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 shipmentsEase of arranging international shipments

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/lpiwww.worldbank.org/lpi

Overall synthetic index Overall synthetic index (LPI) on a 1-5 scale, (LPI) on a 1-5 scale, Ranking and componentRanking and component

Logistics Business Logistics Business environmentenvironment

Numerical dataNumerical data

Available as:Available as: Rankings, Maps, Rankings, Maps, scorecardsscorecards

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 MapWorld 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 RankingOverall 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, border Performance depends upon infrastructure, border processes, and quality of services - areas where processes, and quality of services - areas where significant gaps are observed butsignificant gaps are observed but

… … the level of service (predictability, reliability) the level of service (predictability, reliability) ultimately matters most for traders and depends ultimately matters most for traders and depends upon the weakest link in the supply chainupon the weakest link in the supply chain

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