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June 2017

Preparing for the future - A logistics industry roadmap

Yin Yin Lam's picture
Photo: Sarah Starkweather/Flickr
The government of Singapore recently outlined its vision for the country's future, describing how different sectors could harness technology, innovation and mega-trends in order to take the city-state to the next level. This approach includes a dedicated Industry Transformation Map for the logistics sector, which accounts for 7.7% of Singapore's GDP and over 8% of jobs. Logistics is also understood as a crucial enabler for other significant parts of the economy, such as manufacturing and trade.

How is Singapore anticipating the transformation of logistics?

Singapore has been considered a major logistics hub for quite some time, and is currently ranked first in Asia according to the Word Bank’s Logistics Performance Index. The sector, however, is experiencing significant transformations such as the rise of digitally enabled logistics services, and the emergence of new delivery capabilities (autonomous vehicles, 3D printing).

The Industry Transformation Map (ITM) will help Singaporean logistics keep its competitive edge in this rapidly evolving context, and aims to achieve a value-added of S$8.3billion (US$6 billion) by 2020. In particular, the ITM intends to strengthen innovation, productivity, as well as talent development across the logistics sector—including by leveraging trends such as artificial intelligence and collaborative robotics.

Women on the march! Two decades of gender inclusion in rural roads in Peru

Ramon Munoz-Raskin's picture
Also available in: Español
 
 
Women maintaining roads? As their job? Until recently, the idea was pretty much unfathomable in many countries. But in Peru, it isn’t. Since 2001, the Peruvian government and the World Bank have been working hand in hand to ensure female workers can play an active role in the routine maintenance of rural roads. This is part of a broader effort to reduce the gender gap in rural areas, and to improve women’s access to social and economic opportunities.

Over the last two decades, a series of ambitious projects have allowed the rehabilitation 30,000 km of rural roads, and supported maintenance activities along 50,000 km. This type of large-scale road projects has created significant economic and employment opportunities for local communities, and this is why we wanted to make sure women could get their share. To make this happen, we organized trainings, developed specific programs that would improve women’s access to resources, and worked to eliminate the barriers that disadvantaged women (e.g. requirements related to literacy or previous construction experience). The result? In 2013, female participation in rural road maintenance microenterprises reached 27% during the Peru Decentralized Rural Transport Project.

Motorization and its discontents

Roger Gorham's picture
Photo: Sarah Farat/World Bank
They say a picture is worth a thousand words.  While visiting the World Bank library the other day, I was struck by how many development publications featured pictures of motor vehicles on their covers, even though most of them covered topics that had little to do with transport.  The setting and tone of the pictures varied – sometimes they showed a lone car on a rural highway, sometimes congested vehicles in urban traffic, and sometimes a car displayed proudly as a status symbol – but the prevalence of motorized vehicles as a visual metaphor for development was unmistakable to me: in the public imagination, consciously or otherwise, many people associate development with more use of motorized vehicles.

Indeed, motorization – the process of adopting and using motor vehicles as a core part of economic and daily life – is closely linked with other dimensions of development such as urbanization and industrialization.

Motorization, however, is a double-edged sword.

For many households, being able to afford their own vehicle is often perceived as the key to accessing more jobs, more services, more opportunities—not to mention a status symbol. Likewise, vehicles can unlock possibilities for firms and individual entrepreneurs such as the young man from Uganda pictured on the right, proudly showing off his brand new boda boda (motorcycle taxi). 

But motorization also comes with a serious downside, in terms of challenges that many governments have difficulty managing.  Motor vehicles can undermine the livability of cities by cluttering up roads and open spaces—the scene of chaos and gridlock in the picture below, from Accra, is a telling example. In addition, vehicles create significant safety hazards for occupants and bystanders alike… in many developing countries, road deaths have effectively reached epidemic proportions. From an environmental standpoint, motorized transport is, of course, a major contributor to urban air pollution and greenhouse gas emissions. Lastly, motorization contributes to countries' hard currency challenges by exacerbating their long-term demand for petroleum products.

Given these challenges, how are developing countries going to align their motorization trajectories with their development goals?  What should the World Bank advise our clients about how to manage this process?