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THE
Philippines scored low and was ranked at 65th place in
the first global Logistics Performance Index (LPI)
released in a new study commissioned by the World Bank
(WB).
The
study, “Connecting to Compete: Trade Logistics in the
Global Economy,” said the LPI is a benchmarking tool
developed by the WB that measures performance along the
logistics supply chain within a country.
“Being
able to connect to global markets is fast becoming a key
aspect of a country’s capacity to compete, grow, attract
investment, create jobs and reduce poverty,” Danny
Leipziger, WB vice president for poverty reduction and
economic management, said in a statement. “But for those
unable to connect, the costs of exclusion are large and
growing.”
The
study said the Philippines scored 2.69 in the LPI. The
country also ranked 53rd in Customs, 86th in
Infrastructure, and 63rd in International Shipments in
the LPI.
Compared
with other lower-middle-income countries, the
Philippines was second to the last and was just a notch
higher than El Salvador, which was at 66th place.
The top
lower-middle-income country was China, which was ranked
30th in the world, followed by Thailand at 31st,
Indonesia at 43rd, Jordan at 52nd, Bulgaria at 55th,
Peru at 59th, Tunisia at 60th and Brazil at 61st place.
“Countries performing well typically have a
comprehensive approach that improves key factors in
logistics performance in parallel, while countries with
a piecemeal approach tend not to demonstrate lasting
improvements,” the study said.
The
study said that with technological progress and
worldwide trade and investment liberalization, a new
premium is now being placed on the ability of countries
to move goods rapidly, reliably and cheaply.
However,
the study said most logistics professionals are
unsatisfied with the quality of the physical
infrastructure in many developing countries.
“Logistics performance is more and more determined by
the availability of quality, competitive private
services—such as trucking, customs brokering and
warehousing,” the study said.
The
study urged policymakers to look beyond traditional
“trade facilitation” agenda that focuses on road
infrastructure and information technology in customs.
The
study said countries must also reform logistics services
markets and reduce coordination failures, particularly
those of public agencies active in border control.
“This
demands a more integrated, comprehensive approach to
reforms all along the supply chain,” the study said.
The
study said international companies can bring global
knowledge, but the support of local exporters, operators
and public agencies is crucial.
The
study surveyed a total of 150 countries. The top five
countries in the world in terms of logistics was led by
Singapore, followed by the Netherlands, Germany, Sweden
and Austria.
The
survey is based on a worldwide survey of global freight
forwarders and express carriers. |