Skip to main content

World Bank report: India "improves" in providing services to world market, but "fails" to integrate South Asia

LPI among top lower middle income group countries
By A Representative
A new World Bank report, which rates the logistics performance of 160 countries for on the basis availability of infrastructure to international traders, has found that India considerably improved its performance from the 54th position to 35th between 2014 and 2016.
Rating India as No 1 country in the lower middle income group, the report, titled “Connecting to Compete 2016 : Trade Logistics in the Global Economy”, seeks to analyze six major parameters while arriving at what it calls logistics performance index (LPI).
These are efficiency of customs and border management clearance, quality of trade and transport infrastructure, ease of arranging competitively priced shipments, competence and quality of logistics services, ability to track and trace consignments, and frequency with which shipments reach consignees within scheduled or expected delivery times.
Even as suggesting the India and China are among the list of countries that over-perform their income group peers, the report, however, regrets, “In South Asia, lack of integration means that the good logistics performance of India does not improve that of its neighbours.”
Among the five BRICS countries, the report finds Brazil ranking 55th,Russia 99th, India 35th, China 27th and South Africa. It finds Germany as the best performing country, with an LPI score of 4.23, and Syria as the lowest, with a score of 1.60 (equivalent to 19 percent of Germany’s score on a scale from 1 to 5).
Seeking to influence policy makers of multinational corporations and governments on where to invest and where not to on the basis of type of logistics available in each country, the report states, “Efficient logistics connects firms to domestic and international markets through reliable supply chain networks.”
The report says, the LPI seeks to “understand key logistics impediments worldwide and to enable well-informed policy making and business decisions”, adding, “Logistics refers to a series of services and activities, such as transportation, warehousing, and brokerage, that help to move goods and establish supply chains across and within borders.”
The 2016 LPI data are based on a survey conducted between October and December 2015 and between March and April 2016 among 1,051 respondents at international logistics companies in 132 countries. Among the main groups interviewed are senior executives (53 percent), area or country managers (15 percent), and department managers (16 percent).
“These groups of professionals have oversight responsibilities or are directly involved in day-to-day operations not only from company headquarters but also from country offices”, the report states, adding, “Logistics performance both in international trade and domestically is central to the economic growth and competitiveness of countries.”
It appears, the report does not seek to address existing data of internal connectivity, particularly in large countries. It says, “The LPI measures performance at key international gateways in countries such as India and China, but does not address how easy or difficult it is to move goods to the hinterland.”
However, it admits, “Such movements are important from developmental and equity standpoints. Internal trade costs likely remain high in many countries, and reducing them could make a significant difference to the lives of producers and consumers outside main cities.”

Comments

TRENDING

From a cowshed to a home: How Mangaltai's Palawi gives HIV-positive children a second life

By Dr A.V. Yadappanavar *  In a small village called Takli, not far from the temple town of Pandharpur in Maharashtra, there is a home where children who were once abandoned because of their HIV status now find food, medicine, education, and something even rarer — love without fear. The home is called Palawi, and it was founded in 2001 by Mangal Shah, affectionately known as Mangaltai, a social worker who could not look away from children rejected by their own families.

When nostalgia becomes a memory we never lived: The 80s AI trend

By Mohd. Ziyaullah Khan  The retro hair, vintage clothes and analogue grain are not the real attraction. The real fascination is that AI can now manufacture something technology has always struggled to reproduce: the tactile, imperfect feeling of memory.

An immortal story of sacrifice: Why the world needs Dr. Kotnis again

By Bharat Dogra*  The recent successful BRICS summit, along with the preceding talks that resolved several contentious issues, has helped create conducive conditions for improving India-China relations. This is good news for both countries and for world peace.