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Transport

How Much Will the Belt and Road Initiative Reduce Trade Costs?

Michele Ruta's picture
The Belt and Road Initiative (BRI) is a development strategy proposed by China to improve cooperation on a trans-continental scale. The range of projects and activities that will be part of the BRI is very wide, including policy coordination, infrastructure, trade and investment, financial and people-to-people exchanges. But a key goal of the Initiative is to boost connectivity and reduce trade costs through new and improved transport infrastructure projects.
 

Beyond Infrastructure: Trade Facilitation Priorities for the Belt and Road Initiative

Marcus Bartley Johns's picture
Countries participating in the Belt and Road Initiative face a major challenge in facilitating trade. While large investments in trade-related infrastructure capture global headlines, transaction costs generated by inefficient border clearance and trade-related regulatory requirements are one of the major policy risks facing the BRI.
 

Three Opportunities and Three Risks of the Belt and Road Initiative

Michele Ruta's picture

The Belt and Road Initiative (BRI) is an ambitious effort to deepen regional cooperation and improve connectivity on a trans-continental scale. While the scope of the initiative is still taking shape, the BRI consists primarily of the Silk Road Economic Belt, linking China to Central and South Asia and onwards to Europe, and the New Maritime Silk Road, linking China to the nations of South East Asia, the Gulf Countries, North Africa, and on to Europe. Six other economic corridors have been identified to link other countries to the Belt and the Road.

The Future is Here: Technology trends currently shaping the world of Logistics

Karuna Ramakrishnan's picture
Also available in: Spanish

Emerging technologies are transforming global logistics. The evidence is everywhere: Logistics companies are exploring autonomous fleets and “lights-out” warehousing, and are looking to Big Data for transport management and predictive analytics. Crowdsourcing start-ups are using a high-tech/asset-light business model. And e-brokerage platforms are providing real-time information from pickup to delivery.
 

Is the (Developing) World Ready for the New Container Weight Regulations?

Perikilis Saragiotis's picture
A major change in the way containers’ weight is measured and certified, is fast approaching. As of July 1, 2016, all shipping containers will be required to verify their gross mass before they can be loaded onto a vessel. Previously, shippers could accept weight estimates, but now shippers are responsible for weighing cargo, prior to loading.

Why regional integration is so important for resource-driven diversification in Africa

Gözde Isik's picture
Industrial area in Kitwe, Zambia / Photo: Arne Hoel


Natural resources management, particularly in the extractives industry, can make a meaningful contribution to a country’s economic growth when it leads to linkages to the broader economy. To maximize the economic benefits of extractives, the sector needs to broaden its use of non-mining goods and services and policymakers need to ensure that the sectors infrastructure needs are closely aligned with those of the country’s development plans.

In Africa, especially, mining and other companies that handle natural resources traditionally provide their own power, railways, roads, and services to run their operations. This “enclave” approach to infrastructure development is not always aligned with national infrastructure development plans.

ECOWAS, CET, and EPA – let’s take the debate to where the action is

Erik von Uexkull's picture

Road near Zaria, Nigeria. Source - pjotter05The Economic Community of West African States (ECOWAS) is making some real progress in regional integration. After decade-long negotiations, it has just launched its own Common External Tariff (CET), and now a final proposal for an Economic Partnership Agreement (EPA) with the European Union is also on the table.

However, vast differences in opinion remain regarding the likely effects of these reforms. In Nigeria—a key player in the region— debate is currently lively as to whether the country should sign the EPA, with some local stakeholders wary of the proposed reduction in trade protection.

Noting these concerns, the World Bank Group recently shed more light on the anatomy of these trade shocks. By analyzing detailed trade and firm data in a simple short-term framework, we were able to pick up details that are important determinants of how the reforms might play out—even in the longer run. The full reports can be found here, along with a non-technical policy note.

So what did we find?

Lessons Learned from Armenia's Open Skies

Daniel Saslavsky's picture
"Flight 2." Source - Ken Douglas


Air transport is an increasingly critical area for trade and trade facilitation. As such, our World Bank trade teams are always searching for global good practice and promising policy results.

This search recently brought us to Armenia, where an “Open Skies” policy has been in place since late 2013. For a country with a long legacy of tight regulations in its commercial aviation market, this new policy signaled a sharp break from tradition.

Although there are no single accepted definitions of Open Skies, it refers to a set of provisions typically agreed on a bilateral basis, that enable each party to set freely the number of flights, carriers, types of aircraft and destinations; but also pricing freedom, as well as establishing the conditions for fair competition and provisions for carriers to engage in commercial cooperation.  

Armenia’ Open Skies policy is particularity important when considering the country’s historically limited connectivity with international markets – partly determined by geography, and partly determined by geopolitical considerations. Besides being landlocked, the country has open land borders with only two of its four neighboring countries.

Haïti : de l’impact positif des échanges sur le redressement du pays et son essor économique

Calvin Djiofack Zebaze's picture

A busy Haitian market. Source - Glenda PowersL’horizon semble se dégager pour Haïti, qui poursuit son redressement depuis le séisme dévastateur de 2010. Et cela, grâce (en partie) au commerce extérieur.
 
Les autorités haïtiennes le savent qui s’emploient, avec le Groupe de la Banque mondiale et d'autres donateurs, à identifier les obstacles aux échanges pour les démanteler et doper ainsi les secteurs exportateurs.
 
Au début du mois, une équipe de la Banque mondiale s’est rendue à Port-au-Prince pour une semaine de travail avec les principaux acteurs, publics et privés, de la logistique commerciale du pays, notamment des représentants du ministère du Commerce et de l'Industrie. L’objectif ? Discuter de solutions pour renforcer le programme de facilitation des échanges du pays, financé par un fonds fiduciaire multidonateurs conçu pour aider les pays en développement à renforcer leur potentiel économique et à lutter contre la pauvreté grâce au commerce.
 

How Trade Is Helping Haiti Recover and Grow its Economy

Calvin Djiofack Zebaze's picture

 Sun rising behind clouds in Haiti. Source - Yinan ChenThings are looking up in Haiti as the country continues to rebuild from the devastating 2010 earthquake. And part of this progress is a story of trade.

The Haitian government recognizes this, and is working with the World Bank Group and other donors to identify and remove barriers to trade to better promote export growth.

A World Bank team traveled to Port au Prince earlier this month for a week long workshop with the main stakeholders (public and private) intervening on trade logistic in the country, including the Ministry of Commerce and Industry, in order to discuss ways to strengthen the Haitian Trade Facilitation (TF) program. The program is funded through the Trade Facilitation Facility, a multi-donor trust fund dedicated specifically to helping developing countries realize economic development and poverty reduction through trade.
 

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