1. What is the LPI?1. What is the LPI?
3. Main Findings and their Application3. Main Findings and their Application
4. LPI Survey 2008 and Beyond4. LPI Survey 2008 and Beyond
2. Implementation of the Survey2. Implementation of the Survey
Trade logistics is playing an increasingly Trade logistics is playing an increasingly important role important role
The LPI provides the most comprehensive The LPI provides the most comprehensive data on country performancedata on country performance
Logistics Performance Index Logistics Performance Index (LPI)(LPI)
and its indicatorsand its indicators
Unique and consistent resource for: policy Unique and consistent resource for: policy makers, reformers, and the trade facilitation makers, reformers, and the trade facilitation constituencyconstituency
What is the LPIWhat is the LPI
The ProjectThe Project
Built upon the positive results demonstrated through pilot surveys that were carried out for the World Bank by TSE, Finland.
Is supported by the members of GFP with active support and participation of FIATA and GEA.
Is the product of a survey of operational staff in global forwarding and express carriers companies.
Is designed to assess their perception of trade logistics performance of the countries they are dealing with and in the country in which they operate.
Is now available to policy makers, researchers, firms, stakeholders, and international organizations (e.g. World Bank, IMF, WTO, WCO, UNCTAD) to further promote the agenda of trade facilitation.
The DatasetThe Dataset
The LPI is an effective measure of trade facilitation to allow policy makers and researchers to:
benchmark a country’s overall performance on several dimensions in trade logistics, and
assess the quality of a country’s connections to the global market
InfrastructureInfrastructure
Customs and border processingCustoms and border processing
Logistics competence of local service Logistics competence of local service providersproviders
Domestic costsDomestic costs
TimelinessTimeliness
Tracking and TracingTracking and Tracing
Ease of arranging international Ease of arranging international shipmentsshipments
Unique dataset to measure country performance across several dimensions of logistics:
World’s largest World’s largest freight freight forwardingforwarding and and express express carrierscarriers companies, and companies, and several national/regional several national/regional associations were associations were surveyed through a surveyed through a web-web-based questionnairebased questionnaire::
Increasing country Increasing country coverage - LPI Built upon coverage - LPI Built upon 5500 country 5500 country “international” “international” assessmentsassessments
Global Facilitation PartnershipThe GFP will be instrumental in the
dissemination strategy.
Global Facilitation PartnershipThe GFP will be instrumental in the
dissemination strategy.
World Bank
TSE
FIATAGlobal
Express
Other global
partners
Partnership with the private sectorPartnership with the private sector
Innovative methodologyInnovative methodologyAssessments from professionals outside the country, Assessments from professionals outside the country, trading with ittrading with it
Assessment of domestic business environmentAssessment of domestic business environment
Numerical information (time and cost data)Numerical information (time and cost data)
Questionnaire designed with input from logistics Questionnaire designed with input from logistics professionalsprofessionals
Primary data gathered for Primary data gathered for 150 countries150 countries
www.worldbank.org/lpi
Overall synthetic index Overall synthetic index (LPI) on a 1-5 scale, (LPI) on a 1-5 scale, Ranking and Ranking and componentcomponent
Logistics Business Logistics Business environmentenvironment
Numerical dataNumerical data
Available as:Available as: Rankings, Rankings, Maps, scorecardsMaps, scorecards
LPI Survey - ImplementationLPI Survey - Implementation
Respondents Within the PartnersRespondents Within the Partners
Management agrees to sponsor the LPI survey with project team
Senior management identifies a focal person
The focal person mobilized operational personnel – the respondents – (i.e. sent an e-mail invitation to take the survey)
Partner entitiesMultinational firms/ National Associations of FF
Partner entitiesMultinational firms/ National Associations of FF
A two-step approach.A two-step approach.
Respondents were the participating logistics professionals who deal with international shipments
CommitmentCommitment
Assigned a global focal contact person in their firm who assisted with making practical arrangements for the LPI survey.
Engaged key personnel worldwide in answering the LPI survey.
Get access to comparative analysis of the logistics perceptions of their firm against the LPI results.
Receive a report on 30 countries of choice free of charge.
Have the opportunity to interact with the LPI team of experts.
Obtain the right to use the LPI logo for public relations.
BenefitsBenefits
Role of PartnersRole of Partners
World Map provides a color-coded map for the global view of the overall LPI index and the provides a color-coded map for the global view of the overall LPI index and the seven key dimensionsseven key dimensions
Overall LPI Ranking presents performance scores of all countries on the overall LPI index, presents performance scores of all countries on the overall LPI index, as well as on the seven key dimensions, in a sortable table format as well as on the seven key dimensions, in a sortable table format
CountryCountryLPI LPI
RankRank ScoreScore
South AfricaSouth Africa 2424 3.533.53MalaysiaMalaysia 2727 3.483.48ChileChile 3232 3.253.25TurkeyTurkey 3434 3.153.15HungaryHungary 3535 3.153.15Czech RepublicCzech Republic 3838 3.133.13PolandPoland 4040 3.043.04LatviaLatvia 4242 3.023.02ArgentinaArgentina 4545 2.982.98EstoniaEstonia 4747 2.952.95
TOP 10 COUNTRIESTOP 10 COUNTRIES
LOWER MIDDLE LOWER MIDDLE INCOMEINCOME
CountryCountryLPILPI
RankRank ScoreScore
ChinaChina 3030 3.323.32ThailandThailand 3131 3.313.31IndonesiaIndonesia 4343 3.013.01JordanJordan 5252 2.892.89BulgariaBulgaria 5555 2.872.87PeruPeru 5959 2.772.77TunisiaTunisia 6060 2.762.76BrazilBrazil 6161 2.752.75PhilippinesPhilippines 6565 2.692.69El SalvadorEl Salvador 6666 2.662.66
TOP 10 COUNTRIESTOP 10 COUNTRIES
LOW INCOMELOW INCOME
CountryCountryLPILPI
RankRank ScoreScore
IndiaIndia 3939 3.073.07VietnamVietnam 5353 2.892.89Sao Tome and PrincipeSao Tome and Principe 5757 2.862.86GuineaGuinea 6262 2.712.71SudanSudan 6464 2.712.71MauritaniaMauritania 6767 2.632.63PakistanPakistan 6868 2.622.62KenyaKenya 7676 2.522.52Gambia, TheGambia, The 7777 2.522.52CambodiaCambodia 8181 2.502.50
TOP 10 COUNTRIESTOP 10 COUNTRIES
UPPER MIDDLE UPPER MIDDLE INCOMEINCOME
The overall LPI, on a 1 (worst) to 5 (best) scale) is aggregated by standard techniques (PCA)
Overall LPI ScoresOverall LPI ScoresOverall LPI ScoresOverall LPI Scores
Consistency & RobustnessConsistency & Robustness
LPI consistent with intuitive knowledge of LPI consistent with intuitive knowledge of country performance, very specific country performance, very specific rankingranking
Homogeneous respondent populationHomogeneous respondent population The LPI, on a 1 (worst) to 5 (best) scale) The LPI, on a 1 (worst) to 5 (best) scale)
is aggregated by standard techniques is aggregated by standard techniques (PCA), so as to reduce noise,(PCA), so as to reduce noise,
Confidence interval (+/- 10 %) provided, on Confidence interval (+/- 10 %) provided, on average 8 places in the ranking. average 8 places in the ranking.
Numerical OutcomesNumerical Outcomes
0 5 10 15
EAP
ECA
LAC
MNA
SAR
AFR
OECD
days
Lead time exportLead time import
Key FindingsKey Findings
Perceptions matter, professionals views are Perceptions matter, professionals views are significantsignificant
Performance depends upon infrastructure, Performance depends upon infrastructure, border processes, and quality of services - areas border processes, and quality of services - areas where significant gaps are observed butwhere significant gaps are observed but
… … the level of service (predictability, reliability) the level of service (predictability, reliability) ultimately matters most for traders and ultimately matters most for traders and depends upon the weakest link in the supply depends upon the weakest link in the supply chainchain
Private sector services as well as publicPrivate sector services as well as public
More than income level
LPI strongly associated with competitiveness LPI strongly associated with competitiveness outcomes: growth, trade expansion and outcomes: growth, trade expansion and diversification of exportsdiversification of exports
More than income: the “logistics More than income: the “logistics gap”gap”
0%
20%
40%
60%
80%
100%
Highincome:OECD
Highincome:
nonOECD
Uppermiddleincome
Low ermiddleincome
Low income
Dis
trib
uti
on
of
Co
un
trie
s
Q1 highest performance
Q2 high perfomance
Q3 average performance
Q4 low performance
Q5 w orst performance
China andChina and
ThailandThailand
Key Policy ImplicationsKey Policy ImplicationsExpand the traditional agendaExpand the traditional agendainfrastructure and customs IT, to areas such as infrastructure and customs IT, to areas such as logistics services or border agencies coordinationlogistics services or border agencies coordination
Synergies and comprehensiveness of reformsSynergies and comprehensiveness of reforms
Cross-cutting reforms supported by broad Cross-cutting reforms supported by broad cconstituenciesonstituenciesexporters, service operators, public agenciesexporters, service operators, public agencies
Typology and rankingsTypology and rankingscapacity to initiate a virtuous circle of performance capacity to initiate a virtuous circle of performance improvementimprovement
New thinking needed to address the case of the New thinking needed to address the case of the most severely constrained countries (e.g. LLDCs)most severely constrained countries (e.g. LLDCs)
What is next?What is next?
The World Bank and its partners plan to The World Bank and its partners plan to replicate the survey (Mid Nov-Mid Jan)replicate the survey (Mid Nov-Mid Jan)
Improved and more friendly questionnaireImproved and more friendly questionnaire Increase the number of respondentsIncrease the number of respondents Involve additional sponsoring organizations, Involve additional sponsoring organizations,
including national associationsincluding national associations
Global launch of the LPI Nov 5Nov 5
www.worldbank.org/lpi