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Module 2: Competitiveness Diagnostics
Tailoring the Diagnostics to Country and Sector Characteristics Summary of Specific Considerations by Country Type Country type Landlocked
Relative priorities
• May need to emphasize role of air transport • Likely to be necessary to extend analysis to cover (depending on export sectors) regulations, processes, and agencies in bordering (especially those where the main regional port is • Greater emphasis on border-related issues (including based) customs and other border processes) as well as transit regimes and cross-border trade regulation • Corridor analysis may be a useful approach • Cost and time comparisons should include benchmarks against other landlocked countries • Landlocked countries may have potential to develop logistics sector as important regional transit hubs
Small (population) • Greater emphasis on speed and efficiency of logistics and remote environment • Greater emphasis on role of air transport • Exporters tend to be more dependent on imported inputs—so emphasis on efficiency of inbound supply chains
Module 2
Other issues for consideration
Resource rich
• Existing infrastructure and supply chains often designed for resource extraction; focus on understanding effectiveness of supply chains (for example, rail and ports systems as well as customs and trade facilitation) to support export diversification
Low income, labor abundant
• No specific focus inherent to these countries—often face challenges across the board
Middle income
• Emphasis on processes, institutions, and supply chain issues
• Small and remote countries often also landlocked • Explore the implications of scale in logistics costs and the potential for improving consolidation in supply chains • Lack of scale increases importance of ensuring local logistics market is open to foreign service providers
Summary of Specific Considerations by Sector Sector
Relative priorities
Other issues for consideration
Light manufacturing
• High reliance on imported inputs in most lightmanufacturing sectors requires a focus on inbound logistics processes • Clearance speed and processes often critical (outbound and inbound) • Air transport will also be a important channel for some subsectors
• Many sectors will have special customs regimes for imported inputs designed for export manufacture
Agriculture
• Perishability of many agricultural products means that • Individual agricultural sectors often have quite cold chain networks (including infrastructure and customized logistics networks that will need to transport/logistics services) should be a priority be analyzed closely • For bulk commodities, rail and even river-based transport infrastructure and services tends to be more important than it is in other sectors • Border-related issues are critical, linked to both tariff and nontariff barriers (health and safety)
Tourism
• Traditional logistics issues are relevant for supply side of the sector, but otherwise focus is on the passenger transport network—especially road and air transport • Primary emphasis on connectivity and cost (internal and to key source markets)—infrastructure and services are critical, as are institutions and regulatory issues (for example, air transport liberalization)
• Quantitative and qualitative analysis should focus on connectivity, which may require assessment not only of focus country but also of its main tourism source markets • Assessment of public transport systems and of safety and security may also need to be included in the analysis
Business and IT services
• As with tourism, the traditional logistics issues are less relevant for this sector—primary focus will be on the passenger transport network and issues of connectivity
• Note that the logistics services sector may itself be a focus of assessment, in which case all aspects of the logistics environment in the country will be important in the assessment.