Developing countries should simplify their export procedures because each day there are delays this reduces trade volumes by 1 percent, according to a new thought-provoking World Bank study released on Thursday.
For example, if Burkina Faso reduced its factory-to-ship time by more than half to 27 days from 71 days, exports from the West African country could increase by nearly 45 percent, the study “Trading on Time” found.
“Delays have a great impact on a developing countrys exports, especially perishable agricultural products,” noted the study, also produced by the International Finance Corp, the World Banks private-sector lending arm.
The study also found that a delay of one day reduced exports of highly perishable foods such as corn, apricots and cucumbers by 7 percent, compared to agriculture products with a longer storage life such as potatoes or apples.
Unless the problems were addressed, many of countries would not be able to benefit properly from increasing trade liberalization, the study said.
The study said the delays were mostly caused by administrative obstacles, ranging from customs and tax procedures to clearances and cargo inspections – many of them occurring even before containers reached the port.
It said landlocked African countries especially faced excessive delays because of poor road systems and waits at borders.
The study, based on results from 126 countries, shows that average delays amount to 27 days.
The study argued that if, for instance, the Central African Republic reduced export-related delays from 116 days to 27 days, the poor country “could almost double its exports.”
Kilde: www.worldbank.org
