The World Bank, the Logistics Performance Index and the informal economy

We have touched on the MDGs and asked the question whether enough is done to integrate Logistics into the effort. The World Bank’s Logistics Performance Index has many of the answers and the LPI framework is a clear indication that improving logistics performance has become an important development policy objective and, the LPI is providing a valuable benchmark from which priorities can be agreed and delivered upon. See: Connecting to Compete: Trade Logistics in the Global Economy (2007).

The Report has many practical examples of performance improvement initiatives on Logistics as a whole (transportation; consolidation of cargo; warehousing and border clearance through to in country distribution and payment systems) and is well worth a read.

Many Reports on Logistics in different countries focus on costs. For example, India runs at 13% versus 8% in the developed world. There is little point in ranking countries on their GDP per capita alone and, in the same way that Amartya Sen blew this simplistic notion away with other indicators such as literacy and health; any assessment of Logistics efficacy must use a wider lense. Connecting to Compete does just this with a clear emphasis not on cost but, on the need for predictability and reliability in Logistics services within a given country. After all, the cost associated with hedging against uncertainty and corruption is so high in some cases that a drive to improve transparency and reliability is increasingly crucial.

As Danny Leipziger, World Bank Vice President for Poverty Reduction and Economic Management has said,  “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”. For those unable to connect, the costs of exclusion are large and growing and this fact makes it vital to integrate learnings to date with the informal agenda where possible.

As we build momentum on Transformational Logistics, we turn to the impact that the links between the informal economy and the wider global markeplace are having. There are many instances where large Corporates are outsourcing may processes and their partners in turn are turning to a network of smaller companies to reduce costs. This needs to be looked at more closely.


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10 Responses to The World Bank, the Logistics Performance Index and the informal economy

  1. Byron Song says:

    Another report that may worth a closer look: The Global Enabling Trade Report 2008 – a cross-country analysis of the measures facilitating trade.

  2. Fernando Ferrero says:

    Does the W B LPI include saomething on carbon emissions or, green logistics? This may be a useful perspective.

  3. Kai Ebel says:

    anybody know when they will publish the LPI for 2008 and i am also lookig for an index forecast for 2009..

  4. Lauri Ojala says:

    To whom it may concern, The World Bank will release its Logistics Perfomance Index 2009 in late summer 2009. It is a follow-up of LPI 2007.

    On behalf of the LPI Team.

  5. BuT says:

    It is autumn 2009 but I can’t still find LPI Index 2009.
    Is it ready for publishing ?

  6. PROF. E.F. RICCIO says:


  7. Sanjay K says:

    What a ridiculous comment – especially coming from an academic. As I am sure the writer of this Blog will tell you – Transformational Logistics is NOT the source of the LPI. Why don’t you go to the World Bank site and find what this Blog found?

    As to telling a blogger that you don’t want them to tell you what the stats say. Bizarre. What stalinistic state have you emerged from! Blogs are all about comment and this Blog seems to do more than most at making constructive suggestions on logistics in tough places. I for one use this Blog for ideas.

    By the way, this entry is all about the last version of the LPI. The 2010 is now out and maybe you should go there and stop SHOUTING your brain dead opinions. As I said, where did you get the title Prof from? Albania under Hoxha?

  8. Editor says:

    I have checked through the e mails to the Blog and this is the first time you have requested this information. Normally, people make a comment about the ideas on the Blog – after all, comment is free in quite a bit of this world.

    Have you tried looking for the data from the people who develop it? Try the World Bank and, maybe you could vent your frustration AT THEM and NOT at someone who is NOT serving you with your research needs. This is not my role. For the record, go back to the recent Post on LPI 2010 and there is a DIRECT link on word number two.

    Sir, you are out of order. If you have searched so many times for this information maybe you should try harder next time. Is this how you react to your students when they encounter a sourcing problem or, do you just give them your opinion? And the World Bank, in my experience, are exemplary in their willingness to help. Maybe you should try using lower case next time.

  9. Lauri Ojala says:


    there may be no need this type of argumentation as the LPI 2010 data and report is available at:
    It can also be found and then accessed by typing “Logistics Performance Index” into the browser you use.

  10. Editor says:

    Thank you very much. I trust that the strident Professor finds the LPI as useful as we did. We found it so relevant that we wrote about it twice and, we have had well over 1,000 visits to the site to read the Post. Clearly, a useful document that triggers much constructive debate.

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