanket generalization belies some genuine progress in countries where reforms are making a measurable impact on operational effectiveness and integrity. 
 

Improving Connectivity for Landlocked Developing Countries: Preparing the comprehensive 10-year review of the Almaty Programme of Action

Nora Weisskopf's picture

Notes From the Field: Making Trade More Efficient in Tunisia

Julia Oliver's picture

About "Notes From the Field": With this occasional feature, we let World Bank professionals who are conducting interesting trade-related projects around the globe explain some of the challenges and triumphs of their day-to-day work. The views expressed here are personal and should not be attributed to the World Bank.

The interview below was conducted with Hamid Alavi, a senior private sector specialist and Regional Private Sector Development Coordinator. He oversees and manages the work program, projects and advisory services related to private sector development and competitiveness. He has published on access to finance, innovation, private sector development, enterprise competitiveness and trade facilitation, food security, telecoms, pollution control, trade finance, and export promotion.

Mr. Alavi spoke with us about the successful implementation of a single-window trade portal project in Tunisia. The project enhanced transparency of trade transactions and cut processing time at the Port of Rades from 18 days to two-and-a-half days during an 8-year period starting in 2000. In 2008, the project was featured in the International Finance Corporation’s “SmartLessons” series. In the interview, Alavi explains why it worked, despite some political resistance.

Let’s make transport the solution!

Virginia Tanase's picture

This seems to be a good time to stop blaming transport for all the World’s snags and start looking for simple ways of maximizing the benefits of this tool. Yes, you read it right: transport is a tool, for itself it does not create but adds value to goods and services moved where they are needed.