Connecting Landlocked Developing Countries to Markets: Trade Corridors in the 21st Century

Connecting Landlocked Developing Countries to Markets: Trade Corridors in the 21st Century


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This book aims to help the policymaker and development community in general to understand the nature of the problems and policy dilemmas that landlocked countries face to trade with the rest of the World. This volume presents an important breakthrough in the literature, by focusing on a new conceptual framework that challenges the previous paradigm based on physical infrastructure and state-led access solutions, embodied in many treaties.

By recognizing that the main access problems for landlocked countries occur in the territory of the transit country, this volume provides a new approach to understand the set of incentives that drive the political economy and shape the institutions governing goods' transit along corridors. Overall, the policy levers available to overcome these barriers are based on universally applied principles, recognizing the need for re-engineering current transit regimes which have been implemented with little success outside Europe. A risk-approach to border control and technology use, along with trust building between private operators and public agencies, all point toward the need to encourage and formally recognize higher-quality trucking companies. Meanwhile, other modes of transportation represent an alternative to road transit, but they also entail disadvantages, suggesting that their role is likely to remain limited to niche segments, specific commodities and exceptional market circumstances.

Product Details

ISBN-13: 9780821384169
Publisher: Bernan Distribution
Publication date: 04/01/2011
Series: Directions in Development
Pages: 300
Sales rank: 1,003,927
Product dimensions: 5.90(w) x 8.90(h) x 0.70(d)

Table of Contents

Foreword Cheick Sidi Diana xiii

Foreword Bernard Hoekman José Luis Irigoyen xv

Acknowledgments xvii

About the Authors xix

Abbreviations xxi

Chapter 1 Landlocked Developing Countries and Trade Corridors: An Overview 1

A Renewed Development Priority 2

Transit Neighbors and Trade Corridors 4

A New Conceptual Framework: Transit Systems and Corridor Performance 7

Structure of This Volume 9

Notes 11

References 11

Chapter 2 The LLDC Access Problem and the Performance of Trade Corridors 13

Economic Potential of LLDCs 14

The Corridor Supply Chain and Its Bottlenecks 17

Unreliability of LLDC Corridors Carries a High Cost 21

Market Structure and Competition in Logistics Services 24

Unnecessary Overhead and Informal Payments 27

Investing in Infrastructure: Does It Actually Promote Trade? 27

Supply Chain Linkages: Exports vs. Imports, Extra- vs. Intra-regional Trade 30

Notes 31

References 31

Chapter 3 The Complex Political Economy of Trade Corridors 33

LLDC Relationship with the Transit Country: Beyond Dependence 34

Transit Corridors: A History of Public-Private Partnership with Mutual Benefits 45

How LLDC Traffic Benefits Transit Countries 48

Landlocked Countries Aspire to a Transit Role 50

Transit Systems: From Vicious to Virtuous Cycles 52

Note 55

References 55

Chapter 4 Moving Goods on Corridors: Transit Regimes 57

Role of the Transit Regime 58

The Basics of Transit 59

Key Concepts and Practices in Transit 62

Regionally Integrated Transit and Carnet Systems 65

Global Standards and International Legal Agreements Relevant to Transit 73

Conclusions 77

Notes 77

References 77

Chapter 5 Improving Transit Regimes and International Cooperation 79

Implementing Transit Regimes in Developing Regions 79

Integration of Transit: An Unreached Goal 84

Too Many Legal Instruments? 87

Reengineering the Transit Regime: A Priority for LLDC Corridors 88

Pilot Transit Regime Improvement Program: The Douala Corridor 92

Technology Helps Manage Transit Trade 94

Conclusions: Progress Toward Global Standards 96

Notes 97

References 98

Chapter 6 Improving Road Freight Transport 99

Importance of Road Transport in Transit Countries 100

Structure of Road Freight Industries 102

Contracting Between Clients and Trucking Companies 106

Procedures for Movement of Trucks and Drivers Across Borders 107

Quota Systems and Bilateral Transit Agreements 109

Facilitating Truck Movement Through Transit Countries 114

Recommendations 118

Notes 120

References 120

Chapter 7 Alternative Transport Modes and the Role of Logistics Intermediaries 123

Rail Transport: Underused Potential 125

A Regional Perspective on Railway Services to LLDCs 130

Air Freight: A Niche Market for LLDCs 139

An Overview of Inland Waterway Transport 143

Development of Logistics Services 149

Recommendations 156

Notes 158

References 159

Chapter 8 Managing Trade Corridors 161

Four Corridor Management Model 162

Efficicent Corridor Management 165

Monitoring the Performance of Trade Corridors 170

Total Logistics Costs on a Transit Corridor 174

Designing the Monitoring System for Corridor Performance 175

Corridor Monitoring in Practice: Observatories in Africa 178

Conclusions 180

Notes 180

References 181

Chapter 9 Bringing Together the Solutions 183

Building Trust 185

Making Transportation and Logistics Services Work for Trade 185

Redefining or Improving Transit Systems 186

Developing Global Initiatives to Promote Common Approaches for Redesigning Transit Regimes and Monitoring Trade Corridor Performance 188

Note 188

Appendix 1 Landlocked Developing Countries (LLDCs), Their Transit Neighbors, and Main Trade Corridors, by Region 189

Appendix 2 Assessment and Policy Recommendations by Region 199

Eastern and Southern Africa 200

Western and Central Africa 204

Latin America 209

Central Asia 213

South Asia 21608

Other LLDCS: Armenia, Lao PDR, FYR Macedonia, and Moldova 220

Overview of the Policy Recommendations: Impact and Ease of Implementation 225

Appendix 3 Trade Growth and Logistics Performance: LLDCs and Transit Neighbors 229

References 235

Appendix 4 Survey Findings on LLDC Logistics Performance 237

Global Enabling Trade Report 2010 237

Connecting to Compete: The Logistics Performance Index (LPI) 2010 239

Doing Business in Landlocked Economies 2009 240

Comparing the Experience of Countries by Region 240

The Penalties by Region of Being Landlocked 241

Notes 245

References 245

Appendix 5 Measuring Transit Corridor Performance Parameters 247

Locations at Which Measurements Will be Made 248

The Products and Their Transport Unit and Transport Route 249

The Cost and Replicability of Making the Measurements 250

Note 251

Reference 251

Appendix 6 Maps of LLDCs and Transit Corridors, by Region 253

Appendix References 260

Index 261


1.1 Almaty Programme of Action (2003) Focus Areas 5

2.1 Spread in Delays and Predictability of Supply Chains 22

2.2 Infrastructure Investment in Africa and Asia: NEPAD and the Asian Highway Network 28

3.1 Connecting Malawi to Markets: A Private Sector Choice 38

3.2 Instruments for Charging Transit Traffic for Road Use 49

4.1 General Requirements With Respect to Seals 62

4.2 Legal Instruments Governing Transit Regimes 74

5.1 India-Nepal Bilateral Transit Agreement 89

5.2 Authorized Economic Operators (AEOs) 90

5.3 Impact of Information Technology: Streamlining Transit Information at Beitbridge 95

6.1 IRU Training Courses 104

6.2 UNECE Resolution R.E. 4 110

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