ET.part.A.

r1

6/2/08

10:03 PM

Page i

World Economic Forum
Geneva, Switzerland 2008

Sean Doherty
Project Leader
Qin He
Project Manager

The Global Enabling Trade
Report 2008

Robert Z. Lawrence, Harvard University
Jennifer Blanke, World Economic Forum
Margareta Drzeniek Hanouz, World Economic Forum
John Moavenzadeh, World Economic Forum
Editors

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

ET.part.A.r1

6/2/08

10:03 PM

Page ii

The Global Enabling Trade Report 2008 is
published by the World Economic Forum
within the framework of the Global
Competitiveness Network and the Industry
Partnership Programme for Logistics &
Transport.

World Economic Forum
Geneva
Copyright © 2008
by the World Economic Forum
Published by World Economic Forum
www.weforum.org

Professor Klaus Schwab
Executive Chairman, World Economic Forum

EDITORS

At the John F. Kennedy School of Government,
Harvard University:

All rights reserved. No part of this publication
may be reproduced, stored in a retrieval system, or transmitted, in any form or by any
means, electronic, mechanical, photocopying,
or otherwise without the prior permission of
the World Economic Forum.
ISBN-13: 978-92-95044-06-7

Robert Z. Lawrence, Albert L. Williams
Professor of Trade and Investment

At the World Economic Forum:
Jennifer Blanke, Senior Economist
Margareta Drzeniek Hanouz, Senior Economist
John Moavenzadeh, Senior Director,
Sustainable Mobility and Strategy

LOGISTICS & TRANSPORT TEAM

Sean Doherty, Head of Logistics and Transport Industry
Qin He, Project Manager, Logistics and Transportation
Yasmina Makar, Team Coordinator, Mobility Industries

GLOBAL COMPETITIVENESS NETWORK TEAM

Fiona Paua, Senior Director, Head of Strategic Insight Teams
Ciara Browne, Senior Community Manager
Agustina Ciocia, Coordinator
Thierry Geiger, Economist
Irene Mia, Senior Economist
Pearl Samandari, Research Assistant
Eva Trujillo Herrera, Research Assistant

A special thank you to Hope Steele for her
superb editing work and Ha Nguyen for her
excellent graphic design and layout.
The terms country and nation as used in this
report do not in all cases refer to a territorial
entity that is a state as understood by international law and practice. The terms cover
well-defined, geographically self-contained
economic areas that may not be states but
for which statistical data are maintained on a
separate and independent basis.

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

ET.part.A.r1

6/2/08

10:03 PM

Page iii

Contents

Partner Institutes

v

Preface

Part 2: Country/Economy Profiles and Data
Presentation

85

2.1 Country/Economy Profiles

87

xi

by Klaus Schwab, World Economic Forum

How to Read the Country/Economy Profiles ...............................89

Executive Summary

xiii

by Robert Z. Lawrence, Harvard University, and
Jennifer Blanke, Sean Doherty, and
Margareta Drzeniek Hanouz, World Economic Forum

by Eva Trujillo Herrera, World Economic Forum

List of Countries/Economies ........................................................91
Country/Economy Profiles............................................................92

2.2 Data Tables

Part 1: Selected Issues on Enabling Trade

1

1.1 The Enabling Trade Index: Assessing the
Factors Impeding International Trade

3

by Robert Z. Lawrence, Harvard University, and
Jennifer Blanke, Margareta Drzeniek Hanouz, Thierry Geiger,
and Qin He, World Economic Forum

1.2 The Doha Round Negotiations on Trade Facilitation

Technical Notes and Sources

393

About the Authors

397

Acknowledgments

401

35

by Richard Eglin, World Trade Organization (WTO)

1.3 Additional Taxes and the Indirect Evidence
on Trade Protection

41

by Mondher Mimouni, Xavier Pichot, and Lionel Fontagné,
International Trade Centre (ITC)

1.4 Connecting to Compete:
Trade Logistics in the Global Economy

53

by Jean-François Arvis, Monica Alina Mustra, and John Panzer,
The World Bank, and Lauri Ojala and Tapio Naula,
Turku School of Economics, Finland

1.5 Facilitating Cross-Border Movement of Goods:
A Sustainable Approach

67

by Poul Hansen and Liliana Annovazzi-Jakab, United Nations
Conference on Trade and Development (UNCTAD)

1.6 Countdown to 2015: Improving Access
and Openness to Help Achieve the Millennium
Development Goals

329

How to Read the Data Tables ....................................................331
Index of Data Tables...................................................................333
Data Tables.................................................................................335

77

by Gene Huang, FedEx Corporation

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

iii

ET.part.A.r1

6/2/08

10:03 PM

Page iv

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page v

Partner Institutes

ET.part.A.r1

Partner Institutes

Albania
Institute for Contemporary Studies (ISB)
Artan Hoxha, President
Elira Jorgoni, Senior Expert and Project Manager
Denalada Kuzumi, Researcher
Algeria
Centre de Recherche en Economie Appliquée pour le
Développement (CREAD)
Youcef Benabdallah, Assistant Professor
Yassine Ferfera, Director
Argentina
IAE—Universidad Austral
Marcelo Paladino, Vice Dean
Armenia
Economy and Values Research Center
Manuk Hergnyan, Chairman
Sevak Hovhannisyan, Senior Research Associate
Anna Makaryan, Research Associate
Australia
Australian Industry Group
Nicholas James, Economist
Tony Pensabene, Associate Director, Economics & Research
Heather Ridout, Chief Executive
Austria
Austrian Institute of Economic Research (WIFO)
Karl Aiginger, Director
Gerhard Schwarz, Coordinator, Survey Department
Azerbaijan
Azerbaijan Marketing Society
Fuad Aliyev, Executive Director
Ashraf Hajiyev, Project Coordinator
Saida Talibova, Consultant
Bahrain
Bahrain Competitiveness Council
Jawad Habib, Member
Bahrain Economic Development Board
Rima Al Kilani, Director, International Marketing
Bangladesh
Centre for Policy Dialogue (CPD)
Debapriya Bhattacharya, Executive Director
Khondaker Golam Moazzem, Research Fellow
Mustafizur Rahman, Research Director
Belgium
Vlerick Leuven Gent Management School
Lutgart Van den Berghe, Professor, Executive Director and
Chairman, Competence Centre Entrepreneurship,
Governance and Strategy
Harry P. Bowen, Professor of Economics and International
Business
Bieke Dewulf, Associate, Competence Centre Entrepreneurship,
Governance and Strategy

Benin
Micro Impacts of Macroeconomic Adjustment Policies (MIMAP)
Benin
Epiphane Adjovi, Business Coordinator
Maria-Odile Attanasso, Deputy Coordinator
Fructueux Deguenonvo, Researcher
Bosnia and Herzegovina
MIT Center, School of Economics and Business in Sarajevo,
University of Sarajevo
Zlatko LagumdÏija, Professor
˘
˘
Zeljko
Sain,
Executive Director
Jasmina Selimovic, Assistant Director
Brazil
Fundação Dom Cabral
Marina Araújo, Research Assistant
Carlos Arruda, International Relations Director and Coordinator
of the Innovation Center
Movimento Brasil Competitivo (MBC)
Jorge H. S. Lima, Project Coordinator
José Fernando Mattos, President
Claudio Leite Gastal, Director
Bulgaria
Center for Economic Development
Anelia Damianova, Senior Expert
Burkina Faso
Société d’Etudes et de Recherche Formation pour le
Développement (SERF)
Abdoulaye Tarnagda, Director General
Burundi
Center of Scientific Research in Economics (CURDES),
National University of Burundi
Ferdinand Bararuzunza, Professor of Economics and Dean of
the Faculty of Economic and Management Sciences
Cambodia
Economic Institute of Cambodia
Sok Hach, Director
Tuy Chak Riya, Research Associate
Hang Sambopisith, Researcher
Cameroon
Comité de Compétitivité (Competitiveness Committee)
Lucien Sanzouango, Permanent Secretary
Canada
Institute for Competitiveness and Prosperity
Roger Martin, Chairman and Dean of the Rotman School of
Management, University of Toronto
James Milway, Executive Director
Chad
Groupe de Recherches Alternatives et de Monitoring du Projet
Pétrole-Tchad-Cameroun (GRAMP-TC)
Antoine Doudjidingao, Researcher
Gilbert Maoundonodji, Director
Celine Nénodji Mbaipeur, Programme Officer

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

v

Partner Institutes

ET.part.A.r1

6/2/08

10:03 PM

Page vi

Chile
Universidad Adolfo Ibáñez
Andres Allamand, Dean, School of Government
Catalina Mertz, Director, Institute of Political Economy
Sergio Selman, Project Coordinator
China
Institute of Economic System and Management
National Development and Reform Commission
Zhou Haichun, Deputy Director and Professor
Chen Wei, Research Fellow
Dong Ying, Professor
Colombia
National Planning Department
Orlando Gracia Fajardo, Entrepreneurial Development Director
Víctor Manuel Nieto, Advisor
Carolina Rentería Rodríguez, General Director
Croatia
National Competitiveness Council
Martina Hatlak, Research Assistant
Mira Lenardic, Secretary General
Cyprus
Cyprus College Research Center
Bambos Papageorgiou, Head of Socioeconomic and Academic
Research
The Cyprus Development Bank
Maria Markidou-Georgiadou, Manager, International Banking
Services Unit and Business Development

vi

Czech Republic
CMC Graduate School of Business
Dagmar Glueckaufova, Interim President and Academic Dean
Daniela Sedlackova, Executive Assistant to the President
Veronika Stejskalova, Coordinator and Graphic Designer
Denmark
Copenhagen Business School
Department of International Economics and Management
Lars Håkanson, Head of Department
Anne Sluhan, Administrative Director
Ecuador
Escuela Superior Politécnica del Litoral (ESPOL)
Escuela de Postgrado en Administración de Empresas (ESPAE)
Virginia Lasio, Acting Director
Juan Tinoco, Project Assistant
Sara Wong, Professor
Egypt
The Egyptian Center for Economic Studies
Hanaa Kheir-El-Din, Executive Director and Director of Research
Estonia
Estonian Institute of Economic Research
Evelin Ahermaa, Head of Economic Research Sector
Marje Josing, Director
Ethiopia
African Institute of Management, Development and Governance
Tegegne Teka, General Manager
Finland
ETLA—The Research Institute of the Finnish Economy
Petri Rouvinen, Research Director
Pasi Sorjonen, Head of the Forecasting Group
Pekka Ylä-Anttila, Managing Director
France
HEC School of Management, Paris
Bertrand Moingeon, Professor, Associate Dean for Executive
Education
Bernard Ramanantsoa, Professor, Dean of HEC School of
Management

Germany
WHU—Otto Beisheim School of Management
Michael Frenkel, Chair, Macroeconomics and International
Economics
Greece
Federation of Greek Industries
Thanasis Printsipas, Economist, Research and Analysis
Antonis Tortopidis, Coordinator, Research and Analysis
Guatemala
FUNDESA
Edgar A. Heinemann, President of the Board of Directors
Humberto Olavarría, Treasurer of the Board of Directors
Pablo Schneider, Director of the Development Initiative Centre
(CIDES)
Guyana
Institute of Development Studies, University of Guyana
Karen Pratt, Research Associate
Clive Thomas, Director
Hong Kong SAR
The Hong Kong General Chamber of Commerce
David O’Rear, Chief Economist
Federation of Hong Kong Industries
Alexandra Poon, Director
Hungary
Kopint-Datorg, Economic Research
Ágnes Nagy, Project Manager
Éva Palócz, Deputy General Director
India
Confederation of Indian Industry
Tarun Das, Chief Mentor
Ajay Khanna, Deputy Director General
Shamsher S Mehta, Director General
Indonesia
Kadin Indonesia
M.S. Hidayat, Chairman
Tulus Tambunan, Director
Ireland
Competitiveness Survey Group, Department of Economics,
University College Cork
Eleanor Doyle
Niall O’Sullivan
Bernadette Power
National Competitiveness Council
Jason Cleary, Researcher
Adrian Devitt, Manager
Ronan Lyons, Economist
Israel
Manufacturers’ Association of Israel (MAI)
Shraga Brosh, President
Dan Catarivas, Director, Foreign Trade and International
Relations Division
Yehuda Segev, Managing Director
Italy
SDA Bocconi School of Management
Olga E. Annushkina, SDA Professor, Strategic and Entrepreneurial
Management Department, SDA Bocconi School of Management
Secchi Carlo, Full Professor of Economic Policy, Bocconi University
Paola Dubini, Associate Professor, Bocconi University
Jamaica
Mona School of Business (MSB), University of the West Indies
Patricia Douce, Survey Coordinator
Michelle Tomlinson, Survey Coordinator
Neville Ying, Executive Director and Professor

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page vii

Japan
Hitotsubashi University, Graduate School of International
Corporate Strategy (ICS)
in cooperation with Keizai Doyukai
Yoko Ishikura, Professor
Jordan
Ministry of Planning & International Cooperation
Jordan National Competitiveness Team
Amjad Attar, Director
Kazakhstan
Center for Marketing and Analytical Research (CMAR)
Dias Iskakov, Director of the Competitiveness Analysis
Department
Kenya
Institute for Development Studies, University of Nairobi
Paul Kamau, Research Fellow
Dorothy McCormick, Director and Professor
Walter Odhiambo, Research Fellow
Korea, Republic of
Graduate Institute of Management, Seoul School of Integrated
Science and Technologies (aSSIST)
Dean Cheol Ho Shin, Professor of Strategy and International
Business
Shin Hyo Kim, Senior Researcher
So Young Lee, Researcher
Kuwait
Economics Department, Kuwait University
Mohammad Ali Alomar, Assistant Professor
Reyadh Faras, Assistant Professor
Mohammed El-Sakka, Professor
Kyrgyz Republic
Economic Policy Institute “Bishkek Consensus”
Lola Abduhametova, Program Coordinator
Marat Tazabekov, Chairman
Latvia
Institute of Economics, Latvian Academy of Sciences, Riga
Raita Karnite, Director
Lesotho
Mohloli Chamber of Business
Refiloe Kepa, General Manager
Lithuania
Statistics Lithuania
Ona Grigiene, Head, Economical Survey Division
ˇ
Algirdas Semeta,
Director General
Luxembourg
Chamber of Commerce of Luxembourg
Jean-Christophe Burkel, Attaché, Economic Department
Carlo Thelen, Member of the Managing Board
Macedonia, FYR
National Entrepreneurship and Competitiveness Council (NECC)
Dejan Janevski, Project Coordinator
Zoran Stavreski, President of the Managing Board
Saso Trajkoski, Executive Director
Madagascar
Centre of Economic Studies, University of Antananarivo
Pépé Andrianomanana, Director
Razato Raharijaona Simo, Executive Secretary
Malaysia
Institute of Strategic and International Studies (ISIS)
Mahani Zainal Abidin, Director-General
Dato’ Mohamed Jawhar Hassan, Chairman and Chief Executive
Officer
Steven C.M. Wong, Assistant Director-General
National Productivity Corporation (NPC)
Dato’ Nik Zainiah Nik Abdul Rahman, Director General
Chan Kum Siew, Senior Manager

Mali
Groupe de Recherche en Economie Appliquée et Théorique
(GREAT)
Massa Coulibaly, Coordinator

Partner Institutes

ET.part.A.r1

Mauritania
Centre d’Information Mauritanien pour le Développement
Economique et Technique (CIMDET/CCIAM)
Chekroud Ould Bouhake
Aminata Niang
Mauritius
Joint Economic Council of Mauritius
Raj Makoond, Director
Board of Investment, Investmauritius
Dev Chamroo, Director, Investment Promotion
Kevin Ramkaloan, Manager, Investment Promotion
Mexico
Center for Intellectual Capital and Competitiveness
René Villarreal Arrambide, President
René Alejandro Villarreal Ramos, General Director
Instituto Mexicano Para la Competitividad (IMCO)
Roberto Newell Garcia, General Director
Juan Carlos Gonzalez Ibarguen, Analyst
Manuel J. Molano Ruiz, Consultant
Ministry of the Economy
Veronica Orendain De Los Santos, Director of Promotion,
Office for Investment Promotion
Eduardo J. Solis Sanchez, Chief of the Office for Investment
promotion
Moldova
Center for Strategic Territorial Development
Ruslan Codreanu, Executive Director
Andrei Smic, Program Coordinator
Mongolia
Open Society Forum (OSF)
Munkhsoyol Baatarjav, Manager of Economic Policy
Erdenejargal Perenlei, Executive Director
Morocco
Université Hassan II
Fouzi Mourji, Professor of Economics
Mozambique
EconPolicy Research Group, Lda.
Peter Coughlin, Director
Namibia
Namibian Economic Policy Research Unit (NEPRU)
Jonathan Adongo, Researcher
Mariama Deen-Swarray, Researcher
Klaus Schade, Acting Director
Nepal
Centre for Economic Development and Administration (CEDA)
Ramesh Chandra Chitrakar, Executive Director
Menaka Rajbhandari Shrestha, Researcher
Santosh Kumar Upadhyaya, Researcher
Netherlands
Erasmus Strategic Renewal Center, Erasmus University Rotterdam
Frans A. J. Van den Bosch, Professor
Henk W. Volberda, Professor
New Zealand
Business New Zealand
Marcia Dunnett, Manager, Business Services
Phil O’Reilly, Chief Executive
The New Zealand Institute
David Skilling, Chief Executive
Nigeria
Nigerian Economic Summit Group (NESG)
Felix Ogbera, Associate Director, Research
Chris Okpoko, Senior Consultant, Research

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

vii

Partner Institutes

ET.part.A.r1

6/2/08

10:03 PM

Page viii

Norway
BI Norwegian School of Management
Eskil Goldeng, Researcher
Torger Reve, Professor
Oman
The International Research Foundation
Azzan Al Busaidi, Chief Executive Officer
Salem Ben Nasser Al-Ismaily, Chairman
Pakistan
Competitiveness Support Fund
Arthur Bayhan, Chief Executive Officer
Amir Jahangir, Manager, Communications
Paraguay
Centro de Análisis y Difusión de Economia Paraguaya (CADEP)
Dionisio Borda, Director
Jaime Escobar, Research Member
Fernando Masi, Research Member
Peru
Centro de Desarrollo Industrial (CDI), Sociedad Nacional de
Industrias
Néstor Asto, Project Director
Luis Tenorio, Executive Director
Philippines
Makati Business Club
Alberto A. Lim, Executive Director
Michael B. Mundo, Chief Economist
Mark P. Opulencia, Deputy Director
Poland
Warsaw School of Economics
Bogdan Radomski, Associate Professor

viii

Portugal
PROFORUM, Associação para o Desenvolvimento da Engenharia
Ilídio António de Ayala Serôdio, Vice President of the Board of
Directors
Qatar
Qatari Businessmen Association (QBA)
Issa Abdul Salam Abu Issa, Secretary-General
Bassam Ramzi Massouh, General Manager
Ahmed El-Shaffee, Economist
Romania
Group of Applied Economics (GEA)
Anca Rusu, Program Coordinator
Liviu Voinea, Executive Director
Russian Federation
Bauman Innovation, Academy of National Economy under the
Government of the Russian Federation
Alexei Prazdnitchnykh, Principal, Associate Professor
Stockholm School of Economics, Russia
Igor Dukeov, Research Fellow
Carl F. Fey, Associate Dean of Research
Saudi Arabia
National Competitiveness Center (NCC)
Awwad Al-Awwad, Deputy Governor for Investment
Khaldon Mahasen, Manager, Investment Performance Assessment
Senegal
Centre de Recherches Economiques Appliquées (CREA),
University of Dakar
Aly Mbaye, Director
Singapore
Economic Development Board
Chua Kia Chee, Head, Research and Statistics Unit
Bernard Nee, Director, Planning
Slovak Republic
Business Alliance of Slovakia (PAS)
Robert Kicina, Executive Director

Slovenia
Institute for Economic Research, Faculty of Economics
Mateja Drnov˘sek
Art Kovacic
Peter Stanovnik
South Africa
Business Leadership South Africa
Michael Spicer, Chief Executive Officer
Business Unity South Africa
Jerry Vilakazi, Chief Executive Officer
Vic Van Vuuren, Chief Operating Officer
Spain
IESE Business School, International Center for Competitiveness,
Anselmo Rubiralta Center for Globalization and Strategy
Eduardo Ballarín, Professor
María Luisa Blázquez, Research Associate
Sri Lanka
Institute of Policy Studies
Indika Siriwardena, Database Manager
The Ceylon Chamber of Commerce
Prema Cooray, Secretary General
Sweden
Center for Strategy and Competitiveness, Stockholm School
of Economics
Christian Ketels, Senior Research Fellow
Örjan Sölvell, Professor
Switzerland
University of St. Gallen
Monika Buetler, Director, Economic Department
Syria
Ministry of Economy and Trade
Amer Housni Louitfi, Minister of Economy and Trade
State Planning Commission
Talal Bakfaloni, Deputy Head of State Planning Commission
UNDP Damascus
Nuhad Dimashkiyyah, National Project Director “Towards
Changing the Mindset for Competitiveness”
Taiwan, China
Council for Economic Planning and Development, Executive Yuan
Mei Yueh Ho, Chairman
J. B. Hung, Director, Economic Research Department
Chung Chung Shieh, Researcher, Economic Research Department
Tajikistan
The Center for Sociological Research “Zerkalo”
Qahramon Baqozoda, Director and Sociologist
Ol’ga Es’kina, Researcher
Alikul Isoev, Sociologist and Economist
Tanzania
Economic and Social Research Foundation
Irene Alenga, Commissioned Studies Department
Haidari Amani, Executive Director and Professor
Dennis Rweyemamu, Commissioned Studies Department
Thailand
National Economic and Social Development Board
Ampon Kittiampon, Secretary-General
Arkhom Termpittayapaisith, Deputy Secretary-General
Tunisia
Institut Arabe des Chefs d’Entreprises
Majdi Hassen, Executive Counsellor
Chekib Nouira, President
Turkey
TUSIAD Sabanci University Competitiveness Forum
A. Gunduz Ulusoy, Director and Professor
Hande Yegenoglu, Project Specialist

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page ix

Uganda
Makerere Institute of Social Research, Makerere University
Robert Apunyo, Research Associate
Delius Asiimwe, Senior Research Fellow
Wilson Asiimwe, Graduate Fellow

Partner Institutes

ET.part.A.r1

Ukraine
CASE Ukraine, Center for Social and Economic Research
Dmytro Boyarchuk, Executive Director
Vladimir Dubrovskiy, Leading Economist
United Arab Emirates
Economic and Policy Research Unit, Zayed University
Kenneth Wilson, Director
United States
US Chamber of Commerce
Jana Cary, Senior Director, Marketing Communications
David Hirschmann, Senior Vice President
Susan Reardon, Executive Director, National Chamber Foundation
Uruguay
Universidad ORT
Isidoro Hodara, Professor
Uzbekistan
ABN-TASMI INFORM
Venera Khayrulina, Director
Venezuela
CONAPRI—National Council for Investment Promotion
Silvia Castillo, Consulting Manager
Giuseppe Rionero, Research Manager
Vietnam
Central Institute for Economic Management (CIEM)
Dinh Van An, President
Phan Thanh Ha, Deputy Director, Department of Macroeconomic
Management
Pham Hoang Ha, Senior Researcher, Department of
Macroeconomic Management
Institute for Economic Research of HCMC
Tran Du Lich, Director
Doan Nguyen Ngoc Quynh, Researcher of the Research
Management and International Cooperation Department
Du Phuoc Tan, Head of the Research Management and
International Cooperation Department
Zambia
Institute of Economic and Social Research (INESOR),
University of Zambia
Mutumba M. Bull, Director
Patricia Funjika, Staff Development Fellow, Economics and
Business Research
Inyambo Mwanawina, Assistant Director and Coordinator,
Economics and Business Research
Zimbabwe
Graduate School of Management, University of Zimbabwe
A.M. Hawkins, Professor
Bolivia, Costa Rica, Dominican Republic, Ecuador, El Salvador,
Honduras, Nicaragua, Panama
INCAE Business School Latin American Center for
Competitiveness and Sustainable Development
Roberto Artavia, Rector
Arturo Condo, Dean
Marlene de Estrella, Director of External Relations
Latvia, Lithuania
Stockholm School of Economics in Riga
Karlis Kreslins, Associate Professor
Anders Paalzow, Rector

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

ix

ET.part.A.r1

6/2/08

10:03 PM

Page x

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page xi

Preface

ET.part.A.r1

Preface
KLAUS SCHWAB,
Executive Chairman, World Economic Forum

The benefits of free trade are well known: trade opens
new markets and allows countries to gain from specializing in producing those goods and services they do
best, it provides greater choice for consumers at a lower
cost, and it improves global efficiency in resource allocation.The past half century has seen a significant opening
to international trade around the world, contributing
substantially to global economic welfare and reducing
poverty.Yet, despite the key role that international trade
plays in economic development, many obstacles remain
to realizing its full potential. Given the importance of
trade for industrialized and developing countries alike,
the fundamental objective of The Global Enabling Trade
Report (GETR) is to explore the factors enabling trade
in individual economies.
Trade barriers extend beyond the tariffs and quotas
traditionally considered to factors such as border administration, infrastructure, and the domestic business environment. Over the past year, the World Economic
Forum has engaged key industry and thought leaders
through its Logistics & Transport Industry Partnership
Programme to carry out an in-depth analysis and assessment of the obstacles hindering trade in economies
around the world.The goal is to construct a platform
for multistakeholder dialogue to explore how best to
remove these obstacles, in the interest of fostering international economic development.
Drawing on our expertise in developing tools for
benchmarking economic performance, the World
Economic Forum has developed the first Enabling Trade
Index (ETI), which is at the core of this Report. The aim
of the ETI, which covers 118 economies, is to provide a
strategic tool for measuring a range of policy-related
issues that contribute to hindering trade. It ranks nations
according to the factors and policies facilitating the free
flow of goods across national borders and to destination.
By providing detailed assessments of the trade-enhancing environments in countries worldwide, the results can
be used by all stakeholders to work together to increase
their economies’ participation in the global economy,
thereby contributing to national growth and prosperity.
The Report contains detailed profiles for each of the
118 economies featured in the study, as well as an
extensive section of data tables with global rankings
covering all of the indicators included in the ETI. In
addition, the Report includes insightful contributions
from a number of trade experts and industry practitioners.These essay contributions examine different aspects

of enabling trade, exploring issues such as the role of
logistics and transport efficiency in facilitating trade and
global efforts being made in the area of trade facilitation.
The Global Enabling Trade Report could not have
been put together without the distinguished thinkers
who have shared with us their knowledge and experience.We are grateful to our data partners—the Global
Express Association (GEA), the International Air
Transport Association (IATA), the International Trade
Centre (ITC), the United Nations Conference on Trade
and Development (UNCTAD),The World Bank, and
the World Trade Organization (WTO)—for helping us
to design and develop the ETI and for providing many
of the trade-related data used in its calculation.We thank
our industry partners in this Report—ABX LOGISTICS
Worldwide, Agility, Deutsche Post World Net, DP
World, FedEx Corporation, Stena,TNT N.V., and
UPS—for their support in this important venture.We
also wish to thank the editors of the Report, Robert Z.
Lawrence of Harvard University and Jennifer Blanke,
Margareta Drzeniek Hanouz, and John Moavenzadeh
from the World Economic Forum, for their energy and
their commitment to the project.We are also grateful to
the management team of the Enabling Trade project,
Sean Doherty and Qin He, for so effectively driving the
process forward throughout the year. Appreciation also
goes to Fiona Paua, Head of Strategic Insight Teams, and
other team members: Ciara Browne, Agustina Ciocia,
Thierry Geiger,Yasmina Makar, Irene Mia, Pearl
Samandari, and Eva Trujillo Herrera. Finally, we would
like to commend our network of 142 Partner Institutes
worldwide, without whose enthusiasm and hard work
the annual administration of the Executive Opinion
Survey and this Report would not be possible.

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

xi

ET.part.A.r1

6/2/08

10:03 PM

Page xii

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page xiii

Executive Summary
ROBERT Z. LAWRENCE, Harvard University
JENNIFER BLANKE, SEAN DOHERTY, and MARGARETA DRZENIEK HANOUZ, World Economic Forum

International trade is widely recognized as an important
driver of economic development.Trade is associated
with higher growth and poverty reduction. It allows
countries to reap the benefits of specialization, ushering
competition into domestic markets and increasing
choice for consumers and inputs for producers. It allows
the exploitation of economies of scale, fosters innovation, and tends to encourage better policies.
However, despite the recognized benefits of trade,
many obstacles remain. Some of these obstacles are
intentional, specifically aimed at limiting market access;
some have been justified on the grounds of infant
industry protection. But for the most part tariffs and
other policy-related trade barriers are erected by governments wishing to shield those who lose in the short
term because of increased foreign competition. Other
obstacles to trade are unintended consequences related
to the human and physical infrastructure, and to institutional frameworks that have been developed over the
years in each country.Whatever their origins, these barriers have the consequence of limiting the flow of trade,
generally lowering welfare at the aggregate.
The World Economic Forum has embarked on a
multiyear project of research and dialogue in collaboration with international trade experts and leaders from
the logistics and transport industry.This Report serves as
a concrete resource, providing a measure of the extent
to which countries have in place all of the necessary
attributes to enable the free flow of trade into a country
and to destination. By bringing together the work of
many institutions and other actors, we hope to highlight
the numerous efforts and successes in this area, bringing
them to new audiences so they may serve as building
blocks for further improvements.
We hope to raise awareness about the importance
of trade for development, and the many factors that can
hinder or facilitate trade. Our aim is to provide businesses and policymakers with insights into priorities for
reform in each country, helping them to more fully
benefit from the opportunities offered by global trade.

The Enabling Trade Index
A principal aim of this Report is to measure the extent
to which countries around the world have in place the
factors and policies for enabling trade. Chapter 1.1
introduces a new index, the Enabling Trade Index
(ETI), which measures the factors, policies, and services

facilitating the free flow of goods over borders and to
destination.
The ETI was developed within the context of the
World Economic Forum’s Industry Partnership
Programme for the Logistics & Transport sector.This
was done in close collaboration with our data partners:
the Global Express Association (GEA), the International
Air Transport Association (IATA), the International
Trade Centre (ITC), the United Nations Conference on
Trade and Development (UNCTAD),The World Bank,
and the World Trade Organization (WTO).We have also
received important feedback from a number of key
companies that are industry partners in the effort, namely ABX LOGISTICS Worldwide, Agility, Deutsche Post
World Net, DP World, FedEx Corporation, Stena,TNT
N.V., and UPS.
The Index breaks the enablers into four overall
issue areas, or subindexes: (1) market access, (2) border
administration, (3) transport and communications infrastructure, and (4) the business environment.The first
subindex measures the extent to which the policy and
cultural framework of the country welcomes foreign
goods into the country. Once goods have been allowed
in to the country, the second subindex assesses the extent
to which the administration at the border facilitates their
entry. Once goods have made it over the border, the
third subindex takes into account whether the country
has the transport and communications infrastructure
necessary to facilitate the movement of the goods from
the border to destination. Finally, the fourth subindex
looks at the overarching regulatory and security environment impacting the transport business in the country.
Each of these four subindexes is composed of a
number of pillars of enabling trade, of which we use 10
in all.These are:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Tariffs and non-tariff barriers
Proclivity to trade
Efficiency of customs administration
Efficiency of import-export procedures
Transparency of border administration
Availability and quality of transport
infrastructure
Availability and quality of transport services
Availability and use of ICTs
Regulatory environment
Physical security

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

Executive Summary

ET.part.A.r1

xiii

Executive Summary

ET.part.A.r1

6/2/08

10:03 PM

Page xiv

Each of these pillars is, in turn, made up of a number of individual variables.The dataset includes both
hard data and Survey data from the World Economic
Forum’s Executive Opinion Survey.The hard data were
obtained from publicly available sources, international
organizations, and trade experts (for example, IATA, the
ITC, the WTO, and UNCTAD).The Survey is carried
out among CEOs and top business leaders in all
economies covered by our research.The Survey provides
unique data on many qualitative institutional and business environment-related issues, as well as a number of
specific issues related to trade.The exact methodology
underlying the construction of the ETI is described in
Chapter 1.1.

The Enabling Trade Index 2008 rankings
Tables 1–5 show the rankings of all 118 countries in the
overall ETI as well as in each of the four subindexes and
each individual pillar.
The top 10

xiv

Two Asian economies—Hong Kong and Singapore—
occupy the top two positions in the ETI rankings.This
result bears witness to these countries’ openness to
international trade and investment as part of their successful economic development strategy. Hong Kong’s
positive outcome rests on very good results in all four
subindexes.The economy’s very open market, mirroring
a pro-trade attitude and a high dependence on exports
and imports, as well as the secure and open business
environment contribute to this good result. Hong Kong
does not apply tariffs on imported products and the
business environment is open to investment and foreign
workers. At the same time, transport and telecommunications infrastructure is well developed and border
administration is efficient, although businesses express
some concerns about the level of corruption.
Compared with Hong Kong, Singapore boasts a
highly efficient and transparent border administration, an
equally open business environment, and a well-developed transport and communications infrastructure.
Customs procedures are assessed as the least burdensome
and the cost of importing goods is the lowest among the
countries covered. However, access to Singapore’s market is fairly difficult, as reflected in its 27th rank on the
relevant subindex. Although tariff rates remain very low,
access is hampered by non-tariff barriers (84th) and little
openness to multilateral trade rules.The country boasts
well-developed transport infrastructure and excellent
transport services, and improvements to the ICT infrastructure could further increase the ease of getting
goods across borders in Singapore.The country’s excellent business environment facilitates operations of
traders through an investment regime that is open to
FDI and hiring foreign labor, although more open bilateral Air Service Agreements would be beneficial.

Sweden is ranked 3rd, receiving top marks for its
transport and communications infrastructure, where it is
ranked 1st out of all 118 countries. Sweden has highquality transport infrastructure and excellent transport
services, and the country has fully harnessed the use of
ICTs so important for the logistics and transport industry. Sweden’s border administration is ranked 2nd, attributable to its high efficiency and transparency, with customs procedures that are not overly burdensome, requiring, for example, few days and documents to import
goods into the country.With regard to market access,
Sweden has few tariffs, as is the case of other European
Union (EU) countries, placing it 3rd, although the
country does impose significant non-tariff barriers
(ranked lower at 64th). More generally, Sweden demonstrates a very strong proclivity to trade, ranked 3rd out
of all countries.
Norway, ranked 4th, demonstrates its greatest
strengths in two areas: market access and border administration. Norway is ranked 2nd out of all countries for
the ease of access into the country’s market, with low
non-tariff barriers, a high share of duty-free imports
allowed into the country, and demonstrated openness to
multilateral trade rules through its participation in many
trade-related international agreements. As well as allowing
goods easy access into the market, Norway also ensures
that the goods make it over the border with little hassle.
The efficiency and transparency of its border administration are both ranked 8th, and the procedures required
to import are so efficient as to place the country 5th. In
addition, the business environment in the country is also
in the top 10, a ranking particularly related to the high
levels of physical security in the country that ensure the
safe arrival of goods to destination.
Canada is the top-ranked North American country
at 5th, ahead of the United States by 9 ranks. Canada is
ranked 3rd overall for its market access, with tariffs that
are not significantly higher than in the European Union,
relatively low non-tariff barriers, and a high share of
duty-free imports allowed into the country. Canada’s
border administration is also among the top 10, with
efficient clearance procedures and few documents
required to import, as well as high levels of transparency
in the border administration’s activities. In addition,
Canada is ranked 3rd for the availability and quality of
its transport infrastructure, facilitating the movement of
goods to market once they are allowed over the border.
Denmark is ranked 6th. In addition to its low tariffs, the country also benefits from an excellent border
administration, with import-export procedures that are
so efficient as to place the country 1st in this category.
The transparency of the border administration is also
ranked 1st, with extremely low levels of trade-related
corruption. In addition, Denmark has excellent transport
infrastructure (ranked 4th) and strong communications
infrastructure (ranked 7th).The country also benefits
from very high levels of physical security, ranked 2nd

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page xv

overall in this category, with low levels of crime and
violence and a very reliable police force.
The main strength of Finland, ranked 7th just after
Denmark, is its business environment, which is ranked
1st out of all countries covered.The country benefits
from rules fostering foreign ownership and greater ease
in hiring foreign labor than in many other European
countries, as well as an excellent security environment.
Like the other Nordic countries, Finland’s border
administration also gets top marks, with customs procedures that are not burdensome and a particularly low
cost to import, perhaps explaining the high transparency
and low level of corruption related to its border administration (ranked 3rd).
Germany and Switzerland round out the European
countries in the top 10, ranking 8th and 9th, respectively. Germany benefits from an excellent business environment (ranked 4th), with a regulatory environment that is
conducive to the functioning of the logistics and transport industry, and an excellent security environment for
businesses operating in the country.The transport and
communications infrastructure is also among the best in
the world, with transport services in particular ranked
2nd out of all countries: the logistics industry gets
excellent marks for competence (ranked 4th), shipping is
easy and affordable (also ranked 4th), and its postal service is among the best in the world (ranked 3rd).
Switzerland gets particularly good marks for market
access (ranked 5th). Although its tariffs overall are slightly higher than EU countries, mainly because of higher
tariffs on agricultural goods, its non-tariff barriers are
comparatively low. As with the Nordic countries,
Switzerland’s security environment is also excellent, and
it benefits from a supportive regulatory environment,
with open bilateral Air Service Agreements and a relative ease of hiring foreign labor, particularly compared
with several other European countries. Switzerland’s
border administration also gets good marks, particularly
for its transparency and lack of corruption (ranked 6th).
New Zealand closes the top 10 at 10th position. Its
highly efficient and transparent border administration
contributes to this good rating, as do the country’s low
tariff and non-tariff barriers. New Zealand applies low
tariffs, and imports almost 80 percent of products dutyfree.The country’s business environment is characterized
by high levels of physical security and is fairly welcoming to foreign investment, although obstacles persist
with respect to hiring foreign labor. Upgrading the
quality of infrastructure, in particular roads and railroads,
will be necessary to further facilitate the flow of goods
to destinations in the country.
Asia

Outside the top 10, in Asia, Japan occupies the 13th
position in the ETI ranking. Free market access and the
export orientation of local companies contribute to this
rating, as well as the excellent physical security environ-

ment in the country. At the same time, some aspects of
the regulatory environment are not conducive to
enabling trade, in particular laws that do not encourage
FDI and legal obstacles to hiring foreign labor. Although
Japan is a very export-oriented economy, imports of
goods appear to be hampered by administrative procedures. In particular, businesses consider customs procedures to be somewhat cumbersome, which are ranked
38th overall.This is also reflected in the fairly high cost
to import: the cost of importing goods is almost three
times higher than in Singapore, the best performer on
this measure. Once goods are over the border, the country features excellent infrastructure-related services,
ranked 7th for this indicator. In particular, postal and
logistics services stand out for their quality and efficiency.
However, it must be noted that Japan’s overcrowded
roads and the fairly low airport density negatively affect
the environment for trade.
Taiwan and Korea follow at 21st and 24th overall.
Both economies boast very good infrastructure.
Infrastructure-related services are efficient and widely
available, and the use of ICTs is widespread, which
improves the connectivity of companies and the ability
to track consignments.Weaknesses in both countries
include obstacles to market access and a business environment that does not facilitate the entry of foreign
investment and labor.
China occupies the 48th position.This fairly low
position for one of the world’s most successful exporters
highlights a number of underlying weaknesses in China’s
economy and its trading regime. Above all, China is a
fairly closed country. Although its economic success
relies heavily on exports, imports are still severely inhibited by tariff and non-tariff barriers, despite the country’s accession to the WTO.The country ranks 108th
out of 118 economies on tariff barriers, which amount
to almost 15 percent.The country’s border administration is fairly efficient; importing products is not costly,
although it can be quite time-consuming. A particular
concern when exporting and importing is the lack of
transparency of border administration, which can be
particularly heavy for foreign businesses. Because of
large export volumes, the country is well connected to
international markets, yet its transport infrastructure is
not on a par with the world’s best. In particular, airport
density and the quality of air transport infrastructure are
fairly low.The quality and availability of transport services, however, are among the best in the world, ranked
17th overall. Improvements to the regulatory and security environment would further enable trade. In particular, greater encouragement of FDI and more openness
to foreign air transport service providers would help.
Further down the rankings we find India, at 71st
place. India’s weak position reflects a mixed performance
on the four pillars of the ETI.While it boasts fairly
good border administration and an acceptable business
environment, market access continues to be severely

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

Executive Summary

ET.part.A.r1

xv

Executive Summary

ET.part.A.r1

6/2/08

10:03 PM

Table 1: The Enabling Trade Index 2008
SUBINDEXES
OVERALL INDEX
Country/Economy

xvi

Page xvi

Hong Kong SAR
Singapore
Sweden
Norway
Canada
Denmark
Finland
Germany
Switzerland
New Zealand
Netherlands
Luxembourg
Japan
United States
Austria
United Kingdom
Australia
Belgium
France
Ireland
Taiwan, China
Spain
United Arab Emirates
Korea, Rep.
Estonia
Portugal
Chile
Israel
Malaysia
Slovak Republic
Slovenia
Czech Republic
Italy
Hungary
Lithuania
Greece
Bahrain
Turkey
Cyprus
Mauritius
Qatar
Croatia
Latvia
Costa Rica
Poland
Panama
Indonesia
China
Tunisia
Oman
Jordan
Thailand
Saudi Arabia
Guatemala
El Salvador
Uruguay
Romania
Kuwait
South Africa
Bulgaria
Armenia
Moldova
Dominican Republic
Honduras
Mexico

Market
access

Border
administration

Transport and communications infrastructure

Business
environment

Rank

Score

Rank

Score

Rank

Score

Rank

Score

Rank

Score

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65

6.04
5.71
5.66
5.65
5.62
5.62
5.61
5.58
5.58
5.52
5.51
5.50
5.43
5.42
5.42
5.30
5.22
5.21
5.20
5.20
5.15
5.03
4.96
4.95
4.89
4.88
4.88
4.76
4.75
4.74
4.74
4.70
4.70
4.67
4.63
4.60
4.53
4.53
4.50
4.50
4.48
4.45
4.45
4.41
4.35
4.28
4.27
4.25
4.23
4.22
4.19
4.18
4.16
4.14
4.13
4.06
4.04
4.03
3.98
3.90
3.90
3.88
3.85
3.83
3.83

1
27
14
2
3
15
19
9
5
7
18
17
4
6
13
24
44
16
20
25
38
34
50
72
47
45
40
36
68
23
21
33
30
41
32
31
46
8
49
11
54
12
48
10
42
59
22
71
88
35
95
62
51
28
29
66
61
64
67
56
43
26
85
63
74

6.66
4.99
5.21
5.89
5.87
5.15
5.08
5.34
5.65
5.41
5.10
5.10
5.86
5.65
5.22
5.02
4.72
5.12
5.08
5.01
4.83
4.87
4.50
4.07
4.66
4.72
4.77
4.84
4.09
5.03
5.07
4.94
4.97
4.76
4.95
4.95
4.69
5.40
4.51
5.29
4.39
5.24
4.55
5.32
4.73
4.27
5.03
4.07
3.57
4.85
3.35
4.25
4.49
4.98
4.97
4.12
4.25
4.18
4.10
4.31
4.73
4.99
3.69
4.22
4.04

7
1
2
6
9
5
4
15
12
3
8
10
17
21
16
14
11
25
26
19
22
23
27
18
13
32
20
29
24
35
30
31
38
33
28
54
41
47
44
42
53
52
40
49
37
39
63
43
34
60
36
56
59
46
62
51
61
67
50
57
87
75
58
77
65

5.99
6.51
6.32
6.06
5.78
6.10
6.15
5.57
5.69
6.16
5.98
5.77
5.55
5.29
5.57
5.58
5.71
5.23
5.21
5.43
5.27
5.26
5.18
5.49
5.63
4.85
5.43
5.03
5.23
4.68
4.91
4.86
4.58
4.79
5.04
4.08
4.53
4.28
4.37
4.53
4.11
4.15
4.54
4.22
4.62
4.54
3.96
4.51
4.73
4.04
4.66
4.07
4.05
4.32
3.98
4.15
4.02
3.86
4.21
4.07
3.28
3.65
4.07
3.60
3.88

4
7
1
20
11
10
18
5
14
21
2
9
13
3
12
8
17
16
6
24
15
22
23
19
29
28
42
26
27
35
30
34
25
38
37
31
40
44
32
56
33
43
39
66
46
48
74
36
53
57
51
41
47
78
80
61
49
50
45
54
77
76
79
92
67

5.66
5.53
5.77
5.21
5.50
5.51
5.29
5.66
5.39
5.09
5.73
5.51
5.42
5.66
5.43
5.52
5.32
5.33
5.54
4.79
5.37
5.08
4.80
5.23
4.51
4.57
3.93
4.64
4.62
4.17
4.49
4.18
4.68
4.10
4.14
4.49
3.99
3.79
4.41
3.50
4.22
3.89
4.08
3.26
3.70
3.65
3.13
4.15
3.53
3.50
3.54
3.93
3.70
3.00
2.97
3.34
3.64
3.56
3.74
3.52
3.00
3.05
2.97
2.84
3.25

2
3
14
10
16
5
1
4
7
11
17
6
35
25
9
26
21
20
31
8
22
33
15
30
39
13
12
57
27
24
63
38
54
28
67
36
34
50
41
43
18
56
51
37
73
47
32
77
23
60
19
61
68
79
52
49
81
59
99
107
53
101
42
45
86

5.84
5.82
5.35
5.45
5.33
5.70
5.92
5.74
5.58
5.42
5.22
5.63
4.90
5.08
5.45
5.07
5.14
5.16
4.98
5.56
5.13
4.92
5.34
5.02
4.76
5.39
5.40
4.53
5.07
5.09
4.48
4.84
4.57
5.05
4.40
4.86
4.92
4.64
4.72
4.69
5.22
4.54
4.61
4.86
4.35
4.66
4.97
4.28
5.11
4.51
5.21
4.49
4.39
4.27
4.59
4.64
4.24
4.51
3.87
3.71
4.59
3.83
4.70
4.67
4.15

(Cont’d.)

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page xvii

Table 1: The Enabling Trade Index 2008 (cont’d.)
SUBINDEXES
OVERALL INDEX
Country/Economy

Jamaica
Nicaragua
Ukraine
Peru
Sri Lanka
India
Kazakhstan
Albania
Morocco
Colombia
Azerbaijan
Namibia
Argentina
Uganda
Brazil
Macedonia, FYR
Philippines
Paraguay
Pakistan
Zambia
Kenya
Egypt
Madagascar
Bosnia and Herzegovina
Mali
Vietnam
Cameroon
Mongolia
Bolivia
Lesotho
Ecuador
Mauritania
Benin
Burkina Faso
Senegal
Mozambique
Tanzania
Russian Federation
Tajikistan
Uzbekistan
Ethiopia
Syria
Algeria
Kyrgyz Republic
Bangladesh
Nigeria
Zimbabwe
Cambodia
Guyana
Venezuela
Nepal
Burundi
Chad

Market
access

Border
administration

Transport and communications infrastructure

Business
environment

Rank

Score

Rank

Score

Rank

Score

Rank

Score

Rank

Score

66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118

3.80
3.78
3.77
3.76
3.75
3.74
3.73
3.72
3.71
3.70
3.68
3.66
3.65
3.63
3.63
3.58
3.57
3.54
3.54
3.52
3.51
3.51
3.49
3.47
3.42
3.42
3.42
3.38
3.36
3.36
3.36
3.34
3.34
3.33
3.33
3.30
3.27
3.25
3.13
3.06
3.06
3.05
3.04
3.03
3.03
3.02
2.98
2.95
2.95
2.85
2.70
2.70
2.60

90
79
39
73
70
105
37
57
110
96
65
78
89
58
92
86
80
60
98
76
55
111
53
97
75
112
87
69
84
52
77
93
94
82
109
81
100
99
83
114
116
117
118
102
104
107
91
108
113
103
106
115
101

3.46
3.91
4.77
4.06
4.08
2.82
4.83
4.29
2.58
3.31
4.15
3.93
3.57
4.27
3.42
3.64
3.86
4.27
3.20
3.98
4.32
2.51
4.42
3.29
4.01
2.50
3.58
4.08
3.70
4.45
3.98
3.39
3.36
3.82
2.59
3.85
3.07
3.11
3.74
2.46
2.15
2.04
1.80
2.95
2.87
2.77
3.44
2.62
2.48
2.91
2.77
2.20
3.03

68
74
94
73
69
55
110
64
45
48
112
79
71
90
66
80
82
81
78
103
95
70
100
72
111
76
84
113
83
99
105
102
89
106
93
86
88
92
117
116
96
98
85
104
97
101
114
107
91
115
108
109
118

3.85
3.65
3.17
3.67
3.83
4.08
2.70
3.89
4.32
4.24
2.62
3.59
3.69
3.26
3.87
3.58
3.54
3.55
3.59
2.88
3.13
3.78
3.01
3.68
2.68
3.60
3.43
2.58
3.44
3.03
2.81
2.95
3.27
2.76
3.18
3.30
3.28
3.20
2.40
2.43
3.12
3.04
3.34
2.84
3.12
2.98
2.51
2.74
3.24
2.49
2.70
2.70
2.16

55
102
59
82
73
52
63
106
68
72
64
71
58
93
62
69
83
99
70
100
90
65
107
86
109
75
112
87
96
115
85
98
101
110
89
114
111
60
117
84
97
94
91
88
103
108
95
105
104
81
113
116
118

3.52
2.51
3.42
2.96
3.13
3.54
3.31
2.47
3.20
3.14
3.30
3.17
3.46
2.75
3.31
3.19
2.95
2.59
3.18
2.59
2.86
3.27
2.47
2.91
2.44
3.08
2.37
2.89
2.70
2.25
2.94
2.62
2.57
2.40
2.86
2.29
2.40
3.35
2.02
2.94
2.69
2.74
2.85
2.88
2.51
2.44
2.73
2.48
2.51
2.96
2.34
2.14
1.93

70
29
106
72
92
58
88
82
40
87
46
94
98
80
96
97
95
103
83
48
105
64
89
90
55
62
78
91
110
108
109
66
85
74
44
102
75
114
69
65
76
71
84
113
111
100
116
93
112
117
118
104
115

4.37
5.03
3.73
4.35
3.97
4.53
4.06
4.22
4.74
4.11
4.66
3.95
3.88
4.25
3.91
3.90
3.93
3.76
4.20
4.65
3.73
4.47
4.05
3.98
4.54
4.48
4.28
3.98
3.62
3.71
3.70
4.41
4.16
4.35
4.67
3.76
4.32
3.35
4.38
4.43
4.29
4.36
4.16
3.44
3.60
3.87
3.22
3.96
3.56
3.05
2.98
3.74
3.30

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

Executive Summary

ET.part.A.r1

xvii

Executive Summary

ET.part.A.r1

xviii

6/2/08

10:03 PM

Page xviii

Table 2: The Enabling Trade Index: Market access
PILLARS
MARKET ACCESS
Country/Economy

Albania
Algeria
Argentina
Armenia
Australia
Austria
Azerbaijan
Bahrain
Bangladesh
Belgium
Benin
Bolivia
Bosnia and Herzegovina
Brazil
Bulgaria
Burkina Faso
Burundi
Cambodia
Cameroon
Canada
Chad
Chile
China
Colombia
Costa Rica
Croatia
Cyprus
Czech Republic
Denmark
Dominican Republic
Ecuador
Egypt
El Salvador
Estonia
Ethiopia
Finland
France
Germany
Greece
Guatemala
Guyana
Honduras
Hong Kong SAR
Hungary
India
Indonesia
Ireland
Israel
Italy
Jamaica
Japan
Jordan
Kazakhstan
Kenya
Korea, Rep.
Kuwait
Kyrgyz Republic
Latvia
Lesotho
Lithuania
Luxembourg
Macedonia, FYR
Madagascar
Malaysia
Mali

1. Tariff and non-tariff barriers

2. Proclivity to trade

Rank

Score

Rank

Score

Rank

Score

57
118
89
43
44
13
65
46
104
16
94
84
97
92
56
82
115
108
87
3
101
40
71
96
10
12
49
33
15
85
77
111
29
47
116
19
20
9
31
28
113
63
1
41
105
22
25
36
30
90
4
95
37
55
72
64
102
48
52
32
17
86
53
68
75

4.29
1.80
3.57
4.73
4.72
5.22
4.15
4.69
2.87
5.12
3.36
3.70
3.29
3.42
4.31
3.82
2.20
2.62
3.58
5.87
3.03
4.77
4.07
3.31
5.32
5.24
4.51
4.94
5.15
3.69
3.98
2.51
4.97
4.66
2.15
5.08
5.08
5.34
4.95
4.98
2.48
4.22
6.66
4.76
2.82
5.03
5.01
4.84
4.97
3.46
5.86
3.35
4.83
4.32
4.07
4.18
2.95
4.55
4.45
4.95
5.10
3.64
4.42
4.09
4.01

13
115
102
14
71
48
38
12
97
41
82
69
85
98
42
32
106
103
79
2
81
49
90
101
10
5
65
64
61
51
83
115
24
73
109
63
56
60
35
22
108
45
1
77
112
16
62
27
43
86
6
105
20
80
96
21
107
66
4
50
37
91
26
93
33

5.72
1.00
2.60
5.67
4.14
4.40
4.58
5.85
2.96
4.53
3.87
4.16
3.45
2.88
4.50
4.82
2.34
2.50
3.99
6.10
3.94
4.38
3.33
2.62
5.92
6.02
4.25
4.27
4.31
4.38
3.84
1.00
5.44
4.12
2.04
4.28
4.35
4.33
4.71
5.51
2.19
4.43
7.00
4.06
1.89
5.65
4.29
5.24
4.47
3.43
5.95
2.38
5.53
3.97
3.06
5.52
2.30
4.23
6.04
4.38
4.64
3.32
5.25
3.25
4.79

104
113
45
74
28
4
79
85
108
13
103
92
98
68
58
107
118
112
95
17
117
31
40
63
42
47
41
19
6
101
57
61
46
29
116
7
10
1
30
48
110
62
2
23
77
50
12
49
22
86
11
52
55
43
33
106
83
38
105
21
20
69
84
36
93

2.86
2.59
4.54
3.78
5.31
6.03
3.73
3.53
2.79
5.71
2.86
3.24
3.14
3.96
4.11
2.83
2.06
2.74
3.17
5.64
2.12
5.16
4.82
4.01
4.72
4.47
4.76
5.61
5.99
2.99
4.11
4.03
4.51
5.20
2.26
5.88
5.81
6.36
5.20
4.45
2.77
4.01
6.33
5.46
3.76
4.41
5.73
4.44
5.47
3.50
5.78
4.32
4.13
4.67
5.08
2.84
3.61
4.88
2.86
5.52
5.57
3.95
3.60
4.93
3.22

(Cont’d.)

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page xix

Table 2: The Enabling Trade Index: Market access (cont’d.)
PILLARS
MARKET ACCESS
Country/Economy

Mauritania
Mauritius
Mexico
Moldova
Mongolia
Morocco
Mozambique
Namibia
Nepal
Netherlands
New Zealand
Nicaragua
Nigeria
Norway
Oman
Pakistan
Panama
Paraguay
Peru
Philippines
Poland
Portugal
Qatar
Romania
Russian Federation
Saudi Arabia
Senegal
Singapore
Slovak Republic
Slovenia
South Africa
Spain
Sri Lanka
Sweden
Switzerland
Syria
Taiwan, China
Tajikistan
Tanzania
Thailand
Tunisia
Turkey
Uganda
Ukraine
United Arab Emirates
United Kingdom
United States
Uruguay
Uzbekistan
Venezuela
Vietnam
Zambia
Zimbabwe

1. Tariff and non-tariff barriers

2. Proclivity to trade

Rank

Score

Rank

Score

Rank

Score

93
11
74
26
69
110
81
78
106
18
7
79
107
2
35
98
59
60
73
80
42
45
54
61
99
51
109
27
23
21
67
34
70
14
5
117
38
83
100
62
88
8
58
39
50
24
6
66
114
103
112
76
91

3.39
5.29
4.04
4.99
4.08
2.58
3.85
3.93
2.77
5.10
5.41
3.91
2.77
5.89
4.85
3.20
4.27
4.27
4.06
3.86
4.73
4.72
4.39
4.25
3.11
4.49
2.59
4.99
5.03
5.07
4.10
4.87
4.08
5.21
5.65
2.04
4.83
3.74
3.07
4.25
3.57
5.40
4.27
4.77
4.50
5.02
5.65
4.12
2.46
2.91
2.50
3.98
3.44

84
9
95
3
30
111
28
40
94
68
23
78
113
7
15
87
31
39
74
88
57
54
25
67
99
17
110
75
52
44
92
47
76
53
11
115
59
36
104
58
89
8
34
19
29
46
18
72
115
100
114
55
70

3.81
5.93
3.06
6.06
5.01
1.91
5.18
4.56
3.14
4.20
5.50
4.02
1.80
5.94
5.66
3.40
4.92
4.57
4.11
3.40
4.34
4.36
5.35
4.22
2.73
5.63
2.03
4.10
4.38
4.43
3.28
4.40
4.08
4.37
5.91
1.00
4.33
4.70
2.46
4.34
3.38
5.93
4.78
5.55
5.09
4.42
5.61
4.12
1.00
2.64
1.02
4.35
4.14

102
44
35
70
97
91
114
90
115
5
27
73
78
9
60
100
81
67
64
51
32
34
88
53
87
89
96
8
16
14
37
25
59
3
24
99
26
109
80
54
76
39
75
65
72
18
15
56
71
94
66
82
111

2.96
4.65
5.02
3.92
3.15
3.26
2.52
3.29
2.41
6.01
5.32
3.80
3.74
5.83
4.03
3.01
3.63
3.98
4.00
4.33
5.12
5.08
3.42
4.27
3.49
3.35
3.16
5.88
5.67
5.71
4.92
5.34
4.08
6.05
5.39
3.09
5.33
2.78
3.67
4.15
3.76
4.87
3.77
4.00
3.92
5.62
5.68
4.12
3.92
3.18
3.99
3.61
2.75

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

Executive Summary

ET.part.A.r1

xix

Executive Summary

ET.part.A.r1

6/2/08

10:03 PM

Table 3: The Enabling Trade Index: Border administration
PILLARS
BORDER
ADMINISTRATION
Country/Economy

xx

Page xx

Albania
Algeria
Argentina
Armenia
Australia
Austria
Azerbaijan
Bahrain
Bangladesh
Belgium
Benin
Bolivia
Bosnia and Herzegovina
Brazil
Bulgaria
Burkina Faso
Burundi
Cambodia
Cameroon
Canada
Chad
Chile
China
Colombia
Costa Rica
Croatia
Cyprus
Czech Republic
Denmark
Dominican Republic
Ecuador
Egypt
El Salvador
Estonia
Ethiopia
Finland
France
Germany
Greece
Guatemala
Guyana
Honduras
Hong Kong SAR
Hungary
India
Indonesia
Ireland
Israel
Italy
Jamaica
Japan
Jordan
Kazakhstan
Kenya
Korea, Rep.
Kuwait
Kyrgyz Republic
Latvia
Lesotho
Lithuania
Luxembourg
Macedonia, FYR
Madagascar
Malaysia
Mali

3. Efficiency of customs
administration

4. Efficiency of importexport procedures

5. Transparency of
border administration

Rank

Score

Rank

Score

Rank

Score

Rank

Score

64
85
71
87
11
16
112
41
97
25
89
83
72
66
57
106
109
107
84
9
118
20
43
48
49
52
44
31
5
58
105
70
62
13
96
4
26
15
54
46
91
77
7
33
55
63
19
29
38
68
17
36
110
95
18
67
104
40
99
28
10
80
100
24
111

3.89
3.34
3.69
3.28
5.71
5.57
2.62
4.53
3.12
5.23
3.27
3.44
3.68
3.87
4.07
2.76
2.70
2.74
3.43
5.78
2.16
5.43
4.51
4.24
4.22
4.15
4.37
4.86
6.10
4.07
2.81
3.78
3.98
5.63
3.12
6.15
5.21
5.57
4.08
4.32
3.24
3.60
5.99
4.79
4.08
3.96
5.43
5.03
4.58
3.85
5.55
4.66
2.70
3.13
5.49
3.86
2.84
4.54
3.03
5.04
5.77
3.58
3.01
5.23
2.68

58
102
60
103
13
34
67
43
78
29
95
93
80
73
56
94
97
110
68
12
116
17
39
37
65
53
30
23
18
50
118
84
72
5
82
7
40
32
87
19
99
77
10
35
48
46
33
44
47
66
20
36
70
89
2
86
52
49
115
9
15
106
114
11
100

3.76
2.56
3.70
2.56
5.47
4.72
3.49
4.30
3.17
4.80
2.79
2.83
3.13
3.28
3.83
2.80
2.74
2.30
3.48
5.53
2.00
5.35
4.49
4.60
3.57
3.97
4.78
5.03
5.17
4.00
1.74
3.07
3.32
5.81
3.09
5.73
4.48
4.77
3.02
5.16
2.64
3.20
5.59
4.65
4.07
4.12
4.73
4.16
4.09
3.50
5.15
4.61
3.42
2.96
6.03
3.02
3.98
4.03
2.22
5.64
5.36
2.49
2.22
5.57
2.63

67
89
69
74
25
9
115
58
86
27
88
80
51
61
63
107
112
98
82
18
110
30
28
73
53
60
95
37
1
47
87
49
64
11
104
6
23
7
46
81
75
77
4
40
57
39
13
15
32
56
14
52
118
97
22
71
113
31
90
34
12
59
100
21
109

4.41
3.88
4.36
4.21
5.43
5.91
1.81
4.60
3.96
5.37
3.93
4.10
4.76
4.55
4.53
2.19
2.00
3.62
4.07
5.64
2.06
5.24
5.33
4.24
4.72
4.56
3.66
5.07
6.47
4.86
3.96
4.82
4.49
5.80
2.99
6.09
5.52
5.99
4.87
4.09
4.18
4.17
6.29
5.04
4.60
5.06
5.78
5.70
5.19
4.61
5.71
4.74
1.47
3.63
5.55
4.27
1.90
5.22
3.83
5.13
5.79
4.58
3.46
5.58
2.14

70
66
96
92
9
13
114
32
118
20
91
75
88
58
56
79
76
117
109
10
116
18
62
55
42
54
34
38
1
78
108
71
49
23
80
3
19
15
43
63
101
74
12
33
68
110
17
25
40
72
16
35
86
105
31
46
113
44
94
45
11
65
77
37
83

3.49
3.59
3.01
3.07
6.23
6.07
2.57
4.69
2.22
5.52
3.08
3.39
3.16
3.78
3.85
3.30
3.37
2.30
2.73
6.18
2.41
5.69
3.73
3.89
4.37
3.90
4.67
4.47
6.65
3.34
2.74
3.45
4.13
5.26
3.29
6.64
5.63
5.95
4.36
3.72
2.91
3.42
6.09
4.68
3.56
2.70
5.78
5.23
4.46
3.45
5.79
4.63
3.20
2.80
4.90
4.28
2.63
4.36
3.05
4.36
6.16
3.66
3.35
4.54
3.26

(Cont’d.)

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page xxi

Table 3: The Enabling Trade Index: Border administration (cont’d.)
PILLARS
BORDER
ADMINISTRATION
Country/Economy

Mauritania
Mauritius
Mexico
Moldova
Mongolia
Morocco
Mozambique
Namibia
Nepal
Netherlands
New Zealand
Nicaragua
Nigeria
Norway
Oman
Pakistan
Panama
Paraguay
Peru
Philippines
Poland
Portugal
Qatar
Romania
Russian Federation
Saudi Arabia
Senegal
Singapore
Slovak Republic
Slovenia
South Africa
Spain
Sri Lanka
Sweden
Switzerland
Syria
Taiwan, China
Tajikistan
Tanzania
Thailand
Tunisia
Turkey
Uganda
Ukraine
United Arab Emirates
United Kingdom
United States
Uruguay
Uzbekistan
Venezuela
Vietnam
Zambia
Zimbabwe

3. Efficiency of customs
administration

4. Efficiency of importexport procedures

5. Transparency of
border administration

Rank

Score

Rank

Score

Rank

Score

Rank

Score

102
42
65
75
113
45
86
79
108
8
3
74
101
6
60
78
39
81
73
82
37
32
53
61
92
59
93
1
35
30
50
23
69
2
12
98
22
117
88
56
34
47
90
94
27
14
21
51
116
115
76
103
114

2.95
4.53
3.88
3.65
2.58
4.32
3.30
3.59
2.70
5.98
6.16
3.65
2.98
6.06
4.04
3.59
4.54
3.55
3.67
3.54
4.62
4.85
4.11
4.02
3.20
4.05
3.18
6.51
4.68
4.91
4.21
5.26
3.83
6.32
5.69
3.04
5.27
2.40
3.28
4.07
4.73
4.28
3.26
3.17
5.18
5.58
5.29
4.15
2.43
2.49
3.60
2.88
2.51

111
42
63
76
101
27
90
92
117
6
3
85
109
8
69
83
41
64
113
88
28
45
51
74
61
81
96
1
24
38
57
14
71
4
21
98
16
104
107
59
31
55
62
108
26
22
25
75
105
112
79
54
91

2.29
4.43
3.66
3.20
2.62
4.98
2.93
2.88
1.92
5.73
6.01
3.03
2.38
5.68
3.48
3.07
4.45
3.61
2.24
2.97
4.82
4.13
4.00
3.28
3.70
3.10
2.77
6.48
5.03
4.58
3.76
5.42
3.37
6.00
5.10
2.68
5.36
2.51
2.47
3.72
4.77
3.90
3.69
2.42
5.00
5.07
5.00
3.26
2.51
2.28
3.17
3.95
2.90

99
41
76
84
108
72
94
85
101
8
10
65
93
5
68
66
20
83
55
48
35
33
102
38
105
29
96
2
62
54
70
36
45
3
19
91
26
117
78
43
42
44
103
92
24
17
16
79
116
106
50
111
114

3.49
5.00
4.18
3.99
2.17
4.25
3.76
3.97
3.37
5.92
5.81
4.48
3.79
6.25
4.41
4.44
5.58
4.02
4.65
4.85
5.13
5.15
3.16
5.06
2.79
5.27
3.64
6.45
4.54
4.72
4.33
5.11
4.88
6.36
5.61
3.80
5.38
1.75
4.15
4.96
4.96
4.93
3.15
3.80
5.49
5.65
5.68
4.12
1.76
2.65
4.79
2.04
1.88

93
48
57
60
98
61
87
52
103
7
2
73
106
8
47
82
67
95
50
104
53
22
27
64
90
59
89
5
39
21
36
24
84
4
6
111
30
100
85
69
41
51
99
81
29
14
26
28
97
115
102
112
107

3.06
4.15
3.82
3.75
2.96
3.73
3.20
3.91
2.83
6.29
6.65
3.44
2.78
6.25
4.24
3.26
3.59
3.03
4.12
2.81
3.90
5.27
5.17
3.71
3.12
3.77
3.14
6.61
4.47
5.45
4.54
5.24
3.24
6.61
6.36
2.65
5.06
2.93
3.21
3.52
4.45
4.00
2.96
3.28
5.06
6.00
5.19
5.07
3.00
2.53
2.85
2.64
2.76

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

Executive Summary

ET.part.A.r1

xxi

Executive Summary

ET.part.A.r1

6/2/08

10:03 PM

Table 4: The Enabling Trade Index: Transport and communications infrastructure
PILLARS
TRANSPORT AND COMMUNICATIONS INFRASTRUCTURE
Country/Economy

xxii

Page xxii

Albania
Algeria
Argentina
Armenia
Australia
Austria
Azerbaijan
Bahrain
Bangladesh
Belgium
Benin
Bolivia
Bosnia and Herzegovina
Brazil
Bulgaria
Burkina Faso
Burundi
Cambodia
Cameroon
Canada
Chad
Chile
China
Colombia
Costa Rica
Croatia
Cyprus
Czech Republic
Denmark
Dominican Republic
Ecuador
Egypt
El Salvador
Estonia
Ethiopia
Finland
France
Germany
Greece
Guatemala
Guyana
Honduras
Hong Kong SAR
Hungary
India
Indonesia
Ireland
Israel
Italy
Jamaica
Japan
Jordan
Kazakhstan
Kenya
Korea, Rep.
Kuwait
Kyrgyz Republic
Latvia
Lesotho
Lithuania
Luxembourg
Macedonia, FYR
Madagascar
Malaysia
Mali

6. Availability and quality
of transport infrastructure

7. Availability and quality
of transport services

8. Availability and
use of ICTs

Rank

Score

Rank

Score

Rank

Score

Rank

Score

106
91
58
77
17
12
64
40
103
16
101
96
86
62
54
110
116
105
112
11
118
42
36
72
66
43
32
34
10
79
85
65
80
29
97
18
6
5
31
78
104
92
4
38
52
74
24
26
25
55
13
51
63
90
19
50
88
39
115
37
9
69
107
27
109

2.47
2.85
3.46
3.00
5.32
5.43
3.30
3.99
2.51
5.33
2.57
2.70
2.91
3.31
3.52
2.40
2.14
2.48
2.37
5.50
1.93
3.93
4.15
3.14
3.26
3.89
4.41
4.18
5.51
2.97
2.94
3.27
2.97
4.51
2.69
5.29
5.54
5.66
4.49
3.00
2.51
2.84
5.66
4.10
3.54
3.13
4.79
4.64
4.68
3.52
5.42
3.54
3.31
2.86
5.23
3.56
2.88
4.08
2.25
4.14
5.51
3.19
2.47
4.62
2.44

102
74
80
65
15
17
50
38
99
8
109
93
108
91
76
112
116
98
113
3
118
45
36
83
68
49
21
43
4
73
89
57
94
40
82
5
2
9
24
84
103
70
14
62
48
86
28
39
51
52
23
58
44
78
30
63
69
33
115
35
7
85
97
22
114

2.78
3.46
3.36
3.71
5.17
5.13
4.09
4.33
2.81
5.37
2.50
3.07
2.50
3.12
3.43
2.45
2.00
2.81
2.44
5.75
1.70
4.14
4.42
3.32
3.65
4.10
5.02
4.17
5.70
3.49
3.23
3.89
3.00
4.27
3.33
5.55
5.81
5.31
4.92
3.31
2.68
3.57
5.18
3.72
4.11
3.28
4.63
4.29
4.07
4.06
4.98
3.88
4.15
3.41
4.60
3.72
3.62
4.45
2.01
4.43
5.42
3.30
2.86
5.00
2.23

118
112
51
89
18
5
70
53
94
9
72
85
62
42
60
92
104
101
103
15
114
38
17
67
88
54
41
44
20
109
87
56
68
49
79
25
10
2
28
84
117
105
4
32
35
43
26
33
21
99
7
45
81
86
12
59
78
46
93
58
23
61
110
14
73

2.29
2.69
3.80
3.11
5.09
5.79
3.35
3.78
3.00
5.48
3.32
3.15
3.54
3.94
3.61
3.02
2.88
2.94
2.88
5.20
2.57
4.16
5.10
3.39
3.12
3.65
3.99
3.92
5.02
2.75
3.14
3.64
3.37
3.86
3.22
4.91
5.42
6.08
4.62
3.15
2.46
2.86
5.96
4.38
4.32
3.94
4.90
4.35
5.02
2.95
5.75
3.91
3.20
3.14
5.31
3.61
3.24
3.90
3.01
3.62
5.01
3.56
2.74
5.21
3.32

81
78
49
86
11
19
76
39
109
23
98
101
65
56
44
107
116
112
105
14
117
45
55
63
52
35
31
29
7
66
75
82
73
17
118
16
18
13
36
72
79
90
6
32
85
87
26
20
24
43
15
59
68
93
8
46
104
37
110
30
2
62
102
41
106

2.33
2.41
3.21
2.18
5.70
5.38
2.45
3.85
1.72
5.14
1.89
1.87
2.69
2.88
3.54
1.75
1.56
1.69
1.79
5.55
1.54
3.48
2.92
2.72
3.01
3.93
4.23
4.44
5.82
2.66
2.45
2.29
2.52
5.40
1.52
5.41
5.38
5.58
3.92
2.53
2.38
2.09
5.84
4.21
2.19
2.17
4.84
5.28
4.97
3.56
5.54
2.83
2.59
2.03
5.78
3.35
1.80
3.90
1.72
4.38
6.12
2.72
1.80
3.64
1.78

(Cont’d.)

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page xxiii

Table 4: The Enabling Trade Index: Transport and communications infrastructure (cont’d.)
PILLARS
TRANSPORT AND COMMUNICATIONS INFRASTRUCTURE
Country/Economy

Mauritania
Mauritius
Mexico
Moldova
Mongolia
Morocco
Mozambique
Namibia
Nepal
Netherlands
New Zealand
Nicaragua
Nigeria
Norway
Oman
Pakistan
Panama
Paraguay
Peru
Philippines
Poland
Portugal
Qatar
Romania
Russian Federation
Saudi Arabia
Senegal
Singapore
Slovak Republic
Slovenia
South Africa
Spain
Sri Lanka
Sweden
Switzerland
Syria
Taiwan, China
Tajikistan
Tanzania
Thailand
Tunisia
Turkey
Uganda
Ukraine
United Arab Emirates
United Kingdom
United States
Uruguay
Uzbekistan
Venezuela
Vietnam
Zambia
Zimbabwe

6. Availability and quality
of transport infrastructure

7. Availability and quality
of transport services

8. Availability and
use of ICTs

Rank

Score

Rank

Score

Rank

Score

Rank

Score

98
56
67
76
87
68
114
71
113
2
21
102
108
20
57
70
48
99
82
83
46
28
33
49
60
47
89
7
35
30
45
22
73
1
14
94
15
117
111
41
53
44
93
59
23
8
3
61
84
81
75
100
95

2.62
3.50
3.25
3.05
2.89
3.20
2.29
3.17
2.34
5.73
5.09
2.51
2.44
5.21
3.50
3.18
3.65
2.59
2.96
2.95
3.70
4.57
4.22
3.64
3.35
3.70
2.86
5.53
4.17
4.49
3.74
5.08
3.13
5.77
5.39
2.74
5.37
2.02
2.40
3.93
3.53
3.79
2.75
3.42
4.80
5.52
5.66
3.34
2.94
2.96
3.08
2.59
2.73

110
32
87
79
66
60
107
27
111
10
20
96
105
12
46
53
26
101
92
88
71
34
31
75
64
55
77
13
42
37
47
11
56
1
18
72
25
117
104
29
41
59
90
67
16
19
6
61
54
95
100
106
81

2.45
4.53
3.27
3.39
3.69
3.84
2.56
4.75
2.45
5.29
5.10
2.89
2.57
5.22
4.13
3.99
4.76
2.80
3.08
3.23
3.51
4.43
4.59
3.44
3.71
3.95
3.42
5.21
4.22
4.36
4.12
5.28
3.92
5.89
5.11
3.50
4.80
1.89
2.65
4.62
4.27
3.88
3.13
3.65
5.17
5.10
5.53
3.77
3.95
3.00
2.81
2.57
3.35

76
96
55
77
95
82
113
111
97
3
24
107
106
27
52
63
57
100
69
75
50
29
40
47
80
39
98
1
31
36
34
16
71
13
22
116
11
115
108
30
64
37
65
66
19
8
6
83
102
91
48
74
90

3.26
3.00
3.65
3.25
3.00
3.17
2.68
2.73
2.97
6.03
4.94
2.76
2.82
4.81
3.80
3.51
3.63
2.94
3.36
3.28
3.82
4.59
4.07
3.90
3.21
4.15
2.95
6.17
4.42
4.23
4.35
5.12
3.33
5.27
5.01
2.53
5.36
2.54
2.75
4.47
3.51
4.18
3.41
3.40
5.06
5.69
5.75
3.15
2.89
3.03
3.89
3.30
3.11

88
54
58
74
95
67
114
92
115
5
21
100
97
12
69
91
70
94
77
80
40
28
34
42
50
53
83
22
38
25
61
27
89
1
3
84
4
113
103
64
60
47
111
48
33
9
10
51
96
57
71
99
108

2.16
2.99
2.84
2.50
1.99
2.59
1.62
2.03
1.61
5.86
5.24
1.88
1.94
5.61
2.57
2.05
2.56
2.03
2.43
2.34
3.76
4.68
3.99
3.58
3.13
2.99
2.22
5.22
3.86
4.88
2.77
4.83
2.13
6.16
6.04
2.19
5.96
1.64
1.80
2.70
2.81
3.32
1.70
3.22
4.17
5.77
5.71
3.10
1.99
2.85
2.54
1.89
1.73

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

Executive Summary

ET.part.A.r1

xxiii

Executive Summary

ET.part.A.r1

xxiv

6/2/08

10:03 PM

Page xxiv

Table 5: The Enabling Trade Index: Business environment
PILLARS
BUSINESS ENVIRONMENT
Country/Economy

Albania
Algeria
Argentina
Armenia
Australia
Austria
Azerbaijan
Bahrain
Bangladesh
Belgium
Benin
Bolivia
Bosnia and Herzegovina
Brazil
Bulgaria
Burkina Faso
Burundi
Cambodia
Cameroon
Canada
Chad
Chile
China
Colombia
Costa Rica
Croatia
Cyprus
Czech Republic
Denmark
Dominican Republic
Ecuador
Egypt
El Salvador
Estonia
Ethiopia
Finland
France
Germany
Greece
Guatemala
Guyana
Honduras
Hong Kong SAR
Hungary
India
Indonesia
Ireland
Israel
Italy
Jamaica
Japan
Jordan
Kazakhstan
Kenya
Korea, Rep.
Kuwait
Kyrgyz Republic
Latvia
Lesotho
Lithuania
Luxembourg
Macedonia, FYR
Madagascar
Malaysia
Mali

9. Regulatory environment

10. Physical security

Rank

Score

Rank

Score

Rank

Score

82
84
98
53
21
9
46
34
111
20
85
110
90
96
107
74
104
93
78
16
115
12
77
87
37
56
41
38
5
42
109
64
52
39
76
1
31
4
36
79
112
45
2
28
58
32
8
57
54
70
35
19
88
105
30
59
113
51
108
67
6
97
89
27
55

4.22
4.16
3.88
4.59
5.14
5.45
4.66
4.92
3.60
5.16
4.16
3.62
3.98
3.91
3.71
4.35
3.74
3.96
4.28
5.33
3.30
5.40
4.28
4.11
4.86
4.54
4.72
4.84
5.70
4.70
3.70
4.47
4.59
4.76
4.29
5.92
4.98
5.74
4.86
4.27
3.56
4.67
5.84
5.05
4.53
4.97
5.56
4.53
4.57
4.37
4.90
5.21
4.06
3.73
5.02
4.51
3.44
4.61
3.71
4.40
5.63
3.90
4.05
5.07
4.54

73
104
87
47
51
41
50
34
90
28
93
102
101
70
103
79
107
74
63
23
110
12
84
46
7
78
88
26
22
2
96
72
1
65
95
19
56
18
57
4
76
3
9
35
64
16
5
52
67
8
61
42
97
85
44
111
113
71
105
89
11
106
92
36
69

4.26
3.75
4.11
4.58
4.56
4.62
4.56
4.81
4.08
4.91
4.02
3.77
3.79
4.28
3.75
4.18
3.73
4.24
4.36
5.02
3.68
5.38
4.13
4.59
5.43
4.19
4.10
4.96
5.07
5.75
3.90
4.27
5.87
4.35
3.91
5.18
4.47
5.18
4.44
5.60
4.22
5.61
5.40
4.80
4.36
5.23
5.58
4.56
4.32
5.41
4.39
4.62
3.88
4.12
4.62
3.52
3.46
4.28
3.73
4.08
5.39
3.73
4.06
4.77
4.30

78
62
98
61
15
5
50
37
112
23
71
104
79
101
93
64
86
90
77
18
115
25
67
99
74
45
28
52
2
95
103
59
110
36
57
1
21
3
30
114
116
88
4
29
56
54
19
65
48
109
26
14
76
108
24
20
106
41
91
53
10
80
83
27
49

4.19
4.58
3.64
4.61
5.73
6.27
4.76
5.03
3.13
5.42
4.31
3.47
4.16
3.54
3.66
4.51
3.76
3.69
4.20
5.64
2.91
5.41
4.44
3.64
4.29
4.89
5.34
4.72
6.34
3.65
3.50
4.66
3.31
5.18
4.67
6.66
5.50
6.31
5.29
2.94
2.89
3.73
6.28
5.29
4.70
4.72
5.54
4.51
4.81
3.34
5.41
5.80
4.24
3.34
5.42
5.51
3.41
4.95
3.68
4.72
5.87
4.07
4.03
5.37
4.79

(Cont’d.)

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page xxv

Table 5: The Enabling Trade Index: Business environment (cont’d.)
PILLARS
BUSINESS ENVIRONMENT
Country/Economy

Mauritania
Mauritius
Mexico
Moldova
Mongolia
Morocco
Mozambique
Namibia
Nepal
Netherlands
New Zealand
Nicaragua
Nigeria
Norway
Oman
Pakistan
Panama
Paraguay
Peru
Philippines
Poland
Portugal
Qatar
Romania
Russian Federation
Saudi Arabia
Senegal
Singapore
Slovak Republic
Slovenia
South Africa
Spain
Sri Lanka
Sweden
Switzerland
Syria
Taiwan, China
Tajikistan
Tanzania
Thailand
Tunisia
Turkey
Uganda
Ukraine
United Arab Emirates
United Kingdom
United States
Uruguay
Uzbekistan
Venezuela
Vietnam
Zambia
Zimbabwe

9. Regulatory environment

10. Physical security

Rank

Score

Rank

Score

Rank

Score

66
43
86
101
91
40
102
94
118
17
11
29
100
10
60
83
47
103
72
95
73
13
18
81
114
68
44
3
24
63
99
33
92
14
7
71
22
69
75
61
23
50
80
106
15
26
25
49
65
117
62
48
116

4.41
4.69
4.15
3.83
3.98
4.74
3.76
3.95
2.98
5.22
5.42
5.03
3.87
5.45
4.51
4.20
4.66
3.76
4.35
3.93
4.35
5.39
5.22
4.24
3.35
4.39
4.67
5.82
5.09
4.48
3.87
4.92
3.97
5.35
5.58
4.36
5.13
4.38
4.32
4.49
5.11
4.64
4.25
3.73
5.34
5.07
5.08
4.64
4.43
3.05
4.48
4.65
3.22

82
62
31
108
91
55
94
99
116
24
25
10
43
39
100
40
29
77
13
81
58
20
48
80
117
98
54
6
17
109
86
45
68
32
27
112
21
59
66
75
53
49
33
114
37
14
15
38
60
115
83
30
118

4.16
4.38
4.88
3.69
4.07
4.49
3.99
3.86
3.14
4.99
4.96
5.39
4.62
4.68
3.82
4.66
4.90
4.22
5.33
4.17
4.43
5.11
4.57
4.18
3.05
3.86
4.51
5.52
5.22
3.68
4.12
4.60
4.30
4.86
4.92
3.48
5.07
4.40
4.34
4.23
4.53
4.57
4.84
3.42
4.74
5.24
5.24
4.74
4.39
3.38
4.13
4.88
2.78

60
38
105
84
85
39
102
81
117
22
11
58
113
7
34
87
68
111
107
89
75
17
12
72
96
42
47
8
40
31
100
32
97
13
6
33
35
70
73
51
16
55
94
82
9
44
43
63
66
118
46
69
92

4.65
5.00
3.42
3.97
3.88
4.99
3.52
4.04
2.82
5.46
5.87
4.67
3.11
6.21
5.20
3.73
4.42
3.30
3.38
3.70
4.27
5.66
5.86
4.31
3.65
4.93
4.83
6.12
4.97
5.28
3.62
5.25
3.64
5.84
6.24
5.23
5.18
4.36
4.30
4.76
5.68
4.70
3.66
4.03
5.95
4.90
4.92
4.55
4.47
2.73
4.83
4.42
3.67

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

Executive Summary

ET.part.A.r1

xxv

Executive Summary

ET.part.A.r1

6/2/08

10:03 PM

Page xxvi

restricted. Indeed, India ranks 105th on the relevant
component with, unlike most other countries, tariff barriers representing a more serious impediment than nontariff barriers. Only a small share of goods is imported
duty-free. India’s border administration meets many
needs of importers and exporters. Ranked 55th on this
indicator, a vast number of customs-related services is
available in India and clearance entails low pecuniary
costs, although it is time-consuming. Border administration continues to be affected by corrupt practices, however, hampering an efficient transport of goods across
borders.Trade-related infrastructure and the relevant
services are equally fairly well developed in India, ranking 52nd in the overall sample. However, although the
country is well connected through maritime routes, it
needs more airports and high-quality roads. India’s business environment is in line with the country’s overall
assessment, with the regulatory environment ranked
64th and security assessed at 56th among the countries
assessed.
Europe and North America

xxvi

The United States is ranked 14th.The country benefits
from its transport and communications infrastructure,
which is among the best in the world (ranked 3rd). It
also offers good market access (ranked 6th), with relatively low tariffs and non-tariff barriers and a strong
proclivity to trade, as demonstrated by its relative openness to multilateral trade rules. On the other hand, the
country’s border administration is seen as lacking some
efficiency. For example, customs procedures are seen as
comparatively burdensome (ranked 42nd), and there is a
relatively high cost to import (ranked 65th). In addition,
there are some concerns about security in the country.
The United Kingdom is ranked 16th.The country
is endowed with a comparatively good transport and
communications infrastructure (ranked 8th), particularly
related to the quality of its transport services. Its border
administration gets relatively good marks (ranked 14th),
with low levels of trade-related corruption, clearance
perceived to be relatively efficient (13th), and few documents required to import (3rd), although it is somewhat
costly (77th) and requires more time than in several
European countries (27th). Its evaluation in the area of
market access is mixed: while it exhibits the same low
tariffs as other EU countries, and allows a large share of
exports over the border duty free (11th), its non-tariff
barriers are high enough to place the country 58th. In
addition, while elements of the business environment
are conducive to moving goods over borders, with rules
encouraging FDI and allowing for the employment of
foreign labor, there are some concerns. Bilateral Air
Service Agreements could be more open (ranked 35th),
and there are some safety and security concerns in the
country, particularly compared with the best-performing
European countries.

France is ranked 19th.The country’s greatest strength
is its transport infrastructure quality (ranked 2nd), with
its excellent roads, railroads, ports, and air transport
infrastructure.The country also shows a strong proclivity
to trade (ranked 10th), with a large share of imports
allowed duty-free into the country and demonstrated
openness to multilateral trade rules, although non-tariff
barriers are non-negligible (66th).The country’s border
administration, while ranked among the top 20, is seen
as somewhat less efficient and transparent than Europe’s
leaders, with more time and cost to import than many
other countries. France’s regulatory environment is an
additional hindrance to the cross-border flow of goods,
with bilateral Air Service Agreements that are not
deemed open (66th), some restrictions on FDI (47th),
and difficulties in hiring foreign labor in the country
(76th).
Estonia is the highest-ranked recent accession
country to the European Union, at 25th. Most notable
is the efficiency of the country’s border administration
(5th) and of its specific import-export procedures
(11th), with little time, cost, and hassle for importing
goods.The country’s communications infrastructure
compares well with that of its peers, although the transportation infrastructure and provided services could be
improved.The picture in terms of market access is
somewhat mixed, with low tariffs in line with EU rates
(although higher than those that existed pre-EU-accession) and a high share of duty-free imports allowed into
the country, but high non-tariff barriers (80th).
Italy, at 33rd, is ranked lowest of the pre-2004
accession EU15 countries, bar Greece, and lowest of the
G7 group of rich economies.The country compares relatively well in terms of market access to its peers, and
benefits from relatively good transport services (21st).
On the other hand, the transportation infrastructure
requires upgrading (51st), and border administration
could also be improved (38th), particularly by reducing
the time and cost to import and improving its transparency (40th).The greatest obstacles lie in the business
environment, particularly regulatory impediments to
foreign direct investment (100th) and foreign ownership
(93rd), as well as some concerns about safety and security in the country (48th).
Turkey is ranked close behind Italy and Greece at
38th, and ahead of several countries that have recently
joined the European Union.Turkey affords good market
access (8th) with notably lower non-tariff barriers than
in most EU countries. On the other hand, the country’s
transport and communications infrastructure is less
developed than in most European countries, and its border administration is rated as comparatively inefficient
(55th) and lacking transparency (51st). In addition, the
regulatory environment could be more conducive to the
cross-border flow of goods with more supportive policies
encouraging FDI and less restrictive policies on hiring
of foreign labor.

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page xxvii

Russia, at 103rd, is the lowest-ranked European
country by a wide margin, trailing the nearest-ranked
large emerging market “BRIC” country, Brazil, by 23
places. Russia’s main comparative strength is its transportation and communications infrastructure (60th),
although by international standards it requires significant
upgrading.The country impedes access to the market
with very high tariffs (100th), and allows only a small
share of goods to enter the market duty-free (95th).The
country’s border administration receives poor marks
(92nd), requiring much time and cost to import, and
lacking transparency. In addition, Russia’s regulatory
regime is one of the least conducive to cross-border
trade out of all countries (ranked second to last, at
117th), and physical security in the country remains a
serious concern (96th), particularly by European standards. Attention to these areas is warranted to improve
the cross-border flow of goods into the country.
Latin America and the Caribbean

Chile leads the ranking in Latin America, coming in at
27th position, and is ahead, by a wide margin, of secondranked Costa Rica at 44th. Part of Chile’s economic
success can be attributed to trade liberalization and
improvements to the business environment made in
recent years; this is reflected in the country’s good results
on the ETI. It has also laid the foundations for Chile’s
export success. Border administration is efficiently
organized and corruption in related agencies is under
control. At the same time, the country boasts a favorable
business environment, open to FDI and hiring foreign
labor.The country’s weaknesses are to be found in the
market access component and with respect to the transport and telecommunications infrastructure. Imports
continue to be burdened with tariffs and non-tariff barriers, and although tariffs are not high in absolute terms,
they apply to most imported products, or 69 percent of
the total. In addition, the country’s infrastructure facilities
are in need of upgrading. In particular, the country’s
roads do not get good marks for quality, and the availability and quality of infrastructure-related services
could be enhanced.
Costa Rica is at 44th, the second-ranked country in
Latin America.The overall rank disguises a mixed performance on the four categories assessed by the Index.
Costa Rica stands out for its openness to imports with
both tariff and non-tariff barriers being relatively low.
The country’s border administration is quite efficient
and transparent, although customs procedures are considered to be somewhat burdensome, which is also
reflected in the fairly long time it takes to import goods.
The country’s weak spot is its underdeveloped transport
infrastructure and related services. Here, in particular,
the quality of transport infrastructure, railroads, roads,
and ports are poorly assessed by the business community.The country’s regulatory environment for importers
is among the top 10 in the world, with open bilateral

Air Service Agreements and policies encouraging foreign investment, yet the relatively high levels of crime
and violence are potentially problematic for getting
goods to destination in the country.
Costa Rica is followed by a number of Central
American and Caribbean countries that cluster closely
together in the middle ranking, ranging from Panama in
46th position to the Dominican Republic and Honduras
at 63rd and 64th, respectively. Efficient border administration contributes to the good showing of Panama, but
investment in infrastructure and the use of ICTs would
improve the ease of getting goods across borders in the
region.
Mexico, which occupies the 65th position, shows
even results across all four subindexes of the ETI.
Market access is hampered by a fairly high tariff rate of
about 11 percent. At the same time, however, this is
levied on only about 20 percent of all imported products,
with the large majority imported duty-free.This points
to a certain openness to international trade, which is
also reflected in the large number of bilateral trade
agreements and multilateral trade-related treaties signed
by the country. On the other hand, the country’s border
administration could be streamlined (ranked 65th overall). It is also very costly to import goods—moving one
container over the border costs seven times more than
in the best-performing country on this indicator,
Singapore. Although the country does not boast a highquality transport infrastructure (of concern given
Mexico’s large size), infrastructure-related services as
well as the telecommunications infrastructure are fairly
well developed. And Mexico’s regulatory environment is
somewhat conducive to cross-border trade, with, in particular, its rules encouraging foreign ownership. However,
the lack of security in the country is of significant
concern, as it may cause additional costs to shippers.
Argentina follows, at 78th position.The country’s
particular strengths lie in relatively high proclivity to
trade, and in fairly efficient import-export procedures.
Despite these positive aspects, importing remains relatively costly, thereby hindering trade. Increasing transparency in institutions related to border administration
would further facilitate trade operations and reduce the
cost of trading across borders. Infrastructure services are
widely available and telecommunications infrastructure
is well developed, two factors that facilitate trade in
Argentina.The low level of physical security, however,
where Argentina ranks 112th out of 118 countries, is a
major impediment to enhancing the country’s trade
performance. Equally, the regulatory environment—in
particular, FDI-related regulations—are not conducive
to moving goods across borders.
Just two positions further down the rankings is
Brazil, at 80th position. Brazil’s markets continue to be
fairly closed, with tariffs and, to a lesser extent, also nontariff barriers inhibiting goods imports.The country’s
border administration is assessed fairly favorably, at 66th

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

Executive Summary

ET.part.A.r1

xxvii

Executive Summary

ET.part.A.r1

6/2/08

10:03 PM

Page xxviii

position, although businesses complain that customs procedures are burdensome. And although transport infrastructure—in particular, railroads, roads, and ports—is
fairly underdeveloped, which is not surprising for a
country of Brazil’s level of development, the logistics
industry is well assessed in terms of competence and
reliability. Equally, telecommunications infrastructure is
relatively widely available and used.The country boasts
an open and competitive air transport sector. However,
as in other countries in the region, a significant impediment to fostering trade across borders remains the poor
security situation in the country.
Middle East and North Africa

xxviii

The United Arab Emirates (UAE) comes in at 23rd
position globally, right after Spain and ahead of Korea
and Estonia.This very good result at the global level
is not surprising when one considers the impressive
development of Dubai over recent years into the most
important transport and logistics hub in the region, and
the UAE has made significant efforts to improve the
business environment for the transport and logistics
sector.The good results in the ETI testify to the
world-class transport infrastructure (23rd), very good
infrastructure-related services, and a conducive and
secure business environment, characterized in particular
by its ease of hiring foreign labor.The most important
obstacle to trading across borders in the UAE remains
the restricted access to the country’s goods markets
through pervasive tariffs (through a uniform 5 percent
tariff rate).This is reflected in the fairly low 50th rank
out of 118 countries on the market access pillar of the
ETI.This high incidence of trade barriers appears to be
rooted in the low standing of trade on the country’s
agenda, as witnessed by the very small portion of
imports that enters the country duty-free. Here, the
UAE ranks 107th out of 118 economies.
At 28th, Israel places second in the Middle East and
North Africa region, between two countries that have
successfully harnessed trade for development, Chile and
Malaysia.With its high-quality infrastructure, firmly
organized border administration, and intensive use of
ICTs, the country presents a number of important
advantages. It is a fairly open economy, with companies
serving broad international markets and 80 percent of
imports allowed into the country duty-free (8th rank).
At the same time, Israel’s trade performance could benefit from improvements to the business environment,
which, although open to foreign businesses, is penalized
by the vulnerable security situation and barriers to hiring foreign labor.
Bahrain, at 37th position, right behind Greece and
ahead of Turkey and Cyprus, is the third-placed country
from the region. Although Bahrain is fairly open to foreign investment and boasts a fairly good business environment, the country remains, despite its small size, relatively protected from international competition through

tariffs.The low share of duty-free imports and the reluctance to engage in multilateral trade rules coupled with
low reliance on export markets points to a low priority
that is attached to trade by the authorities. In particular,
opening up the country to imports would provide significant benefits—the increased competition would
make the economy more productive, thereby reducing
reliance on primary resources and boosting growth rates.
Tunisia comes in 49th on the ETI, with high marks
on the business environment and a fairly efficient border
administration.Yet the country’s markets remain sheltered from international competition, with some of the
highest tariff barriers in the entire sample ranked 114th
out of 118 countries. At the same time,Tunisia’s border
administration is fairly efficient and its business environment is secure, although additional opening up to FDI
and labor migration would benefit the country’s trade
performance. Equally, investment in infrastructure and
the use of ICTs would further enable the country to
take advantage of the benefits of trade.
Saudi Arabia ranks 53rd and shows fairly even performance across all the four categories of the ETI.
Although Saudi Arabia has very low non-tariff barriers,
tariffs are somewhat higher and levied on 81 percent of
all imports, which corresponds to a low 96th rank globally on this category.The country, which just recently
acceded to the WTO, ratified only a small share of the
relevant multilateral trading agreements. And although
formal administrative procedures for importing are fairly
easy, the overall efficiency of border agencies is not on a
par with international standards. Improvements to the
business environment would also benefit traders, in particular regarding regulations related to FDI, which
appear to deter international businesses from engaging
in the country.
Egypt ranks a low 87th for the ease of getting
goods across the border.The country’s relative strengths
include a fairly conducive business environment, especially with regard to the ease of hiring foreign labor and
the fairly well developed transport infrastructure, including the associated services. Egypt stands out positively
for its maritime connectivity and the related services,
where it ranks in the top 20, as well as for the quality of
its roads. Although importing goods is neither costly nor
time consuming, importers raise concerns about the
efficiency of customs and other border agencies.The
high tariffs, which apply to 70 percent of all imported
goods, as well as the tariff barriers, constitute the most
important impediment to enabling trade in Egypt.
Sub-Saharan Africa

Mauritius is the highest-ranked country in the subSaharan African region, at 40th, ahead of some EU
countries and all of the BRICs. As one might expect of
a small open economy, Mauritius ensures a high level of
market access (11th), with low tariffs and particularly
low non-tariff barriers, as well as allowing a large share

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page xxix

of duty-free imports into the country.The country also
has well-rated border administration, with relatively little
time, cost, and hassle related to getting goods over the
border. In addition, levels of security in the country are
good, particularly by regional standards. And while the
country’s transportation and communications infrastructure compares well with those of other countries in the
region, this remains the main area for improvement,
particularly with regard to upgrading transportation
services.
South Africa is ranked 2nd in the region at 59th,
the only other sub-Saharan country in the top half of
the rankings. Contrary to Mauritius, South Africa’s main
strength as measured by the Index is its transport and
communications infrastructure (45th), particularly attributable to the quality of air transport and roads, as well as
the comparatively high quality of transport services in
the country (34th).The country’s border administration
is seen as somewhat inefficient (57th), although it is
characterized by relative transparency (36th). Market
access proves a bit more difficult (67th), with relatively
high tariffs and non-tariff barriers. However, the main
area of concerns relate to the regulatory environment,
which is not entirely conducive to cross-border trade
(86th), as well as serious concerns about safety levels in
the country (100th) related to the high cost of crime
and violence for businesses in the country.
Namibia follows South Africa in the regional rankings, at 77th overall. Namibia’s main strength lies in the
quality and availability of its transport infrastructure
(27th), particularly the quality of its roads and railroads,
although transport services remain limited in the country. On the other hand, market access remains impeded
by high tariffs (80th). Further, the border administration
is characterized by inefficiencies (92nd) and some traderelated corruption (74th). In addition, similar to South
Africa, the regulatory environment does not foster the
movement of goods over borders (99th) and physical
security remains an area of concern (81st), albeit to a
lesser degree than in South Africa.
Uganda, ranked 4th in the region at 79th, follows
closely behind Namibia, but with quite a different profile. Uganda’s main comparative strength is in its regulatory environment (33rd), with rules encouraging FDI
and the ease of hiring foreign labor. Uganda is also
characterized by higher levels of market access (58th).
Although it imposes high tariffs, non-tariff barriers are
so low as to place the country 1st on this indicator. In
addition, the country allows the entry of some imports
duty-free (58th).The country’s border administration is
also somewhat efficient by regional standards (62nd),
although the cost for importing remains very high. On
the other hand, unlike Namibia, the country’s transportation infrastructure is comparatively underdeveloped
(90th). And like most other countries in the region,
security concerns remain an obstacle.

Kenya is ranked 86th overall. Similar to Uganda,
Kenya demonstrates good market access by regional
standards (55th), with a high share of duty-free imports
(43rd) and relative openness to multilateral trade rules
(56th). On the other hand, once goods are allowed in
the country, the border administration is characterized
by inefficiencies and a lack of transparency, and the
country’s transport and communications infrastructure is
quite underdeveloped (90th).The greatest concerns in
the country are related to the security situation, ranked
108th overall, increasing the difficulty of getting goods
to destinations.

Executive Summary

ET.part.A.r1

General findings from the ETI

The results across the regions have shown that, on average, high-income countries tend to do well in the overall rankings, a tendency that is generally attributable to
their more developed institutional and infrastructure
environments.We also note a tendency for small
economies to rank higher, which is not surprising given
the importance of trade for their overall economic performance.Yet performance remains varied, with some
countries doing much more than others to enable the
free flow of trade.
The ETI methodology points to the large number
of factors that affect trade. In this context, enhancing the
benefits from trade, in particular for developing countries, requires not only further liberalization of national
trade policies, but also efforts to improve performance
on a wide range of other factors. It therefore provides
support to the inclusion of trade facilitation as a feature
of the Doha Round.

Selected issues of enabling trade
This Report also features a number of excellent contributions from trade experts, dealing with issues related to
reducing barriers to trade and national trade performance.These special contributions are highly relevant and
complement the analysis of the ETI in Chapter 1.1, the
Country/Economy Profiles, and the Data Tables found
in Part 2 of the Report.
In Chapter 1.2,“The Doha Round Negotiations on
Trade Facilitation,” Richard Eglin of the WTO provides
an update on the Doha Round negotiations in the area
of trade facilitation.The author describes how successive
rounds of negotiation under the General Agreement on
Tariffs and Trade (GATT) and the WTO have seen the
average import tariffs on manufactured products in
industrialized countries fall from 20–30 percent to less
than 4 percent, and non-tariff barriers regulated.
Attention has turned to less obvious obstacles, and trade
facilitation was added to the subjects being negotiated in
the Doha Round.The trade facilitation negotiations do
not pretend to target the entire logistical supply chain,
but cover how nations control the way in which goods

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

xxix

Executive Summary

ET.part.A.r1

xxx

6/2/08

10:03 PM

Page xxx

move across their borders through various inspection
and approval stages.
The negotiations have three objectives: improving
the relevant GATT rules, providing less-developed
countries with technical assistance and support, and
improving coordination between customs authorities. All
of the main elements of an agreement have been tabled,
and an extensive program of technical assistance is well
underway. However, although negotiations are well
advanced, as part of the “Single Undertaking,” trade
facilitation cannot be completed separately from other
subjects under negotiation in the Doha Round.
The prospects for a successful conclusion are good,
which would result in significant benefits for business
and consumers. A successful outcome would help reduce
the transaction costs for the world’s least competitive
producers and poorest consumers, who currently need to
shoulder additional costs of US$1,000 or more for each
container of goods imported or exported.
In Chapter 1.3, “Additional Taxes and the Indirect
Evidence on Trade Protection,” Mondher Mimouni,
Xavier Pichot, and Lionel Fontagné from the International
Trade Centre (ITC) take a detailed look at different
types of taxes and how they affect trade. In their chapter,
the authors classify and compare additional taxes from a
dataset covering over 70 countries.They conclude that
the resulting trade barriers can be very high, though
concentrated in particular sectors.
These levies can be grouped as customs charges,
pseudo-tariffs, regional taxes, excise duties, environmental charges, intellectual property, sales, and other taxes.
An analysis of the data shows that the most-affected
product is prepared foodstuffs, and that 11 countries in
the sample have average additional taxes above 10 percent.
The highest rates are found in areas, such as alcohol
or cigarettes, where health or ethical concerns apply.
However, such taxes could be used for other reasons, in
particular for protecting certain categories of products
from competition from foreign substitutes not domestically produced (e.g., rum in Iceland).The far higher
impact of these non-tariff barriers, relative to tariffs, and
the relatively little attention given to them, suggests
potential for further research in this area.
Jean-François Arvis, Monica Alina Mustra, and John
Panzer from the World Bank, together with Lauri Ojala
and Tapio Naula from the Turku School of Economics
in Finland, authors of Chapter 1.4, entitled “Connecting
to Compete:Trade Logistics in the Global Economy,”
discuss an index, developed by the World Bank, that
assesses logistics performance across countries.The
authors illustrate how the increase in global production
sharing and the shortening of product life cycles put a
new premium on moving goods in a predictable, timely,
and cost-effective way.Therefore the quality of logistics
can have a major bearing on a firm’s decisions about
which country to locate in, which suppliers to buy
from, and which consumer markets to enter.

The Logistics Performance Index (LPI), a key input
to the broader Enabling Trade Index, draws from a
worldwide survey of logistics professionals in freight forwarders and express carriers. Respondents were asked to
rate the performance, in several logistics competencies,
of countries with which they conduct business.This
type of data adds an external perspective on a country’s
performance to the domestic data also used.
The LPI provides insight into the cost of poor
logistics and the sources of those costs. Hedging against
uncertainty induces significant costs in many developing
countries, with traders concerned about the reliability of
supply chains. Predictability and transparency are therefore key components of logistics performance. Significant
differences are observed among countries at similar levels
of development. A two-way relationship exists between
good logistics and increased trade. Countries doing well
here are also likely to do well in export diversification
and overall growth.
In Chapter 1.5, entitled “Facilitating Cross-Border
Movement of Goods: A Sustainable Approach,” Poul
Hansen and Liliana Annovazzi-Jakab from UNCTAD
discuss how access to global maritime routes for landlocked countries can be improved through transit corridors. Assuming that trade is an engine for economic
growth, job creation, and poverty reduction, the authors
state that with tariff reductions in place, firms’ success
depends more and more on their ability to offer efficient
and low-cost trade services and logistics.The trade and
transport facilitation agenda looks to maximize efficiency
while safeguarding legitimate regulatory objectives.
Focusing on the special case of landlocked developing countries, which include many of the poorest
nations of the world, the chapter addresses the issue of
transit cooperation. Some very successful solutions have
been implemented in the European Union, Southeast
Asia, and Southern and Western Africa, with varying
support from formal bilateral or multiparty agreements.
The problems seen in transit are similar to the more
general trade impediments, poor service provision, institutional challenges, and recourse to unofficial payments
as a resolution.
The chapter discusses in detail the factors that
contributed to making the UNCTAD-led initiative for
regional corridor development between Zambia and
Namibia, Laos and Thailand, and Paraguay and Uruguay
a success. By bringing together clusters of users, government agencies, and service providers, the UNCTAD
initiative was able to develop practical solutions. Developing trust and a sense of ownership among the different
actors was important for reducing bottlenecks in the
physical and procedural chains. Interestingly, operators
from transit countries were often the most active in the
efforts. Ultimately, the findings offer operational solutions, directly applicable to the region and providing a
toolkit for other efforts.

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page xxxi

Chapter 1.6, “Countdown to 2015: Improving
Access and Openness to Help Achieve the Millennium
Development Goals" by Gene Huang, Chief Economist
for FedEx Corp., explores the impact greater “Access”
—to goods, services, ideas and information—has on
improving social and economic conditions in markets
around the world. Building on the 2006 Access Index
commissioned by FedEx, it looks at how open and efficient trade flows and greater access can help to achieve
the Millennium Development Goals.
The chapter looks at Chile and Estonia as two
countries that have embraced the possibilities of openness, drawing correlations between national policies that
support the principles of Access and development in
these two countries.
Furthermore, the author considers arguments about
how an open approach to trade can be shaped to deliver
environmental benefits and individual empowerment.
He cites programs designed to foster these principles
and describes ways in which governments and the private sector can help to enable openness and assist individuals in taking advantage of the opportunities brought
about by greater Access.
Part 2 of the Report is a comprehensive data section
that contains detailed country/economy profiles for each
of the 118 economies covered. It features the main trade
indicators as well as the ETI results at the subindex, pillar,
and individual indicator level, presented as strengths and
weaknesses.The last section of the Report contains data
tables for each of the individual variables used in the
computation of the ETI.Technical notes and sources,
included at the end of Part 2, provide details on the
characteristics and sources of the hard data variables
included in the Report.

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

Executive Summary

ET.part.A.r1

xxxi

ET.part.A.r1

6/2/08

10:03 PM

Page xxxii

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

ET.part.A.r1

6/2/08

10:03 PM

Page 1

Part 1
Selected Issues on Enabling Trade

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

ET.part.A.r1

6/2/08

10:03 PM

Page 2

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page 3

CHAPTER 1.1

The Enabling Trade Index:
Assessing the Factors
Impeding International Trade
ROBERT Z. LAWRENCE, Harvard University
JENNIFER BLANKE, MARGARETA DRZENIEK HANOUZ,
THIERRY GEIGER, and QIN HE, World Economic Forum

If the titles of recent studies such as The World Is Flat,
Borderless World, and The Death of Distance were to be
taken at face value,1 a Global Enabling Trade Report would
not be necessary because the process of globalization
would be nearly complete. But these titles entail considerable hyperbole and overlook the many costs that are
incurred when goods and services move across international borders. Some of these reflect the costs of internal
and international transportation and tariffs paid at the
border. Some reflect the costs of communication and
gathering information. Some of the costs take a pecuniary form, while others that are no less significant
involve additional time (for example, time required for
search, transportation, meeting regulatory requirements
and dealing with customs) and risk (such as that associated with theft, loss, damage, and contract failures).
These costs are so damaging because they limit
trade across borders.The benefits of opening to trade are
well known: it allows countries to reap the gains from
specialization by obtaining higher prices for their exports
and lower prices for the goods and services they import.
Trade ushers competition into the domestic market,
increasing the varieties available to consumers as final
products and to producers as intermediate inputs. In
addition, trade allows countries to exploit economies of
scale and promotes technological innovation. All these
effects increase productivity and overall welfare. Moreover, as the rather footloose trade and investment flows
tend to exert pressure on policymakers, openness to
trade is often associated with better policies and
institutions. Numerous studies have shown that trade is
associated with higher growth and poverty reduction,
particularly in developing countries.2
However, despite the recognized benefits of trade,
many obstacles remain. Some of these obstacles are
intentional, specifically aimed at limiting market access;
some have been justified on the grounds of infant
industry protection. But for the most part tariffs and
other policy-related trade barriers are erected by governments wishing to shield those who lose in the short
term because of increased foreign competition. Other
obstacles to trade are related to the human and physical
infrastructure and to institutional frameworks that have
been developed over the years in each country to move
products over borders and to destinations.Whatever
their origins, these barriers have the consequence of
limiting the flow of trade, generally lowering welfare at
the aggregate.
Given the importance of trade for economic development and of reducing barriers to trade, the World
Economic Forum has embarked on a multiyear research
project in collaboration with international trade experts
and leaders from the logistics and transport industry to
measure the extent to which countries have in place all
of the necessary attributes for enabling the free flow of
trade into individual countries and to destination.The
index we have developed to provide this benchmarking

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

1.1: The Enabling Trade Index

ET.part.A.r1

3

1.1: The Enabling Trade Index

ET.part.A.r1

6/2/08

10:03 PM

Page 4

analysis reflects the broad range of obstacles to international trade. Based on the evidence we will describe in
this chapter, we have adopted a wide swath in constructing the index, including not simply traditional
indicators that reflect tariffs and transportation costs but
also measures of infrastructure quality, customs administration performance, and the domestic regulatory and
security environment.
Through this endeavor, we hope to raise awareness
about the importance of the large number of measures
that can facilitate trade, and to provide countries with
the ability to benchmark their performance vis-à-vis
others. By comparing their performance with that of
other countries both overall and with respect to the
components of the index, countries will get a better
appreciation of their strengths and weaknesses.The goal
is to provide a cross-country analysis of the enablers of
trade, highlighting to national policymakers the obstacles
to trade that require policy attention, and to enable dialogue between the private and public sectors for improving the environment for trade at the national level.
The next section of this chapter will describe the
large variety of obstacles to trade at the national level,
preparing the ground for the description of the new
Enabling Trade Index, described in the section that
follows.

4
Enabling trade
The case for enabling trade is well illustrated by the significant international price differences across countries.
In a market that is fully integrated, similar goods should
have similar prices regardless of where they are sold—
the “law of one price.” One common explanation for
differences in final goods prices is that they include distribution costs that are not tradable, but even when
these margins are taken into account, Bradford and
Lawrence (2004) find that sizable differences remain.
They report that the prices on goods selected as comparable in purchasing power parity studies typically differ
by 20 percent between the United States and Canada,
30 percent between the United States and Europe, and
50 percent between the United States and Japan.
Moreover, similar results could be found in a large number of studies that compare prices internationally.These
include findings that (1) the law of one price does not
hold internationally even for standardized products,3 (2)
the degree of price dispersion across countries is far
greater than within them;4 (3) the law of one price level
(purchasing power parity) holds, if at all, only in the
very long run,5 and (4) that firms have a significant
capacity to engage in international price discrimination
and routinely “price to market.”6 All told, these price
differences imply that obstacles to full international integration remain significant.7 This also indicates the gains
that can come for consumers and users of intermediate
inputs from an increase in trade.

The importance of infrastructure

One source of these price discrepancies is the distance
between markets.There is overwhelming evidence that
international trade is very sensitive to distance.8 The
most obvious cause is transportation costs.9 Even in a
perfect market, prices could differ because transportation
costs reduce the incentive for arbitrage. Confirmation
that transportation costs matter is provided by the finding that distance matters more for commodities with
high weight-to-value ratios, and for goods transported
across land rather than oceans.10
Indeed, transportation costs have often been more
important than trade barriers in inhibiting trade.This
has been the case historically. Overall, between 1820 and
2000, according to Lindert and Williamson, only 18 percent of the reduction in intercontinental price gaps
between the United States and Europe was due to policies liberalizing trade while 82 percent of the decline
was due to cheaper transportation.11 In the 19th century, the large drops in intercontinental transportation
costs—the result of innovations such as the steamship—
led price differences between the United States and
Europe to narrow even though the United States actually raised its tariffs significantly! Currently, US import
data indicate that insurance and freight costs are twice
those of tariff revenues.
Clark, Dollar, and Micco (2004) find that, for most
Latin American countries, transport costs are a greater
barrier to US markets than import tariffs.12 They point
out that these costs are not simply a function of distance
but also of the quality of the infrastructure. Improving
the efficiency of a port from the 25th to the 75th percentile in their sample, for example, reduces shipping
costs by 12 percent. (On average, they find that having
bad ports is equivalent to being 60 percent farther away
from markets.) Similarly, Limao and Venables (2001)
demonstrate the role of infrastructure more broadly in
determining transportation costs.They use data on the
costs of shipping the same container from Baltimore,
Maryland, to different parts of the world, and measure
infrastructure using indicators of road, rail, and telecommunications.13 In their sample, a destination with infrastructure in the 25th percentile has transportation costs
that are 12 percent higher than the destination with
median infrastructure quality. And the median landlocked country has transportation costs that are 55 percent higher than the median coastal economy.14
As Grossman (1998) has pointed out, however, in
many econometric studies the role of distance is far
greater than could be attributed to transportation costs
alone. One reason is that distance is associated with a
host of additional nonpecuniary costs relating to time
involved in search, preparation and scheduling, movement, communication, likelihood of theft, loss, quality
deterioration, and inventory management.15 A study by
Djankov, Freund, and Pham explores the role played by
additional transportation time using World Bank data on

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page 5

the days it takes to move standard cargo from the factory gate to the ship in 126 countries.16 On average, each
additional day that a product is delayed prior to being
shipped reduces trade by at least 1 percent. Each day is
equivalent to a country distancing itself from its trade
partners by 70 kilometers.They also report that delays
have an even greater impact on developing country
exports and exports of time-sensitive goods, such as perishable agricultural products. In particular, a day’s delay
reduces a country’s relative exports of time-sensitive
agricultural goods by 6 percent.
David Hummels has estimated that the advent of
fast transport (air shipping and faster ocean vessels) is
equivalent to reducing tariffs on manufactured goods
from 32 to 9 percent between 1950 and1998.17 He
reports that each additional day spent in transport
reduces the probability that the United States will
source from that country by 1–1.5 percent because each
day saved in shipping time is worth 0.8 percent ad-valorem for manufactured goods. Evans and Harrigan
(2005) find that time has an important influence on US
apparel imports.Those apparel products for which timeliness matters are increasingly imported from nearby
countries.18
Market access and border administration

The possibility of off-shoring services over the Internet
has led some to argue that the world can be thought of
as flat, since trading internationally appears similar to
trading nearby when transportation and communications costs are almost zero. But the empirical literature
contains strong evidence that, even setting the effects of
distance and transportation costs aside, the obstacles to
trade remain significant. In a pioneering study, McCallum
found that provinces within Canada were 20 times more
likely to trade with each other that to trade with US
states that were an equal distance away.19 While the size
of the effect has not always been the same, his finding of
a significant home bias in purchases has been confirmed
in many other tests.20 Apparently the effects associated
with borders continue to affect trade.
The most straightforward explanation for border
effects for trade in goods is the trade barriers that are
imposed by governments. Although these barriers have
been reduced over the postwar period, in many countries they remain important.They include formal barriers such as tariffs and quotas; contingent barriers that
can be invoked through anti-dumping, countervailing
duty, and safeguard measures; regulatory barriers that
result from discriminatory rules and standards; and
requirements such as the use of trade permits and
licenses as well as embargoes and prohibitions.
These types of barriers are still significant in
some developing countries. For the most part, however,
developed countries no longer use quotas outside of
agriculture, and their tariffs on many industrial products
have been substantially reduced over the postwar period.

They have even been eliminated completely on a preferential basis in free trade agreements and other preferential trading arrangements that have continued to
proliferate. Nonetheless, developed-country tariffs are
still important in some product areas such as agriculture,
and in labor-intensive manufactured products such as
apparel and footwear. Moreover, even when countries
have a free trade agreement or grant duty- and quotafree preferences, customs inspections continue to verify
that rules of origin and other regulatory requirements
are met.
More generally, therefore, the border may be
important because of the need to deal with customs
administrations.21 Time is money. It has been estimated,
for example, that each day taken to clear through customs is the equivalent of a 0.8 percent tariff. But the
costs of trade are affected not simply through longer
delays: as Huang and Whalley (2006) have shown in a
study of border delays that result from security inspections, there could be added costs because delays could
affect the frequency of transactions and the size of individual transactions that take place.22
Of course, inefficiencies in border administration
hinder exports as well as imports. Sadikov (2007) found
that each extra signature that exporters have to collect
before a shipment can be made reduces aggregate
exports by 4.2 percent.The impact is large, equivalent to
raising importer’s tariff by 5 percentage points.
Furthermore, the practice is particularly detrimental to
export diversification, since each signature lowers
exports of differentiated products by 4–5 percent more
than exports of homogeneous goods.23
The business environment: Regulation and security

The “border effects” may also reflect the increased transactions costs caused by national differences behind the
border.To be sure, many of these differences may be
worth preserving. After all, even if they reduce trade,
national differences in culture, institutions, and language
may be valuable in their own right. Nonetheless, there is
evidence that trade is significantly greater when countries share a common language, currency, regulatory system, and colonial experience, for example, and there is
merit in facilitating international convergence where the
benefits are significant. In addition, differences can be
preserved and at the same time facilitate trade.There is
evidence that, regardless of the precise form they may
take, the ability of the domestic legal system to enforce
commercial contracts and the capacity of government to
provide physical security, combat crime and corruption,
and provide impartial formulation and implementation
of government economic policy can all have important
effects on trade. Anderson and Marcouiller (2002) have
used measures from the World Economic Forum’s
Executive Opinion Survey designed to capture policy
transparency and impartiality as well as contract enforceability.They estimate that if the indexes of institutional

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

1.1: The Enabling Trade Index

ET.part.A.r1

5

1.1: The Enabling Trade Index

ET.part.A.r1

6

6/2/08

10:03 PM

Page 6

quality with respect to these attributes associated with
Latin American countries were to rise to the levels associated with the European Union, Latin American trade
would expand by 30 percent.They observe that this
expansion is roughly equivalent to what we would
expect from the reduction of Latin American tariffs to
US levels.24 Similarly, Blomberg and Hess find that the
presence of terrorism, as well as internal and external
conflict, is equivalent to having a 30 percent tariff on
trade.25 They observe “This is larger than estimated tariff-equivalent costs of border and language barriers and
tariff-equivalent reduction through GSPs and WTO participation.” Similarly, Gani and Prasad find that institutional quality as captured by measure of government
effectiveness, regulatory quality, control of corruption,
and rule of law has an important impact on the trade of
Pacific Island Countries. 26, 27
In sum, there are a large variety of effects that
enable the flow of trade. Although governmental tariff
and non-tariff barriers at the border and the costs of
transportation exert significant effects, the costs of trade
are affected by a host of other considerations as well. In
their comprehensive survey, for example, Anderson and
van Wincoop conclude that taking a more comprehensive view of trade costs suggests that they could account
for a tax-equivalent of 170 percent for rich countries
with the presumption that they are far higher for poor
countries.28 Wilson, Mann, and Otsuki have shown that
improvements in port efficiency, customs environment,
regulatory environment, and “e-business” could boost
trade considerably. Measures that raised the countries in
their sample of 75 countries that were below average
half way to the average of the sample would yield a gain
of US$377 billion in their manufactured goods trade.29
This review of the literature provides support for
the index developed in this chapter. In an attempt to
capture the full range of factors that contribute to these
costs, the index takes account of four major elements:
formal border barriers, border administration, transport
and communications infrastructure, and regulatory and
security measures that affect the business environment.
As the previous discussion has made clear, some of these
costs are pecuniary—these include trade duties and payments for services such as transportation, communications, and security. Other costs take nonpecuniary forms
such as the additional time required to obtain information, transport products, and obtain necessary clearance
and documentation as well as the costs associated with
the losses that occur as a result of damage and theft. But
all these costs are likely to affect trade.
We end this section with four observations before
proceeding to the detailed description of the index.
First, while we present these factors individually, there is
evidence that they can interact in a multiplicative fashion;
thus weaknesses in one area can raise costs in others.
Corruption, for example, and a nontransparent policy
mechanism could lead to higher tariff and non-tariff

barriers. High trade barriers may mean less trade and
less reason to invest in high-quality infrastructure and
reduce transportation costs. Hummels argues, for example, that shipping firms with pricing power will charge
higher prices for transporting goods protected by trade
barriers because these make the demand for their services less responsive to price.30 Similarly, Fink, Mattoo,
and Neagu emphasize the importance of strengthened
disciplines on restrictive business practices in maritime
shipping.31
Second, some of these issues cannot be adequately
dealt with through independent actions at the national
level, but require international cooperation and coordination. Obvious examples include compatible infrastructure and communications systems as well as mutual
recognition and cooperation with respect to standards,
technical specifications, and conformity assessments.
Moenius (2004) finds, for example, that a 1 percent
increase in bilaterally shared standards between the
United States and its trading partners increases US trade
volumes by $6 billion.32
Third, these issues are of particular importance for
developing countries. According to Martinez-Zarzoso
and Marquez-Ramos (2005), “geographical distance,
being landlocked, [and] technological and social factors
seem to be more important for the poorest than the
richest countries.Transport infrastructure and technology can be considered as barriers to trade for those countries with lower endowment levels.”33 One reason is that
their exports (products such as food, fruits, flowers, and
clothing) are often perishable and thus more sensitive to
delays. Disdier and Head report that distance matters
more for developing-country trade.34 In addition, many
are far from their markets, have poor interconnectivity
with their neighbors,35 and lower value per unit exports
that are more affected by transportation costs. In today’s
international economy, many developing countries want
to become part of global supply chains that can provide
just-in-time production sharing. Moreover, in developing countries it is often the case that inputs cannot be
sourced locally. Not making the whole product but performing the parts of the production process for which
they have a comparative advantage requires trading systems that are efficient and inexpensive.36
Finally, some the barriers to trade may arise simply
because national policies and practices differ from
country to country. Obstacles of this type could reflect
institutions that are deeply rooted and result from local
preferences for specific public goods and policies. In
considering reforms, the benefits from these practices
obviously need to be weighed against the benefits from
trade. On the other hand, it could also be the case that
adopting new measures because they could promote
trade could yield benefits beyond their trade impacts.

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page 7

The Enabling Trade Index
The Enabling Trade Index (ETI) was developed within
the context of the World Economic Forum’s Industry
Partnership Programme for the Logistics and Transport
sector.The Index was developed in close collaboration
with our data partners: the Global Express Association
(GEA), the International Air Transport Association
(IATA), the International Trade Centre (ITC), the
United Nations Conference on Trade and Development
(UNCTAD),The World Bank, and the World Trade
Organization (WTO).We have also received important
feedback from a number of key companies that are
industry partners in the effort, namely ABX LOGISTICS Worldwide, Agility, Deutsche Post World Net, DP
World, FedEx Corporation, Stena,TNT N.V., and UPS.
The ETI is a comprehensive index that measures
the factors, policies, and services facilitating the free flow
of goods over borders and to destination.37 The structure
of the index mirrors the concepts discussed in the section
above, breaking the enablers into four overall issue areas,
or subindexes: (1) market access, (2) border administration, (3) transport and communications infrastructure,
and (4) the business environment.The first subindex
measures the extent to which the policy and cultural
framework of the country welcomes foreign goods into
the country. Once goods have been allowed in to the
country, the second subindex assesses the extent to
which the administration at the border facilitates their
entry. Once goods have made it over the border, the
third subindex takes into account whether the country
has the transport and communications infrastructure
necessary to facilitate the movement of the goods from
the border to destination. Finally, the fourth subindex
looks at the overarching regulatory and security environment impacting the transport business in the country.
Each of these four subindexes is in turn composed
of a number of pillars of enabling trade, of which there
are 10 in all.These are:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Tariffs and non-tariff barriers
Proclivity to trade
Efficiency of customs administration
Efficiency of import-export procedures
Transparency of border administration
Availability and quality of transport
infrastructure
Availability and quality of transport services
Availability and use of ICTs
Regulatory environment
Physical security

The tariffs and non-tariff barriers pillar measures
the deterrent to imports imposed by national-level
administrative barriers to trade.These include tariffs,
which are the official duties imposed on imported
goods, as well as non-tariff barriers, such as anti-dump-

ing measures, countervailing duties, and production
requirements.
The proclivity to trade pillar is measured by the
country’s openness to trade as demonstrated by its participation in multilateral trade rules and instruments, the
percentage of goods allowed duty-free into the country,
and measures of the importance of trade for companies
in the country.
The efficiency of customs administration pillar
measures the perceived efficiency of customs procedures
(formalities regulating the entry and exit of merchandise)
by the private sector, as well as the extent of services
provided by customs authorities and related agencies.
The efficiency of import-export procedures pillar
extends the analysis beyond the official customs administration to assess effectiveness and efficiency of the
clearance process by customs and border control agencies,
the number of days and documents required to import
goods into the country, and the total official cost associated with importing, excluding tariffs and trade taxes.
Given the significant hindrance that corruption can
provide in trade, the transparency of border administration
pillar assesses the pervasiveness of undocumented extra
payments or bribes connected with import and export
permits, as well as overall perceived degree of corruption
in each country.
The availability and quality of transport infrastructure
pillar measures the availability of transport infrastructure
in each country, as demonstrated by the density of airports, the percentage of paved roads, and the extent to
which they are congested, as well as the extent of transshipment connections available to shippers from each
country. Also captured is the quality of all types of transport infrastructure, including air, rail, roads, and ports.38
In addition to the underlying infrastructure, the
availability and quality of transport services pillar takes
into account the services available for shipment, including
the quantity of services provided by liner companies, the
ability to track and trace international shipments, the
timeliness of shipments in reaching their destinations,
general postal efficiency, and the overall competence of
the local logistics industry (e.g., transport operators, customs brokers).
Given the increasing importance of information
and communication technologies for the tracing and
management of shipments, the availability and use of
ICTs pillar captures the penetration rates of these new
tools—such as mobile phones, Internet, and broadband
—in each country.
As the policy environment for the business of trade
and logistics, the regulatory environment pillar captures
the extent to which the government has put in place
policies conducive to the cross-border flow of goods.
Included are the ease of hiring foreign labor in the
country (important for companies moving goods across
borders) and the openness of bilateral Air Service
Agreements into which the country has entered

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

1.1: The Enabling Trade Index

ET.part.A.r1

7

6/2/08

10:03 PM

Page 8

Figure 1: Composition of the four subindexes of the ETI

Market
access

Border

Tariff and non-tariff
barriers
Proclivity to trade

Transport and
communications
infrastructure

Border
administration

Efficiency of customs
administration

Availability and quality of
transport infrastructure

Efficiency of importexport procedures

Availability and quality of
transport services

Transparency of
border administration

Availability and
use of ICTs

Destination

1.1: The Enabling Trade Index

ET.part.A.r1

Business environment

Regulatory
environment

Physical
security

8

(providing a sense of competition in the air transport
sector), as well as the extent to which the policy environment encourages foreign direct investment.
The security environment in each country is of
great importance for ensuring the delivery of goods to
destination. In this context, the physical security pillar
specifically gauges the level of national violence (in
terms of general crime and violence in addition to the
threat of terrorism), as well as the reliability of the
police services to protect businesses from criminals.
Each of these pillars is, in turn, made up of a number of individual variables.The dataset includes both
hard data and Survey data from the World Economic
Forum’s Executive Opinion Survey.The hard data were
obtained from publicly available sources, international
organizations, and trade experts (for example, IATA,
the ITC, the WTO, and UNCTAD).The Survey is carried out among CEOs and top business leaders in all
economies covered by our research.The Survey provides
unique data on many qualitative institutional and business environment–related issues, as well as a number of
specific issues related to trade.
The 10 pillars are regrouped into the four subindexes
described above, as shown in Figure 1, and the overall
score for each country is derived as an unweighted average of the four subindexes.The details of the composition
of the ETI are shown in Appendix A.

To keep this project at a feasible scope, we have
explicitly focused on the flow of imports into a country
in the ETI. Of course, it is important to note that most
of these factors stimulate the flow of both exports and
imports. Introducing elements explicitly enabling the
flow of exports will be the subject of future research in
this ongoing project studying obstacles to trade.

The Enabling Trade Index 2008 rankings
Tables 1–5 show the rankings of all 118 countries in the
overall ETI as well as in each of the four subindexes and
individual pillars. As would be expected, the ETI results
provide an important component for explaining the
variation in cross-country trade, as discussed in Box 1.
The sections below review the rankings of the following
five overall regions and groupings: Asia and the Pacific,
Europe and North America, Latin America and the
Caribbean, the Middle East and North Africa, and subSaharan Africa. Box 2 provides a higher-level analysis of
the difference in enabling trade assessments across 10
different regional groupings.
Asia and the Pacific

Two Asian economies—Hong Kong and
Singapore—occupy the top two positions in the ETI
ranking.This result bears witness to these countries’

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page 9

Box 1: Testing the ETI model
As explained in the text, the World Economic Forum’s Enabling
Trade Index (ETI) is an attempt to measure the extent to which
countries have in place all of the necessary attributes for
enabling the free flow of trade into individual countries, and to
destination.
This box presents the preliminary results of an empirical
study that uses a gravity model in order to assess how the ETI
contributes to explaining variations in bilateral trade flows.
The baseline gravity model predicts that the closer and the
bigger two trading partners are, the more they trade. This model
has produced some of the most robust and powerful results in
the field of international trade and in the social sciences in general. Since the 1960s, researchers have been seeking to give
the model a theoretical underpinning—with some success—
and to improve its predictive power by introducing new variables in order to account for trade frictions (e.g., transaction
costs, information costs, transportation costs). The ETI is an
attempt to measure how individual countries overcome these
frictions; a high score in the overall ETI is an indication that a
country is relatively successful at doing so.
In light of the above, we formulate the following hypothesis:
for any given country pair (i, j), the higher the ETI score for i
and/or j, the more voluminous the trade between the two countries, everything else being held constant. In order to verify our
hypothesis, we specify the following augmented gravity model:
ln (IMPij ) = ␤0 + ␤1 • ln(GDPi ) + ␤2 • ln(GDPj )
+ ␤3 • ln(DISTij ) + ␤4 • BORDERij
+ ␤5 • LLOCKEDij + ␤6 • CURRij
+ ␤7 • COLONYij + ␤8 • LANGij
+ ␤9 • ETIi + ␤10 • ETIj + εij

(1)

where:
• the dependent variable IMPij represents the total value
of imports of country i from country j or, symmetrically,
the exports of j to i. When import data are not available,
export data, if available, are used instead. Trade data
come from the United Nations’ Comtrade database and
are for 2006;
• GDPi and GDPj correspond to the gross domestic product of i and j, respectively, in US dollars and at current
prices. Data are for 2006 and come from the October
2007 edition of the International Monetary Fund’s
World Economic Outlook Database;
• DISTij is the distance between i and j expressed in
kilometers. The distance is weighted to account for the
geographic distribution of population within a country.
Data come from the Centre d’Etude Prospectives et
d’Information Internationales (CEPII). Population figures
are for 2004;

• BORDERij takes the value 1 if i and j share a common
border, and is 0 otherwise;
• LLOCKEDij takes the value 1 if i, j, or both are
landlocked, and is 0 otherwise;

1.1: The Enabling Trade Index

ET.part.A.r1

• CURRij takes the value 1 if i and j share the same
currency, and is 0 otherwise. This variable is
constructed using data from the International
Organization for Standardization (ISO) and reflects
the situation as of 2006;
• COLONYij takes the value 1 if i and j have at any point in
time maintained, or still maintain, a colonial relationship,
and is 0 otherwise. Data come from CEPII;
• LANGij takes the value 1 if i and j share at least one
common official language, and is 0 otherwise. Data
come from CEPII; and
• the two dependent variables ETIi and ETIj represent
the overall ETI scores achieved by countries i and j,
respectively.

The gravity model is often estimated using ordinary least
squares (OLS). The problem with this method is that it suffers
from selection bias. By excluding the pairs of countries that
report no bilateral trade, OLS overestimates the explanatory
power of independent variables, thus producing biased results.
In order to address this selection bias we use a Heckman
two-step estimation method, which produces consistent and
efficient results.1 This approach first uses a selection equation
—a probit model—to determine the probability of two countries
trading with each other. In a second step, an OLS regression is
run to estimate the model (see Equation 1) for those country
pairs that report positive trade flows.
Country pairs for which trade data are missing are
retained—unlike in OLS—and it is assumed that no trade
occurs between the two countries. Those observations represent the censored observations in the probit estimation, for
which we construct the latent variable IMPBINij taking the
value 1 whenever i and j report some bilateral trade, and 0
otherwise.2
The results of the estimation of the Heckman outcome
equation are reported in Table 1. 3 The coefficients on the variables traditionally included in the baseline gravity model bear
the expected signs and are highly significant. A doubling in the
GDP of one of the two trading partners causes bilateral trade to
more than double. Furthermore, countries sharing a common
border tend to trade more than noncontiguous countries. So do
nations with a common official language, which usually betrays
the existence of cultural ties—an important determinant of
trade. On the other hand, the farther apart two countries are,
the less they trade. Similarly, trade with or between landlocked

(Cont’d.)

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

9

1.1: The Enabling Trade Index

ET.part.A.r1

6/2/08

10:03 PM

Page 10

Box 1: Testing the ETI model (cont’d.)
countries is less voluminous, ceteris paribus. Because in the
probit estimation the dummy COLONY perfectly predicts the
value of IMPBIN, it is dropped from the subsequent estimation.
In addition, the Heckman estimation requires the probit estimation to have at least one more independent variable than the
outcome equation. Variable CURR is therefore dropped.

Table 1: Results for the Heckman outcome equation

Constant

–30.95***
(0.544)

ln(GDPi )

0.993***
(0.0136)

lln(GDPj )

1.167***
(0.0136)

ln(DISTij )

–1.094***

increase in the ETI score of exporter j boosts its exports to i by
some 39 percent, while an improvement in importer i’s score
raises trade by 19 percent.4
These results suggest for instance that if the ETI scores of
Guyana (2.95) and Venezuela (2.85) were to improve by 1 point,
imports to Guyana from Venezuela would increase by 58 percent, all other things being held equal. The difference between
the lowest average ETI score of two trading partners, Algeria
and Chad, and the highest average score, achieved by
Singapore and Hong Kong, is a full three points.5 In theory, closing the gap would treble trade between the two African nations.
The addition of ETI performance to a standard gravity
model produces satisfying empirical results. The contribution of
the ETI to explaining variations in bilateral trade flows is positive
and sizeable, thereby confirming the trade-enabling feature of
the index components taken altogether. The publication of the
second edition of the ETI will make possible further research, in
particular time comparison and panel data analysis.

(0.0242)

BORDERij
LLOCKEDij

1.360***
(0.131)

Notes

–0.551***

1 See Gronau 1974 and Heckman 1976. For a recent application of the
Heckman method to international trade, see Helpman et al. 2006.

(0.0468)

LANGij

10

ETIi
ETIj

(0.0618)

2 The Enabling Trade Index covers 118 countries. This represents 13,806
possible country pairs (i.e., 118 times 117), 12,057 of which have positive
import flows; 1,749 pairs report either no trade or zero trade.

0.192***

3 Intermediate results are available from the authors.

(0.0307)

4 Recall the semi-log specification of the model: variable ETI simply is the
ETI score of i or j, while the explained variable IMP is log-transformed.

0.974***

0.388***
(0.0298)

Observations

12,057

R2

0.716

5 Burundi and Chad post the lowest average ETI score (2.65), yet the two
countries reported no bilateral trade in 2006.

Note: Dependent variable is ln(IMPij ); robust standard errors
are in parentheses. Significance levels: *** = 1 percent;
** = 5 percent; * = 10 percent.

The coefficients on ETIi and ETIj are both positive and highly
significantly different from zero, yet they differ in magnitude.
The impact on trade of the score achieved by exporting country
j is almost twice that of importing country i. Indeed, a one-point

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

10:03 PM

Page 11

Box 2: Regional performance in the Enabling Trade Index
An analysis of the performance of regional groupings from the
Enabling Trade Index (ETI) sheds light on common characteristics across regions that help explain their performance in the
ETI and make it possible to interpret countries’ performances in
light of regional averages. The regional rankings shown in
Figure 1 demonstrate that North America, the European Union
(EU), and the East Asian newly industrializing countries (NICs)
are the most advanced regions in terms of enabling trade
across borders. Although trade benefits countries at all stages
of development and gains are likely to be higher if trade partners are more diverse, the ETI results show that less-developed
economies are not presently in a position to fully benefit from
the liberalization of trade policies that have taken place over
the past decades. Many obstacles remain in place in these
countries. One common hindrance to trade across less-developed regions is the poorly adapted transport and telecommunications infrastructure. In the context of the Doha Round of trade
negotiations, which aim at increasing the participation of developing countries in global trade, these results call for investment
in infrastructure and for an upgrading of trade facilitation mechanisms.
The average performance of the United States and
Canada receives the highest overall score on the ETI among the
regions shown. For many years, North America, one of the
world’s largest markets, has been at the forefront of the trade
liberalization process. This is reflected in the very open access

Figure 1: Regional rankings of the ETI

to the region’s markets, in particular in Canada. Evidently the
infrastructure in both countries is world class, although security
measures in the United States put a significant burden on the
country’s importers, as discussed in the country-level analysis
of this chapter.
The East Asian NICs provide a success story on how to
take advantage of the globalizing world economy to boost economic growth rates. Hong Kong and Singapore turned their
small size and proximity to the large markets in Asia into a competitive advantage by developing regional trade and logistics
hubs. Efficiently organized public administrations, as reflected
in the positive assessment of the border administration and the
wide range and high quality of available logistics services, contributed to this success, as did excellent infrastructure facilities
and an entrepreneur-friendly business environment.
Over the past half century, the European Union has gone
the furthest of all regional trading agreements worldwide in dismantling barriers to trade within its borders. This is reflected in
its overall good performance in the ETI. It reduced border
administration to a minimum, harmonized standards, and even
introduced a common currency. With this, the EU countries are
some of the most open markets worldwide for merchandise
exports, although it must be noted that the region’s agricultural
policy remains a significant hurdle for exporters from non-member countries.

11

I
I
I
I
I

7

6

Market access
Border administration
Transport and communications infrastructure
Business environment
Enabling Trade Index 2008

5

4

3

2

1

0
US and
Canada

East Asian
NICs

EU27

Central and
Eastern
Europe

1.1: The Enabling Trade Index

6/2/08

Enabling Trade Index score

ET.part.A.r1

MENA

Latin
America &
Caribbean

CIS and
Mongolia

SubSaharan
Africa

South Asia

(Cont’d.)

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

1.1: The Enabling Trade Index

ET.part.A.r1

6/2/08

10:03 PM

Page 12

Box 2: Regional performance in the Enabling Trade Index (cont’d.)
In most Central and Eastern European countries, the
process of accession to the European Union brought about significant advantages for their trade performance, and although
they perform less well than the top-performing regions shown in
the figure, they outperform most developing regions on the ETI.
The desire to join the European Union provided a strong incentive to fulfill the accession criteria, which included liberalizing
trade and improving the business and regulatory environments.1
At the same time, border administration was significantly
streamlined and infrastructure was upgraded. This allowed
these countries to exploit wage differentials and increase
exports of goods to the European Union significantly, in great
part by attracting export-oriented foreign direct investment.
Although the Middle East and North Africa (MENA) region
groups a number of very diverse countries, many of them cluster around the middle of the ETI ranking. Almost all of them
remain relatively sheltered from international competition
through tariff and non-tariff barriers, albeit at different levels.
Overall, because of their diversity, countries from the region
have pursued very different strategies of integration into the
global economy; some countries have progressed with respect
to factors that enable trade more than others. The resource-rich
economies of the Gulf that built their wealth on hydrocarbon
exports are now increasingly competing in global markets, in
particular in service sectors such as transportation and finance.

The North African countries have instead chosen to pursue
closer trade ties with the European Union. A particular success
story is Israel, which within a short period of time radically
changed the country’s trade patterns by increasing the share of
high-technology products in exports.
In Latin America and the Caribbean, despite progress
achieved in improving the business environment and liberalizing
trade over the past years, the region has fallen behind the rest
of the world in terms of share in global trade in the second half
of the 20th century, as outlined in the World Trade Organization
(WTO)’s International Trade Statistics (Figure 2). As the ETI
results underscore, underdeveloped infrastructure remains a
significant impediment to enhancing Latin America’s trade performance. In addition to poor infrastructure, many countries
need to further pursue trade liberalization in order to fully benefit from the positive effects of trade. In this respect, countries
such as Costa Rica or, to a lesser extent, Chile could serve as
positive examples for the region.
Although countries of the Commonwealth of Independent
States (CIS) maintain close trade links with each other, they still
exhibit many obstacles that inhibit the flow of goods across borders, and their ETI scores are somewhat low on average. In
most of these countries, a thorough overhaul of public institutions will be necessary to facilitate trade; upgrading institutions
will also contribute to improved overall economic performance.

12

Africa
Asia
South and Central America
Middle East
Europe
North America

Figure 2: World trade by region

60

Share of total world trade

50

40

30

20

10

0
1948

1953

1963

1973

1983

1993

2003

Source: WTO, 2007.

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

2006

6/2/08

10:03 PM

Page 13

Box 2: Regional performance in the Enabling Trade Index (cont’d.)
Trade in these countries is significantly hampered by inefficient
border administration, which is prone to corruption and makes
importing goods expensive and time consuming. The region’s
trade performance also suffers from its decaying transport
infrastructure, which, after many years of neglect and underinvestment, is in dire need of upgrading at all levels.
Sub-Saharan Africa is among the regions that have been
left behind in the globalization process over the past 50 years.
As Figure 2 shows, Africa’s share in world trade fell continually
throughout in the second half of the 20th century. A look at the
ETI results sheds some light on the reasons for this performance.
Sub-Saharan Africa has the poorest transport infrastructure
among all the regions assessed—on a scale of 1 to 7, the
region scores only a low 2.6. Investing resources obtained
from presently high-priced commodity exports in upgrading
infrastructure would help enhance the region’s benefits from
globalization.
South Asia closes the regional ranking. South Asia is not
only the weakest performer on the ETI among the regions
assessed, it is also the most sheltered by trade barriers. This
prevents the countries from further benefiting by expanding
merchandise trade, which could significantly enhance their
development. Additional competition would increase productivity and growth rates of the economy, thereby creating jobs and
reducing poverty in the longer term. In India, for example, the
liberalization process of the 1990s has resulted in double-digit
growth rates. Yet, although much progress has been achieved,
India remains one of the most protected countries worldwide
and much room for improvement remains in dismantling trade
barriers.

Source: WTO, 2007.
1 The requirement for liberalizing trade is true for most countries with the
notable exception of Estonia, which actually had a more liberal trade
regime than the European Union before joining.

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

1.1: The Enabling Trade Index

ET.part.A.r1

13

1.1: The Enabling Trade Index

ET.part.A.r1

14

6/2/08

10:03 PM

Page 14

Table 1: The Enabling Trade Index 2008
SUBINDEXES
OVERALL INDEX
Country/Economy

Hong Kong SAR
Singapore
Sweden
Norway
Canada
Denmark
Finland
Germany
Switzerland
New Zealand
Netherlands
Luxembourg
Japan
United States
Austria
United Kingdom
Australia
Belgium
France
Ireland
Taiwan, China
Spain
United Arab Emirates
Korea, Rep.
Estonia
Portugal
Chile
Israel
Malaysia
Slovak Republic
Slovenia
Czech Republic
Italy
Hungary
Lithuania
Greece
Bahrain
Turkey
Cyprus
Mauritius
Qatar
Croatia
Latvia
Costa Rica
Poland
Panama
Indonesia
China
Tunisia
Oman
Jordan
Thailand
Saudi Arabia
Guatemala
El Salvador
Uruguay
Romania
Kuwait
South Africa
Bulgaria
Armenia
Moldova
Dominican Republic
Honduras
Mexico

Market
access

Border
administration

Transport and communications infrastructure

Business
environment

Rank

Score

Rank

Score

Rank

Score

Rank

Score

Rank

Score

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65

6.04
5.71
5.66
5.65
5.62
5.62
5.61
5.58
5.58
5.52
5.51
5.50
5.43
5.42
5.42
5.30
5.22
5.21
5.20
5.20
5.15
5.03
4.96
4.95
4.89
4.88
4.88
4.76
4.75
4.74
4.74
4.70
4.70
4.67
4.63
4.60
4.53
4.53
4.50
4.50
4.48
4.45
4.45
4.41
4.35
4.28
4.27
4.25
4.23
4.22
4.19
4.18
4.16
4.14
4.13
4.06
4.04
4.03
3.98
3.90
3.90
3.88
3.85
3.83
3.83

1
27
14
2
3
15
19
9
5
7
18
17
4
6
13
24
44
16
20
25
38
34
50
72
47
45
40
36
68
23
21
33
30
41
32
31
46
8
49
11
54
12
48
10
42
59
22
71
88
35
95
62
51
28
29
66
61
64
67
56
43
26
85
63
74

6.66
4.99
5.21
5.89
5.87
5.15
5.08
5.34
5.65
5.41
5.10
5.10
5.86
5.65
5.22
5.02
4.72
5.12
5.08
5.01
4.83
4.87
4.50
4.07
4.66
4.72
4.77
4.84
4.09
5.03
5.07
4.94
4.97
4.76
4.95
4.95
4.69
5.40
4.51
5.29
4.39
5.24
4.55
5.32
4.73
4.27
5.03
4.07
3.57
4.85
3.35
4.25
4.49
4.98
4.97
4.12
4.25
4.18
4.10
4.31
4.73
4.99
3.69
4.22
4.04

7
1
2
6
9
5
4
15
12
3
8
10
17
21
16
14
11
25
26
19
22
23
27
18
13
32
20
29
24
35
30
31
38
33
28
54
41
47
44
42
53
52
40
49
37
39
63
43
34
60
36
56
59
46
62
51
61
67
50
57
87
75
58
77
65

5.99
6.51
6.32
6.06
5.78
6.10
6.15
5.57
5.69
6.16
5.98
5.77
5.55
5.29
5.57
5.58
5.71
5.23
5.21
5.43
5.27
5.26
5.18
5.49
5.63
4.85
5.43
5.03
5.23
4.68
4.91
4.86
4.58
4.79
5.04
4.08
4.53
4.28
4.37
4.53
4.11
4.15
4.54
4.22
4.62
4.54
3.96
4.51
4.73
4.04
4.66
4.07
4.05
4.32
3.98
4.15
4.02
3.86
4.21
4.07
3.28
3.65
4.07
3.60
3.88

4
7
1
20
11
10
18
5
14
21
2
9
13
3
12
8
17
16
6
24
15
22
23
19
29
28
42
26
27
35
30
34
25
38
37
31
40
44
32
56
33
43
39
66
46
48
74
36
53
57
51
41
47
78
80
61
49
50
45
54
77
76
79
92
67

5.66
5.53
5.77
5.21
5.50
5.51
5.29
5.66
5.39
5.09
5.73
5.51
5.42
5.66
5.43
5.52
5.32
5.33
5.54
4.79
5.37
5.08
4.80
5.23
4.51
4.57
3.93
4.64
4.62
4.17
4.49
4.18
4.68
4.10
4.14
4.49
3.99
3.79
4.41
3.50
4.22
3.89
4.08
3.26
3.70
3.65
3.13
4.15
3.53
3.50
3.54
3.93
3.70
3.00
2.97
3.34
3.64
3.56
3.74
3.52
3.00
3.05
2.97
2.84
3.25

2
3
14
10
16
5
1
4
7
11
17
6
35
25
9
26
21
20
31
8
22
33
15
30
39
13
12
57
27
24
63
38
54
28
67
36
34
50
41
43
18
56
51
37
73
47
32
77
23
60
19
61
68
79
52
49
81
59
99
107
53
101
42
45
86

5.84
5.82
5.35
5.45
5.33
5.70
5.92
5.74
5.58
5.42
5.22
5.63
4.90
5.08
5.45
5.07
5.14
5.16
4.98
5.56
5.13
4.92
5.34
5.02
4.76
5.39
5.40
4.53
5.07
5.09
4.48
4.84
4.57
5.05
4.40
4.86
4.92
4.64
4.72
4.69
5.22
4.54
4.61
4.86
4.35
4.66
4.97
4.28
5.11
4.51
5.21
4.49
4.39
4.27
4.59
4.64
4.24
4.51
3.87
3.71
4.59
3.83
4.70
4.67
4.15

(Cont’d.)

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page 15

Table 1: The Enabling Trade Index 2008 (cont’d.)
SUBINDEXES
OVERALL INDEX
Country/Economy

Jamaica
Nicaragua
Ukraine
Peru
Sri Lanka
India
Kazakhstan
Albania
Morocco
Colombia
Azerbaijan
Namibia
Argentina
Uganda
Brazil
Macedonia, FYR
Philippines
Paraguay
Pakistan
Zambia
Kenya
Egypt
Madagascar
Bosnia and Herzegovina
Mali
Vietnam
Cameroon
Mongolia
Bolivia
Lesotho
Ecuador
Mauritania
Benin
Burkina Faso
Senegal
Mozambique
Tanzania
Russian Federation
Tajikistan
Uzbekistan
Ethiopia
Syria
Algeria
Kyrgyz Republic
Bangladesh
Nigeria
Zimbabwe
Cambodia
Guyana
Venezuela
Nepal
Burundi
Chad

Market
access

Border
administration

Transport and communications infrastructure

Business
environment

Rank

Score

Rank

Score

Rank

Score

Rank

Score

Rank

Score

66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118

3.80
3.78
3.77
3.76
3.75
3.74
3.73
3.72
3.71
3.70
3.68
3.66
3.65
3.63
3.63
3.58
3.57
3.54
3.54
3.52
3.51
3.51
3.49
3.47
3.42
3.42
3.42
3.38
3.36
3.36
3.36
3.34
3.34
3.33
3.33
3.30
3.27
3.25
3.13
3.06
3.06
3.05
3.04
3.03
3.03
3.02
2.98
2.95
2.95
2.85
2.70
2.70
2.60

90
79
39
73
70
105
37
57
110
96
65
78
89
58
92
86
80
60
98
76
55
111
53
97
75
112
87
69
84
52
77
93
94
82
109
81
100
99
83
114
116
117
118
102
104
107
91
108
113
103
106
115
101

3.46
3.91
4.77
4.06
4.08
2.82
4.83
4.29
2.58
3.31
4.15
3.93
3.57
4.27
3.42
3.64
3.86
4.27
3.20
3.98
4.32
2.51
4.42
3.29
4.01
2.50
3.58
4.08
3.70
4.45
3.98
3.39
3.36
3.82
2.59
3.85
3.07
3.11
3.74
2.46
2.15
2.04
1.80
2.95
2.87
2.77
3.44
2.62
2.48
2.91
2.77
2.20
3.03

68
74
94
73
69
55
110
64
45
48
112
79
71
90
66
80
82
81
78
103
95
70
100
72
111
76
84
113
83
99
105
102
89
106
93
86
88
92
117
116
96
98
85
104
97
101
114
107
91
115
108
109
118

3.85
3.65
3.17
3.67
3.83
4.08
2.70
3.89
4.32
4.24
2.62
3.59
3.69
3.26
3.87
3.58
3.54
3.55
3.59
2.88
3.13
3.78
3.01
3.68
2.68
3.60
3.43
2.58
3.44
3.03
2.81
2.95
3.27
2.76
3.18
3.30
3.28
3.20
2.40
2.43
3.12
3.04
3.34
2.84
3.12
2.98
2.51
2.74
3.24
2.49
2.70
2.70
2.16

55
102
59
82
73
52
63
106
68
72
64
71
58
93
62
69
83
99
70
100
90
65
107
86
109
75
112
87
96
115
85
98
101
110
89
114
111
60
117
84
97
94
91
88
103
108
95
105
104
81
113
116
118

3.52
2.51
3.42
2.96
3.13
3.54
3.31
2.47
3.20
3.14
3.30
3.17
3.46
2.75
3.31
3.19
2.95
2.59
3.18
2.59
2.86
3.27
2.47
2.91
2.44
3.08
2.37
2.89
2.70
2.25
2.94
2.62
2.57
2.40
2.86
2.29
2.40
3.35
2.02
2.94
2.69
2.74
2.85
2.88
2.51
2.44
2.73
2.48
2.51
2.96
2.34
2.14
1.93

70
29
106
72
92
58
88
82
40
87
46
94
98
80
96
97
95
103
83
48
105
64
89
90
55
62
78
91
110
108
109
66
85
74
44
102
75
114
69
65
76
71
84
113
111
100
116
93
112
117
118
104
115

4.37
5.03
3.73
4.35
3.97
4.53
4.06
4.22
4.74
4.11
4.66
3.95
3.88
4.25
3.91
3.90
3.93
3.76
4.20
4.65
3.73
4.47
4.05
3.98
4.54
4.48
4.28
3.98
3.62
3.71
3.70
4.41
4.16
4.35
4.67
3.76
4.32
3.35
4.38
4.43
4.29
4.36
4.16
3.44
3.60
3.87
3.22
3.96
3.56
3.05
2.98
3.74
3.30

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

1.1: The Enabling Trade Index

ET.part.A.r1

15

1.1: The Enabling Trade Index

ET.part.A.r1

16

6/2/08

10:03 PM

Page 16

Table 2: The Enabling Trade Index: Market access
PILLARS
MARKET ACCESS
Country/Economy

Albania
Algeria
Argentina
Armenia
Australia
Austria
Azerbaijan
Bahrain
Bangladesh
Belgium
Benin
Bolivia
Bosnia and Herzegovina
Brazil
Bulgaria
Burkina Faso
Burundi
Cambodia
Cameroon
Canada
Chad
Chile
China
Colombia
Costa Rica
Croatia
Cyprus
Czech Republic
Denmark
Dominican Republic
Ecuador
Egypt
El Salvador
Estonia
Ethiopia
Finland
France
Germany
Greece
Guatemala
Guyana
Honduras
Hong Kong SAR
Hungary
India
Indonesia
Ireland
Israel
Italy
Jamaica
Japan
Jordan
Kazakhstan
Kenya
Korea, Rep.
Kuwait
Kyrgyz Republic
Latvia
Lesotho
Lithuania
Luxembourg
Macedonia, FYR
Madagascar
Malaysia
Mali

1. Tariff and non-tariff barriers

2. Proclivity to trade

Rank

Score

Rank

Score

Rank

Score

57
118
89
43
44
13
65
46
104
16
94
84
97
92
56
82
115
108
87
3
101
40
71
96
10
12
49
33
15
85
77
111
29
47
116
19
20
9
31
28
113
63
1
41
105
22
25
36
30
90
4
95
37
55
72
64
102
48
52
32
17
86
53
68
75

4.29
1.80
3.57
4.73
4.72
5.22
4.15
4.69
2.87
5.12
3.36
3.70
3.29
3.42
4.31
3.82
2.20
2.62
3.58
5.87
3.03
4.77
4.07
3.31
5.32
5.24
4.51
4.94
5.15
3.69
3.98
2.51
4.97
4.66
2.15
5.08
5.08
5.34
4.95
4.98
2.48
4.22
6.66
4.76
2.82
5.03
5.01
4.84
4.97
3.46
5.86
3.35
4.83
4.32
4.07
4.18
2.95
4.55
4.45
4.95
5.10
3.64
4.42
4.09
4.01

13
115
102
14
71
48
38
12
97
41
82
69
85
98
42
32
106
103
79
2
81
49
90
101
10
5
65
64
61
51
83
115
24
73
109
63
56
60
35
22
108
45
1
77
112
16
62
27
43
86
6
105
20
80
96
21
107
66
4
50
37
91
26
93
33

5.72
1.00
2.60
5.67
4.14
4.40
4.58
5.85
2.96
4.53
3.87
4.16
3.45
2.88
4.50
4.82
2.34
2.50
3.99
6.10
3.94
4.38
3.33
2.62
5.92
6.02
4.25
4.27
4.31
4.38
3.84
1.00
5.44
4.12
2.04
4.28
4.35
4.33
4.71
5.51
2.19
4.43
7.00
4.06
1.89
5.65
4.29
5.24
4.47
3.43
5.95
2.38
5.53
3.97
3.06
5.52
2.30
4.23
6.04
4.38
4.64
3.32
5.25
3.25
4.79

104
113
45
74
28
4
79
85
108
13
103
92
98
68
58
107
118
112
95
17
117
31
40
63
42
47
41
19
6
101
57
61
46
29
116
7
10
1
30
48
110
62
2
23
77
50
12
49
22
86
11
52
55
43
33
106
83
38
105
21
20
69
84
36
93

2.86
2.59
4.54
3.78
5.31
6.03
3.73
3.53
2.79
5.71
2.86
3.24
3.14
3.96
4.11
2.83
2.06
2.74
3.17
5.64
2.12
5.16
4.82
4.01
4.72
4.47
4.76
5.61
5.99
2.99
4.11
4.03
4.51
5.20
2.26
5.88
5.81
6.36
5.20
4.45
2.77
4.01
6.33
5.46
3.76
4.41
5.73
4.44
5.47
3.50
5.78
4.32
4.13
4.67
5.08
2.84
3.61
4.88
2.86
5.52
5.57
3.95
3.60
4.93
3.22

(Cont’d.)

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page 17

Table 2: The Enabling Trade Index: Market access (cont’d.)
PILLARS
MARKET ACCESS
Country/Economy

Mauritania
Mauritius
Mexico
Moldova
Mongolia
Morocco
Mozambique
Namibia
Nepal
Netherlands
New Zealand
Nicaragua
Nigeria
Norway
Oman
Pakistan
Panama
Paraguay
Peru
Philippines
Poland
Portugal
Qatar
Romania
Russian Federation
Saudi Arabia
Senegal
Singapore
Slovak Republic
Slovenia
South Africa
Spain
Sri Lanka
Sweden
Switzerland
Syria
Taiwan, China
Tajikistan
Tanzania
Thailand
Tunisia
Turkey
Uganda
Ukraine
United Arab Emirates
United Kingdom
United States
Uruguay
Uzbekistan
Venezuela
Vietnam
Zambia
Zimbabwe

1. Tariff and non-tariff barriers

2. Proclivity to trade

Rank

Score

Rank

Score

Rank

Score

93
11
74
26
69
110
81
78
106
18
7
79
107
2
35
98
59
60
73
80
42
45
54
61
99
51
109
27
23
21
67
34
70
14
5
117
38
83
100
62
88
8
58
39
50
24
6
66
114
103
112
76
91

3.39
5.29
4.04
4.99
4.08
2.58
3.85
3.93
2.77
5.10
5.41
3.91
2.77
5.89
4.85
3.20
4.27
4.27
4.06
3.86
4.73
4.72
4.39
4.25
3.11
4.49
2.59
4.99
5.03
5.07
4.10
4.87
4.08
5.21
5.65
2.04
4.83
3.74
3.07
4.25
3.57
5.40
4.27
4.77
4.50
5.02
5.65
4.12
2.46
2.91
2.50
3.98
3.44

84
9
95
3
30
111
28
40
94
68
23
78
113
7
15
87
31
39
74
88
57
54
25
67
99
17
110
75
52
44
92
47
76
53
11
115
59
36
104
58
89
8
34
19
29
46
18
72
115
100
114
55
70

3.81
5.93
3.06
6.06
5.01
1.91
5.18
4.56
3.14
4.20
5.50
4.02
1.80
5.94
5.66
3.40
4.92
4.57
4.11
3.40
4.34
4.36
5.35
4.22
2.73
5.63
2.03
4.10
4.38
4.43
3.28
4.40
4.08
4.37
5.91
1.00
4.33
4.70
2.46
4.34
3.38
5.93
4.78
5.55
5.09
4.42
5.61
4.12
1.00
2.64
1.02
4.35
4.14

102
44
35
70
97
91
114
90
115
5
27
73
78
9
60
100
81
67
64
51
32
34
88
53
87
89
96
8
16
14
37
25
59
3
24
99
26
109
80
54
76
39
75
65
72
18
15
56
71
94
66
82
111

2.96
4.65
5.02
3.92
3.15
3.26
2.52
3.29
2.41
6.01
5.32
3.80
3.74
5.83
4.03
3.01
3.63
3.98
4.00
4.33
5.12
5.08
3.42
4.27
3.49
3.35
3.16
5.88
5.67
5.71
4.92
5.34
4.08
6.05
5.39
3.09
5.33
2.78
3.67
4.15
3.76
4.87
3.77
4.00
3.92
5.62
5.68
4.12
3.92
3.18
3.99
3.61
2.75

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

1.1: The Enabling Trade Index

ET.part.A.r1

17

1.1: The Enabling Trade Index

ET.part.A.r1

18

6/2/08

10:03 PM

Page 18

Table 3: The Enabling Trade Index: Border administration
PILLARS
BORDER
ADMINISTRATION
Country/Economy

Albania
Algeria
Argentina
Armenia
Australia
Austria
Azerbaijan
Bahrain
Bangladesh
Belgium
Benin
Bolivia
Bosnia and Herzegovina
Brazil
Bulgaria
Burkina Faso
Burundi
Cambodia
Cameroon
Canada
Chad
Chile
China
Colombia
Costa Rica
Croatia
Cyprus
Czech Republic
Denmark
Dominican Republic
Ecuador
Egypt
El Salvador
Estonia
Ethiopia
Finland
France
Germany
Greece
Guatemala
Guyana
Honduras
Hong Kong SAR
Hungary
India
Indonesia
Ireland
Israel
Italy
Jamaica
Japan
Jordan
Kazakhstan
Kenya
Korea, Rep.
Kuwait
Kyrgyz Republic
Latvia
Lesotho
Lithuania
Luxembourg
Macedonia, FYR
Madagascar
Malaysia
Mali

3. Efficiency of customs
administration

4. Efficiency of importexport procedures

5. Transparency of
border administration

Rank

Score

Rank

Score

Rank

Score

Rank

Score

64
85
71
87
11
16
112
41
97
25
89
83
72
66
57
106
109
107
84
9
118
20
43
48
49
52
44
31
5
58
105
70
62
13
96
4
26
15
54
46
91
77
7
33
55
63
19
29
38
68
17
36
110
95
18
67
104
40
99
28
10
80
100
24
111

3.89
3.34
3.69
3.28
5.71
5.57
2.62
4.53
3.12
5.23
3.27
3.44
3.68
3.87
4.07
2.76
2.70
2.74
3.43
5.78
2.16
5.43
4.51
4.24
4.22
4.15
4.37
4.86
6.10
4.07
2.81
3.78
3.98
5.63
3.12
6.15
5.21
5.57
4.08
4.32
3.24
3.60
5.99
4.79
4.08
3.96
5.43
5.03
4.58
3.85
5.55
4.66
2.70
3.13
5.49
3.86
2.84
4.54
3.03
5.04
5.77
3.58
3.01
5.23
2.68

58
102
60
103
13
34
67
43
78
29
95
93
80
73
56
94
97
110
68
12
116
17
39
37
65
53
30
23
18
50
118
84
72
5
82
7
40
32
87
19
99
77
10
35
48
46
33
44
47
66
20
36
70
89
2
86
52
49
115
9
15
106
114
11
100

3.76
2.56
3.70
2.56
5.47
4.72
3.49
4.30
3.17
4.80
2.79
2.83
3.13
3.28
3.83
2.80
2.74
2.30
3.48
5.53
2.00
5.35
4.49
4.60
3.57
3.97
4.78
5.03
5.17
4.00
1.74
3.07
3.32
5.81
3.09
5.73
4.48
4.77
3.02
5.16
2.64
3.20
5.59
4.65
4.07
4.12
4.73
4.16
4.09
3.50
5.15
4.61
3.42
2.96
6.03
3.02
3.98
4.03
2.22
5.64
5.36
2.49
2.22
5.57
2.63

67
89
69
74
25
9
115
58
86
27
88
80
51
61
63
107
112
98
82
18
110
30
28
73
53
60
95
37
1
47
87
49
64
11
104
6
23
7
46
81
75
77
4
40
57
39
13
15
32
56
14
52
118
97
22
71
113
31
90
34
12
59
100
21
109

4.41
3.88
4.36
4.21
5.43
5.91
1.81
4.60
3.96
5.37
3.93
4.10
4.76
4.55
4.53
2.19
2.00
3.62
4.07
5.64
2.06
5.24
5.33
4.24
4.72
4.56
3.66
5.07
6.47
4.86
3.96
4.82
4.49
5.80
2.99
6.09
5.52
5.99
4.87
4.09
4.18
4.17
6.29
5.04
4.60
5.06
5.78
5.70
5.19
4.61
5.71
4.74
1.47
3.63
5.55
4.27
1.90
5.22
3.83
5.13
5.79
4.58
3.46
5.58
2.14

70
66
96
92
9
13
114
32
118
20
91
75
88
58
56
79
76
117
109
10
116
18
62
55
42
54
34
38
1
78
108
71
49
23
80
3
19
15
43
63
101
74
12
33
68
110
17
25
40
72
16
35
86
105
31
46
113
44
94
45
11
65
77
37
83

3.49
3.59
3.01
3.07
6.23
6.07
2.57
4.69
2.22
5.52
3.08
3.39
3.16
3.78
3.85
3.30
3.37
2.30
2.73
6.18
2.41
5.69
3.73
3.89
4.37
3.90
4.67
4.47
6.65
3.34
2.74
3.45
4.13
5.26
3.29
6.64
5.63
5.95
4.36
3.72
2.91
3.42
6.09
4.68
3.56
2.70
5.78
5.23
4.46
3.45
5.79
4.63
3.20
2.80
4.90
4.28
2.63
4.36
3.05
4.36
6.16
3.66
3.35
4.54
3.26

(Cont’d.)

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page 19

Table 3: The Enabling Trade Index: Border administration (cont’d.)
PILLARS
BORDER
ADMINISTRATION
Country/Economy

Mauritania
Mauritius
Mexico
Moldova
Mongolia
Morocco
Mozambique
Namibia
Nepal
Netherlands
New Zealand
Nicaragua
Nigeria
Norway
Oman
Pakistan
Panama
Paraguay
Peru
Philippines
Poland
Portugal
Qatar
Romania
Russian Federation
Saudi Arabia
Senegal
Singapore
Slovak Republic
Slovenia
South Africa
Spain
Sri Lanka
Sweden
Switzerland
Syria
Taiwan, China
Tajikistan
Tanzania
Thailand
Tunisia
Turkey
Uganda
Ukraine
United Arab Emirates
United Kingdom
United States
Uruguay
Uzbekistan
Venezuela
Vietnam
Zambia
Zimbabwe

3. Efficiency of customs
administration

4. Efficiency of importexport procedures

5. Transparency of
border administration

Rank

Score

Rank

Score

Rank

Score

Rank

Score

102
42
65
75
113
45
86
79
108
8
3
74
101
6
60
78
39
81
73
82
37
32
53
61
92
59
93
1
35
30
50
23
69
2
12
98
22
117
88
56
34
47
90
94
27
14
21
51
116
115
76
103
114

2.95
4.53
3.88
3.65
2.58
4.32
3.30
3.59
2.70
5.98
6.16
3.65
2.98
6.06
4.04
3.59
4.54
3.55
3.67
3.54
4.62
4.85
4.11
4.02
3.20
4.05
3.18
6.51
4.68
4.91
4.21
5.26
3.83
6.32
5.69
3.04
5.27
2.40
3.28
4.07
4.73
4.28
3.26
3.17
5.18
5.58
5.29
4.15
2.43
2.49
3.60
2.88
2.51

111
42
63
76
101
27
90
92
117
6
3
85
109
8
69
83
41
64
113
88
28
45
51
74
61
81
96
1
24
38
57
14
71
4
21
98
16
104
107
59
31
55
62
108
26
22
25
75
105
112
79
54
91

2.29
4.43
3.66
3.20
2.62
4.98
2.93
2.88
1.92
5.73
6.01
3.03
2.38
5.68
3.48
3.07
4.45
3.61
2.24
2.97
4.82
4.13
4.00
3.28
3.70
3.10
2.77
6.48
5.03
4.58
3.76
5.42
3.37
6.00
5.10
2.68
5.36
2.51
2.47
3.72
4.77
3.90
3.69
2.42
5.00
5.07
5.00
3.26
2.51
2.28
3.17
3.95
2.90

99
41
76
84
108
72
94
85
101
8
10
65
93
5
68
66
20
83
55
48
35
33
102
38
105
29
96
2
62
54
70
36
45
3
19
91
26
117
78
43
42
44
103
92
24
17
16
79
116
106
50
111
114

3.49
5.00
4.18
3.99
2.17
4.25
3.76
3.97
3.37
5.92
5.81
4.48
3.79
6.25
4.41
4.44
5.58
4.02
4.65
4.85
5.13
5.15
3.16
5.06
2.79
5.27
3.64
6.45
4.54
4.72
4.33
5.11
4.88
6.36
5.61
3.80
5.38
1.75
4.15
4.96
4.96
4.93
3.15
3.80
5.49
5.65
5.68
4.12
1.76
2.65
4.79
2.04
1.88

93
48
57
60
98
61
87
52
103
7
2
73
106
8
47
82
67
95
50
104
53
22
27
64
90
59
89
5
39
21
36
24
84
4
6
111
30
100
85
69
41
51
99
81
29
14
26
28
97
115
102
112
107

3.06
4.15
3.82
3.75
2.96
3.73
3.20
3.91
2.83
6.29
6.65
3.44
2.78
6.25
4.24
3.26
3.59
3.03
4.12
2.81
3.90
5.27
5.17
3.71
3.12
3.77
3.14
6.61
4.47
5.45
4.54
5.24
3.24
6.61
6.36
2.65
5.06
2.93
3.21
3.52
4.45
4.00
2.96
3.28
5.06
6.00
5.19
5.07
3.00
2.53
2.85
2.64
2.76

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

1.1: The Enabling Trade Index

ET.part.A.r1

19

1.1: The Enabling Trade Index

ET.part.A.r1

20

6/2/08

10:03 PM

Page 20

Table 4: The Enabling Trade Index: Transport and communications infrastructure
PILLARS
TRANSPORT AND COMMUNICATIONS INFRASTRUCTURE
Country/Economy

Albania
Algeria
Argentina
Armenia
Australia
Austria
Azerbaijan
Bahrain
Bangladesh
Belgium
Benin
Bolivia
Bosnia and Herzegovina
Brazil
Bulgaria
Burkina Faso
Burundi
Cambodia
Cameroon
Canada
Chad
Chile
China
Colombia
Costa Rica
Croatia
Cyprus
Czech Republic
Denmark
Dominican Republic
Ecuador
Egypt
El Salvador
Estonia
Ethiopia
Finland
France
Germany
Greece
Guatemala
Guyana
Honduras
Hong Kong SAR
Hungary
India
Indonesia
Ireland
Israel
Italy
Jamaica
Japan
Jordan
Kazakhstan
Kenya
Korea, Rep.
Kuwait
Kyrgyz Republic
Latvia
Lesotho
Lithuania
Luxembourg
Macedonia, FYR
Madagascar
Malaysia
Mali

6. Availability and quality
of transport infrastructure

7. Availability and quality
of transport services

8. Availability and
use of ICTs

Rank

Score

Rank

Score

Rank

Score

Rank

Score

106
91
58
77
17
12
64
40
103
16
101
96
86
62
54
110
116
105
112
11
118
42
36
72
66
43
32
34
10
79
85
65
80
29
97
18
6
5
31
78
104
92
4
38
52
74
24
26
25
55
13
51
63
90
19
50
88
39
115
37
9
69
107
27
109

2.47
2.85
3.46
3.00
5.32
5.43
3.30
3.99
2.51
5.33
2.57
2.70
2.91
3.31
3.52
2.40
2.14
2.48
2.37
5.50
1.93
3.93
4.15
3.14
3.26
3.89
4.41
4.18
5.51
2.97
2.94
3.27
2.97
4.51
2.69
5.29
5.54
5.66
4.49
3.00
2.51
2.84
5.66
4.10
3.54
3.13
4.79
4.64
4.68
3.52
5.42
3.54
3.31
2.86
5.23
3.56
2.88
4.08
2.25
4.14
5.51
3.19
2.47
4.62
2.44

102
74
80
65
15
17
50
38
99
8
109
93
108
91
76
112
116
98
113
3
118
45
36
83
68
49
21
43
4
73
89
57
94
40
82
5
2
9
24
84
103
70
14
62
48
86
28
39
51
52
23
58
44
78
30
63
69
33
115
35
7
85
97
22
114

2.78
3.46
3.36
3.71
5.17
5.13
4.09
4.33
2.81
5.37
2.50
3.07
2.50
3.12
3.43
2.45
2.00
2.81
2.44
5.75
1.70
4.14
4.42
3.32
3.65
4.10
5.02
4.17
5.70
3.49
3.23
3.89
3.00
4.27
3.33
5.55
5.81
5.31
4.92
3.31
2.68
3.57
5.18
3.72
4.11
3.28
4.63
4.29
4.07
4.06
4.98
3.88
4.15
3.41
4.60
3.72
3.62
4.45
2.01
4.43
5.42
3.30
2.86
5.00
2.23

118
112
51
89
18
5
70
53
94
9
72
85
62
42
60
92
104
101
103
15
114
38
17
67
88
54
41
44
20
109
87
56
68
49
79
25
10
2
28
84
117
105
4
32
35
43
26
33
21
99
7
45
81
86
12
59
78
46
93
58
23
61
110
14
73

2.29
2.69
3.80
3.11
5.09
5.79
3.35
3.78
3.00
5.48
3.32
3.15
3.54
3.94
3.61
3.02
2.88
2.94
2.88
5.20
2.57
4.16
5.10
3.39
3.12
3.65
3.99
3.92
5.02
2.75
3.14
3.64
3.37
3.86
3.22
4.91
5.42
6.08
4.62
3.15
2.46
2.86
5.96
4.38
4.32
3.94
4.90
4.35
5.02
2.95
5.75
3.91
3.20
3.14
5.31
3.61
3.24
3.90
3.01
3.62
5.01
3.56
2.74
5.21
3.32

81
78
49
86
11
19
76
39
109
23
98
101
65
56
44
107
116
112
105
14
117
45
55
63
52
35
31
29
7
66
75
82
73
17
118
16
18
13
36
72
79
90
6
32
85
87
26
20
24
43
15
59
68
93
8
46
104
37
110
30
2
62
102
41
106

2.33
2.41
3.21
2.18
5.70
5.38
2.45
3.85
1.72
5.14
1.89
1.87
2.69
2.88
3.54
1.75
1.56
1.69
1.79
5.55
1.54
3.48
2.92
2.72
3.01
3.93
4.23
4.44
5.82
2.66
2.45
2.29
2.52
5.40
1.52
5.41
5.38
5.58
3.92
2.53
2.38
2.09
5.84
4.21
2.19
2.17
4.84
5.28
4.97
3.56
5.54
2.83
2.59
2.03
5.78
3.35
1.80
3.90
1.72
4.38
6.12
2.72
1.80
3.64
1.78

(Cont’d.)

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page 21

Table 4: The Enabling Trade Index: Transport and communications infrastructure (cont’d.)
PILLARS
TRANSPORT AND COMMUNICATIONS INFRASTRUCTURE
Country/Economy

Mauritania
Mauritius
Mexico
Moldova
Mongolia
Morocco
Mozambique
Namibia
Nepal
Netherlands
New Zealand
Nicaragua
Nigeria
Norway
Oman
Pakistan
Panama
Paraguay
Peru
Philippines
Poland
Portugal
Qatar
Romania
Russian Federation
Saudi Arabia
Senegal
Singapore
Slovak Republic
Slovenia
South Africa
Spain
Sri Lanka
Sweden
Switzerland
Syria
Taiwan, China
Tajikistan
Tanzania
Thailand
Tunisia
Turkey
Uganda
Ukraine
United Arab Emirates
United Kingdom
United States
Uruguay
Uzbekistan
Venezuela
Vietnam
Zambia
Zimbabwe

6. Availability and quality
of transport infrastructure

7. Availability and quality
of transport services

8. Availability and
use of ICTs

Rank

Score

Rank

Score

Rank

Score

Rank

Score

98
56
67
76
87
68
114
71
113
2
21
102
108
20
57
70
48
99
82
83
46
28
33
49
60
47
89
7
35
30
45
22
73
1
14
94
15
117
111
41
53
44
93
59
23
8
3
61
84
81
75
100
95

2.62
3.50
3.25
3.05
2.89
3.20
2.29
3.17
2.34
5.73
5.09
2.51
2.44
5.21
3.50
3.18
3.65
2.59
2.96
2.95
3.70
4.57
4.22
3.64
3.35
3.70
2.86
5.53
4.17
4.49
3.74
5.08
3.13
5.77
5.39
2.74
5.37
2.02
2.40
3.93
3.53
3.79
2.75
3.42
4.80
5.52
5.66
3.34
2.94
2.96
3.08
2.59
2.73

110
32
87
79
66
60
107
27
111
10
20
96
105
12
46
53
26
101
92
88
71
34
31
75
64
55
77
13
42
37
47
11
56
1
18
72
25
117
104
29
41
59
90
67
16
19
6
61
54
95
100
106
81

2.45
4.53
3.27
3.39
3.69
3.84
2.56
4.75
2.45
5.29
5.10
2.89
2.57
5.22
4.13
3.99
4.76
2.80
3.08
3.23
3.51
4.43
4.59
3.44
3.71
3.95
3.42
5.21
4.22
4.36
4.12
5.28
3.92
5.89
5.11
3.50
4.80
1.89
2.65
4.62
4.27
3.88
3.13
3.65
5.17
5.10
5.53
3.77
3.95
3.00
2.81
2.57
3.35

76
96
55
77
95
82
113
111
97
3
24
107
106
27
52
63
57
100
69
75
50
29
40
47
80
39
98
1
31
36
34
16
71
13
22
116
11
115
108
30
64
37
65
66
19
8
6
83
102
91
48
74
90

3.26
3.00
3.65
3.25
3.00
3.17
2.68
2.73
2.97
6.03
4.94
2.76
2.82
4.81
3.80
3.51
3.63
2.94
3.36
3.28
3.82
4.59
4.07
3.90
3.21
4.15
2.95
6.17
4.42
4.23
4.35
5.12
3.33
5.27
5.01
2.53
5.36
2.54
2.75
4.47
3.51
4.18
3.41
3.40
5.06
5.69
5.75
3.15
2.89
3.03
3.89
3.30
3.11

88
54
58
74
95
67
114
92
115
5
21
100
97
12
69
91
70
94
77
80
40
28
34
42
50
53
83
22
38
25
61
27
89
1
3
84
4
113
103
64
60
47
111
48
33
9
10
51
96
57
71
99
108

2.16
2.99
2.84
2.50
1.99
2.59
1.62
2.03
1.61
5.86
5.24
1.88
1.94
5.61
2.57
2.05
2.56
2.03
2.43
2.34
3.76
4.68
3.99
3.58
3.13
2.99
2.22
5.22
3.86
4.88
2.77
4.83
2.13
6.16
6.04
2.19
5.96
1.64
1.80
2.70
2.81
3.32
1.70
3.22
4.17
5.77
5.71
3.10
1.99
2.85
2.54
1.89
1.73

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

1.1: The Enabling Trade Index

ET.part.A.r1

21

1.1: The Enabling Trade Index

ET.part.A.r1

22

6/2/08

10:03 PM

Page 22

Table 5: The Enabling Trade Index: Business environment
PILLARS
BUSINESS ENVIRONMENT
Country/Economy

Albania
Algeria
Argentina
Armenia
Australia
Austria
Azerbaijan
Bahrain
Bangladesh
Belgium
Benin
Bolivia
Bosnia and Herzegovina
Brazil
Bulgaria
Burkina Faso
Burundi
Cambodia
Cameroon
Canada
Chad
Chile
China
Colombia
Costa Rica
Croatia
Cyprus
Czech Republic
Denmark
Dominican Republic
Ecuador
Egypt
El Salvador
Estonia
Ethiopia
Finland
France
Germany
Greece
Guatemala
Guyana
Honduras
Hong Kong SAR
Hungary
India
Indonesia
Ireland
Israel
Italy
Jamaica
Japan
Jordan
Kazakhstan
Kenya
Korea, Rep.
Kuwait
Kyrgyz Republic
Latvia
Lesotho
Lithuania
Luxembourg
Macedonia, FYR
Madagascar
Malaysia
Mali

9. Regulatory environment

10. Physical security

Rank

Score

Rank

Score

Rank

Score

82
84
98
53
21
9
46
34
111
20
85
110
90
96
107
74
104
93
78
16
115
12
77
87
37
56
41
38
5
42
109
64
52
39
76
1
31
4
36
79
112
45
2
28
58
32
8
57
54
70
35
19
88
105
30
59
113
51
108
67
6
97
89
27
55

4.22
4.16
3.88
4.59
5.14
5.45
4.66
4.92
3.60
5.16
4.16
3.62
3.98
3.91
3.71
4.35
3.74
3.96
4.28
5.33
3.30
5.40
4.28
4.11
4.86
4.54
4.72
4.84
5.70
4.70
3.70
4.47
4.59
4.76
4.29
5.92
4.98
5.74
4.86
4.27
3.56
4.67
5.84
5.05
4.53
4.97
5.56
4.53
4.57
4.37
4.90
5.21
4.06
3.73
5.02
4.51
3.44
4.61
3.71
4.40
5.63
3.90
4.05
5.07
4.54

73
104
87
47
51
41
50
34
90
28
93
102
101
70
103
79
107
74
63
23
110
12
84
46
7
78
88
26
22
2
96
72
1
65
95
19
56
18
57
4
76
3
9
35
64
16
5
52
67
8
61
42
97
85
44
111
113
71
105
89
11
106
92
36
69

4.26
3.75
4.11
4.58
4.56
4.62
4.56
4.81
4.08
4.91
4.02
3.77
3.79
4.28
3.75
4.18
3.73
4.24
4.36
5.02
3.68
5.38
4.13
4.59
5.43
4.19
4.10
4.96
5.07
5.75
3.90
4.27
5.87
4.35
3.91
5.18
4.47
5.18
4.44
5.60
4.22
5.61
5.40
4.80
4.36
5.23
5.58
4.56
4.32
5.41
4.39
4.62
3.88
4.12
4.62
3.52
3.46
4.28
3.73
4.08
5.39
3.73
4.06
4.77
4.30

78
62
98
61
15
5
50
37
112
23
71
104
79
101
93
64
86
90
77
18
115
25
67
99
74
45
28
52
2
95
103
59
110
36
57
1
21
3
30
114
116
88
4
29
56
54
19
65
48
109
26
14
76
108
24
20
106
41
91
53
10
80
83
27
49

4.19
4.58
3.64
4.61
5.73
6.27
4.76
5.03
3.13
5.42
4.31
3.47
4.16
3.54
3.66
4.51
3.76
3.69
4.20
5.64
2.91
5.41
4.44
3.64
4.29
4.89
5.34
4.72
6.34
3.65
3.50
4.66
3.31
5.18
4.67
6.66
5.50
6.31
5.29
2.94
2.89
3.73
6.28
5.29
4.70
4.72
5.54
4.51
4.81
3.34
5.41
5.80
4.24
3.34
5.42
5.51
3.41
4.95
3.68
4.72
5.87
4.07
4.03
5.37
4.79

(Cont’d.)

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page 23

Table 5: The Enabling Trade Index: Business environment (cont’d.)
PILLARS
BUSINESS ENVIRONMENT
Country/Economy

Mauritania
Mauritius
Mexico
Moldova
Mongolia
Morocco
Mozambique
Namibia
Nepal
Netherlands
New Zealand
Nicaragua
Nigeria
Norway
Oman
Pakistan
Panama
Paraguay
Peru
Philippines
Poland
Portugal
Qatar
Romania
Russian Federation
Saudi Arabia
Senegal
Singapore
Slovak Republic
Slovenia
South Africa
Spain
Sri Lanka
Sweden
Switzerland
Syria
Taiwan, China
Tajikistan
Tanzania
Thailand
Tunisia
Turkey
Uganda
Ukraine
United Arab Emirates
United Kingdom
United States
Uruguay
Uzbekistan
Venezuela
Vietnam
Zambia
Zimbabwe

9. Regulatory environment

10. Physical security

Rank

Score

Rank

Score

Rank

Score

66
43
86
101
91
40
102
94
118
17
11
29
100
10
60
83
47
103
72
95
73
13
18
81
114
68
44
3
24
63
99
33
92
14
7
71
22
69
75
61
23
50
80
106
15
26
25
49
65
117
62
48
116

4.41
4.69
4.15
3.83
3.98
4.74
3.76
3.95
2.98
5.22
5.42
5.03
3.87
5.45
4.51
4.20
4.66
3.76
4.35
3.93
4.35
5.39
5.22
4.24
3.35
4.39
4.67
5.82
5.09
4.48
3.87
4.92
3.97
5.35
5.58
4.36
5.13
4.38
4.32
4.49
5.11
4.64
4.25
3.73
5.34
5.07
5.08
4.64
4.43
3.05
4.48
4.65
3.22

82
62
31
108
91
55
94
99
116
24
25
10
43
39
100
40
29
77
13
81
58
20
48
80
117
98
54
6
17
109
86
45
68
32
27
112
21
59
66
75
53
49
33
114
37
14
15
38
60
115
83
30
118

4.16
4.38
4.88
3.69
4.07
4.49
3.99
3.86
3.14
4.99
4.96
5.39
4.62
4.68
3.82
4.66
4.90
4.22
5.33
4.17
4.43
5.11
4.57
4.18
3.05
3.86
4.51
5.52
5.22
3.68
4.12
4.60
4.30
4.86
4.92
3.48
5.07
4.40
4.34
4.23
4.53
4.57
4.84
3.42
4.74
5.24
5.24
4.74
4.39
3.38
4.13
4.88
2.78

60
38
105
84
85
39
102
81
117
22
11
58
113
7
34
87
68
111
107
89
75
17
12
72
96
42
47
8
40
31
100
32
97
13
6
33
35
70
73
51
16
55
94
82
9
44
43
63
66
118
46
69
92

4.65
5.00
3.42
3.97
3.88
4.99
3.52
4.04
2.82
5.46
5.87
4.67
3.11
6.21
5.20
3.73
4.42
3.30
3.38
3.70
4.27
5.66
5.86
4.31
3.65
4.93
4.83
6.12
4.97
5.28
3.62
5.25
3.64
5.84
6.24
5.23
5.18
4.36
4.30
4.76
5.68
4.70
3.66
4.03
5.95
4.90
4.92
4.55
4.47
2.73
4.83
4.42
3.67

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

1.1: The Enabling Trade Index

ET.part.A.r1

23

1.1: The Enabling Trade Index

ET.part.A.r1

24

6/2/08

10:03 PM

Page 24

openness to international trade and investment as part of
their successful economic development strategy. Hong
Kong’s positive result rests on very good results in all
four subindexes.The country’s very open market, mirroring a pro-trade attitude and a high dependence on
exports and imports as well as its secure and open business environment, contribute to this good result. Hong
Kong does not apply tariffs on imported products, and
the business environment is open to investment and foreign workers. At the same time, transport and telecommunications infrastructure is well developed and border
administration is efficient, although businesses express
some concerns about the level of corruption.
Compared with Hong Kong, Singapore boasts a
highly efficient and transparent border administration, an
equally open business environment, and well-developed
transport and communications infrastructure. Customs
procedures are assessed as the least burdensome and the
cost of importing goods is the lowest among the countries covered. However, access to Singapore’s market is
fairly difficult, as reflected in the 27th rank on the relevant subindex. Although tariff rates remain very low,
access is hampered by non-tariff barriers (84th) and little
openness to multilateral trade rules.The country’s welldeveloped transport infrastructure and excellent transport services and improvements to the ICT infrastructure could further increase the ease of getting goods
across borders in Singapore.The country’s excellent
business environment facilitates operations of traders
through an investment regime that is open to FDI and
hiring foreign labor, although more open bilateral Air
Service Agreements would be beneficial.
New Zealand closes the top 10 at 10th position
for countries from all regions. Its highly efficient and
transparent border administration contributes to this
good rating, as do the country’s low tariff and non-tariff
barriers. New Zealand applies low tariffs, and imports
almost 80 percent of products duty-free.The country’s
business environment is characterized by high levels of
physical security and is fairly welcoming to foreign
investment, although obstacles persist with respect to
hiring foreign labor. Upgrading the quality of infrastructure, in particular roads and railroads, will be necessary
to further facilitate the flow of goods to destinations in
the country.
Japan occupies the 13th position in the ETI
ranking. Free market access and the export orientation
of local companies contribute to this rating, along with
the excellent physical security environment in the country. At the same time, some aspects of the regulatory
environment are not conducive to enabling trade, in
particular laws that do not encourage FDI and legal
obstacles to hiring foreign labor. Although Japan is a
very export-oriented economy, imports of goods appear
to be hampered by administrative procedures. In particular, businesses consider customs procedures to be somewhat cumbersome, which are ranked 38th overall.This

is also reflected in the fairly high cost to import: the
cost of importing goods is almost three times higher in
Japan than in Singapore, the best performer on this
measure. Once goods are over the border, the country
features excellent infrastructure-related services, ranked
7th for this indicator. In particular, postal and logistics
services stand out for their quality and efficiency.
However, it must be noted that Japan’s overcrowded
roads and fairly low airport density negatively affect the
environment for trade.
Australia comes in 17th, with its good performance with respect to the efficiency of border administration, infrastructure, and business environment being offset by high market barriers.The country applies tariffs
that are significantly higher than in many other countries at a similar level of development, placing Australia
at 86th position on this indicator. Lowering these tariffs
could contribute to boosting the country’s trade performance.
Taiwan and Korea follow at 21st and 24th overall.
Both economies boast very good infrastructures.
Infrastructure-related services are efficient and widely
available, and the use of ICTs is widespread, which
improves the connectivity of companies and the ability
to track consignments.Weaknesses in both economies
include obstacles to market access and a business environment that does not facilitate the entry of foreign
investment and labor.
Malaysia ranks a high 29th overall, the bestperforming country in developing Asia. Efficient border
administration, the low cost of importing goods, and
manifold customs services facilitate imports. Improvements to the transparency of border administration
would further enhance this strength (the country is
ranked 37th on this indicator). In terms of infrastructure,
Malaysia is well connected to the rest of the world, with
highly developed transport infrastructure and numerous
and efficient transport services available.The regulatory
environment is also conducive to trade through its
openness to foreign investment, labor, and air service
providers. Improving the usage of the latest technologies
would further allow Malaysian entrepreneurs to raise the
efficiency of their import and export operations.
China occupies the 48th position.This fairly low
position for one of the world’s most successful exporters
highlights a number of underlying weaknesses in China’s
economy and its trading regime. Above all, China is a
fairly closed country. Although its economic success
relies heavily on exports, imports are still severely inhibited by tariff and non-tariff barriers, despite the country’s
accession to the WTO.The country ranks 108th out of
118 economies on tariff barriers, which amount to
almost 15 percent.The country’s border administration
is fairly efficient; importing products is not costly,
although it can be quite time-consuming. A particular
concern when exporting and importing is the lack of
transparency of border administration, which can be

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page 25

particularly heavy for foreign businesses. Because of
large export volumes, the country is well connected to
international markets, yet its transport infrastructure is
not on a par with the world’s best. Above all, airport
density and the quality of air transport infrastructure are
fairly low.The quality and availability of transport services, however, are among the best in the world, ranked
17th overall. Improvements to the regulatory and security environment would further enable trade. In particular, greater encouragement of FDI and more openness
to foreign air transport service providers would help.
Further down the rankings we find India, at 71st
place. India’s weak position reflects a mixed performance
on the four pillars of the ETI.While it boasts fairly
good border administration and an acceptable business
environment, market access continues to be severely
restricted. Indeed, India ranks 105th on the relevant
component with, unlike most other countries, tariff barriers representing a more serious impediment than nontariff barriers. Only a small share of goods is imported
duty-free.
India’s border administration meets many needs of
importers and exporters. Ranked 55th on this indicator,
a vast number of customs-related services are available in
India and clearance entails low pecuniary costs, although
it is time-consuming. Border administration continues
to be affected by corrupt practices, however, hampering
an efficient transport of goods across borders.Traderelated infrastructure and the relevant services are equally fairly well developed in India, ranking 52nd in the
overall sample. However, although the country is well
connected through maritime routes, it needs more airports and high-quality roads. India’s business environment is in line with the country’s overall assessment,
with the regulatory environment ranked 64th and security assessed at 56th among the countries assessed.
Most other countries from Asia and the Pacific rank
in the lower part of the Index, and the regional ranking
closes with Bangladesh at 110th and Nepal at 116th.
Europe and North America

Within Europe, the Nordic countries stand out at the
very top of the rankings, with Sweden the top-ranked
country at 3rd, followed closely by Norway, Denmark,
and Finland at 4th, 6th, and 7th, respectively. Canada
joins the top ranks at 5th, while the United States is
ranked a bit lower than its northern neighbor, at 14th
place.
Sweden receives top marks for its transport and
communications infrastructure, where it is ranked 1st
out of all 118 countries. Sweden has high-quality transport infrastructure and excellent transport services, and
the country has fully harnessed the use of ICTs so
important for the logistics and transport industry.
Sweden’s border administration is ranked 2nd, attributable to its high efficiency and transparency, with customs
procedures that are not overly burdensome, requiring,

for example, few days and documents to import goods
into the country.With regard to market access, Sweden
has few tariffs, as is the case of other EU countries, placing it 3rd, although the country does impose significant
non-tariff barriers (ranked lower at 64th). More generally, Sweden demonstrates a very strong proclivity to
trade, ranked 3rd out of all countries.
Norway, ranked 4th, demonstrates its greatest
strengths in two areas: market access and border administration. Norway is ranked 2nd out of all countries for
the ease of access into the country’s market, with low
non-tariff barriers, a high share of duty-free imports
allowed into the country, and demonstrated openness
to multilateral trade rules through its participation in
many trade-related international agreements. As well as
allowing goods easy access into the market, Norway also
ensures that the goods make it over the border with
little hassle.The efficiency and transparency of its border
administration are both ranked 8th, and the procedures
required to import are so efficient as to place the
country 5th. In addition, the business environment in
the country is also in the top 10, a ranking particularly
related to the high levels of physical security in the
country that ensure the safe arrival of goods to
destination.
Canada is the top-ranked North American country
at 5th, ahead of the United States by 9 ranks. Canada is
ranked 3rd overall for its market access, with tariffs that
are not significantly higher than in the European
Union’s, relatively low non-tariff barriers, and a high
share of duty-free imports allowed into the country.
Canada’s border administration is also among the top 10,
with efficient clearance procedures and few documents
required to import, as well as high levels of transparency
in the border administration’s activities. In addition,
Canada is ranked 3rd for the availability and quality of
its transport infrastructure, facilitating the movement of
goods to market once they are allowed over the border.
Denmark is ranked 6th. In addition to its low tariffs, the country also benefits from an excellent border
administration, with import-export procedures that are
so efficient as to place the country 1st in this category.
The transparency of the border administration is also
ranked 1st, with extremely low levels of trade-related
corruption. In addition, Denmark has excellent transport
infrastructure (ranked 4th) and strong communications
infrastructure (ranked 7th).The country also benefits
from very high levels of physical security, ranked 2nd
overall in this category, with low levels of crime and
violence and a very reliable police force.
The main strength of Finland, ranked 7th just after
Denmark, is its business environment, which is ranked
1st out of all countries covered.The country benefits
from rules fostering foreign ownership and greater ease
in hiring foreign labor than in many other European
countries, as well as an excellent security environment.
Like the other Nordic countries, Finland’s border

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

1.1: The Enabling Trade Index

ET.part.A.r1

25

1.1: The Enabling Trade Index

ET.part.A.r1

26

6/2/08

10:03 PM

Page 26

administration also gets top marks, with customs procedures that are not burdensome and a particularly low
cost to import, perhaps explaining the high transparency
and low level of corruption related to its border administration (ranked 3rd).
Germany and Switzerland round out the
European countries in the top 10, ranking 8th and 9th,
respectively. Germany benefits from an excellent business environment (ranked 4th), with a regulatory environment that is conducive to the functioning of the
logistics and transport industry, and an excellent security
environment for businesses operating in the country.
The transport and communications infrastructure is also
among the best in the world, with transport services in
particular ranked 2nd out of all countries: the logistics
industry gets excellent marks for competence (ranked
4th), shipping is easy and affordable (also ranked 4th),
and its postal service is among the best in the world
(ranked 3rd).
Switzerland gets particularly good marks for market access (ranked 5th). Although its tariffs overall are
slightly higher than those of EU countries, mainly
because of higher tariffs on agricultural goods,39 its nontariff barriers are comparatively low. As with the Nordic
countries, Switzerland’s security environment is also
excellent, and it benefits from a supportive regulatory
environment, with open bilateral Air Service
Agreements and a relative ease of hiring foreign labor,
especially compared with several other European countries. Switzerland’s border administration also gets good
marks, particularly for its transparency and lack of corruption (ranked 6th).
The United States is ranked 14th.The country
benefits from its transport and communications infrastructure, which is among the best in the world (ranked
3rd). It also offers good market access (ranked 6th), with
relatively low tariffs and non-tariff barriers and a strong
propensity to trade, as demonstrated by its relative openness to multilateral trade rules. On the other hand, the
country’s border administration is seen as lacking some
efficiency. For example, customs procedures are seen as
comparatively burdensome (ranked 42nd), and there is a
relatively high cost to import (ranked 65th). In addition,
there are some concerns about security in the country.
The United Kingdom is ranked 16th.The country is endowed with a comparatively good transport and
communications infrastructure (ranked 8th), particularly
related to the quality of its transport services. Its border
administration gets relatively good marks (ranked 14th),
with low levels of trade-related corruption, clearance
perceived to be relatively efficient (13th), and few documents required to import (3rd), although it is somewhat
costly (77th) and requires more time than in several
European countries (27th). Its evaluation in the area of
market access is mixed: while it exhibits the same low
tariffs as other EU countries and allows a large share of
exports over the border duty-free (11th), its non-tariff

barriers are high enough to place the country 58th. In
addition, while elements of the business environment
are conducive to moving goods over borders, with rules
encouraging FDI and allowing for the employment of
foreign labor, there are some concerns. Bilateral Air
Service Agreements could be more open (ranked 35th),
and there are some safety and security concerns in the
country, particularly compared with the best-performing
European countries.
France is ranked 19th.The country’s greatest
strength is its transport infrastructure quality (ranked
2nd), with its excellent roads, railroads, ports, and air
transport infrastructure.The country also shows a strong
proclivity to trade (ranked 10th), with a large share of
imports allowed duty-free into the country and demonstrated openness to multilateral trade rules, although
non-tariff barriers are non-negligible (66th).The country’s border administration, while ranked among the top
20, is seen as somewhat less efficient and transparent
than Europe’s leaders, with more time and cost to
import than many other countries. France’s regulatory
environment is an additional hindrance to the cross-border flow of goods, with bilateral Air Service Agreements
that are not deemed open (66th), some restrictions on
FDI (47th), and difficulties in hiring foreign labor in the
country (76th).
Estonia is the highest-ranked recent accession
country to the European Union, at 25th. Most notable
is the efficiency of the country’s border administration
(5th) and of its specific import-export procedures
(11th), with little time, cost, and hassle for importing
goods.The country’s communications infrastructure
compares well with that of its peers, although the transportation infrastructure and provided services could be
improved.The picture in terms of market access is
somewhat mixed, with low tariffs in line with EU rates
(although higher than those that existed pre-EU-accession) and a high share of duty-free imports allowed into
the country, but high non-tariff barriers (80th).
Italy, at 33rd, is ranked lowest of the pre-2004
accession EU15 countries, bar Greece, and lowest of the
G7 group of rich economies.The country compares relatively well in terms of market access with its peers, and
benefits from relatively good transport services (21st).
On the other hand, the transportation infrastructure
requires upgrading (51st), and border administration
could also be improved (38th), particularly by reducing
the time and cost to import and improving its transparency (40th).The greatest obstacles lie in the business
environment, particularly regulatory impediments to
foreign direct investment (100th) and foreign ownership
(93rd), as well as some concerns about safety and security in the country (48th).
Turkey is ranked close behind Italy and Greece at
38th, and ahead of several countries that have recently
joined the European Union.Turkey affords good market
access (8th) with notably lower non-tariff barriers than

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page 27

is found in most EU countries. On the other hand, the
country’s transport and communications infrastructure is
less developed than in most European countries, and its
border administration is rated as comparatively inefficient (55th) and lacking transparency (51st). In addition,
the regulatory environment could be more conducive to
the cross-border flow of goods with more supportive
policies encouraging FDI and less restrictive policies on
the hiring of foreign labor.
Russia, at 103rd, is the lowest-ranked European
country by a wide margin, trailing the nearest-ranked
large emerging market “BRIC” country, Brazil, by 23
places. Russia’s main comparative strength is its transportation and communications infrastructure (60th),
although by international standards it requires significant
upgrading.The country impedes access to the market
with very high tariffs (100th), and allows only a small
share of goods to enter the market duty-free (95th).The
country’s border administration receives poor marks
(92nd), requiring much time and cost to import and
lacking transparency. In addition, Russia’s regulatory
environment is one of the least conducive to cross-border trade out of all countries (ranked second to last, at
117th), and physical security in the country remains a
serious concern (96th), particularly by European standards. Attention to these areas is warranted to improve
the cross-border flow of goods into the country.
Latin America and the Caribbean

Chile leads the ranking in Latin America, coming in at
27th position, and is ahead, by a wide margin, of secondranked Costa Rica at 44th. Overall, the large Latin
American countries are to be found toward the lower
part of the ranking, while many of the smaller countries
occupy positions in the middle.
Part of Chile’s economic success can be attributed
to trade liberalization and improvements to the business
environment made in recent years; this is reflected in the
country’s good results on the ETI. It has also laid the
foundations for Chile’s export success. Border administration is efficiently organized and corruption in related
agencies is under control. At the same time, the country
boasts a favorable business environment, open to FDI
and hiring foreign labor.The country’s weaknesses are to
be found in the market access component and with
respect to the transport and telecommunications infrastructure. Imports continue to be burdened with tariffs
and non-tariff barriers, and although tariffs are not high
in absolute terms, they apply to most imported products, or 69 percent of the total. In addition, the country’s
infrastructure facilities are in need of upgrading. In particular, the country’s roads do not get good marks for
quality, and the availability and quality of infrastructurerelated services could be enhanced.
Costa Rica is at 44th, the second-ranked country
in Latin America.The overall rank disguises a mixed
performance on the four categories assessed by the

Index. Costa Rica stands out for its openness to
imports, with both tariff and non-tariff barriers being
relatively low.The country’s border administration is
quite efficient and transparent, although customs procedures are considered to be somewhat burdensome,
which is also reflected in the fairly long time it takes to
import goods.The country’s weak spot is its underdeveloped transport infrastructure and related services. Here,
in particular, the quality of transport infrastructure, railroads, roads, and ports are poorly assessed by the business
community.The country’s regulatory environment for
importers is among the top 10 in the world, with open
bilateral Air Service Agreements and policies encouraging foreign investment, yet the relatively high levels of
crime and violence are potentially problematic for getting goods to destination in the country.
Costa Rica is followed by a number of Central
American and Caribbean countries that cluster closely
together in the middle ranking, ranging from Panama
in 46th position to the Dominican Republic and
Honduras at 63rd and 64th, respectively. Efficient border administration contributes to the good showing of
Panama, but investment in infrastructure and the use of
ICTs would improve the ease of getting goods across
borders in the region.
Mexico, which occupies the 65th position, shows
even results across all four subindexes of the ETI.
Market access is hampered by a fairly high tariff rate of
about 11 percent. At the same time, however, this is
levied on only about 20 percent of all imported products,
with the large majority imported duty-free.This points
to a certain openness to international trade, which is
also reflected in the large number of bilateral trade
agreements and multilateral trade-related treaties signed
by the country. On the other hand, the country’s border
administration could be streamlined (ranked 65th overall). It is also very costly to import goods—moving one
container over the border costs seven times more than
in the best-performing country on this indicator,
Singapore. Although the country does not boast a highquality transport infrastructure (of concern given
Mexico’s large size), infrastructure-related services as
well as the telecommunications infrastructure are fairly
well developed. And Mexico’s regulatory environment is
somewhat conducive to cross-border trade, with, in particular, its rules encouraging foreign ownership. However,
the lack of security in the country is of significant concern, as it may cause additional costs to shippers.
Argentina follows, at 78th position.The country’s
particular strengths lie in relatively high proclivity to
trade, and in fairly efficient import-export procedures.
Despite these positive aspects, importing remains relatively
costly, thereby hindering trade. Increasing transparency
in institutions related to border administration would
further facilitate trade operations and reduce the cost of
trading across borders. Infrastructure services are widely
available and telecommunications infrastructure is well

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

1.1: The Enabling Trade Index

ET.part.A.r1

27

1.1: The Enabling Trade Index

ET.part.A.r1

6/2/08

10:03 PM

Page 28

developed, two factors that facilitate trade in Argentina.
The low level of physical security, however, where
Argentina ranks 112th out of 118 countries, is a major
impediment to enhancing the country’s trade performance. Equally, the regulatory environment—in particular,
FDI-related regulations—are not conducive to moving
goods across borders.
Just two positions further down the rankings is
Brazil, at 80th position. Brazil’s markets continue to be
fairly closed, with tariffs and, to a lesser extent, also nontariff barriers inhibiting goods imports.The country’s
border administration is assessed fairly favorably, at 66th
position, although businesses complain that customs procedures are burdensome. And although transport infrastructure—in particular, railroads, roads, and ports—is
fairly underdeveloped, which is not surprising for a
country of Brazil’s level of development, the logistics
industry is well assessed in terms of competence and
reliability. Equally, telecommunications infrastructure is
relatively widely available and used.The country boasts
an open and competitive air transport sector. However,
as in other countries in the region, a significant impediment to fostering trade across borders remains the poor
security situation in the country.
Middle East and North Africa

28

The economically very diverse economies of the Middle
East and North Africa display varying degrees of success
in enabling trade, yet, as the ETI results confirm, most of
them forego significant benefits from trade because of
the high level of protection from international competition.The countries in the region are spread out across
almost the entire ETI ranking, with the United Arab
Emirates leading at 23rd, followed by Israel and Bahrain
at 28th and 37th, respectively.Tunisia, as the best-performing North African country, comes in at 49th position, significantly ahead of neighboring Algeria, which is
the weakest performer in the region at 108th.
The United Arab Emirates (UAE) comes in at
23rd position globally, right after Spain and ahead of
Korea and Estonia.This very good result at the global
level is not surprising when one considers the impressive development of Dubai over recent years into the
most important transport and logistics hub in the
region, and the UAE has made significant efforts to
improve the business environment for the transport and
logistics sector.The good results in the ETI testify to the
world-class transport infrastructure (23rd), very good
infrastructure-related services, and a conducive and
secure business environment, characterized in particular
by its ease of hiring foreign labor.The most important
obstacle to trading across borders in the UAE remains
the restricted access to the country’s goods markets
through pervasive tariffs.40 This is reflected in the fairly
low 50th rank out of 118 countries on the market
access pillar of the ETI.This high incidence of trade
barriers appears to be rooted in the low standing of

trade on the country’s agenda, as witnessed by the very
small portion of imports that enters the country dutyfree. Here, the UAE ranks 107th out of 118 economies.
At 28th, Israel places 2nd in the Middle East and
North Africa region, between two countries that have
successfully harnessed trade for development, Chile and
Malaysia.With its high-quality infrastructure, firmly
organized border administration, and intensive use of
ICTs, the country presents a number of important
advantages. It is a fairly open economy, with companies
serving broad international markets and 80 percent of
imports allowed into the country duty-free (8th rank).
At the same time, Israel’s trade performance could benefit from improvements to the business environment,
which, although open to foreign businesses, is penalized
by the vulnerable security situation and barriers to hiring foreign labor.
Bahrain, at 37th position, right behind Greece and
ahead of Turkey and Cyprus, is the third-placed country
from the region. Although Bahrain is fairly open to foreign investment and boasts a fairly good business environment, the country remains, despite its small size, relatively protected from international competition through
tariffs.The low share of duty-free imports and the reluctance to engage in multilateral trade rules coupled with
low reliance on export markets points to a low priority
that is attached to trade by the authorities. In particular,
opening up the country to imports would provide significant benefits—the increased competition would
make the economy more productive, thereby reducing
reliance on primary resources and boosting growth
rates.
Tunisia comes in 49th on the ETI, with high
marks on the business environment and a fairly efficient
border administration.Yet the country’s markets remain
sheltered from international competition, with some of
the highest tariff barriers in the entire sample, ranked
114th out of 118 countries. At the same time,Tunisia’s
border administration is fairly efficient and its business
environment is secure, although additional opening up
to FDI and labor migration would benefit the country’s
trade performance. Equally, investment in infrastructure
and the use of ICTs would further enable the country
to take advantage of the benefits of trade.
Saudi Arabia ranks 53rd and shows a fairly even
performance across all the four subindexes of the ETI.
Although Saudi Arabia has very low non-tariff barriers,
tariffs are somewhat higher and levied on 81 percent of
all imports, which corresponds to a low 96th rank globally on this category.The country, which just recently
acceded to the WTO, ratified only a small share of the
relevant multilateral trading agreements. And although
formal administrative procedures for importing are fairly
easy, the overall efficiency of border agencies is not on a
par with international standards. Improvements to the
business environment would also benefit traders, in particular regarding regulations related to FDI, which

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page 29

appear to deter international businesses from engaging
in the country.
Egypt ranks a low 87th for the ease of getting
goods across the border.The country’s relative strengths
include a fairly conducive business environment, especially with regard to the ease of hiring foreign labor and
the fairly well developed transport infrastructure, including the associated services. Egypt stands out positively
for its maritime connectivity and the related services,
where it ranks in the top 20, as well as for the quality of
its roads. Although importing goods is neither costly nor
time consuming, importers raise concerns about the
efficiency of customs and other border agencies.The
high tariffs, which apply to 70 percent of all imported
goods, as well as the tariff barriers, constitute the most
important impediments to enabling trade in Egypt.
Sub-Saharan Africa

Mauritius is the highest-ranked country in the subSaharan African region, at 40th, ahead of some EU
countries and all of the BRICs. As one might expect of
a small, open economy, Mauritius ensures a high level of
market access (11th), with low tariffs and particularly
low non-tariff barriers, and allows a large share of dutyfree imports into the country.The country also has a
well-rated border administration, with relatively little
time, cost, and hassle related to getting goods over the
border. In addition, levels of security in the country
are good, particularly by regional standards. And while
the country’s transportation and communications infrastructure compares well with those of other countries in
the region, this remains the main area for improvement,
particularly with regard to upgrading transportation
services.
South Africa is ranked 2nd in the region at 59th,
the only other sub-Saharan country in the top half of
the rankings. Contrary to Mauritius, South Africa’s main
strength as measured by the Index is its transport and
communications infrastructure (45th), particularly attributable to the quality of air transport and roads, as well as
the comparatively high quality of transport services in
the country (34th).The country’s border administration
is seen as somewhat inefficient (57th), although it is
characterized by relative transparency (36th). Market
access proves a bit more difficult (67th), with relatively
high tariffs and non-tariff barriers. However, the main
area of concerns relate to the regulatory environment,
which is not entirely conducive to cross-border trade
(86th), as well as serious concerns about safety levels in
the country (100th) related to the high cost of crime
and violence for businesses in the country.
Namibia follows South Africa in the regional
rankings, at 77th overall. Namibia’s main strength lies in
the quality and availability of its transport infrastructure
(27th), particularly the quality of its roads and railroads,
although transport services remain limited in the country. On the other hand, market access remains impeded

by high tariffs (80th). Further, its border administration
is characterized by inefficiencies (92nd) and some traderelated corruption (74th). In addition, similar to South
Africa, the regulatory environment does not foster the
movement of goods over borders (99th) and physical
security remains an area of concern (81st), albeit to a
lesser degree than in South Africa.
Uganda, ranked 4th in the region at 79th, follows
closely behind Namibia, but with quite a different profile. Uganda’s main comparative strength is in its regulatory environment (33rd), with rules encouraging FDI
and the ease of hiring foreign labor. Uganda is also
characterized by higher levels of market access (58th).
Although it imposes high tariffs, non-tariff barriers are
so low as to place the country 1st on this indicator. In
addition, the country allows the entry of some imports
duty-free (58th).The country’s border administration is
also somewhat efficient by regional standards (62nd),
although the cost for importing remains very high. On
the other hand, unlike Namibia, the country’s transportation infrastructure is comparatively underdeveloped
(90th). And like most other countries in the region,
security concerns remain an obstacle.
Kenya is ranked 86th overall. Similar to Uganda,
Kenya demonstrates good market access by regional
standards (55th), with a high share of duty-free imports
(43rd) and relative openness to multilateral trade rules
(56th). On the other hand, once goods are allowed in
the country, the border administration is characterized
by inefficiencies and a lack of transparency, and the
country’s transport and communications infrastructure is
quite underdeveloped (90th).The greatest concerns in
the country are related to the security situation, ranked
108th overall, increasing the difficulty of getting goods
to destinations.
Most other sub-Saharan African countries share
similar profiles, with governments often imposing various obstacles to market access, and with inefficiencies at
the borders making the entry of goods into the country
difficult.This is compounded by transport and communications infrastructure underdeveloped by international
standards, and significant concerns related to corruption
as well as safety and security, complicating the ability to
get the goods to destination. Efforts to improve these
areas would greatly facilitate the movement of goods
over national borders in countries of the region.

Conclusions
This chapter has introduced a new comprehensive
index, the Enabling Trade Index (ETI), aimed at benchmarking the extent to which countries have in place the
necessary factors, policies, and services for enabling the
flow of goods over borders and to destination.The ETI
covers 118 economies spanning all regions of the world.
The results have shown that, on average, high-income
countries tend to do well in the overall rankings, a ten-

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

1.1: The Enabling Trade Index

ET.part.A.r1

29

1.1: The Enabling Trade Index

ET.part.A.r1

30

6/2/08

10:03 PM

Page 30

dency that is generally attributable to their more-developed institutional and infrastructure environments.We
also note a tendency for small economies to rank higher, not surprising given the importance of trade for their
overall economic performance.Yet performance remains
varied, with some countries doing much more than
others to enable the free flow of trade over their borders.
Overall, it is clear that despite the great benefits
of trade, many policy and other obstacles continue to
hinder its movement over borders in many countries.
Accordingly, our analysis provides support for the
emphasis on complementing negotiations to reduce trade
barriers with cooperation on trade facilitation. One of
the more controversial issues in the Doha Round is
related to the inclusion of the so-called Singapore Issues
(Competition, Investment,Transparency in Government
Procurement, and Trade Facilitation). In the aftermath of
the ill-fated Cancun Ministerial Conference, it was
determined that the necessary consensus to introduce
three of these issues was not present. However, the
fourth issue—Trade Facilitation—was included in the
negotiations, and has featured prominently.The analysis
in this Report provides considerable support for this
decision. It suggests that agreements on trade facilitation
are a vital complement to agreements on reducing formal trade barriers and trade-distorting measures. Indeed,
an agreement on trade facilitation could be one of the
most consequential achievements of a completed Doha
Round.
We hope that, by providing an objective account of
the factors enabling trade across borders, the findings of
our research will enhance dialogue between private and
public sectors and will thereby contribute to reducing
obstacles to trade for the benefit of economic growth
and development.

4 Rogers and Smith 2001.
5 Rogoff 1996.
6 Haskal and Wolf 2001.
7 Bradford and Lawrence 2004.
8 Disdier and Head 2008. They survey 1,051 estimates of distance
coefficients and find the mean distance effect is 0.893 and the
median is 0.85. This means that doubling the distance between
two trading partners will reduce their trade by almost 90 percent—a remarkably powerful effect.
9 See Hummels 2007, pp. 131–54.
10 See Disdier and Head 2008.
11 Lindert and Williamson 2003.
12 Clark et al. 2004.
13 Limao and Venables 2001.
14 Being landlocked and far away from major markets has a significant impact on economic development. See for example, Gallup
et al. 1999.
15 Rauch 1999.
16 Djankov et al. 2006.
17 Hummels 2007.
18 Evans and Harrigan 2005.
19 McCallum1995.
20 In a study grounded in rigorous theory, Anderson and van
Wincoop (2003) find that national borders reduce trade between
industrialized countries by amounts of between 20 and 50 percent.
21 Messerlin and Zarrouk 2000.
22 Huang and Whalley 2006.
23 Sadikov 2007.
24 Anderson and Marcouiller 2002.
25 Blomberg and Hess 2006.
26 Gani and Prasad 2006.
27 Levchenko (2007) builds on the literature of incomplete contracts
to argue that institutional quality also affects the composition of
trade.
28 Anderson and van Wincoop 2004.
29 Wilson et al. 2004.

Notes
1 Kenichi 1991; Friedman 2005; Cairncross 1997.
2 A recent review of the empirical evidence between trade openness and economic growth by Alesina, Spolaore, and Wacziarg
(2005) comes to the conclusion that ”. . . there is a general sense
that trade openness increases growth and income levels.” At the
same time, while all these factors are likely to contribute to higher
productivity, growth and consumer wellbeing and thereby benefit
the nation as a whole, we recognize that there could be losers as
well as winners from increased trade. Sachs and Warner (1995)
found that the growth performance of open countries was 2 percentage points higher than those classified as “closed.”
Competitive exporters will thrive, create jobs, and contribute to
economic growth, but those unable to withstand the competition
may be put out of business and resources relocated to other parts
of the economy. These adverse effects on individuals do not provide strong arguments against the overall benefits of increased
trade as they are in most cases of a temporary nature as the
affected individuals find other opportunities in a growing economy. However, this does imply a need for the careful sequencing
of the liberalization process to allow industries to adapt to the
new situation and governments to implement policies to mitigate
the negative effects on individuals. This is particularly important to
avoid popular backlash against the opening to trade at the national
level. In addition, it requires the building of infrastructure and institutions that facilitate the flow of goods.
3 Giovannini 1998.

30 Hummels finds that these characteristics explain more variation in
shipping prices than do conventional proxies such as distance,
and significantly contribute to the higher shipping prices facing
the developing world. Markups increase shipping prices by at
least 83 percent for the mean shipment in Latin American
imports. Shipping firms decrease prices by 1–2 percent for every
1 percent reduction in tariffs.
31 Fink et al. 2002.
32 Moenius 2004.
33 Martinez-Zarzoso and Marquez-Ramos 2005, abstract.
34 Disider and Head 2008.
35 According to Hummels, “For Africa, the Middle East and Asia
between 1 and 5 percent of trade by value is with land-neighboring countries, for Latin America, trade with land neighbors is 10 to
20 percent of the whole, and for Europe and North America it is
25–35 percent.” Hummels 2007, p. 132.
36 Shepherd and Wilson 2006.
37 We have focused on the flow of trade in goods into countries in
the index for expository purposes, although we recognize that
enabling trade from countries and in services, is also important.
By circumscribing the issue clearly, the Index provides a useful
vehicle for carrying out policy analysis on a clearly defined part of
the issue. Trade in goods accounts for upwards of 80 percent of
all trade, and is therefore highly relevant. It is also important to

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page 31

note that many of the factors and policies included in the model
would be equally relevant for an analysis of the factors facilitating
the services trade and the enabling of exports.
38 For landlocked countries, the access to ports is measured.
39 This is in part attributable to the fact that we are taking into
account a trade weighted measure. Tariffs on nonagricultural
goods in Switzerland are low. However, those on agricultural
goods are high, likely providing a significant deterrence to
importers. The overall measure is therefore one of low tradeweighted tariffs.
40 The United Arab Emirates apply a uniform tariff of 5 percent on
almost all imported goods.

Haskal, J. and H. Wolf. 2001. “The Law of One Price: A Case Study.”
NBER Working Paper 8112. Cambridge, MA: National Bureau of
Economic Research.
Heckman, J. J. 1976. “The Common Structure of Statistical Models of
Truncation, Sample Selection and Limited Dependent Variables
and a Simple Estimator for Such Models.” Annals of Economic
and Social Measurement (5): 475–92.
Helpman E., M. Melitz, and Y. Rubinstein. 2006. “Trading Partners and
Trading Volumes.” Preliminary and incomplete draft. March.

1.1: The Enabling Trade Index

ET.part.A.r1

Huang, H. and J. Whalley. 2006. “Baumol-Tobin and the Welfare Costs
of National Security Border Delays.” NBER Working Paper 12296.
Cambridge, MA: National Bureau of Economic Research.
Hummels, D. 2007. “Transportation Costs and International Trade in the
Second Era of Globalization.” Journal of Economic Perspectives
21 (3): 131–54.

References
Alesina, A., E. Spolaore, and R. Wacziarg. 2005. “Trade, Growth and the
Size of Countries.” Handbook of Economic Growth, ed. Ph.
Aghion and S. Durlauf. Elsevier. Available at
http://elsa.berkeley.edu/~chad/Handbook.html.
Anderson, J. E. and D. Marcouiller. 2002. “Insecurity and the Pattern of
Trade: An Empirical Investigation.” The Review of Economics and
Statistics 84 (2): 342–52.
Anderson, J. E. and E. van Wincoop. 2003. “Gravity with Gravitas: A
Solution to the Border Puzzle.” American Economic Review 93
(1): 170–92.
———. 2004. “Trade Costs.” Journal of Economic Literature 42 (3):
691–751.
Blomberg, S. B. and G. Hess. 2006. “How Much Does Violence Tax
Trade?” The Review of Economics and Statistics 88 (4): 599–612.
Bradford S. and R. Z. Lawrence. 2004. Has Globalization Gone Far
Enough? Washington DC: Institute for International Economics.
Cairncross, F. 1997. The Death of Distance: How the Communications
Revolution Is Changing our Lives. London: Orion Business Books.
CEPII (Centre d’Étude Prospectives et d’Information Internationales).
2008. Data retrieved March 18.
Clark, X., D. Dollar, and A. Micco. 2004. “Port Efficiency, Maritime
Transport Costs and Bilateral Trade.” Journal of Development
Economics 75 (2): 417–50.
Disdier, A. and K.C. Head. 2008. “The Puzzling Persistence of the
Distance Effect on Bilateral Trade.” Review of Economics and
Statistics 90 (1): 37-48.
Djankov, S., C.L. Freund, and C.S. Pham. 2006. “Trading on Time.”
World Bank Policy Research Working Paper No. 3909.
Washington DC: World Bank.
Evans, C.L. and J. Harrigan. 2005. “Distance, Time, and Specialization:
Lean Retailing in General Equilibrium.” American Economic
Review 95 (1): 292–313.
Fink, C., A. Mattoo, and I.C. Neagu. 2002. “Trade in International
Maritime Services: How Much Does Policy Matter?” World Bank
Economic Review 16 (1): 81–108.
Friedman, T. 2005. The World Is Flat: A Brief History of the Twenty-First
Century. New York: Farrar, Straus and Giroux.

IMF (International Monetary Fund). 2007. World Economic Outlook
Database. October.
Kenichi, O. 1991. The Borderless World: Power and Strategy in the
Interlinked Economy. London, HarperCollins.
Levchenko, A. A. 2007. “Institutional Quality and International Trade.”
Review of Economic Studies 74 (3): 791–819.
Limao, N. and A. J. Venables. 2001. “Infrastructure, Geographical
Disadvantage, Transport Costs and Trade.” World Bank Economic
Review 15: 451–79. Washington, DC: World Bank.
Lindert, P. H. and J. G. Williamson. 2003. “Does Globalization Make the
World More Unequal?” Globalization in Historical Perspective, ed.
M. D. Bordo, A. M. Taylor, and J. G. Williamson. Chicago:
University of Chicago Press for the NBER. 227–70.
Martinez-Zarzoso, I. and L. Marquez-Ramos. 2005. “Does Technology
Foster Trade? Empirical Evidence for Developed and Developing
Countries.” Atlantic Economic Journal 33: 55–69.
McCallum, J. 1995. “National Borders Matter: Canada-U.S. Regional
Trade Patterns.” American Economic Review 85 (3): 615–23.
Messerlin, P. A. and J. Zarrouk. 2000. “Trade Facilitation: Technical
Regulation and Customs Procedures.” The World Economy 23 (4):
577–93.
Moenius, J. 2004. “Information versus Product Adaptation: The Role of
Standards in Trade.” Available from the Social Science Research
Network (SSRN) at http://ssrn.com/abstract=608022.
Rauch, J. E. 1999. “Networks versus Markets in International Trade.”
Journal of International Economics 48 (1):7–35.
Rogers, J. and H. P. Smith. 2001. “Border Effects within the NAFTA
Countries.” Washington, DC: Board of Governors of the Federal
Reserve System.
Rogoff, K. 1996. “The Purchasing Power Parity Puzzle.” Journal of
Economic Literature 34: 647–68.
Sachs, J. D. and A. M. Warner. 1995. “Natural Resource Abundance
and Economic Growth.” NBER Working Paper No. W5398.
Cambridge, MA: National Bureau of Economic Research.
Sadikov, A. M. 2007. “Border and Behind the Border Trade Barriers and
Country Exports.” IMF Working Paper 07/292. Washington, DC:
International Monetary Fund.

Gallup, J.L., J.D. Sachs, and A.D. Mellinger. 1999. “Geography and
Economic Development.” International Regional Science Review
22 (2): 179–232.

Shepherd, B. and J. S. Wilson. 2006. “Road Infrastructure in Europe
and Central Asia: Does Network Quality Affect Trade?” World
Bank Policy Research Working Paper 4104. Washington, DC:
World Bank.

Gani, A. and B.C. Prasad. 2006. “Institutional Quality and Trade in
Pacific Island Countries.” Asia-Pacific Research and Training
Network on Trade Working Paper Series 20.

United Nations. 2008. Commodity Trade Statistics Database
(Comtrade). Data retrieved March 18.

Giovannini, A. 1988. “Exchange Rates and Traded Goods Prices.”
Journal of International Economics 24: 45–68.
Gronau, R. 1974. “Wage Comparisons: A Selectivity Bias.” Journal of
Political Economy 82: 1119–1143.
Grossman, G. 1998. “Comment.” The Regionalization of the World
Economy, ed. J. A. Frankel. Chicago: University of Chicago for the
NBER. 29–31.

Wilson, J. S., C. L. Mann, and T. Otsuki. 2004. “Assessing the Potential
Benefit of Trade Facilitation: A Global Perspective.” World Bank
Policy Research Working Paper 3224. Washington, DC: World
Bank.
WTO (World Trade Organization). 2007. International Trade Statistics
2007. Available at http://www.wto.org/english/res_e/statis_e/
its2007_e/its07_toc_e.htm.

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

31

1.1: The Enabling Trade Index

ET.part.A.r1

32

6/2/08

10:03 PM

Page 32

Appendix A: Composition of the Enabling Trade Index
This appendix provides details about the construction
of the Enabling Trade Index (ETI).
The ETI is composed of four subindexes: the market
access subindex; the border administration subindex; the
transport and communications infrastructure subindex;
and the business environment subindex.These subindexes
are, in turn, composed of the 10 pillars of the ETI
shown below: tariff and non-tariff barriers, proclivity
to trade, efficiency of customs administration, efficiency
of import-export procedures, transparency of border
administration, availability and quality of transport infrastructure, availability and quality of transport services,
availability and use of ICTs, regulatory environment,
and physical security.These pillars are calculated on the
basis of both “hard data” and “Survey data.”
The Survey data are mainly derived from the
responses to the World Economic Forum’s Executive
Opinion Survey and range from 1 to 7. Survey data
from the World Bank’s Logistics Performance Index
(LPI) Survey have also been included; the hard data
were collected from various sources.The LPI data and
the hard data are described in detail in the Technical
Notes and Sources section at the end of this Report. All
of the data used in the calculation of the ETI can be
found in the Data Tables section of the Report.
The hard data indicators used in the ETI, as well
as the results from the LPI survey, are normalized to a
1-to-7 scale in order to align them with the Executive
Opinion Survey’s results.1
Each of the pillars has been calculated as an
unweighted average of the individual component variables.The subindexes are then calculated as unweighted
averages of the included pillars. In the case of the availability and quality of transport infrastructure pillar,
which is itself composed of two subpillars (availability
of transport infrastructure and quality of transport
infrastructure), the overall pillar is the unweighted average of the two subpillars.The overall ETI is then the
unweighted average of the four subindexes.The variables of each pillar and subpillar are described below.
If a variable is one of hard data, this is indicated in
parentheses after the description.

Subindex B: Border administration
Pillar 3: Efficiency of customs administration
3.01 Burden of customs procedures
3.02 Customs services index (hard data)
Pillar 4:
4.01
4.02
4.03
4.04

Efficiency of import-export procedures
Effectiveness and efficiency of clearance 2
Time for import (had data)
Documents for import (hard data)
Cost to import (hard data)

Pillar 5: Transparency of border administration
5.01 Irregular payments in exports and imports
5.02 Corruption Perceptions Index (hard data)

Subindex C: Transport and communications
infrastructure
Pillar 6: Availability and quality of transport
infrastructure

6.01
6.02
6.03
6.04

Availability of transport infrastructure
Airport density (hard data)
Transshipment connectivity index (hard data)
Paved roads (hard data)
Road congestion (hard data)

6.05
6.06
6.07
6.08

Quality of transport infrastructure
Quality of air transport infrastructure
Quality of railroad infrastructure
Quality of roads
Quality of port infrastructure

Pillar 7:
7.01
7.02
7.03
7.04
7.05
7.06

Availability and quality of transport services
Liner Shipping Connectivity Index (hard data)
Ease and affordability of shipment 2
Competence of the logistics industry 2
Ability and ease of tracking 2
Timeliness of shipments in reaching destination 2
Postal service efficiency

Pillar 8:
8.01
8.02
8.03
8.04
8.05

Availability and use of ICTs
Firm-level technology absorption
Mobile telephone subscribers (hard data)
Broadband Internet subscribers (hard data)
Internet users (hard data)
Telephone lines (hard data)

Subindex D: Business environment
Subindex A: Market access
Pillar 1: Tariff and non-tariff barriers
1.01 Tariff barriers (hard data)
1.02 Non-tariff barriers (hard data)
Pillar 2:
2.01
2.02
2.03
2.04

Proclivity to trade
Breadth of international markets
Extent of regional sales
Openness to multilateral trade rules (hard data)
Share of duty-free imports (hard data)

Pillar 9: Regulatory environment
9.01 Ease of hiring foreign labor
9.02 Openness of bilateral Air Service Agreements
(hard data)
9.03 Prevalence of foreign ownership
9.04 Business impact of rules on FDI
Pillar 10:
10.01
10.02
10.03

Physical security
Reliability of police services
Business costs of crime and violence 3
Business costs of terrorism 3

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page 33

1.1: The Enabling Trade Index

ET.part.A.r1

Appendix A: Composition of the Enabling Trade Index (cont’d.)
Notes
1 The standard formula for converting each hard data variable to the
1-to-7 scale is
6 x

(

country score – sample minimum
sample maximum – sample minimum

)

+ 1

The sample minimum and sample maximum are the lowest and
highest scores of the overall sample, respectively. For those hard
data variables for which a higher value indicates a worse outcome
(e.g., tariff barriers, road congestion), we rely on a normalization
formula that, in addition to converting the series to a 1-to-7 scale,
reverses it, so that 1 and 7 still correspond to the worst and best
possible outcomes, respectively:
–6 x

(

country score – sample minimum
sample maximum – sample minimum

)

+ 7

In some instances, adjustments were made to account for
extreme outliers in the data.

2 The LPI data are derived from the World Bank Logistics Perception
Index (LPI) Survey, which is based on a 1-to-5 scale. LPI data
were normalized to a 1-to-7 scale using the above formula in
order to align it with the Executive Opinion Survey results.

3 We take the average of these two variables to create a composite
variable measuring the business costs of country-level violence.

33

(Cont’d.)

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

ET.part.A.r1

6/2/08

10:03 PM

Page 34

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page 35

CHAPTER 1.2

The Doha Round Negotiations
on Trade Facilitation
RICHARD EGLIN, World Trade Organization (WTO)

Successive Rounds of multilateral trade negotiations
under the General Agreement on Tariffs and Trade
(GATT) and now the World Trade Organization (WTO)
have succeeded in substantially freeing up global trade
flows. Over the past 60 years, the average level of import
tariffs on manufactured products of the industrialized
countries has been cut from a range of 20 to 30 percent
to less than 4 percent. Non-tariff barriers—from quantitative restrictions to rules of origin, product regulations,
and the like—have been regulated under WTO rules,
which has substantially reduced their trade-restrictive
and distorting effects.The result is that business has been
able to compete more freely and fairly in global markets,
consumers have had a bigger selection of better-quality
products at lower prices to choose from, and governments
have been able to rely on the dynamics of comparative
advantage to increase growth and promote economic
development.Trade has flourished and expanded 27-fold
in volume terms since the GATT was created in 1948,
an increase of three times more than global production.
Many of these issues are captured by the Enabling
Trade Index (ETI) discussed in Chapter 1.1. As traditional trade barriers have come down, and in some cases
been eliminated, attention has turned to facilitating
trade flows by tackling other obstacles that may be less
obvious than tariffs or quotas but that, nonetheless,
interfere with the ease of moving goods across borders.
Among these obstacles are cumbersome data and documentation requirements, restrictive administrative regulations, disproportionate fees and charges, and excessive
formalities and other unwieldy border procedures, all of
which impose high costs on trade and on business and
consumers.The case was made at the WTO Ministerial
Conference in 1996 for examining how multilateral
action by WTO Member governments might help to
reduce these costs without interfering with legitimate
border management objectives such as revenue collection and security. After some years of analysis and debate
in the WTO—a typical precursor to an agreement to
launch formal negotiations—it was agreed in mid-2004
to address these obstacles by adding Trade Facilitation to
the list of subjects that was being negotiated in the
Doha Round.

What is at stake?
Over the past few years, a wealth of empirical evidence
has been gathered on the transaction costs that are
imposed on international trade by poor-quality border
management and logistics. Moving goods from the farm
or factory gate to markets overseas often involves a long
and complicated supply chain, with the risk that a single
bottleneck along the way can seriously affect the entire
process. Connecting efficiently to markets is particularly
critical for developing countries, whose firms and farmers typically do not enjoy a high enough margin of competitiveness internationally to be able to absorb high

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

1.2: The Doha Round Negotiations on Trade Facilitation

ET.part.A.r1

35

1.2: The Doha Round Negotiations on Trade Facilitation

ET.part.A.r1

36

6/2/08

10:03 PM

Page 36

transaction costs.Their ability to move their produce
across borders quickly, reliably, and cheaply can mean
the difference between their success or failure in integrating into the global economy.
The WTO Trade Facilitation negotiations do not
pretend to target the entire logistical supply chain. A significant share of the costs of getting goods to markets
arises in areas such as ocean and inland transport, port
management, and warehousing. For the most part, these
areas lie well outside the purview of the WTO, although
the Doha Round negotiations on Trade in Services can
play an important role in helping to increase competitiveness, productivity, and efficiency in these activities.
The Trade Facilitation negotiations cover a relatively
narrow, but still significant, link in the chain—the
actions that governments take to control and administer
the way in which goods move across their national borders, through the various documentary and physical
inspection stages to clearing customs and receiving
approval from border agencies such as the health and
safety or revenue authorities.
There are no precise figures of the costs that poor
trade facilitation, narrowly defined, imposes on business
and consumers, but data collected by the World Bank
for its excellent annual report on the costs of “Doing
Business” in its member countries come close.These
data cover all of the official procedural requirements
involved in exporting and importing a standardized container of goods, and measure them in terms of the number of documents required, the time taken from start to
finish, and the overall cost of meeting the requirements.
The Organisation for Economic Co-operation and
Development (OECD) countries set the benchmark for
best practice as a regional group, requiring on average
about 5 separate documents and clearing the goods in
an average of 10 days at an average cost of about
US$950 per container.1 In contrast, in sub-Saharan
Africa almost double the number of documents are
required: goods take from 35 days (for exports) to 44
days (for imports) to clear at an average cost per container of between US$1,660 (for exports) and US$1,986
(for imports).The overall world champion at trade facilitation is Singapore, where 4 documents are required
and goods are cleared in, at most, 5 days at an average
cost of around US$400 per container. At the other end
of the scale are many of the low-income developing
countries, in particular the landlocked developing countries whose trade facilitation costs can mushroom as a
result of the effort required to move goods in transit by
road or rail through their neighbors to their nearest
international port.2
Handicapping the world’s least competitive producers and poorest consumers with additional transaction
costs of US$1,000 or more for each container of goods
that they manage to export or import is clearly absurd.
The trade barriers they face in their main export markets are, in most cases, far less significant than these

transaction costs, and for many of them the costs of
poor trade facilitation have a bigger impact than their
tariffs on the domestic price of imported goods. In
short, the stakes involved in completing the Trade
Facilitation negotiations and implementing the results
successfully are high for many WTO Members, particularly the majority of developing countries.

Negotiating objectives
Mandates for formal WTO negotiations are often fought
over bitterly by governments, since they set the parameters for the final results.These mandates can end up laced
with compromise language that conceals unresolved
differences at the time a Round is launched, and when
these surface further down the road, as inevitably they
do, they risk bringing the negotiations to a halt while
they are sorted out.
The mandate for the Trade Facilitation negotiations
is refreshingly clear and straightforward. It sets out three
objectives:
• to clarify and improve GATT rules on the movement, release, and clearance of goods, including
goods in transit, with the aim of reducing the transaction costs of trade;
• to develop special provisions for developing countries and least-developed countries (LDCs) and provide them with technical assistance and capacitybuilding support that will help them to implement
better trade facilitation policies and practices; and
• to improve communication and cooperation
between the customs authorities of WTO
Members.
The most important target of these negotiations is to
assist developing countries and LDCs to implement
trade facilitation reforms and to adopt better practices
that will enable them to move goods across their borders
more efficiently than they do today.The negotiations are
not inconsequential for the industrial countries such as
the United States or those in the European Union.They
too have scope to make reforms and improve their practices, and better GATT rules will bring outside pressure
on them to move in that direction as well as helping to
avoid unnecessary trade disputes between them from
flaring up, as they have done at times in the past.
Overall, however, it is the developing countries and
LDCs that have the most to gain.They have the biggest
deficit to make up in reaching standards of international
best practice and the accent has been placed firmly on
assisting them do that in practical terms by providing
them with technical and, where necessary, financial support, not on litigating against them through the WTO’s
legal system.

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page 37

Clarifying and improving GATT rules

Three GATT Articles are at the center of the Trade
Facilitation negotiations: Article V, on facilitating transit
trade, Article VIII on limiting border fees and formalities,
and Article X on making trade regulations transparent so
that foreign traders can understand them and work with
them more easily in their day-to-day business activities.
These Articles all date back to the original GATT
agreement of 1948, and although they have stood the
test of time remarkably well they are undoubtedly in
need of modernization to reflect the ways in which
commercial and business practices have changed.
A good example is the use of the Internet to publish trade regulations, to allow documentation requirements to be completed online, and to help border agencies use modern information technology to improve the
efficiency and cost-effectiveness of their own operations.
Other proposals that have been tabled under the rubric
of clarifying and improving GATT Article X to create
better and easier access to information for traders
include the establishment of national enquiry points that
serve as a one-stop shop for information about traderelated legislation and procedures; procedures to notify
traders of upcoming changes in laws and regulations so
that they can adjust their business practices ahead of
time and avoid running into problems after the goods
have already arrived at the docks; the provision of
advance rulings about how goods will be treated when
they arrive at customs, in terms of tariff classification or
customs valuation, for example; and the creation of
appeal procedures for traders to allow them, where necessary, to challenge decisions of customs or other border
agencies in an objective and transparent manner.
The task of updating GATT Article VIII on border
fees and formalities has attracted the largest number of
proposals.These cover a lot of ground. One proposal aims
to reduce border fees and charges by requiring that they
be set in line with the actual costs of border administration. Another is to agree on common standards that can
be used to simplify documentation requirements and
harmonize them internationally as far as possible. A
particularly valuable proposal for many traders is the
establishment of a “single window” that allows all documentation and data requirements for importation,
exportation, and transit to be submitted at the same time
and once only, cutting out the duplication of effort that
is involved in dealing with many different border authorities and agencies separately. Other proposals are that WTO
Member governments should eliminate requirements for
pre-shipment inspection, stop charging consular fees,
and open up any system they have of mandatory customs brokers to much wider participation by foreign
traders than is the case at present.There are proposals,
too, to recognize and adopt modern customs practices,
such as allowing the expedited release and clearance of
goods, using risk assessment techniques and authorized
trader schemes, and carrying out post-clearance audits.

Steps to facilitate transit traffic are the major objective of these negotiations for many landlocked countries
that, as noted in the figures cited from Doing Business,
are paying a very expensive price to get their exports
and imports to and from their nearest ports. Proposals
have been made to strengthen the nondiscrimination
provisions (most-favored nation, or MFN, and national
treatment) of GATT Article V, to reduce transit fees and
charges and simplify transit formalities and documentation, to limit inspections and controls by using bonded
transport, and to promote regional transit arrangements.
In one respect at least, these proposals may be tricky to
deal with since for transit countries, many of whom are
themselves low-income developing countries, the
prospect of dealing with substantially increased transit
traffic from their neighbors can threaten to overload
their road and rail infrastructure, which is already weak.
This is an area, therefore, in which the logistical supply
chain needs attention—not only through the WTO
negotiations but also by development agencies and bilateral donors to help invest in upgrading transport facilities and creating new transit corridors.Trying to restrict
or regulate transit traffic through excessive border controls is, in every respect, a second-best alternative.
In total, proposals for new or improved GATT disciplines have been tabled on about 50 issues. Part of the
success of the Trade Facilitation negotiations is the fact
that these proposals have originated from across the
whole spectrum of WTO Member governments, reflecting a high level of engagement by developing countries
and LDCs. In several cases, they have joined forces with
the major industrialized countries to help get their
point across.The original negotiating proposal to eliminate consular fees, for example, was jointly sponsored by
Uganda and the United States, and Switzerland has cosponsored proposals on improving transit rules with a
number of low-income, landlocked, developing countries as well as landlocked countries in Eastern Europe.
While alliances of this sort are not unheard of in other
areas of the Doha Round, they have been particularly
evident in the Trade Facilitation negotiations and they
have created the sense of common purpose that is so
important for crafting a multilateral consensus around an
agreement that aims to serve the collective welfare of
the whole membership. All WTO Members are both
importers and exporters of merchandise trade, and all of
them have a vested commercial interest in seeing the
transaction costs of their trade reduced, in their own
countries as well as in their trading partners.The
prospect is for a win-win outcome for all concerned.
Support for developing countries

One reason that the start of negotiations on Trade
Facilitation was delayed until 2004 was opposition from
developing countries to including the package of
“Singapore Issues” in the Doha Round. These issues—
Foreign Investment, Competition Policy, Government

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

1.2: The Doha Round Negotiations on Trade Facilitation

ET.part.A.r1

37

1.2: The Doha Round Negotiations on Trade Facilitation

ET.part.A.r1

38

6/2/08

10:03 PM

Page 38

Procurement, and Trade Facilitation—were promoted
heavily, by the European Union in particular, at the
WTO’s Ministerial Conference in Singapore in 1996.
Trade Facilitation was always the least contentious of the
four issues, but even so it did raise concerns, especially
among low-income developing countries, that it would
overload the capacity of these countries to upgrade their
trade infrastructure by requiring them to take on additional, expensive but unfunded WTO obligations.When
proposals to launch negotiations on the other three
Singapore Issues were finally dropped at the WTO’s
Cancun Ministerial Conference in 2003, attention
turned to crafting a negotiating mandate for Trade
Facilitation that would allay these concerns.
The result provided ex ante assurance to developing
countries and LDCs on three points: they would receive
help to participate fully in the negotiations so that the
substantive issues of most commercial interest to them
would be taken fully on board; they would receive generous technical assistance and capacity-building support
to implement the results of the negotiations; and, on a
somewhat more defensive note, they would not be
required to undertake new WTO obligations until that
assistance and support has been provided. Once the
negotiations got going and it became clear that developing countries and LDCs were enthusiastic about sharing
fully in the potential benefits of a final agreement, attention turned to designing an effective delivery mechanism to ensure that the technical assistance and capacitybuilding support is provided and that it does produce
real trade facilitation results on the ground, where it
counts.
Enhancing the ability of low-income developing
countries to participate effectively in the negotiating
process may sound like a mere detail, but it matters a
great deal for those that can afford to maintain only a
very limited staff at their permanent missions in Geneva
and that require the presence of customs and other
experts from capitals at the negotiating table to make
sure that their own commercial interests are well represented. A facility has therefore been set up to cover the
costs of periodically bringing experts from low-income
countries to Geneva for the negotiating sessions, thanks
to funding that, to date, comes from Norway and the
United Kingdom.
As for the second and third points of assurance provided in the negotiating mandate, negotiations to create
an effective delivery mechanism for technical assistance
and capacity-building support are still underway, but the
broad lines that will be involved are already fairly clear.
The first step, which is already being organized by
the WTO Secretariat, involves expert support to individual developing countries to help them review their
current trade facilitation practices and to assess what
more they would need to do to implement in full the
package of draft proposals that is on the table today.
About 70 WTO Member governments have requested

assistance under this needs-assessment program, and the
secretariat is organizing missions at the rate of five or six
countries per month to respond to these requests, with
the help of customs experts from other intergovernmental agencies such as the World Bank and the World
Customs Organization as well as from the national
administrations of other WTO Members. Over the
course of a one-week workshop held in each country’s
national capital, representatives from all relevant border
agencies meet together to study the proposals, learn
from the experts how other countries manage their customs and border procedures, and assess what steps they
would need to take to raise their own trade facilitation
practices up to international norms. Experience has
shown that, beyond the preparation of a detailed needs
assessment, one of the most valuable and rewarding
results of the exercise is to generate better understanding
and closer cooperation among the different national
agencies involved in the border management process.
That alone can begin yielding practical results on the
ground and lower the transaction costs of the country’s
trade, even before official negotiations have been completed.
The finished needs assessment for each WTO
Member government is an important input to the completion of the negotiating process back in the WTO
headquarters in Geneva. Negotiators are currently
working on a framework to implement the eventual
Trade Facilitation agreement that would see developing
countries and LDCs scheduling their trade facilitation
reforms in three categories:
• those reforms that they have already undertaken or
that they consider can be undertaken relatively easily and that they can therefore agree to implement
straight away, as soon as the agreement is finalized;
• a second category that the national needs-assessment exercise has shown they would require time
to carry out; and
• a third category for which they require not only
time but also technical assistance and capacitybuilding support in order to complete satisfactorily.
Since the trade facilitation situation on the ground differs
from country to country, each Member government’s
schedule is likely to differ too, but that is not a real concern.The aim is not to line up all WTO Members at
the start, but to help them all to reach the finish successfully, especially those that need the help most.
Following up on the third category of commitments
in a Member government’s schedule—those that require
not only time but also technical assistance and capacitybuilding support to implement fully—will clearly be an
essential part of the process. It will require close cooperation between the WTO and other intergovernmental

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page 39

agencies with expertise and experience in the area of
trade facilitation as well as direct cooperation among
individual WTO Members—those that require assistance
on the one hand and those that are in a position to supply it on the other.The WTO is not a development
agency, much less a development bank, and it has no
intention of moving into that area of activity. Under its
Aid-for-Trade program, the WTO aims to help its lowincome Member governments to advocate their case for
increased development financing from development
banks and bilateral donors to allow them to build traderelated capacity. It will use that program to make the
case for providing capacity-building support for trade
facilitation projects, among others. Completing the
implementation of this third category of commitments
will take time, but—given the size of the returns that
can confidently be expected from each dollar invested in
facilitating trade—there should be no doubt about its
eventual success.

Prospects for success
Although the Trade Facilitation negotiations began
only three years after the rest of the Round had been
launched, they have more than made up for their late
start. At the time of writing, all of the main elements of
an eventual Trade Facilitation agreement have been
tabled in proposals by WTO Member governments, the
process of reviewing and refining those elements and
turning them into draft legal provisions has begun, and
an extensive program of technical assistance for developing countries LDCs is well underway in their capitals to
help each of them assess what reforms they will need to
carry out in order to implement the agreement when it
finally comes into force.
Trade Facilitation is being treated as part of what is
termed the “Single Undertaking” of the Doha Round.
This means that it cannot be split off or completed separately from other subjects under negotiation, such as
Agriculture and Services. Accepting the Single Undertaking formulation was a necessary condition for some
Member governments to agree to start negotiations on
Trade Facilitation. It is a formulation that is credited
with having made the Uruguay Round negotiations a
comprehensive success in the 1990s.Tying all of the
negotiating subjects together prevents any attempt at
cherry-picking when it comes to agreeing on the overall results, and results that are broadly popular for all
WTO Members (such as Trade Facilitation) can help
leverage through others for which finding consensus is
an altogether more difficult affair. Equally, of course, the
Single Undertaking may cause delays to Trade Facilitation
if problems develop elsewhere on other negotiating
issues, but at the moment there is no sign of that having
happened to any significant extent.
One hallmark of these negotiations has been the
engagement of developing countries, including many of

the LDCs.This reflects their belief that the eventual
Trade Facilitation agreement will yield significant benefits for their trade expansion and economic development.
Great care is being taken to craft meaningful development
provisions—in WTO jargon, “Special and Differential
Treatment” provisions—into the agreement that will
ensure it produces genuine change and makes a real difference to the ease with which developing countries can
expand their trade.
In sum, the prospects for a successful conclusion to
the Trade Facilitation negotiations are good, and the
benefits for business and consumers from a new agreement will be significant.These negotiations do not have
the high political profile of some other parts of the
Doha Round, but that is no bad thing when it comes to
making steady progress at the technical expert level in
Geneva. Once completed, the new agreement will add
another page to the WTO rulebook that underwrites
the openness and stability of the international trading
system, and it will signal real changes on the ground in
Member governments’ trade facilitation policies and
practices that will allow traders to get goods across borders more quickly, reliably, and cheaply than they can
today.

Notes
1 World Bank 2007.
2 The biggest loser, according to the World Bank figures cited in
Doing Business 2008, is landlocked Chad, whose trade facilitation
costs to import a container of goods stand at US$5,520 and
whose exercise takes over 100 days.

References
World Bank. 2007. Doing Business 2008. Washington, DC: World Bank.

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

1.2: The Doha Round Negotiations on Trade Facilitation

ET.part.A.r1

39

ET.part.A.r1

6/2/08

10:03 PM

Page 40

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page 41

CHAPTER 1.3

Additional Taxes and the
Indirect Evidence on Trade
Protection
MONDHER MIMOUNI, XAVIER PICHOT, and LIONEL FONTAGNÉ,
International Trade Centre (ITC)

World Trade has grown rapidly in the last decades, but
goods do not yet ship freely from place to place. Discussions on trade barriers usually focus on tariffs, but nontariff measures are increasingly considered to be major
obstacles to trade.This is why both types of barriers are
included as key components of the Enabling Trade
Index (ETI), discussed in Chapter 1.1.
There are different methods of measuring trade
barriers.The direct method is to consider tariffs, while
indirect methods are to consider either deviations from
the Law of One Price (LOP) or from expected trade
patterns.The latter method is either based on the residuals derived from augmented gravity equations,1 or it
relies on the methodology of border effects.2
The bottom line of the related empirical literature
indicates that the direct evidence of tariff barriers accounts
for only a negligible part of actual barriers to trade or,
more broadly, of trade costs. Hence, a new strand of literature is progressively addressing non-tariff barriers to
trade. Among these non-tariff barriers, “other taxes and
charges” levied on imported products are often very high.
To the best of our knowledge, these additional taxes
are not compiled on an exhaustive basis at the world
level. In this chapter, we propose a classification system,
we begin to collect these data, and we compare the
magnitude of these additional taxes with that of tariffs.
We conclude that such additional taxation may be very
large but is concentrated in a limited number of sectors.
This evidence suggests that further investment in the
collection of this type of data is warranted, and lends
support to the comprehensive nature of the ETI.

How trade costs differ from statutory tariffs
Trade costs include all costs incurred in getting a good
to a final user. Additional costs incurred when goods are
shipped abroad include transportation costs (including
both freight costs and costs related to time) and policy
barriers (such as tariffs and non-tariff barriers). Costs
associated with the use of different currencies as well as
legal and regulatory costs have also been shown to affect
trade. On top of this come information costs and contract enforcement costs. Last, local distribution costs
(wholesale and retail) will greatly increase the total of
additional costs.The large majority of these costs are
included in the ETI, demonstrating the great variety of
issues to be tackled in further enabling trade.
Anderson and van Wincoop (2004) construct a
measure of total trade barriers as a representative rich
country (the United States) ad valorem tax equivalent
estimate.3 This equivalent includes all transport, borderrelated, and local distribution costs from foreign producer
to final user in the domestic country. Their conclusion

We are indebted Carolin Averbeck, Mathieu Loridan, Laurence
Zandomenighi, Olga Skorobogatova, and Carla Vaca for their help in the
collection of the primary data.

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

1.3: Additional Taxes and the Indirect Evidence on Trade Protection

ET.part.A.r1

41

1.3: Additional Taxes and the Indirect Evidence on Trade Protection

ET.part.A.r1

42

6/2/08

10:03 PM

Page 42

is that direct policy instruments, such as tariffs and the
tariff equivalents of quotas, are less important than other
policies. A rough estimate of the tax equivalent of typical
trade costs for industrialized countries is 170 percent.4
This number breaks down as follows: 21 percent
transportation costs have to be added to 44 percent border-related trade measures (possibly including additional
taxes), plus 55 percent retail and wholesale distribution
costs.Transportation costs include both directly measured freight costs and a 9 percent tax equivalent of the
time value of goods in transit.The border-related barrier
is a combination of direct observation and inferred
costs. All in all, total international trade costs are the sum
of 44 percent and 21 percent, hence 74 percent.5
This is to be compared with the direct evidence on
border costs: tariff barriers for a country such as the
United States are typically negligible on average; and,
more generally, on average are less than 5 percent for
rich countries even when the largely protected agricultural sector is taken into account.
Anderson and van Wincoop rely on estimations of
ad valorem equivalents of non-tariff barriers when it
comes to obtaining the 44 percent border-related trade
measures.The traditional means for obtaining such figures relies on a theoretically founded gravity equation in
which information on the presence of non-tariff measures (NTMs) as documented in UNCTAD’s Trade
Analysis and Information System (TRAINS) database is
introduced. Using the estimated value of the price elasticity of imports (the sensitivity of imports to changes in
price), the impact of the NTMs on the volume of trade
can be translated into an ad valorem tariff equivalent.
Kee et al. (2006) propose the most extensive computation of such ad valorem equivalents.6
Still, NTMs, as partially recorded in TRAINs, are
only part of the story. Fontagné et al. (2005) show that
deviations from the expected trade patterns are typically
large when international trade is compared with domestic trade, which provides the correct benchmark in
terms of economic integration.7 The very large ad valorem equivalents of border effects are resilient to the
introduction of tariffs and TRAINs-type NTMs.This
means that additional regulation, charges, and hidden
obstacles must hinder trade. Additional charges are one
example of hidden charges, and have not been investigated thoroughly so far despite being clearly recognized
in the General Agreement on Tariffs and Trade (GATT)
part II article III:
The contracting parties recognize that internal taxes
and other internal charges, and laws, regulations and
requirements affecting the internal sale, offering for
sale, purchase, transportation, distribution or use of
products, and internal quantitative regulations requiring the mixture, processing or use of products in
specified amounts or proportions, should not be
applied to imported or domestic products so as to
afford protection to domestic production.

In other words, additional taxes are authorized as long as
they are not used in a discriminatory manner; however,
it is not easy to identify in which cases discrimination
occurs. Additional customs charges, for instance, are de
facto discriminating against imports. Excise duties on
products that are neither exported nor manufactured
domestically but imported only (rum in Iceland, for
instance) affect imports but not domestic production,
and so on. Accordingly, we adopt an approach that is
open minded and takes into account all taxes, whatever
their purpose.

A tentative classification of additional taxes
In order to shed light on these taxes, extensive information and data have been collected for a series of countries.We propose a tentative classification as follows:
• A first series of charges are collected at the border.
This is the group called customs. What we group
here are typically inspection charges, customs service charges, statistical charges, and so on.
• A second series of charges are very similar to tariffs,
even if they are not recorded as such.This group is
called pseudo-tariffs, and it includes safeguard clause
tariffs, temporary additional tariffs, transport equalization taxes, and so on.
• A third category groups all additional charges levied
on behalf of regional unions: we call this group
regional taxes.
• A fourth category corresponds to all excise duties.
Very often alcohol and tobacco are affected, but
there are other rationales, such as luxury and sin
taxes.This is the group we call excise duties.
• The next category is used on behalf of the protection of the environment and public health. From
recycling fees and taxes on solid wastes and petroleum to charges for national health insurance, the
scope of this category is very wide.We group all
these charges under the item environment.
In addition to these five categories are the following three groups of taxes: one corresponding to “intellectual property” levies, one corresponding to “sales
taxes” and a group, designated not elsewhere specified
(NES), for additional unclassified taxes.8
In the tables and figures of this chapter, pseudo
stands for pseudo-tariffs, excise stands for excise duties,
IPT stands for intellectual property levies, sales stands for
sales taxes, and NES stands for the unclassified taxes.

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page 43

developed countries, 36 developing countries, and 23
least-developed countries.

Data and country coverage
The data on additional taxes have been collected for a
series of countries on their official administrative websites.
These data are then merged with the United
Nations Statistics Division COMTRADE data (used for
weighting the data) and the International Trade Centre’s
Market Access Map database of tariffs.
We use the simple Harmonized System, or “HS,”
classification of the sectors (see the appendix for more
details) to present our results, but all calculations are
done at the more granular HS-6 level.We include 2

Sectoral evidence: The most-affected sectors
In Table 1, we consider the different instruments and
their average level throughout our sample of countries.
We observe that the most-affected sector is prepared
foodstuffs, the result of high excise duties in particular.
The remaining additional taxes are, on average, negligible, although they may indeed be very high for some
sectors or some instruments in certain countries.

Table 1: Average additional taxes for the country sample, by sector (2007), percent
Description

Customs Environment

Excise

IPT

Pseudo

Regional

Sales

NES

Total
additional
taxes

VAT

Live Animals; Animal Products

0.0

0.0

0.0

0.0

0.1

0.0

0.2

0.1

0.4

7.7

Vegetable Products

0.2

0.0

0.0

0.0

0.0

0.0

0.2

0.1

0.6

7.4

Animal or Vegetable Fats and Oils and Their Cleavage
Products; Prepared Edible Fats; Animal or Vegetable Waxes

0.4

0.0

0.2

0.0

0.0

0.0

0.3

0.2

1.3

10.4

Prepared Foodstuffs; Beverages, Spirits, and Vinegar;
Tobacco and Manufactured Tobacco Substitutes

0.1

0.0

36.5

0.0

0.1

0.0

0.2

0.5

37.5

10.5

Mineral Products

0.2

0.1

6.4

0.0

0.0

0.0

0.3

0.1

7.0

13.2

Products of the Chemical or Allied Industries

0.2

0.0

0.2

0.0

0.0

0.0

0.2

0.1

0.7

12.7

Plastics and Articles Thereof; Rubber and Articles Thereof

0.2

0.0

0.0

0.0

0.0

0.0

0.3

0.1

0.6

13.2

Raw Hides and Skins, Leather, Furskins and Articles Thereof;
Saddlery and Harness; Travel Goods, Handbags, and Similar
Containers; Articles of Animal Gut (Other Than Silk-worm Gut)

0.1

0.0

0.0

0.0

0.0

0.0

0.6

0.0

0.8

13.6

Wood and Articles of Wood; Wood Charcoal; Cork and
Articles of Cork; Manufactures of Straw, of Esparto or of
Other Plaiting Materials; Basketware and Wickerwork

0.1

0.0

0.0

0.0

0.0

0.0

0.1

0.0

0.3

12.6

Pulp of Wood or of other Fibrous Cellulosic Material;
Recovered (Waste and Scrap) Paper or Paperboard;
Paper and Paperboard and Articles Thereof

0.2

0.0

0.0

0.0

0.0

0.0

0.2

0.1

0.5

13.0

Textiles and Textile Articles

0.1

0.0

0.0

0.0

0.0

0.0

0.4

0.1

0.6

14.2

Footwear, Headgear, Umbrellas, Sun Umbrellas,
Walking-Sticks, Seat-Sticks, Whips, Riding-Crops and
Parts Thereof; Prepared Feathers and Articles Made
Therewith; Artificial Flowers; Articles of Human Hair

0.1

0.0

0.0

0.0

0.1

0.0

0.3

0.1

0.6

14.8

Articles of Stone, Plaster, Cement, Asbestos, Mica or
Similar Materials; Ceramic Products; Glass and Glassware

0.1

0.0

0.0

0.0

0.1

0.0

0.2

0.1

0.6

12.4

Natural or Cultured Pearls, Precious or Semiprecious
Stones, Precious Metals, Metals Clad with Precious
Metal, and Articles Thereof; Imitation Jewellery; Coin

0.5

0.0

0.1

0.0

0.0

0.0

0.3

0.1

1.0

11.2

Base Metals and Articles of Base Metal

0.1

0.0

0.0

0.0

0.0

0.0

0.3

0.1

0.5

12.4

Machinery and Mechanical Appliances; Electrical
Equipment; Parts Thereof; Sound Recorders and
Reproducers, Television Image and Sound Recorders and
Reproducers, and Parts and Accessories of Such Articles

0.0

0.0

0.0

0.0

0.0

0.0

0.4

0.0

0.5

10.9

Vehicles, Aircraft, Vessels and Associated Transport Equipment

0.1

0.0

1.1

0.0

0.0

0.0

0.1

0.1

1.4

12.7

Optical, Photographic, Cinematographic, Measuring,
Checking, Precision, Medical or Surgical Instruments and
Apparatus; Clocks and Watches; Musical Instruments;
Parts and Accessories Thereof

0.0

0.0

0.0

0.0

0.0

0.0

0.3

0.0

0.4

13.5

Arms and Ammunition; Parts and Accessories Thereof

0.1

0.0

0.0

0.0

0.0

0.0

0.1

0.0

0.2

11.4

Miscellaneous Manufactured Articles

0.1

0.0

0.0

0.0

0.0

0.0

0.2

0.0

0.4

13.4

Works of Art, Collectors’ Pieces and Antiques

0.0

0.0

0.0

0.0

0.0

0.0

0.2

0.0

0.2

11.3

Source: ITC, based on national data.
Note: Pseudo = pseudo-tariffs, excise = excise duties, IPT = intellectual property levies, sales = sales taxes, regional = regional taxes, and NES = unclassified
taxes. Total additional taxes includes customs + environment + excise + IPT + pseudo + regional + sales + NES.

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

1.3: Additional Taxes and the Indirect Evidence on Trade Protection

ET.part.A.r1

43

44

6/2/08

10:03 PM

Page 44

Country evidence
What are the most restrictive countries? In Table 2,
countries are ranked by decreasing order of the sum of
all additional taxes, excluding value-added tax (VAT).
Antigua and Barbuda is the prominent country in terms
of additional taxes, with an average additional tax of
48.9 percent in 2007.The country is followed by
Iceland (26.4 percent) and Morocco (20.2 percent).We
find eight additional countries exhibiting an average
additional tax above 10 percent.

How do additional taxes compare with statutory
protection?
We now compare applied tariffs and the sum of all additional taxes (except VAT) by country and by sector,
using an appropriate weighting scheme.9
In Table 3, we list the most-affected sectors at the
country level and compare them with the level of official tariffs.We also provide the share of the affected sectors in the imports and exports of the countries concerned. Country-sector trading pairs are ranked in Table
3 by decreasing importance of additional taxes.
The highest additional protection is observed for
“vehicles” in Antigua and Barbuda: the 234.6 percent
additional tax is to be compared with the 17.1 percent
statutory applied protection.
The next highest is for Iceland and prepared foodstuffs.The 203.7 percent additional tax is to be com-

pared with the 20.7 percent statutory protection. In
other words, the additional protection of foodstuffs in
Iceland is 10 times the statutory protection.
The same observation is to be made for Germany,
which has 111.5 percent additional charges for prepared
foodstuffs coming on the top of the 17.5 percent statutory protection.
Other affected products include minerals in Iceland;
works of art in Mozambique, Antigua and Barbuda, and
Mayotte, arms in Papua New Guinea, rawhide in
Guinea, machinery in Antigua, vehicles in Ethiopia, and
so on.
Last, we ask whether there is a clear relationship of
substitution or of complementarity between these two
barriers to trade. In other words, do these two types of
additional taxes offset each other in some way, being
applied to the same goods, or do they complement each
other? We do not find evidence of either at the global
level here. Using our 1,282 sector-country pairs for
2007, we simply look at the correlation between the
two modes of protection in Figure 1. Figure 1 displays
this visually: the horizontal axis provides the perspective
of tariff duties and the vertical axis is for the additional
taxes, both being bounded at 100 percent. Clearly, there
is no clear positive or negative relationship between the
two modes of protection; rather, the relationship is idiosyncratic in our sample.

Figure 1: The relationship between tariffs and additional taxes, percent

95.0
85.0
75.0
65.0

Tariff duties

1.3: Additional Taxes and the Indirect Evidence on Trade Protection

ET.part.A.r1

55.0
45.0
35.0
25.0
15.0
5.0
5.0

15.0

25.0

35.0

45.0

55.0

65.0

75.0

Additional taxes

Source: Authors’ calculations.

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

85.0

95.0

6/2/08

10:03 PM

Page 45

Table 2: Average additional taxes by country, percent (2007)
Country

Antigua and Barbuda
Iceland
Morocco
Saint Kitts and Nevis
Grenada
Mayotte
Gambia, The
Ethiopia
Pakistan
Sierra Leone
Bangladesh
Sri Lanka
Jordan
Saint Vincent and the Grenadines
Madagascar
Bahamas
Dominica
Bhutan
Singapore
Germany
Mauritania
Guinea
Nicaragua
Papua New Guinea
Mauritius
Zambia
Panama
Burkina Faso
Côte d’Ivoire
Guinea-Bissau
Mali
Niger
Senegal
Togo
Benin
Lebanon
Congo (Democratic Republic)
Algeria
Bosnia and Herzegovina
Mozambique
China
Ghana
Ecuador
Argentina
Djibouti
South Africa
Uganda
Peru
Angola
Bahrain
Chile
Colombia
Georgia
Kosovo
Kuwait
Oman
Qatar
Saudi Arabia
Tanzania
United Arab Emirates
Vanuatu

NES

Total
additional
taxes

Customs

Environment

Excise

IPT

Pseudo

Regional

Sales

9.8

22.4

16.7

0

0

0

0

0

48.9

VAT

0

0

11.1

15.2

0

0

0

0

0

26.4

23.5

20.2

0

0

0

0

0

0

0

20.2

16.1

4

0

13.3

0

0

0

0.3

0

17.6

0

3.4

0

13.8

0

0

0

0

0

17.2

0

0

0

17.1

0

0

0

0

0

17.1

0

0

1.1

0

0

0

0

13.8

1.5

16.5

0

5.1

0

7.6

0

0

0

0

2.9

15.7

12.7

0

0

0.5

0

0

0

12.7

0

13.2

0

0

0

0.2

0

0

0

10.5

0

10.7

0

0

0

0

0

0

0

0

10.6

10.6

14.4

0

0

0.4

0

0

0

0

9.1

9.5

7

0

0

0

0

0

0

7.4

1.5

8.9

0

8.2

0

0

0

0

0

0

0

8.2

0
13.6

0

7.2

0.7

0

0

0

0

0

8

6.7

0

0

0

0

0

0

0

6.7

0

3

1.4

1.8

0

0

0

0

0

6.2

13.4

0

0

0

0

0

0

0

5.8

5.8

0

0

0

0.3

0

0

0

4.9

0

5.2

0

0

0

4.9

0

0

0

0

0

4.9

18.3

1

0.1

0.4

0

0

0

0

2.9

4.4

9.1

2

0

0.2

0

0.8

0.9

0

0.4

4.3

14.3
12.6

0

0

3.9

0

0

0

0

0

3.9

0

0

3.8

0

0

0

0

0

3.8

9.9

0

0

3.4

0

0

0

0

0

3.4

7.6

0

0

3.3

0

0

0

0

0

3.3

13.8

0

0

0.1

0

0

0

0

3.2

3.2

0

1

0

0

0

0

1.9

0

0

2.9

0

1

0

0

0

0

1.9

0

0

2.9

0

1

0

0

0

0

1.9

0

0

2.9

0

1

0

0

0

0

1.9

0

0

2.9

0

1

0

0

0

0

1.9

0

0

2.9

0

1

0

0

0

0

1.9

0

0

2.9

0

1

0

0

0

0

1.9

0

0

2.9

0

1

0

0

0

0

1.8

0

0

2.8

0

0

0

2.6

0

0

0

0

0

2.6

6.4

0

0

1.8

0

0

0

0

0

1.8

11.3

0

0

0.2

0

1

0

0

0.2

1.5

7.6

0

0

1.5

0

0

0

0

0

1.5

17

0

0

1.4

0

0

0

0

0

1.4

13

0

0

1.2

0

0

0

0

0

1.2

13.8

0

0.5

0.1

0

0

0

0

0.1

0.7

2.4

0

0

0

0

0

0

0

0.5

0.5

0

0.3

0

0

0

0

0

0

0

0.3

0

0.3

0

0

0

0

0

0

0

0.3

0

0

0

0.3

0

0

0

0

0

0.3

10.9

0

0

0.2

0

0

0

0

0

0.2

9

0

0

0

0

0

0

0

0.1

0.1

0

0

0

0

0

0

0

0

0

0

10.4

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

15.7

0

0

0

0

0

0

0

0

0

13.9

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

13.5

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0
12.3

Source: ITC, based on national data
Note: Pseudo = pseudo-tariffs, excise = excise duties, IPT = intellectual property levies, sales = sales taxes, regional = regional taxes, and NES = unclassified
taxes. Total additional taxes includes customs + environment + excise + IPT + pseudo + regional + sales + NES.

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

1.3: Additional Taxes and the Indirect Evidence on Trade Protection

ET.part.A.r1

45

1.3: Additional Taxes and the Indirect Evidence on Trade Protection

ET.part.A.r1

46

6/2/08

10:03 PM

Page 46

Table 3: Statutory and additional protection (all country-sector pairs with additional taxes above 30 percent),
percent (2007)
Customs
duty

Total
additional
taxes

VAT

Share of
imports

Share of
exports

Country

Description

Antigua and Barbuda

Vehicles, Aircraft, Vessels and Associated Transport Equipment

17.1

234.6

0.0

51.1

87.5

Iceland

Prepared Foodstuffs; Beverages, Spirits, and Vinegar; Tobacco and
Manufactured Tobacco Substitutes

20.7

203.7

13.2

3.6

7.7

Germany

Prepared Foodstuffs; Beverages, Spirits, and Vinegar; Tobacco
and Manufactured Tobacco Substitutes

17.5

111.5

12.2

2.8

2.2

Iceland

Mineral Products

0.1

90.9

24.5

9.8

2.5

Mozambique

Works of Art, Collectors’ Pieces and Antiques

19.4

62.6

17.0

0.1

0.0

Bangladesh

Prepared Foodstuffs; Beverages, Spirits, and Vinegar; Tobacco
and Manufactured Tobacco Substitutes

21.6

61.5

15.5

3.9

0.3

Antigua and Barbuda

Arms and Ammunition; Parts and Accessories Thereof

19.6

60.0

0.0

0.1

n/a

Papua New Guinea

Arms and Ammunition; Parts and Accessories Thereof

0.0

60.0

10.0

0.0

n/a

Guinea

Raw Hides and Skins, Leather, Furskins and Articles Thereof; Saddlery and
Harness; Travel Goods, Handbags, and Similar Containers; Articles of
Animal Gut

18.7

48.6

12.9

0.3

0.0

Madagascar

Mineral Products

10.3

Bangladesh

Arms and Ammunition; Parts and Accessories Thereof

Antigua and Barbuda

Machinery and Mechanical Appliances; Electrical Equipment; Parts
Thereof; Sound Recorders and Reproducers, Television Image and Sound
Recorders and Reproducers, and Parts and Accessories of Such Articles

0.4

44.1

1.1

20.7

15.8

44.1

19.5

0.0

0.0

8.9

42.0

0.0

9.4

0.7

Mayotte

Works of Art, Collectors’ Pieces and Antiques

10.0

41.0

0.0

n/a

n/a

Antigua and Barbuda

Natural or Cultured Pearls, Precious or Semiprecious Stones, Precious
Metals, Metals Clad with Precious Metal, and Articles Thereof; Imitation
Jewellery; Coin

21.6

40.0

0.0

0.6

0.6

Antigua and Barbuda

Works of Art, Collectors’ Pieces and Antiques

20.0

40.0

0.0

0.0

0.0

Papua New Guinea

Vehicles, Aircraft, Vessels and Associated Transport Equipment

0.3

36.5

10.0

12.4

0.1

Mayotte

Miscellaneous Manufactured Articles

9.9

35.9

0.0

2.6

3.5

Saint Kitts and Nevis

Articles of Stone, Plaster, Cement, Asbestos, Mica or Similar Materials;
Ceramic Products; Glass and Glassware

13.7

35.3

0.0

1.9

n/a

Antigua and Barbuda

Miscellaneous Manufactured Articles

16.9

35.2

0.0

1.1

0.1

Ethiopia

Prepared Foodstuffs; Beverages, Spirits, and Vinegar; Tobacco and
Manufactured Tobacco Substitutes

18.4

35.2

14.9

2.9

1.8

Bhutan

Prepared Foodstuffs; Beverages, Spirits, and Vinegar; Tobacco and
Manufactured Tobacco Substitutes

57.1

35.1

0.0

2.2

0.1

Sri Lanka

Footwear, Headgear, Umbrellas, Sun Umbrellas, Walking-Sticks,
Seat-Sticks, Whips, Riding-Crops and Parts Thereof; Prepared Feathers
and Articles Made Therewith; Artificial Flowers; Articles of Human Hair

25.0

33.8

14.3

0.3

0.9

Antigua and Barbuda

Articles of Stone, Plaster, Cement, Asbestos, Mica or Similar Materials;
Ceramic Products; Glass and Glassware

11.3

33.6

0.0

0.7

0.0

Mayotte

Footwear, Headgear, Umbrellas, Sun Umbrellas, Walking-Sticks,
Seat-Sticks, Whips, Riding-Crops and Parts Thereof; Prepared Feathers
and Articles Made Therewith; Artificial Flowers; Articles of Human Hair

10.0

33.5

0.0

0.6

n/a

Ethiopia

Natural or Cultured Pearls, Precious or Semiprecious Stones, Precious
Metals, Metals Clad with Precious Metal, and Articles Thereof; Imitation
Jewellery; Coin

35.0

32.7

15.0

0.1

0.0

Saint Kitts and Nevis

Prepared Foodstuffs; Beverages, Spirits, and Vinegar; Tobacco and
Manufactured Tobacco Substitutes

21.7

32.5

0.0

10.0

5.9

Mozambique

Natural or Cultured Pearls, Precious or Semiprecious Stones, Precious
Metals, Metals Clad with Precious Metal, and Articles Thereof; Imitation
Jewellery; Coin

12.5

32.4

17.0

0.0

0.1

Ethiopia

Vehicles, Aircraft, Vessels and Associated Transport Equipment

20.5

32.2

12.5

18.6

0.1

Iceland

Wood and Articles of Wood; Wood Charcoal; Cork and Articles of Cork;
Manufactures of Straw, of Esparto or of Other Plaiting Materials;
Basketware and Wickerwork

1.4

30.4

24.5

1.8

0.0

Antigua and Barbuda

Textiles and Textile Articles

11.1

30.4

0.0

0.4

0.4

Antigua and Barbuda

Plastics and Articles Thereof; Rubber and Articles Thereof

10.5

30.4

0.0

0.9

0.2

Source: ITC, based on national data.
Note: Pseudo = pseudo-tariffs; excise = excise duties, IPT = intellectual property levies, sales = sales taxes, and NES = unclassified taxes. Total additional taxes
includes customs + environment + excise + sales + IPT + pseudo + regional + NES. Pairs are sorted by decreasing total additional taxes.

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page 47

What are the most-affected products?
The use of additional taxes is very much concentrated
in sectors in which human health or ethical concerns
are predominant.Table 4 shows the most-affected products (in certain markets).The largest product/sector pairs
are observed for developed economies and alcohol. A
1,000 percent additional tax is imposed on gin and
geneva whiskey in Iceland. Similar levels of taxation are
observed for tobacco in Germany. Grape wines face a
354 percent additional taxation in Bangladesh. As illustrated in Table 4, a high taxation level can affect any sector independently of the development level of the
applying country.

What are the policy implications of these findings?
The analysis of the data collected so far suggests that
multilateral negotiations on tariffs might not be addressing the right issues, at least in certain sectors. It shows
that some worries expressed by countries with regard to
the impact of trade liberalization on their economies
could be beside the point.
In order to illustrate this point, we compute the
average cuts of tariffs currently under discussion in the
Doha Round for countries considered here, on all products (see the appendix for further details).This computation provides a specific percentage of average reduction
of the protection, after proper weighting, across products
within sectors and across countries within sectors.

1.3: Additional Taxes and the Indirect Evidence on Trade Protection

ET.part.A.r1

Table 4: Illustrative selection of high additional taxes in our sample (individual importers and HS-6 products)
Country group

Country

HS-6
code

Description

Total additional
taxes (%)

Developed

Iceland

220850

Gin and geneva

>1,000

Developed

Germany

240120

Tobacco, unmanufactured, partly or wholly stemmed or stripped

>1,000

Developing

Sri Lanka

240220

Cigarettes containing tobacco

342.9

Developing

Antigua and Barbuda

870323

Automobiles with reciprocating piston engine displacing > 1,500 cc to 3,000 cc

290.0

Developing

China

220600

Fermented beverages NES (for example, cider, perry, mead, etc.)

249.5

Developing

Mauritius

240310

Smoking tobacco, whether or not containing tobacco substitutes in any proportion

230.0

Developing

Mauritius

220720

Ethyl alcohol and other spirits, denatured, of any strength

200.0

Developing

South Africa

382460

Sorbitol (other than D-glucitol)

185.2

Developing

South Africa

240310

Smoking tobacco, whether or not containing tobacco substitutes in any proportion

176.4

Developing

Lebanon

240220

Cigarettes containing tobacco

108.0

Developing

Algeria

220830

Whiskies

104.0

Developing

Nicaragua

271091

Waste oils containing polychlorinated biphenyls (PCBs), polychlorinated
terphenyls (PCTs) or polybrominated biphenyls (PBBs)

100.0

Developing

Papua New Guinea

950430

Games, coin or disc-operated, other than bowling alley equipment

100.0

Developing

Algeria

220860

Vodka

100.0

Developing

Colombia

610711

Men’s/boys’ underpants and briefs, of cotton, knitted

Least-developed

Bangladesh

220410

Grape wines, sparkling

354.0

Least-developed

Guinea

340119

Organic surface-active agents (other than soap); surface-active preparations,
washing preparations (including auxiliary washing preparations) and cleaning
preparations, whether or not containing soap, other than those of heading
34.01: Organic surface-active agents, whether or not put up for retail NES.

336.1

Least-developed

Bangladesh

220300

Beer made from malt

254.0

Least-developed

Madagascar

271011

Light oils and preparations

204.0

Least-developed

Djibouti

220410

Grape wines, sparkling

160.0

Least-developed

Uganda

240310

Smoking tobacco, whether or not containing tobacco substitutes in any proportion

150.0

Least-developed

Madagascar

220830

Whiskies

135.0

Least-developed

Zambia

220410

Grape wines, sparkling

125.0

Least-developed

Ethiopia

220840

Rum and tafia

113.0

Least-developed

Mauritania

220410

Grape wines, sparkling

107.0

Least-developed

Ethiopia

842211

Dish washing machines of the household type

95.0

93.0

Source: ITC, based on national data.
Note: Pseudo = pseudo-tariffs; excise = excise duties, IPT = intellectual property levies, sales = sales taxes. Total additional taxes includes customs + environment
+ excise + sales + IPT + pseudo + regional + NES.

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

47

1.3: Additional Taxes and the Indirect Evidence on Trade Protection

ET.part.A.r1

6/2/08

10:03 PM

Page 48

Table 5: Statutory protection and additional taxes before and after liberalization (sectoral average for the country
sample), percent
Customs
duty after
simulation

20.7

14.0

37.5

2.0

1.8

7.0

3.9

Vehicles, Aircraft, Vessels and Associated Transport Equipment

11.7

6.5

1.4

0.9

Animal or Vegetable Fats and Oils and Their Cleavage Products; Prepared Edible Fats; Animal or Vegetable Waxes

11.7

7.8

1.3

0.9

Natural or Cultured Pearls, Precious or Semiprecious Stones, Precious Metals, Metals Clad with Precious Metal,
and Articles Thereof; Imitation Jewellery; Coin

4.0

3.1

1.0

0.7

Raw Hides and Skins, Leather, Furskins and Articles Thereof; Saddlery and Harness; Travel Goods, Handbags,
and Similar Containers; Articles of Animal Gut (Other Than Silk-worm Gut)

7.2

4.7

0.8

0.7

Products of the Chemical or Allied Industries

4.5

3.4

0.7

0.5

Textiles and Textile Articles

11.6

6.6

0.6

0.5

Vegetable Products

10.9

6.7

0.6

0.5

6.9

4.9

0.6

0.5

12.2

7.0

0.6

0.5

Description

Prepared Foodstuffs; Beverages, Spirits, and Vinegar; Tobacco and Manufactured Tobacco Substitutes
Mineral Products

Plastics and Articles Thereof; Rubber and Articles Thereof
Footwear, Headgear, Umbrellas, Sun Umbrellas, Walking-Sticks, Seat-Sticks, Whips, Riding-Crops and Parts
Thereof; Prepared Feathers and Articles Made Therewith; Artificial Flowers; Articles of Human Hair

19.4

Articles of Stone, Plaster, Cement, Asbestos, Mica or Similar Materials; Ceramic Products; Glass and Glassware

8.3

5.9

0.6

0.5

Pulp of Wood or of other Fibrous Cellulosic Material; Recovered (Waste and Scrap) Paper or Paperboard;
Paper and Paperboard and Articles Thereof

3.7

3.1

0.5

0.4

Base Metals and Articles of Base Metal

4.8

3.8

0.5

0.4

Machinery and Mechanical Appliances; Electrical Equipment; Parts Thereof; Sound Recorders and Reproducers,
Television Image and Sound Recorders and Reproducers, and Parts and Accessories of Such Articles

3.8

2.4

0.5

0.5

Live Animals; Animal Products

48

Total
Total
additional
additional taxes after
taxes
simulation

Customs
duty

18.3

9.1

0.4

0.4

Miscellaneous Manufactured Articles

4.5

3.1

0.4

0.3

Optical, Photographic, Cinematographic, Measuring, Checking, Precision, Medical or Surgical Instruments
and Apparatus; Clocks and Watches; Musical Instruments; Parts and Accessories Thereof

4.0

3.0

0.4

0.3

Wood and Articles of Wood; Wood Charcoal; Cork and Articles of Cork; Manufactures of Straw, of Esparto
or of Other Plaiting Materials; Basketware and Wickerwork

3.2

2.3

0.3

0.2

Works of Art, Collectors’ Pieces and Antiques

5.1

3.4

0.2

0.2

Arms and Ammunition; Parts and Accessories Thereof

8.4

6.4

0.2

0.1

Source: ITC, based on national data.
Note: Pseudo = pseudo-tariffs, excise = excise duties, IPT = intellectual property levies, sales = sales taxes, regional = regional taxes, and NES = unclassified
taxes. Total additional taxes includes customs + environment + excise + sales + IPT + pseudo + regional + NES.

Now we contemplate the impact of a possible trade
liberalization extended to additional taxes.We apply to
the additional taxes considered, for each country, the
national average reduction of tariffs.10 The effects are limited to certain sectors and products, which are usually
revealed as being the most sensitive ones.
In Table 5, the data from Table 1 concerning the
average additional taxation (excluding VAT) for the different sectors are reproduced in the column entitled
“Total additional taxes.” After applying the national
reduction of tariffs to the total additional taxes, we
obtain the figures in the next column.
We observe that additional taxation for foodstuffs
would be cut by half, pointing to the fact that tariffs on
prepared foodstuffs would be reduced less than the average in the countries of our sample that impose additional taxes in this sector. More importantly, we observe that
in this sector, cutting tariffs would reduce protection by
6.7 percentage points, while cutting additional taxes
would cut them by an additional 18.1 percentage
points, a nearly threefold difference.

Conclusion
Under regional and multilateral negotiations, considerable efforts are being made to reduce tariffs, eliminate
non-tariff barriers, and facilitate border measures.
However, very little effort is made to reduce additional
import taxes that, as this chapter shows, come in various
forms and are used for a variety of reasons.These additional taxes can be used to circumvent the commitments
made by countries to reduce their tariffs or, for reasons
of national preferences, to protect certain categories of
products.These measures may result in much higher
rates of protection than those imposed by tariffs, thus
contributing to a slowdown in international trade for
certain categories of products. Including the component
of import taxes issues in the next round of trade negotiations may result in relatively lower fiscal revenues, but it
will have a significant effect on reducing barriers to
trade and thus to enabling the growth of world trade.

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page 49

Notes
1 For a description of gravity equations for assessing the drivers of
trade between countries, see Box 1 in Chapter 1.1 of this volume.
The residuals derived from traditional gravity equations are the
“unexplained” part of trade between trading partners, part of
which can be explained by trade barriers.
2 This methodology compares external trade flows, by sector and
partner, with the corresponding “internal exports” (domestic
sales) and control for external/internal distances, production and
consumption patterns, and so on. The question is ultimately how
much a country trades in a sector with a certain partner as compared to domestic sales, caeteris paribus.
3 Anderson and van Wincoop 2004.
4 170 percent is cumulating the 74 percent trade cost and the 55
percent retail and distribution costs (2.70 = 1.74 x 1.55).
5 This is calculated as follows: 1.74 = 1.21 x 1.44
6 Kee et al. 2006.
7 Fontagné et al. 2005.
8 We also have information on the VAT but do not treat it because
VAT, according to the WTO rules, must in principle be levied
exactly in the same way on domestic and imported products.

1.3: Additional Taxes and the Indirect Evidence on Trade Protection

ET.part.A.r1

9 We start from the HS-6 level and use a reference group method.
10 In order to obtain these figures, we apply for each country the
average tariff reduction resulting from the application of the
“modalities” (formula of tariff reduction) currently on the negotiation table of the ongoing Doha Development Agenda negotiations
at the WTO. Accordingly, a unique coefficient of reduction is
applied to every additional tax within a country, calibrated by the
average tariff reduction of that country.

49
References
Anderson, J. E. and E. van Wincoop. 2004. “Trade Costs.” Journal of
Economic Literature 42(3): 691–751.
Fontagné L., T. Mayer, and S. Zignago. 2005. “Trade in the Triad: How
Easy Is the Access to Large Markets?” Canadian Journal of
Economics 38(4): 1401–30.
Kee, H.L., A. Nicita, and M. Olarreaga. 2006. Estimating Trade
Restrictiveness Indices. Policy Research Working Paper No. 3840.
Washington, DC: World Bank.

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

1.3: Additional Taxes and the Indirect Evidence on Trade Protection

ET.part.A.r1

6/2/08

10:03 PM

Page 50

Appendix A: Data
Sector aggregation
The Harmonized Commodity Description and Coding
System, generally referred to as the “Harmonized
System” or simply “HS,” is an international product
nomenclature developed by the World Customs
Organization (WCO).The nomenclature comprises
about 5,000 commodity groups/products divided into
21 sections, which (in general) group goods produced in
the same sector of the economy:
• Live Animals; Animal Products (Chapters 01–05)
• Vegetable Products (Chapters 6–14)
• Animal or Vegetable Fats and Oils and Their
Cleavage Products; Prepared Edible Fats; Animal or
Vegetable Waxes (Chapter 15)
• Prepared Foodstuffs; Beverages, Spirits, and Vinegar;
Tobacco and Manufactured Tobacco Substitutes
(Chapters 16–24)
• Mineral Products (Chapters 25–27)
• Products of the Chemical or Allied Industries
(Chapters 28–38)

50

• Plastics and Articles Thereof; Rubber and Articles
Thereof (Chapters 39–40)
• Raw Hides and Skins, Leather, Furskins and Articles
Thereof; Saddlery and Harness;Travel Goods,
Handbags, and Similar Containers; Articles of
Animal Gut (Other Than Silk-worm Gut)
(Chapters 41–43)
• Wood and Articles of Wood;Wood Charcoal; Cork
and Articles of Cork; Manufactures of Straw, of
Esparto or of Other Plaiting Materials; Basketware
and Wickerwork (Chapters 44–46)
• Pulp of Wood or of other Fibrous Cellulosic
Material; Recovered (Waste and Scrap) Paper or
Paperboard; Paper and Paperboard and Articles
Thereof (Chapters 47–49);
• Textiles and Textile Articles (Chapters 50–63)
• Footwear, Headgear, Umbrellas, Sun Umbrellas,
Walking-Sticks, Seat-Sticks,Whips, Riding-Crops
and Parts Thereof; Prepared Feathers and Articles
Made Therewith; Artificial Flowers; Articles of
Human Hair (Chapters 64–67)
• Articles of Stone, Plaster, Cement, Asbestos, Mica or
Similar Materials; Ceramic Products; Glass and
Glassware (Chapters 68–70)
• Natural or Cultured Pearls, Precious or
Semiprecious Stones, Precious Metals, Metals Clad
with Precious Metal, and Articles Thereof; Imitation
Jewellery; Coin (Chapter 71)

• Base Metals and Articles of Base Metal (Chapters
72–83)
• Machinery and Mechanical Appliances; Electrical
Equipment; Parts Thereof; Sound Recorders and
Reproducers,Television Image and Sound
Recorders and Reproducers, and Parts and
Accessories of Such Articles (Chapters 84–85)
• Vehicles, Aircraft,Vessels and Associated Transport
Equipment (Chapters 86–89)
• Optical, Photographic, Cinematographic,
Measuring, Checking, Precision, Medical or
Surgical Instruments and Apparatus; Clocks and
Watches; Musical Instruments; Parts and Accessories
Thereof (Chapters 90–92)
• Arms and Ammunition; Parts and Accessories
Thereof (Chapter 93)
• Miscellaneous Manufactured Articles (Chapters
94–96)
• Works of Art, Collectors’ Pieces and Antiques
(Chapter 97)

Tariff Data
Applied tariffs come from ITC’s version of Market
Access Map.This covers customs tariffs applied by 185
importing countries to products from 239 countries
and territories. Bound tariffs come from the WTO
Consolidated Tariff Schedule Database. Import taxes applied
by 61 countries—2 developed countries, 36 developing
countries, and 23 least-developed countries—were
compiled for this chapter.
Our aggregation method starts with a simple average
from the tariff tine to the HS-6 digit level comprising
some 5,000 different products. At any other aggregation
level however, it is not a simple average. In calculating
average tariffs or taxes for these aggregations, the trade
pattern of the importing country’s reference group is
used as a weighting.
Tariff simulations use the latest modalities agreed
under multilateral negotiations.1 The reductions were
applied to bound tariffs by country and product category.
For bound duties not consolidated, a base rate augmented by 20 percent was used. Following the reductions, we
use in our calculations the new reduced tariff if the
reduced bound tariff is lower than the most-favored
nation (MFN) applied tariff rate.
Taking into account that no agreement has been
reached so far in the ongoing Doha Development
Agenda (DDA) negotiations, concerning the following
tariff reduction formulas, we use the average range for
the different reductions. Furthermore, we do not take
into account potential product-exclusion lists.

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page 51

Appendix A: Data (cont’d.)
Formula applied
For agricultural products, a tiered formula is used
depending on the country group.
Developed country members shall reduce their final
bound tariffs in equal annual installments over five years
in accordance with the following tiered formula:
Bands

0%
20%
50%
75%




FBT or AVE* ⱕ 20%
FBT or AVE * ⱕ 50%
FBT or AVE * ⱕ 75%
FBT or AVE *

Reduction

Reduction used

[48–52] %
[55–60] %
[62–65] %
[66–73] %

50%
57.5%
63.5%
69.5%

For Non-Agriculture Market Access (NAMA)
products, developed and developing countries shall apply
the following formula on a line-by-line basis:

t1 ⫽

(a or b) ⫻ t 0
(a or b) ⫹ t 1

where

t 1 ⫽ final bound rate of duty
t 0 ⫽ base rate of duty
a ⫽ [8–9] ⫽ coefficient for developed Members
(8.5 used in our simulation)

* FBT or AVE: final bound tariff or ad valorem equivalent.

b ⫽ [19–23] ⫽ coefficient for developing Members
(21 used in our simulation)

Developing country members shall reduce their final
bound tariffs in equal annual installments over eight
years in accordance with the following tiered formula:
Bands

0% ⬍
30% ⬍
80% ⬍
130% ⬍

FBT or AVE * ⱕ 30%
FBT or AVE * ⱕ 80%
FBT or AVE * ⱕ 130%
FBT or AVE *

Reduction**

Reduction used

[32–35] %
[37–40] %
[41–43] %
[44–49] %

33.5%
38.5%
42%
46.5%

Least-developed country members are not required to
undertake reductions in bound duties.

Note
1 WTO, Committee on Agriculture (TN/AG/W/4/Rev.1), February
2008. WTO, Negotiating Group on Market Access
(TN/MA/W/103), February 2008.

* FBT or AVE: final bound tariff or ad valorem equivalent.
** Corresponding in two-thirds of the cut for developed-country members
(rounded off in the closest integer).

Small and vulnerable economies (SVEs) shall reduce
their final bound tariffs in equal annual installments
over eight years in accordance with the following tiered
formula:
Bands

0% ⬍
30% ⬍
80% ⬍
130% ⬍

FBT or AVE * ⱕ 30%
FBT or AVE * ⱕ 80%
FBT or AVE * ⱕ 130%
FBT or AVE *

Reduction**

Reduction used

[22–25] %
[27–30] %
[31–33] %
[34–39] %

23.5%
28.5%
31%
36.5%

1.3: Additional Taxes and the Indirect Evidence on Trade Protection

ET.part.A.r1

* FBT or AVE: final bound tariff or ad valorem equivalent.
** Corresponding in 10 points less than for developing-country members.

Least-developed countries (LDCs) members are not
required to undertake reductions in bound duties.

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

51

ET.part.A.r1

6/2/08

10:03 PM

Page 52

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page 53

CHAPTER 1.4

Connecting to Compete:
Trade Logistics in the Global
Economy
JEAN-FRANÇOIS ARVIS, MONICA ALINA MUSTRA, and
JOHN PANZER from The World Bank
LAURI OJALA and TAPIO NAULA from the Turku School of
Economics, Finland

The increase in global production sharing, the shortening of product life cycles, and the intensification of
global competition all highlight logistics as a strategic
source of competitive advantage. Given their importance
to facilitating trade in goods, the efficiency and costs
related to trade logistics constitute key components of
the Enabling Trade Index (ETI), discussed in Chapter
1.1 of this Report. The present chapter complements
Chapter 1.1 by providing a detailed analysis of the trade
logistics so important for enabling the free flow of
goods internationally.
Technological advances and economic liberalization
have created new opportunities for countries to harness
global markets for economic growth and development.
But expanded supply chains and global production networks put a new premium on moving goods in a predictable, timely, and cost-effective way. Being able to
connect to what has been referred to as the “physical
internet” is fast becoming a key determinant of a country’s competitiveness.1 For those able to connect, the
physical internet brings access to vast new markets; but
for those whose links to the global logistics web are
weak, the costs of exclusion are large and growing.
Whether it is a cause or a consequence, no country has
grown successfully without a large expansion of its trade.
Well-connected countries can have access to many
more markets and consumers: a country as distant from
most major markets as Chile can be a major player in
the high-end world food market, supplying fresh fish
and perishable fruits to consumers in Asia, Europe, and
North America. But for the poorly connected, the costs
of exclusion are considerable and growing, and the risks
of missed opportunities loom large, especially for the
poorest landlocked countries, many of them in Africa.
In this highly competitive world, the quality of
logistics can have a major bearing on a firm’s decisions
about which country to locate in, which suppliers to
buy from, and which consumer markets to enter. High
logistics costs and—more particularly—low levels of
service are a barrier to trade and foreign direct investment (FDI), and thus to economic growth. Countries
with higher overall logistics costs are more likely to miss
the opportunities of globalization.
Take landlocked Chad, for example. Importing a
20-foot container from Shanghai to its capital
N’djamena takes about ten weeks at a cost of US$6,500.
Importing the same container to a landlocked country
in Western or Central Europe would take about four
weeks and cost less than US$3,000.The shipping costs
and delays from Shanghai to Douala, the gateway for
Chad, and to West European ports are essentially the
same. And the same international freight forwarding
company would handle the container from Douala to
N’djamena and within Europe. So what accounts for the
large difference in time and cost?
The answer lies in better processes, higher-quality
services, and the operating environment.The forwarder

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

1.4: Connecting to Compete: Trade Logistics in the Global Economy

ET.part.A.r1

53

1.4: Connecting to Compete: Trade Logistics in the Global Economy

ET.part.A.r1

54

6/2/08

10:03 PM

Page 54

in Europe would use a seamless, paperless system to
manage the inland shipment from its 8-hectare campus
in the gateway port of Le Havre.The transport inside
Europe would take less than three days. And to add
value for its client and generate more business, the forwarder would provide additional services, such as
improving the client’s internal distribution practices.
In Chad the process would be different. Although
only five days should be needed to move the container
from Douala to N’djamena, the actual time would likely
be as long as five weeks. In a difficult governance and
security environment, the freight forwarding company
would be trying simply to avoid a breakdown in its
client’s supply chain. It would maintain company staff
along the trade corridor to physically track the goods
and trade documents. And it would have to be ready to
mediate with the trucking syndicate, the security forces,
and myriad government agencies.

Measuring logistics performance
Improving logistics performance has become an important development policy objective.The performance of
customs, trade-related infrastructure, inland transit, logistics services, information systems, and port efficiency are
all critical to whether countries can trade goods and
services on time and at low cost.This trade competitiveness is central to whether countries can harness globalization’s new opportunities for development.
International logistics encompasses an array of
actions ranging from transportation, consolidation of
cargo, warehousing, and border clearance to in-country
distribution and payment systems.
This sequence cannot be easily summarized in a
single indicator. Nor is it easy to collect, on a global
basis, the information to build a performance measure.
Information on time and costs associated with some
important logistics processes—such as port time, time to
clear customs, and transport—provides a good starting
point and in many cases is readily available. But this
information, even when complete, cannot be easily
aggregated in a single consistent cross-country dataset
because of essential differences in the supply chain
structure among countries. Perhaps more important,
many critical elements for good logistics performance—
such as the transparency of processes and the quality,
predictability, and reliability of services—cannot be captured from the information available on time and costs.
To address this, the World Bank, with its professional
and academic partners, has produced the (first) Logistics
Performance Index (LPI) to start closing the knowledge
gap and help countries develop logistics reform programs
to enable trade and enhance their competitiveness.2
Complementing existing international sets of competitiveness indicators—such as the World Bank’s Doing
Business measures and the World Economic Forum’s
Global Competitiveness Index—the Logistics Performance Index and its indicators propose a comprehensive

approach to supply chain performance (see Appendix A:
Structure and composition of the LPI). It provides the
first in-depth cross-country assessment of the logistics
gap and constraints facing countries. Given their
uniqueness and significance, the LPI data have also been
used extensively in the Enabling Trade Index discussed
in Chapter 1.1. Specifically, LPI survey data have been
used to measure several aspects of the efficiency of
import-export procedures as well as the availability and
quality of transport services.

Key messages
The LPI provides some insights on the cost of poor
logistics to country competitiveness—and the sources of
those higher costs. A key insight from the survey of
logistics professionals is that, although costs and timeliness
are of paramount importance, traders are primarily concerned with the overall reliability of the supply chain.
Costs related to hedging against uncertainty have become
a significant part of logistics costs in many developing
countries. Equally, the cost and quality of logistics are
determined not just by infrastructure and the performance of public agencies, but also by the availability of
quality and competitive private services. Moreover, in
many developing countries, problems of adverse geography are compounded by a weak modern services sector
because of poor institutions or overregulation.
The LPI shows how different countries are doing
in the area of trade logistics, and what they can do to
improve their performance. Country performance is largely
influenced by the weakest link in the supply chain: poor
performance in just one or two areas can have serious
repercussions on overall competitiveness. It also points to
significant differences in logistics performance across
countries and regions, reflecting not only the expected
disparities between developed and developing countries
—especially the least-developed, landlocked countries—
but, more important, significant differences among developing countries at similar levels of development. Countries
that top the LPI ranking are typically key players in the
logistics industry, while those at the bottom are often
trapped in a vicious circle of overregulation, poor-quality
services, and underinvestment. Among developing countries, logistics overachievers are also those experiencing
economic growth led by manufactured exports.
Although performance outcomes such as domestic
costs or the time taken to reach a destination are important, traders mostly value the performance of logistics
services available to them: the reliability and predictability
of the supply chain matter most. For example, traditional
measures of performance such as direct freight costs and
average delays, while important, may not capture the overall logistics performance and thus the ability of countries
to use trade for growth.The predictability and reliability
of shipments, while more difficult to measure, are more
important for firms and may have a more dramatic
impact on their ability to compete.

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page 55

Indeed, professionals view the friendliness of border
processes primarily in terms of the transparency and the
predictability of clearance procedures. Even where
countries have already implemented a customs modernization program, the coordination of border procedures
between customs and other agencies (responsible, say, for
sanitary and phytosanitary standards) is an important
concern. Although much progress has been made in
telecommunications and information technology, most
logistics professionals are not satisfied with the quality of
the physical infrastructure in many developing countries. Even where customs has been modernized, the
coordination of border procedures between customs and
other agencies remains an important concern. Logistics
performance is more and more determined by the availability of quality, competitive private services such as
brokering and warehousing.
Countries doing fairly well in logistics are also likely to do well in growth and competitiveness, export
diversification, and trade expansion. Improvements in
the supply chain contribute significantly to competitiveness by reducing transaction costs. At the same time, a

growing, diversifying economy is likely to have the will
and the means to improve its logistics performance.
Countries seeking to benefit more from globalization
need to identify the key aspects of logistics performance,
in particular in terms of their impact on competitiveness.
The Enabling Trade Index 2008 (ETI), discussed in
Chapter 1.1 of this volume, is a detailed composite
index measuring the factors and policies facilitating the
free flow of goods over borders and to destination. It
therefore covers many of the issues covered by the LPI,
as well as market access issues (tariffs and non-tariff barriers, national proclivity to trade) and regulatory and
security-related issues. Many of the LPI data have been
used in computing the ETI for measuring aspects of the
efficiency of import-export procedures as well as the
availability and quality of transport services.
The added value of the LPI is that it provides a global
benchmark of logistics efficiency and service quality not
treated specifically in the World Bank’s Doing Business
series.3 Further, it provides critical input into the ETI and
a detailed analysis of key issues related to enabling trade.
The LPI rankings are shown in Table 1.

1.4: Connecting to Compete: Trade Logistics in the Global Economy

ET.part.A.r1

Table 1: The First Logistics Performance Index
Country/Economy

LPI Rank Score

Singapore
Netherlands
Germany
Sweden
Austria
Japan
Switzerland
Hong Kong SAR
United Kingdom
Canada
Ireland
Belgium
Denmark
United States
Finland
Norway
Australia
France
New Zealand
United Arab Emirates
Taiwan, China
Italy
Luxembourg
South Africa
Korea, Rep.
Spain
Malaysia
Portugal
Greece
China
Thailand
Chile
Israel
Turkey
Hungary
Bahrain
Slovenia
Czech Republic

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38

4.19
4.18
4.10
4.08
4.06
4.02
4.02
4.00
3.99
3.92
3.91
3.89
3.86
3.84
3.82
3.81
3.79
3.76
3.75
3.73
3.64
3.58
3.54
3.53
3.52
3.52
3.48
3.38
3.36
3.32
3.31
3.25
3.21
3.15
3.15
3.15
3.14
3.13

Country/Economy

LPI Rank Score

India
Poland
Saudi Arabia
Latvia
Indonesia
Kuwait
Argentina
Qatar
Estonia
Oman
Cyprus
Slovak Republic
Romania
Jordan
Vietnam
Panama
Bulgaria
Mexico
Sao Tome and Principe
Lithuania
Peru
Tunisia
Brazil
Guinea
Croatia
Sudan
Philippines
El Salvador
Mauritania
Pakistan
Venezuela, RB
Ecuador
Paraguay
Costa Rica
Ukraine
Belarus
Guatemala
Kenya

39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76

3.07
3.04
3.02
3.02
3.01
2.99
2.98
2.98
2.95
2.92
2.92
2.92
2.91
2.89
2.89
2.89
2.87
2.87
2.86
2.78
2.77
2.76
2.75
2.71
2.71
2.71
2.69
2.66
2.63
2.62
2.62
2.60
2.57
2.55
2.55
2.53
2.53
2.52

Country/Economy

LPI Rank Score

Gambia, The
Iran
Uruguay
Honduras
Cambodia
Colombia
Uganda
Cameroon
Comoros
Angola
Bangladesh
Bosnia and Herzegovina
Benin
Macedonia, FYR
Malawi
Sri Lanka
Nigeria
Morocco
Papua New Guinea
Dominican Republic
Egypt
Lebanon
Russian Federation
Zambia
Senegal
Côte d’Ivoire
Kyrgyz Republic
Ethiopia
Liberia
Moldova
Bolivia
Lesotho
Mali
Mozambique
Azerbaijan
Yemen, Rep.
Burundi
Zimbabwe

77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114

2.52
2.51
2.51
2.50
2.50
2.50
2.49
2.49
2.48
2.48
2.47
2.46
2.45
2.43
2.42
2.40
2.40
2.38
2.38
2.38
2.37
2.37
2.37
2.37
2.37
2.36
2.35
2.33
2.31
2.31
2.31
2.30
2.29
2.29
2.29
2.29
2.29
2.29

Source: Arvis et al., 2007a.

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

Country/Economy

LPI Rank Score

Serbia and Montenegro
Guinea-Bissau
Laos
Jamaica
Togo
Madagascar
Burkina Faso
Nicaragua
Haiti
Eritrea
Ghana
Namibia
Somalia
Bhutan
Uzbekistan
Nepal
Armenia
Mauritius
Kazakhstan
Gabon
Syria
Mongolia
Tanzania
Solomon Islands
Albania
Algeria
Guyana
Chad
Niger
Sierra Leone
Djibouti
Tajikistan
Myanmar
Rwanda
Timor-Leste
Afghanistan

115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150

2.28
2.28
2.25
2.25
2.25
2.24
2.24
2.21
2.21
2.19
2.16
2.16
2.16
2.16
2.16
2.14
2.14
2.13
2.12
2.10
2.09
2.08
2.08
2.08
2.08
2.06
2.05
1.98
1.97
1.95
1.94
1.93
1.86
1.77
1.71
1.21

55

6/2/08

10:03 PM

Page 56

Figure 1: Logistics performance and diversification of exports, 2005

100

Percent of top 10 exports in total exports

1.4: Connecting to Compete: Trade Logistics in the Global Economy

ET.part.A.r1

R 2 = 0.4293
80

60

40

20

0
1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

Logistics Performance Index score

Source: UN COMTRADE; authors’ calculations.

56
The LPI gap, trade, and FDI: Good logistics performers
benefit more from globalization

The LPI gap (the difference between a country’s actual
LPI ranking and its expected ranking, based on its level
of income) also highlights the association between logistics
performance and trade and FDI outcomes. Good logistics
performers benefit more from globalization. Logistically
friendly countries are more likely to have better global
value chain integration and attract export-oriented FDI.
Since trade and FDI are the key channels for the international diffusion of knowledge, poor logistics may
impede access to new technology and know-how, therefore slowing the rate of productivity growth. Conversely,
increased trade creates demand for good logistics, putting pressure on facilitating reforms and sustaining a
market for modern services.
This is demonstrated by cross-country analyses of
the relationship among growth, export diversification or
trade expansion, and the LPI. Countries ranked highly
on the LPI also tended to have more diversified exports.
For non–oil-exporting developing countries, the standard
deviation of this gap is 0.3, while overachievers have a
LPI gap of at least 0.5 (Figure 1).
Likewise, countries undergoing trade expansion
(increased trade-to-GDP ratio) tended to also be those
outperforming on the LPI relative to their level of
income (those with a positive LPI gap). A logistics overachiever with an LPI gap of 0.5 experiences 2 percent
more trade expansion, 1 percent more annual growth, or
exports 40 percent more variety of products (see Figure

2 and Technical Note 2 in the appendix) than other
countries at the same income level.
These significant correlations should be interpreted
in terms of their association rather than causality.
Improvements in the supply chain contribute significantly to competitiveness by reducing transaction
costs. At the same time, a growing, diversifying economy
is likely to have the will and the means to improve its
logistics performance.
Countries seeking to benefit more from globalization need to identify the key aspects of logistics performance, in particular in terms of their impact on
competitiveness.This is the subject of the next section.
Logistics and competitiveness: Why predictability and
reliability matter more than freight costs

Just as strong logistics performance is associated with
increased trade in developing countries (described
above), firm-level competitiveness is extremely sensitive
to the quality of the logistics environment in which it
operates. A firm’s competitiveness is influenced by cost
and performance of its supply chain, and thus depends
on the overall logistics environment—but the main
impact on a firm’s competitiveness is less through cost
than through the predictability of the deliveries.
Firms have to bear the direct costs associated with
moving goods, such as freight costs, port and handling
charges, procedural fees (such as bonds), agent fees, and
side payments. But they also have to absorb the induced
costs associated with hedging for the lack of predictability

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

10:03 PM

Page 57

and reliability of the supply chain (Figure 2).4 They may
need to carry higher inventories of supplies or finished
products, or switch to more expensive modes of transportation to be sure to meet delivery schedules.5
Induced costs are inversely related to predictability
and also tend to rise steeply with declining logistics performance. For example, suppliers to the same automobile
manufacturer will carry 7 days of inventory in Italy but
35 days in Morocco. Some retailers in African countries
maintain three months of inventories or more. Bangladesh
has to ship, on average, 10 percent of its garment production by air to be certain to meet the schedules of
European buyers.
The high induced costs of unpredictability in the
international supply chain are a major constraint for
companies and countries trying to diversify into highervalue production. In global production chains, countries
face the double challenge of maintaining an efficient
chain not just for exports but also for imported inputs
and components.This can be a particular burden for
least-developed countries, where inputs often cannot be
sourced regionally.
Improvements in the quality of the supply chain can
thus open new opportunities to entrepreneurs, even in
otherwise constrained countries. Southern Mali and
Burkina Faso can consider diversifying into exports of
fresh mangoes (three-week shelf life) as well as cotton
exports (typically stored at ports for months), thanks
to greater cooperation between local operators and

Figure 2: Structure of logistics costs supported by
traders

Direct costs
Freight and other
costs associated
with shipment

Induced costs
Cost of non-delivery or
avoidance of non-delivery,
storage, delivery

+

Source: Arvis et al., 2007b.

international logistics providers, as well as to better
performance of the railroad from Abidjan, following a
well-executed privatization program.
Induced costs in countries with good logistics performance are much lower than those for countries with
low logistics performance (Figure 3), differences that can
determine a product’s competitiveness in international
markets. By contrast, direct logistics costs tend to be
much more similar across countries and across different
logistics performance levels.They are therefore less of a
differentiating factor in a country’s ability to compete.
Domestic freight services are tradable, at least regionally.
The costs of capital and some direct inputs, such as fuel,
are also fairly comparable, even in countries at very different levels of development. For developing countries,
the lower cost of labor may be offset by lower productivity, hence the U curve for direct costs.

Figure 3: Direct freight costs vs. induced costs, assessed by respondent

1.0

Induced costs
0.8

Direct freight costs

0.6

0.4

0.2

0.0
1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

Logistics Performance Index score

Source: Arvis et al., 2007a.
Note: The normalized scale is a nonmonetary measure of the relative level of costs across countries, as assessed by respondents in the survey. The curves are fitted to a logistics model, with a utility quadratic in the LPI. Induced costs = the percent of respondents saying that import shipments are not cleared and delivered in time. Direct costs = the percent of respondents saying that overall direct logistics costs are high by international standards.

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

1.4: Connecting to Compete: Trade Logistics in the Global Economy

6/2/08

Normalized scale

ET.part.A.r1

57

1.4: Connecting to Compete: Trade Logistics in the Global Economy

ET.part.A.r1

58

6/2/08

10:03 PM

Page 58

Excluding landlocked countries, the average inland
costs (port and hauling) of importing a 40-foot container or semitrailer, for all countries in the survey, is about
US$700: typically 1.5 percent of the value of goods or
the equivalent of two weeks of inventories, much less
than the actual costs in many developing countries once
large induced costs are factored in.6 This average masks
wide differences. Large coastal countries, such as Russia
and the United States, have higher costs because of long
domestic distances. Other countries are primarily trading overland, as in Eastern Europe, which increases the
costs.
Higher overall import costs are observed in low
logistics performers. In Africa, even in the larger coastal
economies of Nigeria and Kenya, the cost of importing
or exporting a 40-foot container is in excess of
US$2,000. Costs are also increased by the low economies
of scale for multimodal infrastructure or structural
imbalances of volumes of trade along corridors. In some
regions, especially in Africa and Central Asia, the freight
costs are augmented by a proliferation of official and
unofficial payments. In western Africa, facilitating payments and mandatory procedural fees double the direct
cost of transportation.7
The competitive position of countries at an intermediate development level tends to be eroded if they
have low logistics performance and thus much higher
induced costs. Firms in lowest performing countries are
even worse off, since they have to support both high
freight costs and very high induced costs (see Figure 3).
The above trends show that the higher logistics
costs borne by traders in poor environments are only
partially associated with freight transport. And because
of their endogenous nature, these costs can thus be lowered by better domestic systems and policies.The large
differences observed between countries can be explained
by the fact that the overall performance of a country is
largely influenced by the weakest link in its supply
chain. Poor performance, even in only one or two areas,
can have very strong implications for overall country
performance.This insight is important for the design of
effective reforms.

Conclusions: Lessons for reform
By providing a comprehensive assessment of the gaps
and constraints in logistics performance, the LPI and
other information derived from the Logistics
Performance Survey can help policymakers, private
stakeholders, and international organizations quantify
the constraints countries face in connecting globally.
The LPI provides some insights on the costs of
poor logistics to country competitiveness—and the
sources of those higher costs. Beyond cost and time
taken to deliver goods, the predictability and reliability
of supply chains is increasingly important in a world of
just-in-time production sharing. Equally, logistics per-

formance is determined not just by infrastructure and
the performance of public agencies, but also by the
availability of quality and competitive private services—
services such as trucking, customs brokering, and warehousing.
The LPI and its indicators also suggest that policymakers should look beyond the traditional “facilitation
agenda” largely focused on trade-related infrastructure
and information technology in customs, already widely
recognized for their importance.To close the logistics
gap, they should pursue improvements in the markets
for logistics services, reduce coordination failures (especially those of public agencies active in border control),
and build strong domestic constituencies to support
reform.
Moreover, the LPI suggests that there are strong
synergies among reforms to customs, border management,
infrastructure, and transport regulations. Reforms in
these different areas have a mutually reinforcing effect
along all links in the logistics supply chain, directly contributing to predictability and performance. Countries
performing well have a comprehensive approach,
improving all the key logistics in parallel; those with a
piecemeal approach, targeting a single link in the logistics chain, may see initial results but no lasting improvements. A comprehensive reform of logistics and trade
facilitation is thus essential. But too few developing
countries have created a virtuous circle of improvements. Countries at the bottom of the LPI rankings are
typically trapped in a vicious circle of overregulation,
poor-quality services, and underinvestment.
Reforms to improve logistics should follow an
integrated approach, focusing on the interaction among
infrastructure and public and private services, addressing
coordination failures, and identifying constituencies
for reform.To be effective, reforms should improve the
predictability and reliability of shipments and not just
focus on reducing average costs and delays. For instance,
traditional measures of performance such as direct
freight costs and average delays, while important, may
not capture the overall logistics performance and thus
the ability of countries to use trade for growth.The
predictability and reliability of shipments, while more
difficult to measure, are more important for firms and
may have a much greater impact on their ability to
compete.
This effort will demand a more integrated, comprehensive approach to supply chain–related reforms,
according to the performance of countries, with implications for policymakers and development agencies. For
the most severely constrained countries—typically landlocked countries in Africa and Central Asia—innovative
solutions may need to be found, and international
donors will have an important role.
Cross-cutting reforms need to be supported by
broad constituencies. Creating an effective logistics
environment requires consistent improvements and the

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page 59

continuing participation of all stakeholders, who can
demand concrete and practical improvements in performance. Although the problems to be addressed are
rather specific, the ability to tackle them depends largely
on a country’s overall governance and institutional
context. International companies can bring global
knowledge and pressure for change. But the support of
local constituencies of exporters, operators, and public
agencies is crucial.
In identifying the key problem areas and constraints,
the LPI and its indicators also aim to help guide the
preparation of more in-depth, country-specific assessments and strategies, such as trade and transport facilitation audits,8 that are needed to generate concrete
improvements in logistics performance.
The LPI rankings and indicators provide robust
benchmarks that may help policymakers—and particularly the private sector—build the case for reform. By
showing countries how they compare with their competitors, and shining a light on the costs of poor logistics
performance, it is hoped that the LPI and its indicators
may help countries break out of the vicious circle of
“logistics unfriendliness.”

Notes

Daley, J. M., and P. R. Murphy. 1999. “Revisiting Logistical Friendliness:
Perspectives of International Freight Forwarders.” Journal of
Transportation Management: 65–71.
De Wulf, L. and J. Sokol, eds. 2004. Customs Modernization Initiatives:
Case Studies. Washington, DC: World Bank.
———. 2005. Customs Modernization Handbook. Washington, DC:
World Bank.
Guasch, J. and J. L. Kogan. 2003. “Just in Case Inventories: A Cross
Country Analysis.” Policy Research Working Paper No. 3012.
Washington, DC: World Bank.
Labaste, P. 2003. “Linking Farmers to Market, Exporting Malian
Mangoes to Europe.” Working Paper 60. Africa Region.
Washington, DC: World Bank.
Makillie, P. 2006. “The Physical Internet.” The Economist. June 15.
Ojala L. and C. Qeiroz, eds. 2004. “Transport Sector Restructuring in
the Baltic States towards EU Aaccession.” Working Paper No.
31123, March. Washington, DC: World Bank.
Ojala, L., T. Naula, and T. Hoffmann. 2005. “Trade and Transport
Facilitation: Audit of the Baltic States (TTFBS).” Working Paper
No. 31121. Europe and Central Asia Region, World Bank,
Washington, DC.
Raven, J. 2001. Trade and Transport Facilitation: A Toolkit for Audit,
Analysis, and Remedial Action. Washington, DC: World Bank.
Rodrigues, A.M, D. J. Bowersox, and R. J Calantone. 2005. “Estimation
of Global and National Logistics Expenditures: 2002 Data
Update.” Journal of Business Logistics 26 (2): 1–16.
Wilson, J., T. Otsuki, and C. Mann. 2004. “Assessing the Potential
Benefit of Trade Facilitation: A Global Perspective.” Policy
Research Working Paper No. 3224. Washington, DC: World Bank.
World Bank. 2005. World Development Indicators 2005. Washington
DC: World Bank.

1 Makillie 2006.

1.4: Connecting to Compete: Trade Logistics in the Global Economy

ET.part.A.r1

2 The survey would not have been possible without the support
and participation of the International Federation of Freight
Forwarders Associations (www.fiata.com), the Global Express
Association (www.global-express.org), the Global Facilitation
Partnership for Transportation and Trade (www.gfptt.org), and 10
major international logistics companies. The survey was designed
and implemented with Finland’s Turku School of Economics
(www.tukkk.fi/english/), which worked with the Bank to develop
the concept in 2003.
3 These are a series of annually published reports and databases
that can be found at www.doingbusiness.org.
4 Arvis et al. 2007b.
5 Guasch and Kogan 2003.
6 The typical value of a container of consumer goods is US$50,000,
while the inventory value is about 0.1 percent per day (Arvis et al.
2007b).
7 Arvis et al. 2007b.
8 Raven 2001.

References
Arvis, J. -F., M. Bellier, and G. Raballand. 2006. “Success Factors for
Improving Logistics in a Middle-Income Country.” Transport Notes
Series 35. Washington, DC: World Bank.
Arvis, J.-F., M. A. Mustra, J. Panzer, L. Ojala, and T. Naula. 2007a.
Connecting to Compete: Trade Logistics in the Global Economy:
The Logistics Performance Index and its Indicators. Washington,
DC: World Bank. Available at http://www.worldbank.org/lpi.
Arvis, J.-F., G. Raballand, and J.-F. Marteau. 2007b. “The Cost of Being
Landlocked: Logistics Costs and Supply Chain Reliability.” Policy
Research Working Paper No. 4258. Washington, DC: World Bank.
Daley, J. M., D. R. Dalenberg, and P. R. Murphy. 1993. “Doing Business
in Global Markets: Perspectives of International Freight
Forwarders.” Journal of Global Marketing 6 (4): 53–68.

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

59

1.4: Connecting to Compete: Trade Logistics in the Global Economy

ET.part.A.r1

6/2/08

10:03 PM

Page 60

Appendix A: Structure and composition of the LPI
Freight forwarders and express carriers are in a privileged
position to assess how countries perform on logistics.
They manage operations from factory and warehouse to
port, from port to overland transit, and through one or
more borders to destination, with each link testing a
country’s logistics infrastructure performance.The World
Bank’s Logistics Performance Survey taps into the firsthand knowledge of logistics professionals worldwide,
providing a comprehensive picture of supply chain performance—from customs procedures, logistics costs, and
infrastructure quality to the ability to track and trace
shipments, timeliness in reaching destination, and the
competence of the domestic logistics industry.

The Logistics Performance Index and its indicators
The Logistics Performance Index and its indicators have
been constructed from information gathered in a worldwide survey of the companies responsible for moving
goods and facilitating trade around the world—the
multinational freight forwarders and the main express

carriers. It relies on the experience and knowledge of
professionals.Their views matter: they have a direct
impact on the choice of shipping routes and gateways
and can influence the firms’ decisions about the location
of production, choice of suppliers, and selection of target markets.
The indicators summarize the performance of
countries in seven areas that capture the current logistics
environment (Box A1).They range from traditional areas
such as customs procedures, logistics costs (such as
freight rates), and infrastructure quality to new areas
such as the ability to track and trace shipments, timeliness in reaching a destination, and the competence of
the domestic logistics industry. None of these areas
alone can ensure good logistics performance.
The selection of these areas is based on the latest
theoretical and empirical research,1 and on extensive
interviews with logistics professionals involved in international freight logistics.2 The LPI synthesizes this information in a composite index to allow for comparisons
(see Table 1 in the text).

60
Box A1: Building the Logistics Performance Index
The Logistics Performance Index (LPI) is built on information
from a Web-based questionnaire completed by more than 800
logistics professionals worldwide—the operators or agents of
the world’s largest logistics service providers. Each respondent
was asked to rate performance in seven logistics areas for
eight countries with which they conduct business. For each
respondent, the eight countries were automatically generated
by the survey engine based on trade flows, income level, geographical position of respondent countries (coastal or landlocked), and random selection.1 The country selection matrix is
presented in Figure A1 in Technical Note 1. Performance was
evaluated using a 5-point scale (1 for the lowest score, 5 for the
highest). The seven areas of performance are:2
• efficiency of the clearance process by customs and other
border agencies,
• quality of transport and information technology infrastructure
for logistics,
• lease and affordability of arranging international shipments,
• competence of the local logistics industry,
• ability to track and trace international shipments,
• domestic logistics costs, and
• timeliness of shipments in reaching destination.
More than 5,000 individual country evaluations were used to
prepare the Logistics Performance Index, which covers 150
countries.3 The LPI was aggregated as a weighted average of
the seven areas of logistics performance.4 The index is con-

structed using the principal component analysis method in
order to improve the confidence intervals.
Each respondent was also asked to evaluate the logistics
performance and the environment and institutions in support of
logistics operations in the country in which they are based.5
(This wealth of additional information on different aspects of
logistics was used to interpret the LPI as well as to validate and
cross-check the information underlying it. The questionnaire is
available at www.worldbank.org/lpi.)

Notes
1 Although respondents know best the countries with which they
trade most, relying on trade statistics alone would leave small and
low-income economies uncovered.
2 In Arvis et al. 2007a, Appendix Table A1, the short names for these
seven areas of performance are: customs, infrastructure, international shipments, logistics competence, tracking and tracing,
domestic logistics costs, and timeliness.
3 See Table A2 in Technical Note 1 and Arvis et al. 2007a, Appendix
Table A1; the Logistics Performance Index is also available at
www.worldbank.org/lpi.
4 Domestic costs were found to be uncorrelated to the other areas
in the LPI. Therefore, being less significant, this component was
dropped from the composition of the index.
5 Arvis et al. 2007a, Appendix Tables A2 and A3; the Logistics
Performance Index is also available at available at
www.worldbank.org/lpi.

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page 61

Appendix A: Structure and composition of the LPI (cont’d.)
The LPI and its indicators are given on a numerical
scale, from 1 (worst) to 5 (best).This scale can also be
used to interpret performance outcomes measures. For
example, the analysis based on the additional country
information gathered in the survey indicates that, on
average, having an LPI lower by one point (say, 2.5
rather than 3.5) implies six additional days for getting
imports from the port to a firm’s warehouse and three
additional days for exports. It also implies that a shipment is five times more likely to be subject to a physical
inspection at entry.

Key factors determining logistics performance
To provide a more complete picture of the key factors
determining logistics performance, the Logistics
Performance Survey asked logistics professionals about
the institutions and processes supporting logistics operations in the countries in which they are based (Table
A1). It asked them to assess critical attributes of the supply chain, including timeliness of deliveries, quality of
transport and IT infrastructure, efficiency of border
clearance processes, competence of the local logistics
industry, and domestic costs of services as well as provide time and cost data.3
The questions in the Logistics Performance Survey
delved into the quality of infrastructure, the competence
of private and public logistics service providers, the roles
of customs and other border agencies, such governance
issues as corruption and transparency, and the reliability
of the trading system and supply chains.4 Reliability
(measured by the predictability of the clearance process
and the timely delivery of shipments) emerged as a key
concern, with the difference in satisfaction between the

high- and low-performing countries much larger than
for any other question in the survey. Some of the reasons for this are discussed at the end of this appendix.
This section draws upon the qualitative information
provided by international operators based in the countries being evaluated to provide insights on the key
institutions and processes determining logistics performance; it then analyzes the importance of reliability in
logistics performance for competitiveness.
Quality of infrastructure

Telecommunications and information technology (IT)
infrastructure are an essential component of modern
trade processes.The physical movement of goods now
entails the efficient and timely exchange of information.
In countries in the LPI’s top two quintiles, logistics
operators rarely have any issues with the quality of the
telecommunications and IT infrastructure, but close to
half of them express concerns in countries ranging from
average to lowest performers. In sub-Saharan Africa, 43
percent of respondents see this as an issue.5
The quality of transport infrastructure remains a
concern in close to or more than half of the logistics
operators in average, low, and lowest performers.That
concerns also exist in even the highest and high performing countries reflects the challenge of maintaining
physical infrastructure at a level able to satisfy rapidly
growing demands.
Competence of private and public logistics service
providers

The performance of the supply chain depends on the
quality of services delivered by the private sector
through customs brokers and road transport operators—

Table A1: How logistics professionals assess institutions and processes
Top quintile
Highest
performance

Second quintile
High
performance

Third quintile
Average
performance

Fourth quintile
Low
performance

Bottom quintile
Lowest
performance

6

7

41

27

46

Concerned about the quality of the physical transport infrastructure
(ports, roads, warehouses)

17

28

59

46

57

Satisfied with customs

55

32

19

18

11

Satisfied with other border government agencies

38

13

10

9

18

Percent of respondents

Concerned about the quality of telecommunications and IT infrastructure

services1

59

34

18

16

11

Satisfied with professional organizations

46

28

6

21

17

Satisfied with private logistics

Concerned with frequent solicitation of informal payments

6

23

34

49

56

Satisfied with transparency of border processes2

72

44

38

33

26

Imports cleared and delivered as scheduled

87

69

32

39

13

Source: Arvis et al. 2007a, Appendix Tables A2, A3.
Notes:
1 Aggregation of customs brokers, distributors, and road operators.
2 Aggregation of the results of the predictability of changes in regulations and transparency of the customs clearance process.

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

1.4: Connecting to Compete: Trade Logistics in the Global Economy

ET.part.A.r1

61

1.4: Connecting to Compete: Trade Logistics in the Global Economy

ET.part.A.r1

6/2/08

10:03 PM

Page 62

Appendix A: Structure and composition of the LPI (cont’d.)
and on the competence and diligence of public agencies
in charge of border procedures. In these areas, the three
bottom quintiles generally fare much worse than the top
quintile, and the differences in quality are as significant
as those for infrastructure (see Table A1). For example,
the satisfaction with customs brokers is fairly high for
the upper-middle-income countries (around 50 percent), but it is only 8 percent for private providers in
sub-Saharan Africa.6
For the lower performers, the dissatisfaction with
the quality of trade logistics services applies to both the
private and public sectors. In those countries where
logistics performance is high, there is more satisfaction
with private providers than with public providers.The
negative view of private providers in the lower performers is an important insight.Too often in developing
countries, and notably in Africa, inadequate regulations

and the absence of competition lead to corruption or
poor services—such as those provided by “suitcase businessmen” at border posts. Often the mere presence of
these operators disturbs the clearance process and hinders the emergence of competent local logistics operators who can work with international operators.
Customs and other border agencies

Clearance at the border is not only a matter of customs
diligence. Law enforcement agencies and ministries of
agriculture and industry also intervene in the process.
Customs performance tends to be better than that of
other border agencies; on average, customs clearance
accounts for a third of import time (Box A2).This
underscores the importance of addressing the coordination of border agencies, especially in countries that
already have attained good customs clearance.

Box A2: Modernizing border processes
62

delays in Africa (56 percent) and Latin America (43 percent).3
Physical inspections and the time needed for clearance are
also strongly associated with overall logistics performance. But
only one-third of the time to import is explained by the customs
process, the rest by transportation, handling, or delays caused
by private operators.

Clearance processes by customs and other agencies are
among the most important links in the global supply chain. Key
facilitation principles have been addressed by several international agreements (such as the Kyoto convention, the World
Trade Organization (WTO)’s General Agreement on Tariffs and
Trade (GATT), and the current negotiations on trade facilitation
at the WTO). In the Logistics Performance Survey, logistics professionals provide in-depth evaluation in this critical area,
across countries.1
The Logistics Performance Survey results show a high
degree of information technology (IT) use in Africa, 55 percent,
a credit to the United Nations Conference on Trade and
Development (UNCTAD)’s Asycuda program and some homegrown projects.2 Preshipment inspection is a major source of

Notes
1 Arvis et al. 2007a, Appendix Tables A2, A3.
2 Information on the Asycuda program can be found at
http://www.asycuda.org/.
3 Arvis et al. 2007a, Appendix Table A2.

Table: Customs and border processing performance, by quintile

Estimated percentage of physical inspections
Respondents agreeing that traders demonstrating high levels
of compliance receive expedited customs clearance

OECD
high
income

Non-OECD
high
income

3

22

22

54

25

41

East Asia
& Pacific

Europe &
Central
Asia

Latin
America &
Caribbean

Middle East
& North
Africa

South
Asia

SubSaharan
Africa

14

25

45

36

48

51

42

42

57

17

Respondents able to use IT to submit customs declaration

70

42

28

46

58

53

50

55

Time between accepted customs declaration and customs
clearance (days)

1.0

1.7

2.1

1.7

2.7

1.9

2.4

4.2

Average time to export (days)

2.3

2.9

3.9

2.8

3.9

3.7

3.6

8.1

Average time to import (days)

3.2

3.6

4.4

3.5

4.8

6.0

6.5

12.3

Cost to import a 40-foot container or semitrailer (US$)

663

572

819

936

1,000

609

880

2,124

Source: Arvis et al. 2007a, Appendix Tables A2, A3.
1 The World Bank’s classification of countries can be found at www.worldbank.org/data/

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page 63

Appendix A: Structure and composition of the LPI (cont’d.)
Corruption and transparency

Logistics performance also depends on broader policy
dimensions, including the overall business environment,
the quality of regulation for logistics services, and, most
important, overall governance.The way the local market
for logistics services is regulated directly affects a country’s ability to use the physical internet to connect to
global markets.The transparency of government procurement, the security of property from theft and looting, macroeconomic conditions, and the underlying
strength of institutions are critical factors in determining
logistics performance. Unsurprisingly, ratings of the
domestic environment in such areas as corruption and
the transparency of processes and regulation reflect these
findings.The rating for transparency of border processes
consistently declines along with LPI scores for the following groups of countries: poor performers in the LPI
were also poor performers on transparency of border
processes (see Table A1). Solicitation of informal payments is rare among the top 30 countries but common
among lower performers (close to or more than 50 percent of responses).7
Reliability of the trading system and supply chains

For traders at the origin or the destination of the supply
chain, what matters most is the quality and reliability of
logistics services, measured by the predictability of the
clearance process and timely delivery of shipments to
destination (see Table A1, where these data appear in
bold).The difference in satisfaction between the highand low-performing countries on this question is much
larger than for any other question in the survey.
Performance data derived from the survey on the time

(in days) for delivery of goods confirms the same phenomenon (Box A3).
Taken together, all these factors—quality of infrastructure, the competence of private and public logistics
service providers, the roles of customs and other border
agencies, governance issues such as corruption and
transparency, and the reliability of the trading system and
supply chains—confirm once again that logistics performance is about predictability (see Table A1). Predictability is central to the overall costs that companies
incur in logistics and thus to their competitiveness in
global supply chains.

Technical Note 1: Selection of countries
Figure A1 presents the matrix of how the eight countries
with which they conduct business are selected, based on
the respondent’s country of work.
The LPI methodology uses the World Bank Classification of Countries.8 Table A2 classifies all World Bank
Member countries (184) and all other economies with
populations of more than 30,000 (208 total).9 The
country coverage by the Logistics Performance Index
(150 total) is also shown.
For operational and analytical purposes, economies
are divided among income groups according to 2005
gross national income (GNI) per capita, calculated
using the World Bank Atlas method.The groups are:
low income, US$875 or less; lower middle income,
US$876–3,465; upper middle income, US$3,466–
10,725; and high income, US$10,726 or more. Other
analytical groups based on geographic regions are also
used.

Box A3: Customs and border processing performance, by quintile
The Logistics Performance Survey captures the time to import
and export and, more important, the dispersion in time as a
measure of predictability. Delays tend to increase with lower
overall performance, but also with unpredictability. The effect is

much stronger in some countries in the bottom quintile—not
only in poor, landlocked countries, such as Chad, but also in
coastal Tanzania and Benin, which have import times of more
than a week.

Table: Customs and border processing performance, by region (percent)
Top quintile
Highest performance
(no. of days)

Second quintile
High performance
(no. of days)

Third quintile
Average performance
(no. of days)

Fourth quintile
Low performance
(no. of days)

Bottom quintile
Lowest performance
(no. of days)

Best time to import (best decile of shipments)

1.9

2.1

3.7

4.6

6.1

Median time to import

3.2

3.9

5.4

7.1

13.6

Source: Arvis et al. 2007a, Appendix Table A3.

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

1.4: Connecting to Compete: Trade Logistics in the Global Economy

ET.part.A.r1

63

1.4: Connecting to Compete: Trade Logistics in the Global Economy

ET.part.A.r1

6/2/08

10:03 PM

Page 64

Appendix A: Structure and composition of the LPI (cont’d.)
Technical Note 2: The Logistics Performance Index and
multivariate regressions
Straightforward econometric analyses point to significant association between the LPI and outcomes, such as:
• Medium-term growth over the years 1992–2005.
• Trade expansion, defined as the overall annual
change in trade openness over the same period. It is
excess of trade growth over GDP growth.

The sample of countries excludes high-income
countries and oil exporters.The results are robust to
other choices of period (Table A3). Regression 1 measures the LPI against the level of development (Log
[GNI/cap] 2005).The residual measures how much
the countries are performing logistically against their
potential (the standard deviation in LPI gap is 0.3).
Regressions 2 through 6 measure one of the growth,
trade expansion, or diversification variables against the
LPI and Log (GNI/cap), or against the sole LPI gap.

• The index of trade diversification—the Theil index,
which can be interpreted as the natural logarithm
of the number of exported varieties.

Figure A1: Matrix: Six country-selection rules

Respondents from

Respondents from

Respondents from

LOW-INCOME COUNTRIES

MIDDLE-INCOME COUNTRIES

HIGH-INCOME COUNTRIES

Five most important export
partner countries

Three most important export
partner countries

64

Respondents from

COASTAL COUNTRIES

+
Three most important partner
countries

+
Four countries randomly,
one from each country group:
a) Africa
b) East Asia + Central Asia
c) Latin America
d) Europe less Central Asia +
OECD

Respondents from

Four most important export
partner countries
LANDLOCKED COUNTRIES

+
The most important import
partner country

Three most important export
partner countries

+

+

Two most important import
partner countries +
Two landlocked countries

One most important import
partner country

Four countries randomly out of
one list of five most important
export partner countries and
five most important import partner countries

+
Four countries randomly,
one from each country group:
a) Africa
b) East Asia + Central Asia
c) Latin America
d) Europe less Central Asia +
OECD

+
Two landlocked countries

+
Two countries randomly,
one from each country group:
a) Africa + East Asia + Central
Asia + Latin America
b) Europe less Central Asia +
OECD

Source: Arvis et al. 2007a, p. 22.

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page 65

Appendix A: Structure and composition of the LPI (cont’d.)
Table A2: Regional coverage of the Logistics
Performance Index
Total
countries
in group/
region

Income groups/world regions

Notes

Number of
LPI’s
countries coverage
ranked in of group/
the LPI region(%)

Low income

54

51

94

Middle income

98

65

66

58

41

71

Lower middle income
Upper middle income

40

24

60

152

116

76

East Asia & Pacific

24

13

54

Europe & Central Asia

27

25

93

Latin America & Caribbean

31

21

68

Middle East& North Africa

14

11

79

Low & middle income

South Asia
Sub-Saharan Africa
High income

8

7

88

48

39

81

1 The methodology developed by Daley and Murphy in 1993—using
a survey format, a four-point scale, and open-ended questions—
set out to measure the perceived importance and influence of different component attributes that affect the logistical friendliness
of countries. In a follow-up study by Ojala and Qeiroz (2004), only
those characteristics identified as best encapsulating logistics performance were included for evaluation.
2 These interviews were conducted in the context of the Trade and
Transport Facilitation Audits (TTFA) performed by the World Bank
and others (Raven 2001) and contributed substantially to refining
the methodology.
3 See Arvis et al. 2007a, Appendix Table A2 for Country-specific
environment and institutions data averages and Appendix Table
A3 for Country-specific performance data.
4 In Appendix Table A2 of the World Bank’s 2007 Connecting to
Compete: Trade Logistics in the Global Economy Report, performance is evaluated in 30 subareas for which LPI quintiles, regional,
or income group averages allow for meaningful comparisons. For
most countries the number of respondents in this section of the
survey is too small to warrant a country statistic.

56

34

61

European Monetary Union

12

12

100

5 See Arvis et al. 2007a, Appendix Table A2.

High income (OECD)

24

23

96

6 See Arvis et al. 2007a, Appendix Table A2.

High income (non-OECD)

32

10

31

Heavily indebted poor countries (HIPC)

40

37

93

Least developed countries (UN classification)

49

41

84

Landlocked developing countries
(UN classification)

31

26

84

Commonwealth of Independent States

12

10

83

Transitional

24

22

92

Organization of Petroleum Exporting Countries

12

10

83

208

150

72

TOTAL COUNTRIES

7 Arvis et al. 2007a, Appendix Table A2.
8 See the World Bank’s classification of countries, found at
www.worldbank.org/data.
9 Details can be found at www.worldbank.org/data, under
Classification.

65

Source: Arvis et al. 2007a.

Table A3: Results of LPI multivariate regressions
Dependent variable
Independent variable

Regression 1
LPI

Regression 2
Growth

0.422
(7.1)**

2.0%
(2.8)**
–0.8%
(–1.5)*

LPI
Log (GNI/cap)
LPI gap
R2
F
No. of countries

0.35
50.9
97

0.08
3.9
97

1.4: Connecting to Compete: Trade Logistics in the Global Economy

ET.part.A.r1

Regression 3
Growth

Regression 4
Trade expansion

Regression 5
Trade expansion

3.7%
(3.5)**
–2.1%
(–2.7)**
2.0%
(2.8)**
0.08
7.8
97

0.12
6.4
97

Source: Arvis et al. 2007a.
Note: * = Significant at the 5 percent level; ** = significant at the 1 percent level.

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

Regression 6
Theil index

1.05
(3.5)**
0.95
(4.4)**
3.7%
(3.5)**
0.11
12.1
97

0.44
38.5
97

ET.part.A.r1

6/2/08

10:03 PM

Page 66

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page 67

CHAPTER 1.5

Facilitating Cross-Border
Movement of Goods:
A Sustainable Approach
POUL HANSEN and LILIANA ANNOVAZZI-JAKAB, United Nations

World trade has expanded very quickly over the past
decades.This expansion has been driven by several
important developments, including the changing nature
of production, increased competition in international
commerce, successful multilateral trade negotiations, and
lower transport costs.The considerable reduction in tariffs
on goods crossing national borders has gradually moved
the focus of trade policy from traditional trade barriers
to the remaining facilitation hurdles and bottlenecks.

Conference on Trade and Development (UNCTAD)

Development aspects of trade and transport facilitation
The success in export markets for developed and developing country firms alike depends more and more on
the ability of those firms to offer and promote efficient,
low-cost trade services and logistics. Policies related to
trade and transport facilitation and economic development reflect this understanding and emphasize the idea
that trade can be a powerful engine for accelerating
economic growth, job creation, and poverty reduction.

1.5: Facilitating Cross-Border Movement of Goods

ET.part.A.r1

The role of trade and transport facilitation

Trade and transport facilitation involve a wide range of
activities centered on lowering trade transaction costs
for firms in global commerce.These costs include the
price of moving freight from the factory to final destinations. Among many other steps, firms must manage
border clearance procedures and pay trade services fees
after goods and services are produced.Trade and transport facilitation, therefore, addresses a wide agenda in
economic development and trade that may include
improving transport infrastructure and services, reducing
customs tariffs, and removing non-tariff trade barriers
including administrative and regulatory barriers. Such
regulatory procedures in international trade go beyond
mere customs inspections to include fiscal controls, safety
and security measures, environment and health checks,
consumer protection mechanisms, and trade policy regulations.Trade facilitation looks at how the procedures
and controls governing the movement of goods across
national borders can be improved to reduce associated
costs and maximize efficiency while safeguarding legitimate regulatory objectives.
Business costs may be a direct function of collecting
information and submitting declarations or an indirect
consequence of border checks in the form of delays and
associated time penalties.These costs can result in forgone
business opportunities and reduced competitiveness.This
is especially true for already disadvantaged countries
such as the many landlocked developing countries.
The above-mentioned barriers to trade and the
degree of trade facilitation and business friendliness contribute to the extent and success of a country’s economic development.Trade facilitation can be measured in
many ways.The World Economic Forum’s Enabling
Trade Index provides, on the one hand, a peer review
among countries regarding how they are evaluated in

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

67

1.5: Facilitating Cross-Border Movement of Goods

ET.part.A.r1

68

6/2/08

10:03 PM

Page 68

Table 1: Impact of landlocked condition, by GDP (2006)
Box 1: Trade facilitation: The potential gains

Nominal GDP
(US$, millions)

Economy

The World Bank has, in 2004, conducted a study of port efficiency, customs, regulatory transparency, and service sector
infrastructure. The study concluded that increasing global
capacity in trade facilitation by half, when compared with
the global average, would increase world trade by US$377
billion, amounting to a 9.7 percent rise in global trade. The
majority of gains resulting from such a capacity improvement
would stem from domestic reforms and capacity building.
The study estimates that about US$107 billion of the total
calculated gains would come from improvements in port
efficiency, about US$33 billion from improvements in the
customs environment, and US$83 billion from improvements
in the regulatory environment. The largest gain, of US$154
billion, would come from improvements in the service sector
infrastructure as well as the increased use of information
technology.

Landlocked developing countries

Source: Wilson et al., 2004.

Economy

the global trade and transport facilitation field by practitioners, and, on the other hand, a self-assessment tool for
countries regarding the areas in which they need to
focus their efforts to become more competitive.
Trade and transport facilitation and the special case of
landlocked developing countries

A landlocked country is a country enclosed or nearly
enclosed by land, without direct coastal access to the
sea.1 Being landlocked has always been considered disadvantageous, and historically countries have made efforts
to avoid being landlocked. Landlocked countries are not
just cut off from sea resources but, much more importantly, they have no direct access to seaborne trade,
which continues to be essential for a successful participation in international commerce.The situation of these
countries is in many cases aggravated by the fact that
the condition of being landlocked coincides with other
factors such as remoteness from major markets, tropical
climates, or considerable distance from the coast. Around
the world, coastal regions tend to be wealthier and more
heavily populated than inland ones. Apart from Europe’s
highly successful landlocked countries (including
Switzerland, Austria, and Luxembourg), many of the
poorest nations of the world—including a large number
of African countries—are landlocked developing countries.Their plight continues to require urgent attention.
Tables 1, 2, and 3 provide evidence of the negative
impact of landlockedness of developing countries compared with their neighboring developing countries when
measured by gross domestic product (GDP), foreign direct
investment (FDI), and merchandise import and export.

Transit developing countries1

Per capita
GDP (US$)

262,535

688

6,918,024

1,768

Source: UNCTAD GlobStat.
1 There is no official UN category of either “transit countries” or “transit
developing countries.” The group of “transit developing countries” shown
here is based on a list of countries in these categories, which was generated by the Office of the High Representative for the Least Developed
Countries (LDCs), Landlocked Developing Countries (LLDCs), and Small
Island Developing States (SIDS) in 2004 under the heading “transit countries,” but excludes all developed transit countries as well as such developing countries as Mongolia, Afghanistan, and several Central Asian countries that are both landlocked countries and important transit links. It is
accordingly presented here for purely informational purposes.

Table 2: Impact of landlocked condition, by FDI (2006)
Direct investment in reporting
economy (FDI inward)
US$ millions Percentage
(current price)
of GDP

Direct investment
abroad (FDI outward)
US$ millions Percentage
(current prices) of GDP

Landlocked
developing
countries

11,366

4.33

338

0.13

Transit
developing
countries1

169,701

2.45

68,640

0.99

Source: UNCTAD GlobStat.
1 See note for Table 1.

Table 3: Impact of landlocked condition, by merchandise
import and export (2006)
Merchandise
trade exports
(US$ millions)

Percentage
of world
total

Merchandise
trade imports
(US$ millions)

Landlocked
developing
countries

96, 722

0.80

93,156

0.76

Transit
developing
countries1

3,685,197

30.54

1,741,417

14.15

Economy

Percentage
of world
total

Source: UNCTAD GlobStat.
1 See note for Table 1.

For landlocked developing countries in particular, it
is important to address the issue of transit cooperation
with a view to reducing the freight cost of import and
export goods and thereby enhancing their competitiveness.Table 4 illustrates the excessively high transport
costs experienced by landlocked developing countries.
In recent years, efforts to transform the circumstance
of being landlocked from a destiny to a challenge that
can ultimately lead to being “landlinked” have steadily
increased.There are more and more international and
regional initiatives to reach out to landlocked countries,
especially developing ones.The United Nations has a
special program to assist landlocked developing countries

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page 69

Table 4: Transport costs: Landlocked developing
countries vs. world average

Year

2003

Country group

World average

Estimate of
freight cost
of imports

Value of
imports (c.i.f., as
US$ millions)

Freight costs
percentage of
import value

379.2

7,053

5.4

101.0
108.6

695
993

14.5
10.9

92.5
275.8
117.3

656
1,130
490

14.1
24.4
23.9

20.9
61.0
288.3

157
284
1,657

13.3
24.1
17.4

SOUTHERN AFRICA

2002
2000

Malawi
Zambia
WESTERN AFRICA

2001
2003
2003

Burkina Faso
Mali
Niger
EASTERN AFRICA

2003
2004
2004

Burundi
Rwanda
Uganda

Source: UNCTAD.

that, among other things, focuses on the cross-border
difficulties and access possibilities of maritime transport
of these countries.
Trade and transport facilitation and the transit issue

International trade faces transport constraints, especially
in developing countries. It is no longer so much that
access to world markets is a problem; the problem is more
one of actually getting the goods to their destination
without major delays and cost increases. If transporting
goods means, in addition, having to cross the territory
of a sovereign country—as is the case for goods from
landlocked countries or regions—time and costs can
rapidly become a major problem. Costs are the result of
formal fees charged by the transit country, as well as
operational costs and additional costs linked to the
necessity of hiring experts and advisors to comply with
formal requirements. In addition, transit has a strong time
component: time is needed to comply with requirements
that can be more or less cumbersome and duplicating;
time is needed to actually cross the territory, which can
happen on long or obsolete roads or in compulsory
convoys; and time elapses between each of these active
steps of the transit procedure. For investors, traders, and
businessmen, time and costs are the key indicators of
performance in any transit process, and they ultimately
influence the competitiveness of a whole region.
Transit has become a major issue, and the way it is
handled can have a decisive impact on the competitiveness of a country.Transit has, for a long time, been viewed
as opposing the economic, political, military, trade, and
transport interests and agendas of two parties—the transit country, in particular, those with access to cheaper
maritime transport on one side, and the landlocked
country dependent on such solutions on the other. In
practice, this has given rise to solutions settled in bilateral,

regional, or even multilateral agreements. Although the
latter mainly focus on general access and transit rights,2
regional agreements are mostly part of more detailed
regional integration efforts where the need for closer
trade relations relies also on better transport links. In
some areas of the world, countries have signed so many
of these agreements that they overlap and conflict with
each other, and simply end up not being enforced at all.
More or less liberalized transit regimes with fewer
restrictions on road transportation quotas or choice of
routes have seen the light in recent years.The most successful ones are those implemented within the European
Union, but successful solutions have also emerged in
Southeast Asia and in Southern Africa.
The transit issue and transit agreements are a serious
topic for all countries.These agreements are often more
a compromise between the interests of the landlocked
and the transit countries than an optimal solution for
either.They are linked to wide-reaching legal and regulatory matters including customs regimes, transport and
quota restrictions, guarantee schemes, health and sanitary
issues, security, and fraud, to name just a few. Although
solutions have certainly been sought, they often appear
to lack crucial elements of trade and transport facilitation, focus, and consequent enforcement.

1.5: Facilitating Cross-Border Movement of Goods

ET.part.A.r1

69
Barriers to the cross-border movement of goods
Among the many barriers to the efficient cross-border
movement of goods are the complexity of procedures,
expenses in both money and time, and insufficiencies in
infrastructures and operations.
Complexity of procedures

Despite significant growth in international trade, such
trade operations and the related cross-border movements
can be incredibly complex, involving many actors and
administrative steps. Even in developed countries such as
the United Kingdom, there are close to 60 or even more
distinct regulatory procedures and regimes that affect
cross-border operations.3 These operations fall into the
wider categories of revenue collection and fiscal protection, public safety and security, environment and health,
consumer protection, and trade policy. Procedures, documentary requirements, inspections, visas, and vehicle
regulations as well as general security issues can all
severely hamper the movement of goods across borders.
Examples of bottlenecks and barriers are numerous, and
they constitute substantial administrative and financial
burdens for any trader. A positive change, therefore, has
an important impact, as shown by a recent study by the
Asian Development Bank on Central Asia. A simulation
model calculated that the aggregate effects of better
regional cooperation in transport and customs transit
could increase real GDP in, for example, the Kyrgyz
Republic by 112.3 percent.4

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

1.5: Facilitating Cross-Border Movement of Goods

ET.part.A.r1

70

6/2/08

10:03 PM

Page 70

The cost and time factor

The operational issues in the day-to-day movement of
goods across borders require a well-functioning and
easy-to-operate interface between business and government. Only transparent, reliable, internationally harmonized transport, customs, and road traffic codes—as well
as legislation that is conducive to the development of a
strong, competitive business environment—can encourage
fair and open conditions and efficient transport services.
Institutional challenges that often result in duplication of
work among agencies and ministries and between countries as well as a lack of coordination with the private
sector overburden the process.The private sector can
often do no more than comply with the requirements
and bear the costs that are associated not only with collecting, producing, transmitting, and processing required
information and documents, but also with the expenses
of setting up and financing guarantees, laboratory testing,
inspection fees, stamp charges, service fees levied by
shipping lines and banks, labor and handling charges to
deliver goods to inspection facilities and to present goods,
storage charges, and possible out-of-hours surcharges. A
lack of competition among service providers can further
aggravate the situation.
Any uncertainty in the process creates unpredictable
circumstances and delays, increases transactional costs,
and can even lead to the loss of business and opportunities.Typically such unpredictable circumstances are the
result of multiple and contradictory documentation
requirements or lengthy inspection procedures by
agencies that include customs, immigration, health and
sanitary authorities, police and other security agencies,
and standardization or conformity assessment agencies.
The lack of trust and coordination among agencies
within one country and among agencies in neighboring
countries adds further unpredictability to the process.
Unofficial payments are often an implicit requirement
to resolve such barriers.
The total time a vehicle takes to cross a border
from one country into another will ultimately depend
on the assignments carried out by the various border
agencies in charge of control activities, as well as other
issues such as:
• delays that do not always occur because of border
agencies—for example, drivers may wait before
proceeding;
• different formalities may sometimes be carried out
at the same time; and
• processing delays in the country of entry may spill
over in the country of exit.

Box 2: Checkpoints: Africa
Checkpoints and roadblocks are a serious detriment to trade
in Africa and cause extreme delays and increased transport
costs. Between Douala and Bertoua in Cameroon, for example, 47 roadblocks were reported over a distance of about
500 kilometers. According to the same source, nearly all
Economic Community of West African States (ECOWAS)
Member States maintain checkpoints where drivers are
sometimes subjected to administrative harassment and
numerous extortions. Thus, for example, on the highway linking Lagos and Abidjan (992 kilometers long), there are 69
checkpoints—that is 7 checkpoints every 100 kilometers.
Payments at checkpoints include taxes, transit charges, and
bribes, which vary according to the type of vehicle, the type
of goods transported, and the nationality of the transporters
or driver. They may involve the police, customs officers,
and/or gendarmes. Some of these checkpoints are legal; others unfortunately are not.

Source: United Nations Economic Commission for Africa, 2004.

Infrastructure and operational deficiencies

Inadequate infrastructure, which can easily lead to
congestion at inspection facilities at any border inland
or in ports; a lack of staff; and non-harmonized working
hours that are not necessarily business friendly can result
in unforeseen delays and add additional handling or
storage charges. Infrastructure and capacity constraints
also remain a problem when it comes to roads, ports,
railway lines, handling and storage facilities as well as
equipment, transport vehicles, or railway stock. Obsolete
and inadequate information and communications equipment and weak telecommunication links further aggravate
the situation and add to the hassles traders have to face
on a day-to-day basis. A country’s logistics friendliness—
that is, the ease of arranging freight operations to and
from a particular country—has become a major indicator
for stability and for a country’s propensity to attract
investment. Even the tendency to succumb to illegal
payments appears to be linked to these issues, and those
countries that have a logistically friendly environment
are less likely to encounter large-scale corruption in
this sector.
The impact of all these barriers on transactional
costs and, eventually, on the volume of trade and the
competitiveness of a whole country cannot be overestimated. In recent years, therefore, more and more efforts
have been made to find comprehensive solutions that
diminish the administrative, institutional, infrastructure,
and regulatory burdens on both the transit and the

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page 71

Box 3: Crossing borders: Waiting times from Africa, Europe, and Central America
Africa

In a 2005 International Transport Workers Federation (ITF) survey on working conditions among truck drivers performing road
haulage from seven central African countries to the port of
Douala in Cameroon, all drivers recounted prolonged waiting at
the border crossings, ranging from at least 2 to up to 5 days.
Furthermore, all of the drivers reported cases of police interventions on their journeys to the port of Douala and mentioned that
they usually stayed between 7 and 15 days in the port of Douala
before they commenced the return journey.
Europe

According to the Trade and Transport Facilitation in Southeast
Europe Program (TTFSE), the maximum acceptable time according to European Union standards for clearance of a vehicle
between two countries is 40 minutes. Since the introduction of
the single European market, border-crossing problems within
the European Union are no longer a major issue, although there
are a few exceptions. Border-crossing-related difficulties are
concentrated in the east of the European continent and chiefly
concern border crossings with Belarus, the Russian Federation,

and Ukraine. Excessive waiting periods have also been noted at
the Belarus–Russian Federation and Poland-Ukraine borders.
Waiting times in the South Caucasus are also relatively long.
Beyond continental Europe, extremely long waiting periods at
border crossings with Asia have been reported (Iraq and Turkey,
the Russian Federation, and the countries of Central Asia).
Central America

Crossing borders along the Pan-American Highway, which is
the major north–south highway in the region, continues to
receive complaints from government and business representatives especially with regard to customs inspections which create long delays at the borders, particularly at the border of
Costa Rica. One official noted that Mexico can transport goods
to Guatemala in 22 hours because of its fairly good road system
and efficient customs procedures. It can then take an average
of nine days to get to Panama because of road conditions and
customs inspections.

1.5: Facilitating Cross-Border Movement of Goods

ET.part.A.r1

Source: Compiled from the ITF Survey, 2005; TTFSE, 2002; ILO, 2006.

71
transiting country. Efforts attempt to reconcile the interests of these parties, and such efforts stress the positive
effects a successful approach can have on the trade volume and competitiveness of both.

The corridor- and cluster-based trade and transport
facilitation project
Development corridors, as in Southern Africa, and
regional transit corridors, as in Southeast Asia, have been
continuously expanded and marketed.The UNCTADled corridor- and cluster-based trade and transport facilitation approach takes this one step further.This innovative project—which is intended to be viable from both a
development and a market-based perspective—is a joint
effort by public and private operators and is the outcome
of a concise analysis of all physical, organizational, and
administrative operations of the transport supply chain.
Trade and transport facilitation clusters: Background and
concept

In 2005, UNCTAD initiated a major new approach to
tackle the barriers that continue to hamper the flow of
goods across borders and to reduce significantly countries’ productivity, competitiveness, and attractiveness to
foreign investment. One of the aims of the project was
to reduce the transit transaction cost, as illustrated in
Figure 1.

With the particular aim of increasing the chances of
landlocked countries and enlisting the support of the
neighboring transit country, the project focused on
improving conditions of specific transport corridors
along which goods are being brought from the landlocked country to the transit country’s seaport.The
decision to concentrate on just one major transport and
trade link per region was taken with the deliberate
intention of achieving regional and local coordination
of trade and transport facilitation measures and of finding
very practical, case-by-case, tailor-made solutions to the
current problems in a particular regional setting.The
project intended to build on consensus solutions and the
realization that more traffic can improve the performance
of the landlocked country’s export industry on one side
and create more business in the transit country on the
other. In order to do so, UNCTAD initiated “trade and
transport facilitation clusters.” Drawing on the role of
economic and business clusters that establish a link
between geographical locations and economic performance, thus creating a network of firms embedded in
complex inter- and intrafirm relations, trade and transport facilitation clusters bring together those most
involved in everyday trade and transit operations along
the particular corridor.They include both government
agencies, ranging from customs to fiscal or transport
authorities, and private-sector operators such as importers,
exporters, freight forwarders, and customs brokers.

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page 72

Figure 1: Reduction in barriers to trade: A new approach

Reductions
• Time
• Cost
Elements
• Transshipment
• Transit charge
• Border facilitation

Cost

1.5: Facilitating Cross-Border Movement of Goods

ET.part.A.r1

Time

Source: UNCTAD.

72
Supply chains and transit chain analysis

The basic rationale behind this new approach was to
create a synergy of interests, a better understanding of
the stakes and costs and of the need to build trust and
ultimately a sense of “ownership” on the part of the government and the private stakeholders sides in both countries concerned. It was assumed that, given the practical
nature of the approach, it would be much easier to achieve
such a convergence of interests and much easier to
negotiate viable and acceptable solutions for all parties
concerned. Similar to supply-chain optimization, where
boundaries that traditionally segregated the different
segments of the chain are broken down and partnerships
are facilitated through a strategic application of technology, the cluster approach was seen to break down those
barriers that hinder the provision of reliable and efficient
services and help set free focus for important issues—
that is, the much-needed collaboration of landlocked and
transit countries. And again similar to the supply chain
analysis, it was intended to structure the cluster approach
as a systems approach (see Figure 2). By optimizing each
single step and making each participant aware of his
actions’ impact on the next participant, the performance
of the entire process would ultimately be improved.
Each partner should then be able to see the whole integrated picture and not just his own separate part.
The combination of the institutional element,
technology, and business in a clearly defined local or
regional context made it much easier to have everybody
participate in and be knowledgeable about the actual

Box 4: The cluster members and their interest
• Landlocked country commercially oriented users
require easy access to efficient transit transport services
in terms of timeliness, reliability, and cost-effectiveness.
• Transit and landlocked country governmental agencies
require overall confidence in terms of fiscal reliability,
physical security, environmental safety, transparency,
and compliance, as well as the best use of existing
infrastructures.
• Transit and landlocked countries’ commercially
oriented service providers require unrestricted and
profitable access to transit transport support services
markets in terms of fair competition and regional
market growth.

Source: UNCTAD, Cluster Development Guide, March 2005.

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page 73

Figure 2: Corridor value chain

Transit service production

Factory

Warehouse

+

Transport

Documentation

+

Customs

+

Landlocked country

Customs Documentation

+

Transport

Warehouse

+

+

Port

Shipping

1.5: Facilitating Cross-Border Movement of Goods

ET.part.A.r1

+

Transit country

Source: UNCTAD.

73
situation along the chosen transit corridor. It also made
it easier to adapt internationally recognized trade and
transport facilitation measures to the very specific conditions of each corridor. Again, similar to supply chain
management, the cluster creation was accompanied by
enhanced information sharing and the active use of
information and communication technologies systems
to monitor backlogs in both landlocked and transit
countries and to analyze major bottlenecks.
The supply chain analysis approach also served as
the basis for mapping the sequences that link and influence the transit procedure to show internal processes
(one’s own contribution and setting) on one side and
external processes (the “big picture”) on the other.The
transit process was thus separated into suppliers—that is,
the trade and transport support services; the line of production—that is, the trade operations; and the final
product—that is, the actual import delivery or the
export shipment. Analyzing every single step of the
physical transport chain and the accompanying documentary and procedural chain (the information chain,
which does not necessarily always coincide with the
actual movement of the goods) allowed for identification
of the weakest links.The groups or clusters of interested
and involved partners in this trade and transport chain
could then decide on where and how and when to
intervene to improve and prevent further obstacles along
the chosen corridor. Such clusters were established at
the ends of the corridors—the seaport on one side and
the inland point of departure or destination at the

other—as well as along the corridor itself (Figure 3).
The clusters therefore acted as a network that can intervene whenever and wherever necessary to avoid current
and future bottlenecks and, through partnerships and
cooperation, to design viable, practical solutions.
The mapping of logistics activities accompanying
the transit process made it possible to identify current
practices as well as to draw up the optimal solutions and
ways to get to the destination. As mentioned earlier,
trade and transport facilitation can be quite complex
and can require an important institutional involvement.
However, when it comes to practical matters, changes
can be initiated on the local level along the chosen corridors without too much complication. An essential part
of the project was therefore also the preparation of a
toolkit—a repertoire of all the little steps and measures
that can make all the difference—and a sustainable
structure driven by a cluster development agent.The
structure was designed not to be too institutionalized to
allow for better dialogue, and local overview was
encouraged to improve the overall management structures and increase sustainability.
Setting up the project: Trade and transport facilitation
clusters

The project was developed on three continents, in three
distinct subregions, and along three major transit transport corridors.These corridors were chosen on the basis
of the level of development and service already present
and potentially available in the future.

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

1.5: Facilitating Cross-Border Movement of Goods

ET.part.A.r1

6/2/08

10:03 PM

Page 74

Figure 3: Transit service assembling parts

Transit

Factory

Warehouse

Transport

Documentation

Customs

Customs Documentation

Transport

Warehouse

Port

Shipping

Customs
Storage

Transport
Customs

Shipment

Transport
Customs

Landlocked country

Transit country

Source: UNCTAD.

74
Box 5: Setting up clusters and their activities
• Diagnostic phases
Preliminary data collection, appraisal of the structure
of the cluster, assessment of governance structure,
and definition of action plans
• Trust Building
To eliminate conflict among members and foster
cooperation and information sharing
• Pilot Activities
To test cooperativeness of the cluster through activities
such as training
• Capacity Building
Implemented by cluster members without external support
• Regular Activities
Started off as pilot activities to become a regular part
of the process
• Strategic Activities
Medium- and long-term activities that require more
investment and commitment by cluster members

Source: UNCTAD.

Africa: The Trans-Caprivi Corridor
The Trans Caprivi Corridor links landlocked Zambia
with the seaport of Walvis Bay in Namibia (the transit
country). Clusters were set up in Lusaka (Zambia) and
the port of Walvis Bay.
Asia
In Asia, the chosen corridor linked landlocked Laos
with Bangkok and clusters were set up in Vientiane
(Laos), the border region between Thailand and Laos,
and Laem Chabang ports (the Bangkok cluster).
South America
The South American corridor linked Asunción in landlocked Paraguay with the port of Montevideo in
Uruguay. Clusters were established in the port of
Montevideo and in the Asunción area.
In order to enlist sufficient support for the project and
its objectives, one of the major components was making
the project known, raising awareness of its immediate
and longer-term benefits, and preparing possible participants for their role within the clusters. Subsequently,
clusters and networks were set up and partnership
agreements were drafted and implemented.The various
clusters along the corridors were supposed to focus on
specific operational aspects to ensure the relevance of
cross-border-activities for governments and industry
alike in a “feedback circle.”The participants in these
clusters, once identified, were formally convened and

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

10:03 PM

Page 75

Figure 4: Potential evolution of cluster activities

Landlocked country

Untraded exports

Current trade

New trade

Transit services

Shared services

Transit country

Volumes

Investment

Investment

Sea front

1.5: Facilitating Cross-Border Movement of Goods

6/2/08

Lower costs

ET.part.A.r1

PORT

Volumes

Source: UNCTAD.

75
actively participated in information exchange workshops
to drive the process toward the action plan. Key for
this process was the strong support from high-level
government officials and private-sector representatives,
whenever possible, in a balanced representation.

Key findings from corridor and cluster projects
Clusters, whether they group enterprises in the traditional sense or are trade and transport clusters, will
potentially create economies of scale derived from the
proximity of the persons and groups involved (Figure 4).
Geographical concentration, however, is not sufficient to
make a cluster a successful venture.The driver of
reforms is closer and better cooperation. Only when the
group motivated by common challenges and opportunities actively participates in the work can a cluster claim
success and advance trade and transport facilitation matters.This will ultimately distinguish successful clusters
from underachieving ones.Trust building was therefore
one of the most important ingredients when the clusters
were set up.This helped guarantee that tangible, practical, and immediate results could be achieved within a
short period of time.
It was not necessarily common for the persons
involved in the clusters to openly cooperate and participate in negotiations, but in the three pilot cases, the participants, directly involved in the operation of their
respective corridors, showed a sound capacity to analyze

and solve daily obstacles and also to plan for mediumand long-term actions.
To support cluster activities, the project included
the development of information systems to monitor
improvements that resulted from the actions decided by
the clusters.The project was fully successful in that recipient trading and transport communities not only adhered
to the project approach but also agreed to carry on their
cluster activities beyond the project completion. Some
clusters have already secured financing, both internal and
external, to support this next autonomous stage.The
project execution has been externally audited and
the resulting report will soon be made available by
UNNCTAD.5
Some interesting outcomes of the project include
the fact that, at “corridor level,” operators in transit
countries appear to drive the process, actually taking
the lead for improving the transit corridor operation.
This was observed in the three pilot cases, an observation that challenges the common belief that transit
countries appear to be not really interested in making
the trade life of landlocked countries easier. At the
“higher central or macro level” in transit countries, such
a “reality” usually stems from the low volumes generated
by landlocked developing countries, which make their
trade of relatively lesser relevance. Another remarkable
hypothesis confirmed during the course of the project
execution is that informal structures, such as the created
clusters, may find operational solutions and achieve

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

1.5: Facilitating Cross-Border Movement of Goods

ET.part.A.r1

6/2/08

10:03 PM

Page 76

significant improvements without having to call for
bilateral official formal negotiations or agreements.
It is difficult to provide exact figures of the cost
saving potential deriving from the three corridor and
cluster projects. However, as an example, in the South
America project, the cost saving potential, calculated on
the basis of the actual operational costs, is estimated to
be around 30 percent of the total transport cost of a 40foot refer container shipped from Asunción (Paraguay)
to St. Petersburg (Russian Federation).
The three pilot corridors and their respective clusters have developed tailored arrangements that probably
will be of interest to other regional transit corridors.
The cases will be documented and disseminated over
the course of 2008. A larger project meant to enable
adapted replications of the cluster corridor approach in
interested countries will follow, and the resulting report
will be published by UNCTAD during 2008.

Notes
1 According to the UN the Office of the UN-OHRLLS, there are 31
landlocked developing countries in the world. There is no official
UN category of either “transit countries” or “transit developing
countries”; for the purposes of this study, 34 countries were
included.

76

2 See, for example, the 1982 United Nations Convention on the
Law of the Sea, which gives landlocked countries a right of
access to and from the sea, without taxation of traffic through
transit states.
3 Grainger 2007.
4 ADB 2006.
5 See UNCTAD at http://r0.unctad.org/ttl/.

References
ADB (Asian Development Bank). 2006. Central Asia: Increasing Gains
from Trade through Regional Cooperation in Trade Policy,
Transport and Customs Transit. Asian Development Bank.
Grainger, A. 2007. “Supply Chain Security: Adding to a Complex
Operational And Institutional Environment.” World Customs
Journal 1 (2): 17–30.
ILO (International Labour Organization). 2006. “Labour and Social Issues
Arising from Problems of Cross-Border Mobility of International
Drivers in the Road Transport Sector.” September 22. Available at
http://goliath.ecnext.com/coms2/summary_0199-6275229_ITM.
TTFSE (Trade and Transport Facilitation in Southeast Europe Program).
2002. TTFSE Manual. Available at
http://www.seerecon.org/ttfse/TTFSE_Manual.pdf ,
UNCTAD (United Nations Conference on Trade and Development).
2005. Cluster Development Guide, March. Geneva: UNCTAD.
UNCTAD GlobStat database. Available at http://globstat.unctad.org/html/
index.html.
United Nations Economic Commission for Africa. 2004. Economic
Report on Africa 2004: Unlocking Africa’s Trade Potential.
Available at http://www.uneca.org/era2004/.
Wilson, J. S., C. L. Mann, and T. Otsuki. 2004. Assessing the Potential
Benefit of Trade Facilitation: A Global Perspective. Policy
Research Working Paper No. 3224. Washington, DC: World Bank.

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page 77

CHAPTER 1.6

Countdown to 2015: Improving
Access and Openness to Help
Achieve the Millennium
Development Goals
GENE HUANG, FedEx Corporation

Access is an essential component of “openness,” enabling
open trade, interaction and exchange among people,
businesses, and nations. For more than 35 years, FedEx
Corporation has been actively involved in extending the
world’s access—enabling people and communities
everywhere to connect with the physical goods, services,
markets, information, and ideas they need to improve
their quality of life. As part of our commitment to
access, we have actively contributed to the development
of the Enabling Trade Index (ETI) discussed in this
Report, which examines the factors, policies, and services
facilitating the free flow of goods over national borders
and to destinations.The ETI ranks nations and
economies according to how well they facilitate global
trade through their market access, border administration,
business environment, and transport and communications
infrastructures.
We are particularly supportive of this endeavor
because, in many ways, the ETI builds on an earlier
study published by FedEx—the Access Index, which
aimed to quantify the concept of access and identify its
benefits.1 Some of the indicators explored in the Access
Index and the related Access Opportunities Index overlap
with those examined in the ETI, especially those pertaining to transport and communications infrastructure.
However, the ETI introduces additional concepts and
indicators not previously explored, such as the burden of
customs procedures, quality of customs services, foreign
ownership restrictions, ease of hiring foreign labor, nontariff barriers, and openness to multilateral trade rules.
The ETI also has broader country coverage, and provides
more specific guidance for policymakers in the areas of
trade and transportation than earlier studies on international competitiveness and development.
In the context of key findings from these indexes,
this paper explores the essential role of access and
enabling trade in creating and expanding opportunities
to improve social and economic conditions around the
world, especially as they relate to the Millennium
Development Goals (MDGs).The United Nations (UN)
formulated the MDGs in 2000, with a target date for
achieving them by 2015. Specific goals include eradicating poverty and hunger, promoting gender equality and
empowering women, achieving universal education, and
ensuring environmental sustainability.
Access, in helping nations to achieve progress
toward the MDGs, improves quality of life.

What is access and why is enabling trade important?
In simplest terms, Access is a force that operates on
three variables: time, space and information. We gain
Access when we reduce the time and space
between us and the things we seek—people, places,
goods, capital, opportunities and much more—while
increasing the amount of information available about
these things.2

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

1.6: Countdown to 2015

ET.part.A.r1

77

1.6: Countdown to 2015

ET.part.A.r1

78

6/2/08

10:03 PM

Page 78

Access is the means of interaction and exchange among
people, businesses, and nations.The more it grows, the
more our universe of possibilities expands. Access is
essential to openness—it facilitates open borders, open
trade, and wide-open opportunities for individuals, businesses, and nations.
When governments reduce barriers to trade, they
provide businesses with access to global markets.With
this access, businesses are given opportunities to expand
and contribute to economic growth, which, in turn, can
contribute to eradicating poverty and improving living
standards. Additional access to global markets through
networks such as the Internet allows entrepreneurs to
start businesses out of their homes and market their
products throughout the world.The reduced importance
of location can empower women, who often find it
harder than men to relocate, and can help to promote
gender equality.

Access can be measured
Although it drives economic growth and improves
human welfare around the world, the concept of access
has always been somewhat elusive—it is easy to identify,
but difficult to quantify and measure.The Access Index
measures a country’s potential to obtain physical goods
and information:
• Physical access dramatically reduces the economic
constraint of geographic distance. It allows entirely
new patterns of production, consumption, and economic development.The indicators representing
physical access explore measures of trade, such as
export permits and hidden import barriers, as well
as transport, such as percent of total roads paved,
port infrastructure, air transport infrastructure, and
railroad infrastructure.
• Information access reduces uncertainty, enables
more timely decision-making, and spurs innovation
for continuous improvement.The indicators representing information access explore telecommunications measures, such as telephone lines, mobile
telephone subscribers, personal computers and
Internet users per 100 inhabitants, telephone costs,
telephone infrastructure quality, and speed and cost
of Internet access.
The table in the appendix shows the ranks and scores of
the 75 countries covered in the Access Index.

Access is a competitive advantage
Topping both the ETI and the Access Index is Hong
Kong.Technology writer Ilan Greenberg, who con-

tributes to The New York Times and other publications,
sums up why Hong Kong tops the list:
Hong Kong is a dynamic magnet for striving immigrants from the [Chinese] Mainland and the world.
The city is a bustling meritocracy, and its deep investments in digital infrastructure and business links to
the larger world have combined to create the most
access-friendly major city on the globe. The city is so
successful—and so important to China’s economic
vitality—that the Chinese government agreed to
maintain Hong Kong’s open traditions for 50 years
after the British handover, preserving an experiment
in entrepreneurialism, freedom and self-reliance that’s
unlike any of China’s other autonomous regions.3

Because it relies heavily on trade for its economic success, it is no surprise that Hong Kong appears at the top
of the indexes.While it has made deep investments in
transport, digital, and other infrastructures that facilitate
access, it has, perhaps even more importantly, also created and maintained a regulatory environment that
ensures openness to trade, investment, and information
flows.
The case of Hong Kong demonstrates that enabling
access to information and investment flows and ensuring
a physical and economic structure that enables trade can
help level the playing field for economies that have
small internal markets and limited domestic resources.
The top four economies in both the Access Index and
the ETI rankings—Hong Kong, Singapore, the
Netherlands, and Switzerland—all have small domestic
markets.These economies rely heavily on trade for economic survival, as evidenced by the data on trade as a
percentage of GDP, shown in Table 1 for the top four
economies in the Access Index.4

Table 1: Access and the Economy

Country/Economy

Rank

Access
Index
score

Hong Kong SAR
Singapore
Denmark
Switzerland

1
2
3
4

91.1
89.1
85.3
84.2

Trade
as %
of GDP

GDP
(US$
millions)

Population
(millions)

293.3
341.4
83.0
81.0

159,943
88,275
172,357
274,469

6.79
4.16
5.37
7.29

Where has access made a difference?
An analysis of the economic experience of various
countries highlights the clear association between openness and prosperity, per capita growth, and development,
as measured by the UN Human Development Index.

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page 79

Openness enabling economic growth and improving
human welfare

In the following section we discuss the experiences of
two countries, Chile and Estonia, which made openness
to trade and access to information and investment flows
key pillars of their economic strategy. Improvements to
the business environment accompanied these changes.
Chile
The case of Chile, the highest-ranking Latin American
country in both the Access Index and the ETI, shows
how an economic policy based on the principle of
openness and access has resulted in sustained growth and
a reduction of poverty. Chile demonstrated its commitment to enabling trade by introducing a uniform tariff
and implementing a total ban of non-tariff barriers,
which limited the scope for lobbying by vested interests
in the process of setting tariffs. In addition, since the
beginning of its liberalization process in the early 1990s,
Chile has reduced tariffs progressively and has pursued
free trade agreements with its key trading partners,
including Free Trade Treaties (FTT) with the European
Union in 2002 and the United States in 2004. Chile has
also adopted a number of bilateral agreements with
Latin American countries, trading blocs such as the AsiaPacific Economic Cooperation Area (APEC), and countries as diverse as Korea, Singapore, and Brunei.The
outcome of this policy is that Chile has considerably
lowered tariff rates and gained preferential access to
markets that account for more than half of the world’s
GDP.
The Chilean economy has benefited from access to
these markets. From 2003 through 2007, annual growth
ranged between 4 and 6 percent, for a five-year total of
nearly 25 percent.5 Trade significantly contributed to
that growth, particularly through solid export earnings
in forestry, fishing, and mining.6 From 2002 to 2006, the
country’s exports more than tripled.7 Chile’s economy is
the most competitive in Latin America: according to the
World Economic Forum’s Global Competitiveness Report
2007–2008, Chile ranks 26th worldwide in terms of
competitiveness, well ahead of the next-ranked country
from the region, Mexico, at 52nd place.8
Chile’s economic success has meant real gains for its
citizens, as per capita income more than doubled
between 1990 and 2005.9 The rise in per capita income
led to widespread support among citizens and political
groups for increased social spending, with much of it
aimed at the poorest of the poor. Chile’s economic success, coupled with generously funded social and structural reforms, has enabled it to become the first country
in Latin America to achieve a 50 percent reduction in
extreme poverty, a milestone in implementing the first
of the MDGs.10 Between 1990 and 2006, Chile reduced
poverty from 38.6 percent to 13.7 percent and extreme
poverty from 12.9 percent to 3.2 percent.11

Toward achieving the health-related MDGs, Chile
has implemented its Universal Access Plan for Comprehensive Services and Explicit Guarantees (AUGE).The AUGE
provides access to a complete health system for all
Chileans through a human rights–based social guarantee.The social guarantee incorporates and defines the
principles of access, quality, opportunity, and financial
protection.The AUGE has supported initiatives that
have given Chile a strong start toward achieving the
MDGs of reducing child mortality and improving
maternal health.
Chile’s success toward achieving the MDGs attests
to the power of the access cycle: access enables business
expansion and economic growth, which, in turn,
improve human welfare. Improved human welfare leads
to higher levels of personal satisfaction and fulfillment,
which, in turn, lead to greater expectations for access.
Estonia
One need look no further than Estonia, ranked first—in
both the Access Index and the ETI—among the 12
countries that have joined the European Union (EU)
since 2004, to see how access to information and global
trade and investment flows through technology, transportation, and other essential infrastructures can benefit
an economy. Estonia, which regained independence only
less than two decades ago and has a population of just
1.3 million, is one of the most Internet-savvy countries
in the world. After Estonia became independent from
the former Soviet Union in 1991, the government committed to developing the country’s technical infrastructure, installing Internet access points in the countryside
and putting computers in every school. As a result,
Estonia has one of the highest concentrations of wireless
Internet access points in the world and more Internet
users per capita than most nations in Western Europe.12
According to New York Times reporter Robert Levine,
The [Estonian] government enshrined Internet access
as a human right in the new constitution and now
conducts almost all of its business online. Estonia
became a country of early adopters, where online
banking took off and drivers can pay for parking with
virtual cash from their mobile phones.13

The investment in Internet access was just one of a
series of commitments the Estonian government made
to openness, including open trade, an open culture, and
an open economy. Estonia drastically reduced trade tariffs and non-tariff barriers and abolished all export
restrictions, making the nation a free-trade zone. It
passed a law on the sale of land to ensure the property
rights of all foreign investors. It also abolished special
privileges for a few foreign investors, thereby attracting a
broader range of companies.While courting foreign
investment, Estonia promoted a more entrepreneurial

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

1.6: Countdown to 2015

ET.part.A.r1

79

1.6: Countdown to 2015

ET.part.A.r1

6/2/08

10:03 PM

Page 80

domestic society by reforming the business environment,
ensuring freedom of the press, privatizing many of its
government-owned industries, and transforming government-sponsored trade unions into free trade unions.
Former Estonian Prime Minister Mart Laar, who
led the country during its critical years of reform, can
personally attest to the value of openness in trade:
Openness provides many advantages for a smooth
and rapid transition to a market economy. It provides
a rational set of market-determined processes for
resource allocation, introduces more competition,
allows countries to specialize according to their
comparative advantages, and lets the market rather
than the government pick the winners. A policy
of openness also establishes an environment of
transparency, with clear market-based signals for
producers.14

80

Opening Estonia to foreign investment “created new
working places, reconstructed old factories, brought new
knowledge and technology, and made Estonia more
modern and competitive.”15 Foreign investment spurred
domestic entrepreneurialism and gave citizens the confidence to pursue “nearsourcing” opportunities in software
engineering, for example, with companies in neighboring
Finland.
Largely as a result of its reforms in favor of openness
and access, Estonia has experienced the fastest economic
growth in Europe during the past few years. Since the
start of its reforms, Estonia’s economic growth has averaged 6 percent per year, and in 2005 it was nearly 11
percent.16 Today, Estonia’s economy is among the freest
in the world, ranking 12th in the 2008 Index of Economic
Freedom.17 Its economic success has afforded its citizens a
much improved quality of life, and demonstrates to
developing nations what may be achieved through
openness and access in terms of achieving progress
toward the MDGs:
Poverty and inequality are decreasing in Estonia.
According to the United Nations Human Development
Index, Estonia has moved from the group of not-sodeveloped countries to the group of developed countries. Estonia has low unemployment and low inflation, and living standards are improving rapidly. The
budget is not only balanced, but also running a strong
surplus. Estonia has passed several social reforms,
such as health care and pension reform, and has
become a full member of both NATO and the
European Union. By nearly any standard, Estonia is
the most competitive economy among new EU member states. Only 10 years ago, Estonia clearly lagged
behind most Central and Eastern European countries,
but it has since passed them and is fast approaching
the living standards of Old Europe.18

Respecting individuals, environment, and society
Economic growth, if poorly managed, can damage the
environment and social fabrics. However, economic
growth can also serve as a catalyst for effective environmental stewardship and social development. Improved
infrastructure and efficient operations bring reductions
in pollution and enhance safety. Innovative technologies,
paired with efficient operations, help to ensure sustainable growth. Openness gives people choice and opportunity.
Protecting the environment

As an example of a private-sector solution for environmentally friendly growth, FedEx worked with
Environmental Defense to pioneer commercial hybrid
vehicles.The first FedEx hybrid-electric trucks entered
the roadways in 2004.The new vehicles provide 42 percent better fuel economy than conventional diesel vehicles and emit 30 percent fewer greenhouse gases. FedEx
is expanding its hybrid program across the globe.To create demand for alternative energy vehicles, FedEx also
provided the leadership to call for US government regulations that set efficiency standards for commercial
trucks.
Fueling entrepreneurship and empowering individuals
The key to changing the lives of the world’s poor is
to develop new distribution channels that provide a
sustainable structure . . . engaging the poor as active
consumers rather than passive recipients of charity.19

Access is the key to developing successful entrepreneurs
from “passive recipients of charity.”With access to technology, information, and markets, as well as access to
microfinance, the poor have the capacity to improve
their own situations. Access can fuel entrepreneurship
provided that entrepreneurs have the capacities to take
advantage of access. Needless to say, access will be valuable only for healthy and empowered individuals.The
Junior Achievement Company Program, sponsored by
Junior Achievement Worldwide, serves as a model for
ways that developing nations may successfully promote
entrepreneurship; FedEx Corporation supports and
works with this organization.20
The Junior Achievement Company Program develops entrepreneurial talent among high school students
by having them organize and operate a business enterprise from start to finish: the students learn to conceptualize, design, and produce a new product or service.
They learn the process of capitalizing a business by selling stock in their companies.The students elect officers;
negotiate wholesale and retail prices; calculate breakeven points; prepare budgets; and pay wages, salaries, and
commissions.They also conduct market research, create
advertising, and sell products. At the end of the program,
students liquidate their company, prepare a profit and
loss statement and balance sheet, and report their

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page 81

success, or lessons learned, to their shareholders. In
2006, an estimated 242,163 student companies were
developed in 67 countries around the world. Overall,
Junior Achievement Worldwide implements programs in
nearly 100 countries and reaches more than seven million students each year.
International programs and initiatives are not the
only solution.The story of Maria Estela Gimenez
Vazquez described in Box 1 demonstrates the potential
of access to facilitate a “personal revolution” and help
developing countries such as Paraguay achieve progress
in MDGs aimed at empowering women and eradicating
poverty.

What can developing nations do to increase openness
and access?
Economic growth is the best solution for achieving the
MDGs. It enables nations to reduce poverty by providing individuals with opportunities to build better lives
for themselves. Economic growth also provides essential
funding to address goals for improved maternal health,
reduced child mortality, decreased incidence of infectious diseases, and improved environmental sustainability.
In addition, economic growth enables individuals and
governments greater autonomy in determining the priorities among these goals.

Box 1: How access can facilitate a personal
revolution
Vazquez was born in Villarrica, Paraguay, into a very poor
family, living on less than US$1 per day. She wanted to study
clothing manufacturing to achieve a better standard of living,
and worked as a maid until she saved enough money to
attend a program in Brazil.
After returning to her native Paraguay, she received
microfinancing from a local cooperative that offers small
loans at reasonable interest rates. The funding enabled her
to slowly expand her business. However, her growth potential is limited by Paraguay’s lack of access to a safe and reliable transportation infrastructure. She says:

I can’t export my clothes outside Paraguay because
the infrastructure is poor, and I rarely even sell outside my neighborhood because it is difficult for a
woman to travel alone. 1
Imagine the degree of success an entrepreneur like Vazquez
could achieve if she had access to external markets through
the Internet, lower import and export costs, and reliable
methods of distribution, including an improved transportation
infrastructure of paved roads, ports, and airports.

Note
1 Access Review 2007.

Embrace the essentials of openness

By embracing openness and access, nations pave the way
to achieving higher economic growth. First among the
essentials is creating a regulatory environment that is
conducive to trade, foreign investment, and entrepreneurial activity. Mart Laar, prime minister of Estonia
during its years of economic reform, understood the
primary need to eliminate obstacles to economic growth.
Among its reforms, his administration reduced trade tariffs and non-tariff barriers, abolished export restrictions,
ensured the property rights of foreign investors, decreased
business taxes, and privatized state-owned businesses.
Through these and other reforms, Laar’s administration
made it easier and more attractive for foreign investors
to set up shop in Estonia and for Estonian entrepreneurs
to develop new business enterprises.
He understood that foreign investment can help a
developing nation create the infrastructures and services
that enable greater access and openness, including
telecommunications, Internet services, transportation
systems and financial services.These infrastructures and
services form the backbone of an economy and provide
the means for continued growth by freeing individuals
to pursue economic activities.
It is not just up to governments—the private sector can
help too

Although an effective regulatory framework is essential,
responsibility for economic development does not rest

1.6: Countdown to 2015

ET.part.A.r1

entirely on the shoulders of governments.The private
sector can provide solutions as well. As a global service
provider in transport and logistics, with physical and
digital networks that span the world, FedEx is committed to enhancing access; it enables economic growth,
which improves quality of life.
Private-sector efforts to ensure sustainability are
crucial to its success, a position that FedEx has
embraced, as shown by the environmental and youth
programs described above. Some of the other issues that
can be tackled by the private sector are described below,
with examples of FedEx programs that address these
issues.
Improving access for small businesses
To make it easier for entrepreneurs and small businesses
to access the global market, FedEx has developed a portfolio of personalized services, tools, and discounts. For
example, the FedEx PyMex Membership Program supports small- and medium-sized enterprises (SMEs) in
Latin America and the Caribbean with strategic advice
and tools to make international shipping easy.The program provides educational seminars on all aspects of
exporting, including marketing support, packaging

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

81

1.6: Countdown to 2015

ET.part.A.r1

6/2/08

10:03 PM

Page 82

design, and information about customs regulations. By
helping SMEs compete globally, FedEx can help them
contribute to their country’s economic growth.
Since its introduction in Mexico in 2004, the
FedEx PyMex Membership program has worked with
more than 11,000 SMEs throughout Argentina, Brazil,
Chile, Colombia, Costa Rica, the Dominican Republic,
Mexico, and Puerto Rico. It has conducted more than
400 export seminars in collaboration with public- and
private-sector organizations.
Assisting governments
The private sector can also work with governments to
increase access. For example, FedEx works with governments in Latin American and the Caribbean to reduce
and simplify customs and trade regulations, thereby
helping SMEs tap new markets, grow their businesses,
and play a larger role in interregional and intercontinental trade.
As a global citizen, FedEx is committed to connecting the world in responsible and resourceful ways.

References
Access Review. 2007. “A Personal Revolution: Maria Estela Gimenez
Vazquez.” Access Review: Your Pass to a Changing World.
Atlanta, GA: Unboundary Inc., produced for FedEx Corporation.
Available at http://commitment.fedex.designcdt.com/node/386.
CIA (United States Central Intelligence Agency). 2007. “Chile,”
The World Fact Book. Available at https://www.cia.gov/library/
publications/the-world-factbook/geos/ci.html (accessed February
20, 2008).
European Commission. 2007. Chile: Country Strategy Paper:
2007–2013. April 11. Available at http://ec.europa.eu/external_
relations/chile/csp/07_13_en.pdf (accessed February 20, 2008).
Gobierno de Chile. 2005. Millennium Development Goals, Executive
Summary. Available at http://www.pnud.cl/odm/resumen(ingles).pdf
(accessed February 26, 2008).
Greenberg, I. 2007. “East vs. East.” Access Review: Your Pass to a
Changing World. Atlanta, GA: Unboundary Inc., produced for
FedEx Corporation.

Notes

82

20 A second program supported by FedEx is the Healthy Women,
Healthy Economies program, sponsored by the Global Business
Coalition on HIV/AIDS, Tuberculosis and Malaria. This program
combats HIV/AIDS through a three-pronged approach of health
services, education, and microfinance to support the economic
empowerment of women and girls. The program operates under
the premise that women and girls who are economically empowered, better educated, and have access to health care have opportunities to negotiate their relationships and advocate for themselves, making them less vulnerable to HIV/AIDS.

1 The Access Index™ was commissioned by FedEx and developed
by SRI International, an independent, nonprofit research institute.
The index quantifies the concept of access and identifies its benefits. The Access Index ranks 75 countries according to their
access to goods, services and information. An additional Access
Opportunities Index™ is composed of a series of three studies
that measure the aggregate opportunities access provides to
nations, businesses, and individuals throughout the world. The
three opportunity indexes gauge the extent to which each of
these groups is able to use access to improve its current condition and future prospects.

Heritage Foundation. 2008. Index of Economic Freedom. Available at
http://www.heritage.org/research/features/index/index.cfm
(accessed February 27, 2008).
Laar, M. 2007. “The Estonian Economic Miracle.” Backgrounder.
published by The Heritage Foundation, August 7. Available at
http://www.heritage.org/Research/WorldwideFreedom/bg2060.cfm
(accessed February 27, 2008).
Levine, R. 2007. “Tallinn, Estonia: Full of Charm and Fully Wired.”
Access Review: Your Pass to a Changing World. Atlanta, GA:
Unboundary Inc., produced for FedEx Corporation.

2 See Lindsay 2007, p. 25.
3 See Greenberg 2007, p. 36.
4 See SRI International 2006, p. 13.
5 See Velasco 2008, slide 15.
6 See CIA 2007, Chile, “Economy.”
7 See International Trade Centre, www. Intracen.org.
8 World Economic Forum 2007.
9 See MDG Monitor 2007b.

11 See MDG Monitor 2007b.

———. 2007b. “Chile: Taking Giant Steps in Drive to Implement
MDGs.” Available at http://www.mdgmonitor.org/factsheets_
00.cfm?c=CHL&cd=# (accessed February 25, 2008).

SRI International. 2006. How Greater Access Is Changing the World:
A Landmark Study on the Relevance of Access to People,
Businesses and Nations. Available at http://commitment.fedex.
designcdt.com/files/pdf/access_report_full_06.pdf (accessed
February 11, 2008).

12 See Levine 2007, p. 55.
13 See Levine 2007, p. 56.
14 See Laar 2007, p. 5–6.

United Nations. 2007. Human Development Index 2007–2008. Available
at http://hdr.undp.org/en/statistics/ (accessed February 27, 2008).

15 See Laar 2007, p. 6.
16 See Laar 2007, p. 11.
17 See The Heritage Foundation 2008.

19 See Novogratz 2007, p. 19.

MDG Monitor. 2007a. “Chile: Progress by Goal.” Available at
http://www.mdgmonitor.org/country_progress.cfm?c=CHL&cd=
152 (accessed February 19, 2008).

Novogratz, J. 2007. “How Will Access Benefit the World’s Poor?”
Access Review: Your Pass to a Changing World. Atlanta, GA:
Unboundary Inc., produced for FedEx Corporation.

10 See MDG Monitor 2007b.

18 See Laar 2007, p. 11.

Lindsay, G. 2007. “The Next Big Thing: Access to the Next Big Thing.”
Access Review: Your Pass to a Changing World. Atlanta, GA:
Unboundary Inc., produced for FedEx Corporation.

Velasco, A. 2008. Chile’s Economy: Recent Performance and Prospects.
Presentation of Chilean Finance Minister, Andrés Velasco, to the
OECD Development Center on January 29. Available at
http://www.oecd.org/dataoecd/17/55/40040445.pdf (accessed
February 20, 2008).
World Economic Forum. 2007. The Global Competitiveness Report
2007–2008. Basingstoke, UK and New York: Palgrave MacMillan.

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:03 PM

Page 83

Appendix A: Access Index Country/Economy Rankings and Scores
Country/Economy

Hong Kong SAR
Singapore
Denmark
Switzerland
Netherlands
Finland
Germany
Sweden
United Kingdom
France
Belgium
United States
Canada
Austria
Norway
New Zealand
Iceland
Australia
Japan
Israel
Taiwan, China
Korea, Rep.
Ireland
Portugal
Spain
Estonia
Greece
Italy
Slovak Republic
Czech Republic
Slovenia
Chile
Malaysia
Latvia
Lithuania
Hungary
Thailand
South Africa
Turkey
Poland
Mauritius
Uruguay
Argentina
Jordan
Mexico
Russian Federation
Brazil
El Salvador
Jamaica
Panama

Rank

Score

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50

91.1
89.1
85.3
84.2
83.1
82.6
82.1
81.9
80.5
79.0
74.9
74.8
74.6
74.3
74.0
73.7
72.4
69.8
69.7
69.1
68.3
66.9
64.7
64.5
64.0
63.0
62.9
61.9
60.3
59.9
59.8
57.4
55.3
51.2
50.9
45.8
44.4
44.3
43.4
41.8
41.5
41.4
41.0
40.4
40.4
40.3
39.9
39.3
38.5
37.8

Country/Economy

Bulgaria
China
Ukraine
Romania
Trinidad and Tobago
Sri Lanka
Costa Rica
Egypt
India
Indonesia
Colombia
Venezuela
Dominican Republic
Peru
Philippines
Bolivia
Zimbabwe
Paraguay
Honduras
Guatemala
Ecuador
Nicaragua
Vietnam
Nigeria
Bangladesh

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

Rank

Score

51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75

37.6
37.6
37.2
37.2
36.0
35.9
35.7
35.7
34.9
33.7
32.7
31.3
31.1
31.1
27.4
26.3
23.5
23.2
23.2
21.5
20.8
18.5
18.3
17.3
14.4

1.6: Countdown to 2015

ET.part.A.r1

83

ET.part.A.r1

6/2/08

10:03 PM

Page 84

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

ET.partB.r1

6/2/08

10:39 PM

Page 85

Part 2
Country/Economy Profiles
and Data Presentation

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

ET.partB.r1

6/2/08

10:39 PM

Page 86

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

ET.partB.r1

6/2/08

10:39 PM

Page 87

2.1
Country/Economy Profiles

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

ET.partB.r1

6/2/08

10:39 PM

Page 88

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:39 PM

Page 89

How to Read the Country/Economy Profiles

ET.partB.r1

How to Read the Country/Economy Profiles
EVA TRUJILLO HERRERA, World Economic Forum

The Country/Economy Profiles section presents a twopage profile for each of the 118 economies covered by
The Global Enabling Trade Report 2008.

Albania
Key indicators
Population (millions), 2007 .............................................3.2
Surface area (1,000 square kilometers)........................28.8
GDP (US$ billions), 2007 ..............................................10.3

GDP (current prices, US$) per capita, 2007 ............3,256.1
GDP per capita (rank out of 118), 2007...........................70
Real GDP growth (percent), 2007 ..................................6.0

Source: International Monetary Fund, World Economic Outlook Database (October 2007); United Nations Population Fund,
State of World Population 2007; The World Bank, World Development Indicators 2007 (CD version)

Main trade data

Page 1

Trade as a percentage of GDP, 1994–2006

Current account balance (share of GDP), 2007 ............–7.4
Merchandise exports, f.o.b. (US$ millions) ................793.0
Merchandise imports, c.i.f. (US$ millions) ..............3,058.5
Commercial services exports (US$ millions)...........1,481.1
Commercial services imports (US$ millions)...........1,552.2
Goods RTAs notified to WTO ........................................2.0
WTO accession year ...................................................2000

Key indicators

80

Albania

World average

70
60
50

Source: International Monetary Fund, World Economic Outlook
Database (October 2007); World Trade Organization, Statistics
Database, Trade profiles 2007

40
1994

1996

1998

2000

2002

2004

2006

Source: IMF, World Economic Outlook Database (Oct. 2007); WTO, Statistics
Database, Time series on merchandise & commercial services (Apr. 2008)

The first section presents a selection of key indicators
that provide a sense of the size of the country and its
economy. Population figures are from the United
Nations Population Fund (UNFPA)’s State of World
Population 2007 and surface area data are from the World
Bank’s World Development Indicators 2007. GDP figures
are from the International Monetary Fund (IMF)’s World
Economic Outlook Online Database (October 2007).
Main trade data

Main trading partners, 2006

Exports and imports by sector, 2006

Share of total volume of merchandise trade (percent)
100

Serbia: 5.1
Others: 6.8

80

Share of total volume of merchandise trade (percent)
100

Others: 21.3

60

■ Manufactures

80

Russian Fed.: 4.1
China: 6.0
Turkey: 7.6

40

■ Agricultural
products

40
EU25: 61.0

20

12.8

20

0

15.8

0

Exports destination

Imports orgin

Exports

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Enabling Trade Index

18.7

9.8

Imports

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Rank
(out of 118)

2008 Index......................................................................................................73
Market access ...................................................................................................57
Tariff and non-tariff barriers..............................................................................13
Proclivity to trade ..............................................................................................104

Score
(1–7 scale)

3.7
4.3
5.7
2.9

Border administration.......................................................................................64

3.9

Efficiency of customs administration...............................................................58
Efficiency of import-export procedures ..........................................................67
Transparency of border administration...........................................................70

3.8
4.4
3.5

Transport and communications infrastructure ..........................................106

2.5

Availability and quality of transport infrastructure .....................................102
Availability and quality of transport services...............................................118
Availability and use of ICTs................................................................................81

2.8
2.3
2.3

Business environment ......................................................................................82

4.2

Regulatory environment .....................................................................................73
Physical security .................................................................................................78

4.3
4.2

89
1

The second section presents main trade data that aim to
provide an overview of trade patterns and main trends
in each economy.This section is split into three parts:
The first part presents main trade-related indicators.
Current account balance data are from the IMF’s World
Economic Outlook Online Database (October 2007).
Merchandise, commercial services, goods RTAs data,
and WTO accession year come from the World Trade
Organization’s Statistics Database.
The second part, found on the upper right-hand
side, shows a graph displaying the evolution of trade volume as a percentage of GDP, from 1994 through 2006
(or over the subperiod for which data were available) for
the economy under review (blue line).The black line
represents the evolution of trade for the world as a whole,
for comparison. Data used to calculate total trade volume
are from the World Trade Organization’s Statistics Database,
Time series on merchandise and commercial services, representing the sum of total imports and exports of both
merchandise and commercial services.These trade values
were then divided by each country’s GDP. GDP data
come from the IMF’s World Economic Outlook Online
Database (October 2007).
The third part displays two bar charts summarizing
trade flows between main trading partners, and merchandise imports and exports by sector.The left-hand
chart shows the share of total volume of merchandise
trade flows by origin and destination between each
country and its main trading partners.The right-hand
chart shows the share of total volume of merchandise

■ Fuels and mining
products

68.4

73.8

60

EU25: 88.1

2

3

4

5

6

7

imports and exports for each of the three main merchandise sectors of each economy: manufactures, fuels and
mining products, and agricultural products. Note that no
sector data are available for Chad, Mali, Mauritania, or
Uzbekistan. According to the WTO International Trade
Statistics (ITS), the breakdown by main commodity
group definitions are the following: Agricultural products
refers to food (SITC Rev. 3 sections 0, 1, 4, and division
22) and raw materials (SITC Rev. 3 divisions 21, 23, 24,
25, and 26). Fuels and mining products includes ores and
other minerals, as well as fuels and non-ferrous metals.
Manufactures refers to iron and steel, chemicals, other
semi-manufactures, machinery and transport equipment,
textiles, clothing, and other consumer goods. Please note
that the sum of shares may not add up to 100 because
the world total merchandise trade includes other commodities and transactions that are not part of the three
main groups.These commodities are gold, arms and
ammunition, and commodities and transactions not classified elsewhere (SITC Rev. 3, section 9).
The Enabling Trade Index

The bottom section of the page presents the economy’s
performance on the Enabling Trade Index (ETI) and its
various components. For further analysis, the Data Tables
at the end of the Report provide detailed rankings and
scores for each of the variables included in the ETI.

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

How to Read the Country/Economy Profiles

ET.partB.r1

6/2/08

10:39 PM

Page 90

Page 2
Albania
The Enabling Trade Index in detail

This page presents the rank achieved by an economy on
each of the indicators entering the composition of the
ETI. Indicators are organized by pillar. Please refer to
the Appendix A of Chapter 1.1 for the detailed structure
of the ETI.
Next to the rank, a colored square indicates
whether the indicator constitutes an advantage (the blue
square) or a disadvantage (black square) for the country.
In order to identify variables as an advantage or disadvantage, the following rules apply.

The Enabling Trade Index in detail
INDICATOR

■ Competitive Advantage ■ Competitive Disadvantage
RANK/118

SCORE

BEST PERFORMER

SCORE

1st pillar: Tariff and non-tariff barriers
1.01
1.02

Tariff barriers .........................................................................56 .....■ ........5.2
Non-tariff barriers ..................................................................11 .....■ ........5.4

2.01
2.02
2.03
2.04

Breadth of international markets.........................................117 .....■ ........1.9
Extent of regional sales.......................................................114 .....■ ........2.7
Openness to multilateral trade rules.....................................57 .....■ ......62.2
Share of duty-free imports ....................................................90 .....■ .........22

Hong Kong SAR .............................0.0
Uganda...........................................0.1

2nd pillar: Proclivity to trade
Germany ........................................6.8
Germany ........................................6.7
Hungary........................................88.5
Hong Kong SAR ............................100

3rd pillar: Efficiency of customs administration
3.01
3.02

Burden of customs procedures.............................................94 .....■ ........3.0
Customs services index ........................................................33 .....■ ........6.7

Singapore .......................................6.4
Lithuania.......................................10.2

4th pillar: Efficiency of import-export procedures
4.01
4.02
4.03
4.04

Effectiveness and efficiency of clearance...........................103 .....■ ........2.0
Time for import......................................................................58 .....■ .........22
Documents for import...........................................................78....................9
Cost to import .......................................................................21 .....■ .......750

5.01
5.02

Irregular payments in exports and imports ...........................68 .....■ ........4.2
Corruption Perceptions Index................................................78 .....■ ........2.9

6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08

Airport density .......................................................................92 .....■ ........0.3
Transshipment connectivity index .........................................91 .....■ .......404
Paved roads...........................................................................69 .....■ ......39.0
Road congestion....................................................................19 .....■ .........12
Quality of air transport infrastructure ....................................92 .....■ ........3.6
Quality of railroad infrastructure..........................................104 .....■ ........1.3
Quality of roads ...................................................................102 .....■ ........2.2
Quality of port infrastructure ...............................................114 .....■ ........2.1

7.01
7.02
7.03
7.04
7.05
7.06

Liner Shipping Connectivity Index.........................................92 .....■ ........2.3
Ease and affordability of shipment........................................95 .....■ ........2.3
Competence of the logistics industry .................................106 .....■ ........2.0
Ability and ease of tracking .................................................117 .....■ ........1.7
Timeliness of shipments in reaching destination ................116 .....■ ........2.1
Postal service efficiency......................................................100 .....■ ........2.4

8.01
8.02
8.03
8.04
8.05

Firm-level technology absorption ........................................102 .....■ ........3.8
Mobile telephone subscribers...............................................73 .....■ ......48.9
Broadband Internet subscribers ..........................................101 .....■ ........0.0
Internet users ........................................................................63 .....■ ......15.0
Telephone lines .....................................................................74 .....■ ......11.3

9.01
9.02
9.03
9.04

Ease of hiring foreign labor .....................................................4 .....■ ........5.9
Openness of bilateral Air Service Agreements .....................61 .....■ ........9.5
Prevalence of foreign ownership ..........................................96 .....■ ........4.3
Business impact of rules on FDI .........................................102 .....■ ........4.2

Netherlands....................................4.0
Singapore ..........................................3
Multiple economies1 ........................3
Singapore ......................................367

5th pillar: Transparency of border administration
Denmark ........................................6.7
Multiple economies2 ......................9.4

6th pillar: Availability and quality of transport infrastructure
Norway.........................................10.9
United Kingdom ............................580
Multiple economies3 ..................100.0
Bangladesh .......................................1
Singapore .......................................6.9
Switzerland ....................................6.8
France ............................................6.7
Singapore .......................................6.8

7th pillar: Availability and quality of transport services
China ..........................................127.8
Netherlands....................................4.1
Netherlands....................................4.3
Singapore .......................................4.3
Singapore .......................................4.5
Japan..............................................6.8

8th pillar: Availability and use of ICTs
Sweden..........................................6.3
Luxembourg...............................151.6
Denmark ......................................31.7
Netherlands..................................88.9
Switzerland ..................................69.4

9th pillar: Regulatory environment

• For the top 10 economies in the overall ETI, any
variables on which the economy is ranked 10th or
higher are considered to be advantages. Any variables
ranked below 10 are considered to be disadvantages.
For example, in the case of Singapore, which is
ranked 2nd overall, its 3rd rank in the variable
“documents for import” makes this variable a
competitive advantage, whereas “non-tariff barriers,”
on which it ranks 84, constitutes a competitive
disadvantage for the country.

90

Kuwait ............................................6.2
El Salvador ...................................33.7
Ireland ............................................6.5
Ireland ............................................6.5

10th pillar: Physical security
10.01
10.02
10.03

Reliability of police services ..................................................66 .....■ ........4.0
Business costs of crime and violence...................................79 .....■ ........3.9
Business costs of terrorism ..................................................88 .....■ ........4.8

Finland............................................6.7
Syria ...............................................6.7
Finland............................................6.6

1 Two economies: Denmark, Sweden
2 Three economies: Denmark, Finland, New Zealand
3 Nineteen economies: Armenia, Austria, Czech Republic, Denmark, France, Germany, Hong Kong SAR, Ireland, Israel, Italy, Jordan, Latvia, Luxembourg, Mauritius,

Singapore, Slovenia, Switzerland, United Arab Emirates, United Kingdom

• For those economies ranked from 11th to 50th on
the overall ETI, any variables with higher rank than
the economy’s overall rank are considered to be
advantages. Any variables ranked equal to, or lower
than, the economy’s overall rank are disadvantages.
For instance, in the case of the Netherlands, ranked
11th overall, its rank of 1st for the “effectiveness
and efficiency of clearance” makes this variable a
competitive advantage. On the other hand, “airport
density,” in which the Netherlands ranks 94th,
represents a competitive disadvantage.
• For economies with an overall rank on the ETI
lower than 50, any variables for which the economy
has a rank of 50 or higher are considered to be
advantages. Any variables ranked below 50 are
considered disadvantages. For Mexico, ranked 65th
overall, the “share of duty-free imports” constitutes
a competitive advantage (35th), whereas the relatively high “tariff barriers” constitutes a competitive
disadvantage (92nd).
For comparison, the last two columns on the page show
the best performer in each indicator, accompanied by
the score achieved.

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

6/2/08

10:39 PM

Page 91

List of Countries/Economies

ET.partB.r1

List of Countries/Economies

Country/Economy

Page

Country/Economy

Page

Country/Economy

Page

264

Albania

92

Hungary

178

Portugal

Algeria

94

India

180

Qatar

266

Argentina

96

Indonesia

182

Romania

268

Armenia

98

Ireland

184

Russian Federation

270

Australia

100

Israel

186

Saudi Arabia

272

Austria

102

Italy

188

Senegal

274

Azerbaijan

104

Jamaica

190

Singapore

276

Bahrain

106

Japan

192

Slovak Republic

278

Bangladesh

108

Jordan

194

Slovenia

280

Belgium

110

Kazakhstan

196

South Africa

282

Benin

112

Kenya

198

Spain

284

Bolivia

114

Korea, Rep.

200

Sri Lanka

286

Bosnia and Herzegovina

116

Kuwait

202

Sweden

288

Brazil

118

Kyrgyz Republic

204

Switzerland

290

Bulgaria

120

Latvia

206

Syria

292

Burkina Faso

122

Lesotho

208

Taiwan, China

294

Burundi

124

Lithuania

210

Tajikistan

296

Cambodia

126

Luxembourg

212

Tanzania

298

Cameroon

128

Macedonia, FYR

214

Thailand

300

Canada

130

Madagascar

216

Tunisia

302

Chad

132

Malaysia

218

Turkey

304

Chile

134

Mali

220

Uganda

306

China

136

Mauritania

222

Ukraine

308

Colombia

138

Mauritius

224

United Arab Emirates

310

Costa Rica

140

Mexico

226

United Kingdom

312

Croatia

142

Moldova

228

United States

314

Cyprus

144

Mongolia

230

Uruguay

316

Czech Republic

146

Morocco

232

Uzbekistan

318

Denmark

148

Mozambique

234

Venezuela

320

Dominican Republic

150

Namibia

236

Vietnam

322

Ecuador

152

Nepal

238

Zambia

324

Egypt

154

Netherlands

240

Zimbabwe

326

El Salvador

156

New Zealand

242

Estonia

158

Nicaragua

244

Ethiopia

160

Nigeria

246

Finland

162

Norway

248

France

164

Oman

250

Germany

166

Pakistan

252

Greece

168

Panama

254

Guatemala

170

Paraguay

256

Guyana

172

Peru

258

Honduras

174

Philippines

260

Hong Kong SAR

176

Poland

262

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

91

2.1: Country/Economy Profiles

ET.partB.r1

6/2/08

10:39 PM

Page 92

Albania
Key indicators
Population (millions), 2007 .............................................3.2
Surface area (1,000 square kilometers)........................28.8
GDP (US$ billions), 2007 ..............................................10.3

GDP (current prices, US$) per capita, 2007 ............3,256.1
GDP per capita (rank out of 118), 2007...........................70
Real GDP growth (percent), 2007 ..................................6.0

Source: International Monetary Fund, World Economic Outlook Database (October 2007); United Nations Population Fund,
State of World Population 2007; The World Bank, World Development Indicators 2007 (CD version)

Main trade data
Current account balance (share of GDP), 2007 ............–7.4
Merchandise exports, f.o.b. (US$ millions) ................793.0
Merchandise imports, c.i.f. (US$ millions) ..............3,058.5
Commercial services exports (US$ millions)...........1,481.1
Commercial services imports (US$ millions)...........1,552.2
Goods RTAs notified to WTO ........................................2.0
WTO accession year ...................................................2000

Trade as a percentage of GDP, 1994–2006

Source: International Monetary Fund, World Economic Outlook
Database (October 2007); World Trade Organization, Statistics
Database, Trade profiles 2007

40

80

Albania

World average

70
60
50

1994

1996

1998

2000

2002

2004

2006

Source: IMF, World Economic Outlook Database (Oct. 2007); WTO, Statistics
Database, Time series on merchandise & commercial services (Apr. 2008)

Main trading partners, 2006

Exports and imports by sector, 2006

Share of total volume of merchandise trade (percent)

Share of total volume of merchandise trade (percent)

92
100

Serbia: 5.1
Others: 6.8

80

100
Others: 21.3

60

■ Manufactures

80

Russian Fed.: 4.1
China: 6.0
Turkey: 7.6

■ Fuels and mining
products

68.4

73.8

60

■ Agricultural
products

EU25: 88.1

40

40
EU25: 61.0

20

20

0

0

Exports destination

18.7

9.8

Imports orgin

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Enabling Trade Index

12.8
15.8

Exports

Imports

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Rank
(out of 118)

Score
(1–7 scale)

2008 Index......................................................................................................73
Market access ...................................................................................................57

3.7
4.3

Tariff and non-tariff barriers..............................................................................13
Proclivity to trade ..............................................................................................104

5.7
2.9

Border administration.......................................................................................64

3.9

Efficiency of customs administration...............................................................58
Efficiency of import-export procedures ..........................................................67
Transparency of border administration...........................................................70

3.8
4.4
3.5

Transport and communications infrastructure ..........................................106

2.5

Availability and quality of transport infrastructure .....................................102
Availability and quality of transport services...............................................118
Availability and use of ICTs................................................................................81

2.8
2.3
2.3

Business environment ......................................................................................82

4.2

Regulatory environment .....................................................................................73
Physical security .................................................................................................78

4.3
4.2
1

2

3

4

Note: For descriptions of variables and detailed sources, please refer to “How to Read the Country/Economy Profiles.”

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

5

6

7

6/2/08

10:39 PM

Page 93

Albania
The Enabling Trade Index in detail
INDICATOR

■ Competitive Advantage ■ Competitive Disadvantage
RANK/118

SCORE

BEST PERFORMER

SCORE

1st pillar: Tariff and non-tariff barriers
1.01
1.02

Tariff barriers .........................................................................56 .....■ ........5.2
Non-tariff barriers ..................................................................11 .....■ ........5.4

Hong Kong SAR .............................0.0
Uganda...........................................0.1

2.1: Country/Economy Profiles

ET.partB.r1

2nd pillar: Proclivity to trade
2.01
2.02
2.03
2.04

Breadth of international markets.........................................117 .....■ ........1.9
Extent of regional sales.......................................................114 .....■ ........2.7
Openness to multilateral trade rules.....................................57 .....■ ......62.2
Share of duty-free imports ....................................................90 .....■ .........22

Germany ........................................6.8
Germany ........................................6.7
Hungary........................................88.5
Hong Kong SAR ............................100

3rd pillar: Efficiency of customs administration
3.01
3.02

Burden of customs procedures.............................................94 .....■ ........3.0
Customs services index ........................................................33 .....■ ........6.7

Singapore .......................................6.4
Lithuania.......................................10.2

4th pillar: Efficiency of import-export procedures
4.01
4.02
4.03
4.04

Effectiveness and efficiency of clearance...........................103 .....■ ........2.0
Time for import......................................................................58 .....■ .........22
Documents for import...........................................................78....................9
Cost to import .......................................................................21 .....■ .......750

Netherlands....................................4.0
Singapore ..........................................3
Multiple economies1 ........................3
Singapore ......................................367

5th pillar: Transparency of border administration
5.01
5.02

Irregular payments in exports and imports ...........................68 .....■ ........4.2
Corruption Perceptions Index................................................78 .....■ ........2.9

Denmark ........................................6.7
Multiple economies2 ......................9.4

6th pillar: Availability and quality of transport infrastructure
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08

Airport density .......................................................................92 .....■ ........0.3
Transshipment connectivity index .........................................91 .....■ .......404
Paved roads...........................................................................69 .....■ ......39.0
Road congestion....................................................................19 .....■ .........12
Quality of air transport infrastructure ....................................92 .....■ ........3.6
Quality of railroad infrastructure..........................................104 .....■ ........1.3
Quality of roads ...................................................................102 .....■ ........2.2
Quality of port infrastructure ...............................................114 .....■ ........2.1

Norway.........................................10.9
United Kingdom ............................580
Multiple economies3 ..................100.0
Bangladesh .......................................1
Singapore .......................................6.9
Switzerland ....................................6.8
France ............................................6.7
Singapore .......................................6.8

7th pillar: Availability and quality of transport services
7.01
7.02
7.03
7.04
7.05
7.06

Liner Shipping Connectivity Index.........................................92 .....■ ........2.3
Ease and affordability of shipment........................................95 .....■ ........2.3
Competence of the logistics industry .................................106 .....■ ........2.0
Ability and ease of tracking .................................................117 .....■ ........1.7
Timeliness of shipments in reaching destination ................116 .....■ ........2.1
Postal service efficiency......................................................100 .....■ ........2.4

China ..........................................127.8
Netherlands....................................4.1
Netherlands....................................4.3
Singapore .......................................4.3
Singapore .......................................4.5
Japan..............................................6.8

8th pillar: Availability and use of ICTs
8.01
8.02
8.03
8.04
8.05

Firm-level technology absorption ........................................102 .....■ ........3.8
Mobile telephone subscribers...............................................73 .....■ ......48.9
Broadband Internet subscribers ..........................................101 .....■ ........0.0
Internet users ........................................................................63 .....■ ......15.0
Telephone lines .....................................................................74 .....■ ......11.3

Sweden..........................................6.3
Luxembourg...............................151.6
Denmark ......................................31.7
Netherlands..................................88.9
Switzerland ..................................69.4

9th pillar: Regulatory environment
9.01
9.02
9.03
9.04

Ease of hiring foreign labor .....................................................4 .....■ ........5.9
Openness of bilateral Air Service Agreements .....................61 .....■ ........9.5
Prevalence of foreign ownership ..........................................96 .....■ ........4.3
Business impact of rules on FDI .........................................102 .....■ ........4.2

Kuwait ............................................6.2
El Salvador ...................................33.7
Ireland ............................................6.5
Ireland ............................................6.5

10th pillar: Physical security
10.01
10.02
10.03

Reliability of police services ..................................................66 .....■ ........4.0
Business costs of crime and violence...................................79 .....■ ........3.9
Business costs of terrorism ..................................................88 .....■ ........4.8

Finland............................................6.7
Syria ...............................................6.7
Finland............................................6.6

1 Two economies: Denmark, Sweden
2 Three economies: Denmark, Finland, New Zealand
3 Nineteen economies: Armenia, Austria, Czech Republic, Denmark, France, Germany, Hong Kong SAR, Ireland, Israel, Italy, Jordan, Latvia, Luxembourg, Mauritius,

Singapore, Slovenia, Switzerland, United Arab Emirates, United Kingdom

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

93

2.1: Country/Economy Profiles

ET.partB.r1

6/2/08

10:39 PM

Page 94

Algeria
Key indicators
Population (millions), 2007 ...........................................33.9
Surface area (1,000 square kilometers)...................2,381.7
GDP (US$ billions), 2007 ............................................125.9

GDP (current prices, US$) per capita, 2007 ............3,702.3
GDP per capita (rank out of 118), 2007...........................62
Real GDP growth (percent), 2007 ..................................4.8

Source: International Monetary Fund, World Economic Outlook Database (October 2007); United Nations Population Fund,
State of World Population 2007; The World Bank, World Development Indicators 2007 (CD version)

Main trade data
Current account balance (share of GDP), 2007............19.4
Merchandise exports, f.o.b. (US$ millions) ...........54,613.0
Merchandise imports, c.i.f. (US$ millions) ............21,456.0
Commercial services exports (US$ millions)...........1,825.5
Commercial services imports (US$ millions)...........2,997.2
Goods RTAs notified to WTO ........................................2.0
WTO accession year.............................................Observer

Trade as a percentage of GDP, 1994–2006

Source: International Monetary Fund, World Economic Outlook
Database (October 2007); World Trade Organization, Statistics
Database, Trade profiles 2007

40

80

Algeria

World average

70
60
50

1994

1996

1998

2000

2002

2004

2006

Source: IMF, World Economic Outlook Database (Oct. 2007); WTO, Statistics
Database, Time series on merchandise & commercial services (Apr. 2008)

Main trading partners, 2006

Exports and imports by sector, 2006

Share of total volume of merchandise trade (percent)

Share of total volume of merchandise trade (percent)

94
100
80

United States: 23.6

60

1.0

100

Others: 6.7
Turkey: 4.2
Brazil: 5.6
Canada: 5.9

Others: 34.3

80

China: 5.0
United States: 5.9

60

■ Manufactures
■ Fuels and mining
products

75.3
98.8

40

■ Agricultural
products

40
EU25: 54.0

EU25: 54.8

20

2.9

20
21.0

0

0.2

0

Exports destination

Imports orgin

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Enabling Trade Index

Exports

Imports

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Rank
(out of 118)

Score
(1–7 scale)

2008 Index....................................................................................................108
Market access .................................................................................................118

3.0
1.8

Tariff and non-tariff barriers............................................................................115
Proclivity to trade ..............................................................................................113

1.0
2.6

Border administration.......................................................................................85

3.3

Efficiency of customs administration.............................................................102
Efficiency of import-export procedures ..........................................................89
Transparency of border administration...........................................................66

2.6
3.9
3.6

Transport and communications infrastructure ............................................91

2.9

Availability and quality of transport infrastructure .......................................74
Availability and quality of transport services...............................................112
Availability and use of ICTs................................................................................78

3.5
2.7
2.4

Business environment ......................................................................................84

4.2

Regulatory environment ...................................................................................104
Physical security .................................................................................................62

3.8
4.6
1

2

3

4

Note: For descriptions of variables and detailed sources, please refer to “How to Read the Country/Economy Profiles.”

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

5

6

7

6/2/08

10:39 PM

Page 95

Algeria
The Enabling Trade Index in detail
INDICATOR

■ Competitive Advantage ■ Competitive Disadvantage
RANK/118

SCORE

BEST PERFORMER

SCORE

1st pillar: Tariff and non-tariff barriers
1.01
1.02

Tariff barriers .......................................................................113 .....■ ......15.6
Non-tariff barriers ..................................................................86 .....■ ......85.3

Hong Kong SAR .............................0.0
Uganda...........................................0.1

2.1: Country/Economy Profiles

ET.partB.r1

2nd pillar: Proclivity to trade
2.01
2.02
2.03
2.04

Breadth of international markets.........................................107 .....■ ........2.4
Extent of regional sales.......................................................117 .....■ ........2.4
Openness to multilateral trade rules.....................................63 .....■ ......59.4
Share of duty-free imports ..................................................115 .....■ ...........6

Germany ........................................6.8
Germany ........................................6.7
Hungary........................................88.5
Hong Kong SAR ............................100

3rd pillar: Efficiency of customs administration
3.01
3.02

Burden of customs procedures...........................................107 .....■ ........2.7
Customs services index ........................................................82 .....■ ........3.7

Singapore .......................................6.4
Lithuania.......................................10.2

4th pillar: Efficiency of import-export procedures
4.01
4.02
4.03
4.04

Effectiveness and efficiency of clearance...........................118 .....■ ........1.6
Time for import......................................................................63 .....■ .........23
Documents for import...........................................................78 .....■ ...........9
Cost to import .......................................................................86 .....■ ....1,378

Netherlands....................................4.0
Singapore ..........................................3
Multiple economies1 ........................3
Singapore ......................................367

5th pillar: Transparency of border administration
5.01
5.02

Irregular payments in exports and imports ...........................58 .....■ ........4.4
Corruption Perceptions Index................................................74 .....■ ........3.0

Denmark ........................................6.7
Multiple economies2 ......................9.4

6th pillar: Availability and quality of transport infrastructure
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08

Airport density .......................................................................44 .....■ ........0.8
Transshipment connectivity index .........................................61 .....■ .......477
Paved roads...........................................................................48 .....■ ......70.2
Road congestion...................................................................n/a.................n/a
Quality of air transport infrastructure ....................................87 .....■ ........3.7
Quality of railroad infrastructure............................................66 .....■ ........2.4
Quality of roads .....................................................................73 .....■ ........3.1
Quality of port infrastructure .................................................81 .....■ ........3.3

Norway.........................................10.9
United Kingdom ............................580
Multiple economies3 ..................100.0
Bangladesh .......................................1
Singapore .......................................6.9
Switzerland ....................................6.8
France ............................................6.7
Singapore .......................................6.8

7th pillar: Availability and quality of transport services
7.01
7.02
7.03
7.04
7.05
7.06

Liner Shipping Connectivity Index.........................................76 .....■ ........7.9
Ease and affordability of shipment......................................113 .....■ ........2.0
Competence of the logistics industry .................................111 .....■ ........1.9
Ability and ease of tracking ...................................................97 .....■ ........2.3
Timeliness of shipments in reaching destination ..................91 .....■ ........2.8
Postal service efficiency........................................................82 .....■ ........3.1

China ..........................................127.8
Netherlands....................................4.1
Netherlands....................................4.3
Singapore .......................................4.3
Singapore .......................................4.5
Japan..............................................6.8

8th pillar: Availability and use of ICTs
8.01
8.02
8.03
8.04
8.05

Firm-level technology absorption ..........................................90 .....■ ........4.2
Mobile telephone subscribers...............................................61 .....■ ......63.0
Broadband Internet subscribers ............................................68 .....■ ........0.6
Internet users ........................................................................86 .....■ ........7.4
Telephone lines .....................................................................83 .....■ ........8.5

Sweden..........................................6.3
Luxembourg...............................151.6
Denmark ......................................31.7
Netherlands..................................88.9
Switzerland ..................................69.4

9th pillar: Regulatory environment
9.01
9.02
9.03
9.04

Ease of hiring foreign labor .................................................110 .....■ ........3.7
Openness of bilateral Air Service Agreements .....................94 .....■ ........6.1
Prevalence of foreign ownership ..........................................97 .....■ ........4.3
Business impact of rules on FDI ...........................................73 .....■ ........4.9

Kuwait ............................................6.2
El Salvador ...................................33.7
Ireland ............................................6.5
Ireland ............................................6.5

10th pillar: Physical security
10.01
10.02
10.03

Reliability of police services ..................................................35 .....■ ........4.8
Business costs of crime and violence...................................68 .....■ ........4.3
Business costs of terrorism ................................................105 .....■ ........4.3

Finland............................................6.7
Syria ...............................................6.7
Finland............................................6.6

1 Two economies: Denmark, Sweden
2 Three economies: Denmark, Finland, New Zealand
3 Nineteen economies: Armenia, Austria, Czech Republic, Denmark, France, Germany, Hong Kong SAR, Ireland, Israel, Italy, Jordan, Latvia, Luxembourg, Mauritius,

Singapore, Slovenia, Switzerland, United Arab Emirates, United Kingdom

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

95

2.1: Country/Economy Profiles

ET.partB.r1

6/2/08

10:39 PM

Page 96

Argentina
Key indicators
Population (millions), 2007 ...........................................39.5
Surface area (1,000 square kilometers)...................2,780.4
GDP (US$ billions), 2007 ............................................248.3

GDP (current prices, US$) per capita, 2007 ............6,309.8
GDP per capita (rank out of 118), 2007...........................53
Real GDP growth (percent), 2007 ..................................7.5

Source: International Monetary Fund, World Economic Outlook Database (October 2007); United Nations Population Fund,
State of World Population 2007; The World Bank, World Development Indicators 2007 (CD version)

Main trade data
Current account balance (share of GDP), 2007..............0.9
Merchandise exports, f.o.b. (US$ millions) ...........46,569.0
Merchandise imports, c.i.f. (US$ millions) ............34,158.2
Commercial services exports (US$ millions)...........7,235.9
Commercial services imports (US$ millions)...........8,136.1
Goods RTAs notified to WTO ........................................3.0
WTO accession year ...................................................1995

Trade as a percentage of GDP, 1994–2006
80

Argentina

World average

70
60
50
40
30
20

Source: International Monetary Fund, World Economic Outlook
Database (October 2007); World Trade Organization, Statistics
Database, Trade profiles 2007

10
1994

1996

1998

2000

2002

2004

2006

Source: IMF, World Economic Outlook Database (Oct. 2007); WTO, Statistics
Database, Time series on merchandise & commercial services (Apr. 2008)

Main trading partners, 2006

Exports and imports by sector, 2006

Share of total volume of merchandise trade (percent)

Share of total volume of merchandise trade (percent)

96
100

100
Others: 22.9

80

Others: 36.9

60

China: 7.9
Chile: 11.2

40
20

United States: 15.8

■ Fuels and mining
products

60

86.5

19.5

40
45.8

20

Brazil: 37.0

EU25: 16.9

8.6

0

0

Exports destination

Imports orgin

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Enabling Trade Index

■ Agricultural
products

EU25: 19.0

United States: 11.4
Brazil: 15.8

■ Manufactures

31.7

80

China: 5.3

Exports

4.1

Imports

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Rank
(out of 118)

Score
(1–7 scale)

2008 Index......................................................................................................78
Market access ...................................................................................................89

3.6
3.6

Tariff and non-tariff barriers............................................................................102
Proclivity to trade ................................................................................................45

2.6
4.5

Border administration.......................................................................................71

3.7

Efficiency of customs administration...............................................................60
Efficiency of import-export procedures ..........................................................69
Transparency of border administration...........................................................96

3.7
4.4
3.0

Transport and communications infrastructure ............................................58

3.5

Availability and quality of transport infrastructure .......................................80
Availability and quality of transport services.................................................51
Availability and use of ICTs................................................................................49

3.4
3.8
3.2

Business environment ......................................................................................98

3.9

Regulatory environment .....................................................................................87
Physical security .................................................................................................98

4.1
3.6
1

2

3

4

Note: For descriptions of variables and detailed sources, please refer to “How to Read the Country/Economy Profiles.”

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

5

6

7

6/2/08

10:39 PM

Page 97

Argentina
The Enabling Trade Index in detail
INDICATOR

■ Competitive Advantage ■ Competitive Disadvantage
RANK/118

SCORE

BEST PERFORMER

SCORE

1st pillar: Tariff and non-tariff barriers
1.01
1.02

Tariff barriers .........................................................................79 .....■ ........8.5
Non-tariff barriers ..................................................................81 .....■ ......63.0

Hong Kong SAR .............................0.0
Uganda...........................................0.1

2.1: Country/Economy Profiles

ET.partB.r1

2nd pillar: Proclivity to trade
2.01
2.02
2.03
2.04

Breadth of international markets...........................................55 .....■ ........3.7
Extent of regional sales.........................................................48 .....■ ........4.9
Openness to multilateral trade rules.....................................46 .....■ ......66.5
Share of duty-free imports ....................................................51 .....■ .........60

Germany ........................................6.8
Germany ........................................6.7
Hungary........................................88.5
Hong Kong SAR ............................100

3rd pillar: Efficiency of customs administration
3.01
3.02

Burden of customs procedures.............................................99 .....■ ........2.9
Customs services index ........................................................33 .....■ ........6.7

Singapore .......................................6.4
Lithuania.......................................10.2

4th pillar: Efficiency of import-export procedures
4.01
4.02
4.03
4.04

Effectiveness and efficiency of clearance.............................50 .....■ ........2.7
Time for import......................................................................49 .....■ .........20
Documents for import...........................................................39 .....■ ...........7
Cost to import .......................................................................96 .....■ ....1,825

Netherlands....................................4.0
Singapore ..........................................3
Multiple economies1 ........................3
Singapore ......................................367

5th pillar: Transparency of border administration
5.01
5.02

Irregular payments in exports and imports ...........................97 .....■ ........3.3
Corruption Perceptions Index................................................78 .....■ ........2.9

Denmark ........................................6.7
Multiple economies2 ......................9.4

6th pillar: Availability and quality of transport infrastructure
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08

Airport density .......................................................................29 .....■ ........1.3
Transshipment connectivity index .........................................34 .....■ .......506
Paved roads...........................................................................76 .....■ ......30.0
Road congestion....................................................................52 .....■ .........37
Quality of air transport infrastructure ..................................103 .....■ ........3.2
Quality of railroad infrastructure............................................73 .....■ ........2.1
Quality of roads .....................................................................76 .....■ ........2.9
Quality of port infrastructure .................................................84 .....■ ........3.2

Norway.........................................10.9
United Kingdom ............................580
Multiple economies3 ..................100.0
Bangladesh .......................................1
Singapore .......................................6.9
Switzerland ....................................6.8
France ............................................6.7
Singapore .......................................6.8

7th pillar: Availability and quality of transport services
7.01
7.02
7.03
7.04
7.05
7.06

Liner Shipping Connectivity Index.........................................34 .....■ ......25.6
Ease and affordability of shipment........................................48 .....■ ........3.0
Competence of the logistics industry ...................................39 .....■ ........3.0
Ability and ease of tracking ...................................................44 .....■ ........3.0
Timeliness of shipments in reaching destination ..................45 .....■ ........3.5
Postal service efficiency........................................................74 .....■ ........3.4

China ..........................................127.8
Netherlands....................................4.1
Netherlands....................................4.3
Singapore .......................................4.3
Singapore .......................................4.5
Japan..............................................6.8

8th pillar: Availability and use of ICTs
8.01
8.02
8.03
8.04
8.05

Firm-level technology absorption ..........................................91 .....■ ........4.2
Mobile telephone subscribers...............................................43 .....■ ......80.5
Broadband Internet subscribers ............................................44 .....■ ........4.0
Internet users ........................................................................51 .....■ ......20.9
Telephone lines .....................................................................49 .....■ ......24.2

Sweden..........................................6.3
Luxembourg...............................151.6
Denmark ......................................31.7
Netherlands..................................88.9
Switzerland ..................................69.4

9th pillar: Regulatory environment
9.01
9.02
9.03
9.04

Ease of hiring foreign labor ...................................................22 .....■ ........5.3
Openness of bilateral Air Service Agreements .....................71 .....■ ........8.8
Prevalence of foreign ownership ..........................................80 .....■ ........4.8
Business impact of rules on FDI .........................................108 .....■ ........3.8

Kuwait ............................................6.2
El Salvador ...................................33.7
Ireland ............................................6.5
Ireland ............................................6.5

10th pillar: Physical security
10.01
10.02
10.03

Reliability of police services ................................................112 .....■ ........2.5
Business costs of crime and violence...................................96 .....■ ........3.5
Business costs of terrorism ..................................................10 .....■ ........6.2

Finland............................................6.7
Syria ...............................................6.7
Finland............................................6.6

1 Two economies: Denmark, Sweden
2 Three economies: Denmark, Finland, New Zealand
3 Nineteen economies: Armenia, Austria, Czech Republic, Denmark, France, Germany, Hong Kong SAR, Ireland, Israel, Italy, Jordan, Latvia, Luxembourg, Mauritius,

Singapore, Slovenia, Switzerland, United Arab Emirates, United Kingdom

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

97

2.1: Country/Economy Profiles

ET.partB.r1

6/2/08

10:39 PM

Page 98

Armenia
Key indicators
Population (millions), 2007 .............................................3.0
Surface area (1,000 square kilometers)........................29.8
GDP (US$ billions), 2007 ................................................7.8

GDP (current prices, US$) per capita, 2007 ............2,248.0
GDP per capita (rank out of 118), 2007...........................79
Real GDP growth (percent), 2007 ................................11.1

Source: International Monetary Fund, World Economic Outlook Database (October 2007); United Nations Population Fund,
State of World Population 2007; The World Bank, World Development Indicators 2007 (CD version)

Main trade data
Current account balance (share of GDP), 2007.............-4.0
Merchandise exports, f.o.b. (US$ millions) .............1,004.3
Merchandise imports, c.i.f. (US$ millions) ..............2,194.3
Commercial services exports (US$ millions)..............360.4
Commercial services imports (US$ millions)..............407.3
Goods RTAs notified to WTO ........................................8.0
WTO accession year ...................................................2003
Source: International Monetary Fund, World Economic Outlook
Database (October 2007); World Trade Organization, Statistics
Database, Trade profiles 2007

Trade as a percentage of GDP, 1994–2006
120

Armenia

World average

100
80
60
40
1994

1996

1998

2000

2002

2004

2006

Source: IMF, World Economic Outlook Database (Oct. 2007); WTO, Statistics
Database, Time series on merchandise & commercial services (Apr. 2008)

Main trading partners, 2006

Exports and imports by sector, 2006

Share of total volume of merchandise trade (percent)

Share of total volume of merchandise trade (percent)

98
100

100
Others: 17.4

80
60

United States: 6.4
Switzerland: 7.2
Israel: 10.6
Russian Fed.: 11.6

40

Others: 40.3

80

Iran, Islamic Rep.: 5.2
Ukraine: 7.5
Turkmenistan: 7.7

60

■ Manufactures
57.5

■ Agricultural
products

40

Russian Fed.: 13.7

20

■ Fuels and mining
products

57.4

EU25: 46.8

22.4

18.0

14.5

16.1

Exports

Imports

20

EU25: 25.7

0

0

Exports destination

Imports orgin

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Enabling Trade Index

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Rank
(out of 118)

Score
(1–7 scale)

2008 Index......................................................................................................61
Market access ...................................................................................................43

3.9
4.7

Tariff and non-tariff barriers..............................................................................14
Proclivity to trade ................................................................................................74

5.7
3.8

Border administration.......................................................................................87

3.3

Efficiency of customs administration.............................................................103
Efficiency of import-export procedures ..........................................................74
Transparency of border administration...........................................................92

2.6
4.2
3.1

Transport and communications infrastructure ............................................77

3.0

Availability and quality of transport infrastructure .......................................65
Availability and quality of transport services.................................................89
Availability and use of ICTs................................................................................86

3.7
3.1
2.2

Business environment ......................................................................................53

4.6

Regulatory environment .....................................................................................47
Physical security .................................................................................................61

4.6
4.6
1

2

3

4

Note: For descriptions of variables and detailed sources, please refer to “How to Read the Country/Economy Profiles.”

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

5

6

7

6/2/08

10:39 PM

Page 99

Armenia
The Enabling Trade Index in detail
INDICATOR

■ Competitive Advantage ■ Competitive Disadvantage
RANK/118

SCORE

BEST PERFORMER

SCORE

1st pillar: Tariff and non-tariff barriers
1.01
1.02

Tariff barriers .........................................................................36 .....■ ........3.3
Non-tariff barriers..................................................................n/a.................n/a

Hong Kong SAR .............................0.0
Uganda...........................................0.1

2.1: Country/Economy Profiles

ET.partB.r1

2nd pillar: Proclivity to trade
2.01
2.02
2.03
2.04

Breadth of international markets...........................................98 .....■ ........2.6
Extent of regional sales.......................................................109 .....■ ........2.9
Openness to multilateral trade rules.....................................79 .....■ ......54.8
Share of duty-free imports ....................................................36 .....■ .........79

Germany ........................................6.8
Germany ........................................6.7
Hungary........................................88.5
Hong Kong SAR ............................100

3rd pillar: Efficiency of customs administration
3.01
3.02

Burden of customs procedures...........................................110 .....■ ........2.6
Customs services index ........................................................80 .....■ ........3.8

Singapore .......................................6.4
Lithuania.......................................10.2

4th pillar: Efficiency of import-export procedures
4.01
4.02
4.03
4.04

Effectiveness and efficiency of clearance.............................98 .....■ ........2.1
Time for import......................................................................69 .....■ .........24
Documents for import...........................................................59 .....■ ...........8
Cost to import .......................................................................81 .....■ ....1,335

Netherlands....................................4.0
Singapore ..........................................3
Multiple economies1 ........................3
Singapore ......................................367

5th pillar: Transparency of border administration
5.01
5.02

Irregular payments in exports and imports ...........................95 .....■ ........3.3
Corruption Perceptions Index................................................74 .....■ ........3.0

Denmark ........................................6.7
Multiple economies2 ......................9.4

6th pillar: Availability and quality of transport infrastructure
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08

Airport density .......................................................................56 .....■ ........0.7
Transshipment connectivity index ........................................n/a.................n/a
Paved roads.............................................................................1 .....■ ....100.0
Road congestion...................................................................n/a.................n/a
Quality of air transport infrastructure ....................................80 .....■ ........3.9
Quality of railroad infrastructure............................................76 .....■ ........1.9
Quality of roads .....................................................................68 .....■ ........3.1
Quality of port infrastructure .................................................94 .....■ ........2.8

Norway.........................................10.9
United Kingdom ............................580
Multiple economies3 ..................100.0
Bangladesh .......................................1
Singapore .......................................6.9
Switzerland ....................................6.8
France ............................................6.7
Singapore .......................................6.8

7th pillar: Availability and quality of transport services
7.01
7.02
7.03
7.04
7.05
7.06

Liner Shipping Connectivity Index ........................................n/a.................n/a
Ease and affordability of shipment......................................113 .....■ ........2.0
Competence of the logistics industry .................................102 .....■ ........2.1
Ability and ease of tracking .................................................100 .....■ ........2.2
Timeliness of shipments in reaching destination ................105 .....■ ........2.6
Postal service efficiency........................................................63 .....■ ........4.1

China ..........................................127.8
Netherlands....................................4.1
Netherlands....................................4.3
Singapore .......................................4.3
Singapore .......................................4.5
Japan..............................................6.8

8th pillar: Availability and use of ICTs
8.01
8.02
8.03
8.04
8.05

Firm-level technology absorption ..........................................75 .....■ ........4.4
Mobile telephone subscribers.............................................106 .....■ ......10.5
Broadband Internet subscribers ............................................90 .....■ ........0.1
Internet users ........................................................................91 .....■ ........5.7
Telephone lines .....................................................................56 .....■ ......19.7

Sweden..........................................6.3
Luxembourg...............................151.6
Denmark ......................................31.7
Netherlands..................................88.9
Switzerland ..................................69.4

9th pillar: Regulatory environment
9.01
9.02
9.03
9.04

Ease of hiring foreign labor .....................................................2 .....■ ........5.9
Openness of bilateral Air Service Agreements .....................81 .....■ ........8.0
Prevalence of foreign ownership ..........................................69 .....■ ........5.0
Business impact of rules on FDI ...........................................69 .....■ ........5.0

Kuwait ............................................6.2
El Salvador ...................................33.7
Ireland ............................................6.5
Ireland ............................................6.5

10th pillar: Physical security
10.01
10.02
10.03

Reliability of police services ..................................................82 .....■ ........3.6
Business costs of crime and violence...................................32 .....■ ........5.4
Business costs of terrorism ..................................................33 .....■ ........5.8

Finland............................................6.7
Syria ...............................................6.7
Finland............................................6.6

1 Two economies: Denmark, Sweden
2 Three economies: Denmark, Finland, New Zealand
3 Nineteen economies: Armenia, Austria, Czech Republic, Denmark, France, Germany, Hong Kong SAR, Ireland, Israel, Italy, Jordan, Latvia, Luxembourg, Mauritius,

Singapore, Slovenia, Switzerland, United Arab Emirates, United Kingdom

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

99

2.1: Country/Economy Profiles

ET.partB.r1

6/2/08

10:39 PM

Page 100

Australia
Key indicators
Population (millions), 2007 ...........................................20.6
Surface area (1,000 square kilometers)...................7,741.2
GDP (US$ billions), 2007 ............................................889.7

GDP (current prices, US$) per capita, 2007 ..........42,552.6
GDP per capita (rank out of 118), 2007...........................14
Real GDP growth (percent), 2007 ..................................4.4

Source: International Monetary Fund, World Economic Outlook Database (October 2007); United Nations Population Fund,
State of World Population 2007; The World Bank, World Development Indicators 2007 (CD version)

Main trade data
Current account balance (share of GDP), 2007 ............–5.7
Merchandise exports, f.o.b. (US$ millions) .........123,269.0
Merchandise imports, c.i.f. (US$ millions) ..........139,252.0
Commercial services exports (US$ millions).........32,364.3
Commercial services imports (US$ millions).........31,645.8
Goods RTAs notified to WTO ........................................6.0
WTO accession year ...................................................1995

Trade as a percentage of GDP, 1994–2006
80

Australlia

World average

70
60
50
40

Source: International Monetary Fund, World Economic Outlook
Database (October 2007); World Trade Organization, Statistics
Database, Trade profiles 2007

30
1994

1996

1998

2000

2002

2004

2006

Source: IMF, World Economic Outlook Database (Oct. 2007); WTO, Statistics
Database, Time series on merchandise & commercial services (Apr. 2008)

Main trading partners, 2006

Exports and imports by sector, 2006

Share of total volume of merchandise trade (percent)

Share of total volume of merchandise trade (percent)

100
100
80
60
40
20

100
Others: 41.7

United States: 6.2
Korea, Rep.: 7.5
EU25: 12.4

Others: 34.8

80

Singapore: 6.1
Japan: 9.8

60

United States: 14.0

40

China: 12.5

China: 14.5

Japan: 19.8

EU25: 20.7

■ Manufactures
18.0

■ Agricultural
products

51.4

20
14.5

18.0

0

5.5

0

Exports destination

Imports orgin

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Enabling Trade Index

■ Fuels and mining
products

76.2

Exports

Imports

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Rank
(out of 118)

Score
(1–7 scale)

2008 Index......................................................................................................17
Market access ...................................................................................................44

5.2
4.7

Tariff and non-tariff barriers..............................................................................71
Proclivity to trade ................................................................................................28

4.1
5.3

Border administration.......................................................................................11

5.7

Efficiency of customs administration...............................................................13
Efficiency of import-export procedures ..........................................................25
Transparency of border administration.............................................................9

5.5
5.4
6.2

Transport and communications infrastructure ............................................17

5.3

Availability and quality of transport infrastructure .......................................15
Availability and quality of transport services.................................................18
Availability and use of ICTs................................................................................11

5.2
5.1
5.7

Business environment ......................................................................................21

5.1

Regulatory environment .....................................................................................51
Physical security .................................................................................................15

4.6
5.7
1

2

3

4

Note: For descriptions of variables and detailed sources, please refer to “How to Read the Country/Economy Profiles.”

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

5

6

7

6/2/08

10:39 PM

Page 101

Australia
The Enabling Trade Index in detail
INDICATOR

■ Competitive Advantage ■ Competitive Disadvantage
RANK/118

SCORE

BEST PERFORMER

SCORE

1st pillar: Tariff and non-tariff barriers
1.01
1.02

Tariff barriers .........................................................................86 .....■ ........9.4
Non-tariff barriers ..................................................................31 .....■ ......22.9

Hong Kong SAR .............................0.0
Uganda...........................................0.1

2.1: Country/Economy Profiles

ET.partB.r1

2nd pillar: Proclivity to trade
2.01
2.02
2.03
2.04

Breadth of international markets...........................................25 .....■ ........5.1
Extent of regional sales.........................................................25 .....■ ........5.6
Openness to multilateral trade rules.....................................15 .....■ ......78.3
Share of duty-free imports ....................................................54 .....■ .........59

Germany ........................................6.8
Germany ........................................6.7
Hungary........................................88.5
Hong Kong SAR ............................100

3rd pillar: Efficiency of customs administration
3.01
3.02

Burden of customs procedures.............................................24 .....■ ........4.9
Customs services index ........................................................11 .....■ ........8.8

Singapore .......................................6.4
Lithuania.......................................10.2

4th pillar: Efficiency of import-export procedures
4.01
4.02
4.03
4.04

Effectiveness and efficiency of clearance.............................17 .....■ ........3.6
Time for import......................................................................21 .....■ .........12
Documents for import...........................................................28 .....■ ...........6
Cost to import .......................................................................60 .....■ ....1,120

Netherlands....................................4.0
Singapore ..........................................3
Multiple economies1 ........................3
Singapore ......................................367

5th pillar: Transparency of border administration
5.01
5.02

Irregular payments in exports and imports .............................7 .....■ ........6.3
Corruption Perceptions Index................................................10 .....■ ........8.6

Denmark ........................................6.7
Multiple economies2 ......................9.4

6th pillar: Availability and quality of transport infrastructure
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08

Airport density .........................................................................3 .....■ ........7.4
Transshipment connectivity index .........................................28 .....■ .......511
Paved roads...........................................................................70 .....■ ......38.7
Road congestion...................................................................n/a.................n/a
Quality of air transport infrastructure ....................................13 .....■ ........6.1
Quality of railroad infrastructure............................................22 .....■ ........4.5
Quality of roads .....................................................................25 .....■ ........5.3
Quality of port infrastructure .................................................27 .....■ ........5.1

Norway.........................................10.9
United Kingdom ............................580
Multiple economies3 ..................100.0
Bangladesh .......................................1
Singapore .......................................6.9
Switzerland ....................................6.8
France ............................................6.7
Singapore .......................................6.8

7th pillar: Availability and quality of transport services
7.01
7.02
7.03
7.04
7.05
7.06

Liner Shipping Connectivity Index.........................................31 .....■ ......26.8
Ease and affordability of shipment........................................12 .....■ ........3.7
Competence of the logistics industry ...................................18 .....■ ........3.8
Ability and ease of tracking ...................................................12 .....■ ........4.0
Timeliness of shipments in reaching destination ..................20 .....■ ........4.1
Postal service efficiency..........................................................9 .....■ ........6.4

China ..........................................127.8
Netherlands....................................4.1
Netherlands....................................4.3
Singapore .......................................4.3
Singapore .......................................4.5
Japan..............................................6.8

8th pillar: Availability and use of ICTs
8.01
8.02
8.03
8.04
8.05

Firm-level technology absorption ..........................................17 .....■ ........5.7
Mobile telephone subscribers...............................................31 .....■ ......97.0
Broadband Internet subscribers ............................................17 .....■ ......19.1
Internet users ..........................................................................4 .....■ ......75.1
Telephone lines .....................................................................15 .....■ ......48.8

Sweden..........................................6.3
Luxembourg...............................151.6
Denmark ......................................31.7
Netherlands..................................88.9
Switzerland ..................................69.4

9th pillar: Regulatory environment
9.01
9.02
9.03
9.04

Ease of hiring foreign labor ...................................................75 .....■ ........4.5
Openness of bilateral Air Service Agreements .....................69 .....■ ........9.0
Prevalence of foreign ownership ..........................................24 .....■ ........5.8
Business impact of rules on FDI ...........................................49 .....■ ........5.3

Kuwait ............................................6.2
El Salvador ...................................33.7
Ireland ............................................6.5
Ireland ............................................6.5

10th pillar: Physical security
10.01
10.02
10.03

Reliability of police services ..................................................11 .....■ ........6.0
Business costs of crime and violence...................................23 .....■ ........5.6
Business costs of terrorism ..................................................69 .....■ ........5.3

Finland............................................6.7
Syria ...............................................6.7
Finland............................................6.6

1 Two economies: Denmark, Sweden
2 Three economies: Denmark, Finland, New Zealand
3 Nineteen economies: Armenia, Austria, Czech Republic, Denmark, France, Germany, Hong Kong SAR, Ireland, Israel, Italy, Jordan, Latvia, Luxembourg, Mauritius,

Singapore, Slovenia, Switzerland, United Arab Emirates, United Kingdom

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

101

2.1: Country/Economy Profiles

ET.partB.r1

6/2/08

10:39 PM

Page 102

Austria
Key indicators
Population (millions), 2007 .............................................8.2
Surface area (1,000 square kilometers)........................83.9
GDP (US$ billions), 2007 ............................................366.7

GDP (current prices, US$) per capita, 2007 ..........44,308.3
GDP per capita (rank out of 118), 2007...........................12
Real GDP growth (percent), 2007 ..................................3.3

Source: International Monetary Fund, World Economic Outlook Database (October 2007); United Nations Population Fund,
State of World Population 2007; The World Bank, World Development Indicators 2007 (CD version)

Main trade data
Current account balance (share of GDP), 2007..............3.7
Merchandise exports, f.o.b. (US$ millions) .........140,397.0
Merchandise imports, c.i.f. (US$ millions) ..........140,258.0
Commercial services exports (US$ millions).........58,947.6
Commercial services imports (US$ millions).........53,294.7
Goods RTAs notified to WTO ......................................23.0
WTO accession year ...................................................1995
Source: International Monetary Fund, World Economic Outlook
Database (October 2007); World Trade Organization, Statistics
Database, Trade profiles 2007

Trade as a percentage of GDP, 1994–2006
150

Austria

World average

120
90
60
30
1994

1996

1998

2000

2002

2004

2006

Source: IMF, World Economic Outlook Database (Oct. 2007); WTO, Statistics
Database, Time series on merchandise & commercial services (Apr. 2008)

Main trading partners, 2006

Exports and imports by sector, 2006

Share of total volume of merchandise trade (percent)

Share of total volume of merchandise trade (percent)

102
100

100
Others: 21.5

80

80

60
40

■ Manufactures

Others: 26.7

Switzerland: 4.5
United States: 5.7

60

EU25: 68.3

■ Agricultural
products

40

EU25: 73.3

20

20

0

Imports orgin

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Enabling Trade Index

17.7

8.4
8.4

0

Exports destination

■ Fuels and mining
products

74.0

83.0

8.3

Exports

Imports

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Rank
(out of 118)

Score
(1–7 scale)

2008 Index......................................................................................................15
Market access ...................................................................................................13

5.4
5.2

Tariff and non-tariff barriers..............................................................................48
Proclivity to trade ..................................................................................................4

4.4
6.0

Border administration.......................................................................................16

5.6

Efficiency of customs administration...............................................................34
Efficiency of import-export procedures ............................................................9
Transparency of border administration...........................................................13

4.7
5.9
6.1

Transport and communications infrastructure ............................................12

5.4

Availability and quality of transport infrastructure .......................................17
Availability and quality of transport services...................................................5
Availability and use of ICTs................................................................................19

5.1
5.8
5.4

Business environment ........................................................................................9

5.4

Regulatory environment .....................................................................................41
Physical security ...................................................................................................5

4.6
6.3
1

2

3

4

Note: For descriptions of variables and detailed sources, please refer to “How to Read the Country/Economy Profiles.”

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

5

6

7

6/2/08

10:39 PM

Page 103

Austria
The Enabling Trade Index in detail
INDICATOR

■ Competitive Advantage ■ Competitive Disadvantage
RANK/118

SCORE

BEST PERFORMER

SCORE

1st pillar: Tariff and non-tariff barriers
1.01
1.02

Tariff barriers ...........................................................................3 .....■ ........1.1
Non-tariff barriers ..................................................................60 .....■ ......55.5

Hong Kong SAR .............................0.0
Uganda...........................................0.1

2.1: Country/Economy Profiles

ET.partB.r1

2nd pillar: Proclivity to trade
2.01
2.02
2.03
2.04

Breadth of international markets.............................................7 .....■ ........6.0
Extent of regional sales...........................................................2 .....■ ........6.4
Openness to multilateral trade rules.....................................20 .....■ ......77.2
Share of duty-free imports ....................................................11 .....■ .........79

Germany ........................................6.8
Germany ........................................6.7
Hungary........................................88.5
Hong Kong SAR ............................100

3rd pillar: Efficiency of customs administration
3.01
3.02

Burden of customs procedures...............................................9 .....■ ........5.5
Customs services index ........................................................53 .....■ ........5.8

Singapore .......................................6.4
Lithuania.......................................10.2

4th pillar: Efficiency of import-export procedures
4.01
4.02
4.03
4.04

Effectiveness and efficiency of clearance...............................8 .....■ ........3.8
Time for import......................................................................11 .....■ ...........8
Documents for import...........................................................13 .....■ ...........5
Cost to import .......................................................................32 .....■ .......843

Netherlands....................................4.0
Singapore ..........................................3
Multiple economies1 ........................3
Singapore ......................................367

5th pillar: Transparency of border administration
5.01
5.02

Irregular payments in exports and imports .............................8 .....■ ........6.3
Corruption Perceptions Index................................................14 .....■ ........8.1

Denmark ........................................6.7
Multiple economies2 ......................9.4

6th pillar: Availability and quality of transport infrastructure
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08

Airport density .......................................................................53 .....■ ........0.7
Transshipment connectivity index ........................................n/a.................n/a
Paved roads.............................................................................1 .....■ ....100.0
Road congestion....................................................................47 .....■ .........33
Quality of air transport infrastructure ....................................18 .....■ ........5.9
Quality of railroad infrastructure............................................16 .....■ ........5.2
Quality of roads .......................................................................7 .....■ ........6.2
Quality of port infrastructure .................................................29 .....■ ........5.0

Norway.........................................10.9
United Kingdom ............................580
Multiple economies3 ..................100.0
Bangladesh .......................................1
Singapore .......................................6.9
Switzerland ....................................6.8
France ............................................6.7
Singapore .......................................6.8

7th pillar: Availability and quality of transport services
7.01
7.02
7.03
7.04
7.05
7.06

Liner Shipping Connectivity Index ........................................n/a.................n/a
Ease and affordability of shipment..........................................3 .....■ ........4.0
Competence of the logistics industry .....................................4 .....■ ........4.1
Ability and ease of tracking ...................................................12 .....■ ........4.0
Timeliness of shipments in reaching destination ....................3 .....■ ........4.4
Postal service efficiency........................................................18 .....■ ........6.2

China ..........................................127.8
Netherlands....................................4.1
Netherlands....................................4.3
Singapore .......................................4.3
Singapore .......................................4.5
Japan..............................................6.8

8th pillar: Availability and use of ICTs
8.01
8.02
8.03
8.04
8.05

Firm-level technology absorption ..........................................11 .....■ ........6.0
Mobile telephone subscribers...............................................12 .....■ ....112.8
Broadband Internet subscribers ............................................20 .....■ ......17.4
Internet users ........................................................................19 .....■ ......51.2
Telephone lines .....................................................................21 .....■ ......43.4

Sweden..........................................6.3
Luxembourg...............................151.6
Denmark ......................................31.7
Netherlands..................................88.9
Switzerland ..................................69.4

9th pillar: Regulatory environment
9.01
9.02
9.03
9.04

Ease of hiring foreign labor .................................................109 .....■ ........3.9
Openness of bilateral Air Service Agreements .....................49 .....■ ......10.6
Prevalence of foreign ownership ..........................................17 .....■ ........5.9
Business impact of rules on FDI ...........................................17 .....■ ........5.8

Kuwait ............................................6.2
El Salvador ...................................33.7
Ireland ............................................6.5
Ireland ............................................6.5

10th pillar: Physical security
10.01
10.02
10.03

Reliability of police services ....................................................8 .....■ ........6.2
Business costs of crime and violence.....................................6 .....■ ........6.4
Business costs of terrorism ....................................................6 .....■ ........6.2

Finland............................................6.7
Syria ...............................................6.7
Finland............................................6.6

1 Two economies: Denmark, Sweden
2 Three economies: Denmark, Finland, New Zealand
3 Nineteen economies: Armenia, Austria, Czech Republic, Denmark, France, Germany, Hong Kong SAR, Ireland, Israel, Italy, Jordan, Latvia, Luxembourg, Mauritius,

Singapore, Slovenia, Switzerland, United Arab Emirates, United Kingdom

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

103

2.1: Country/Economy Profiles

ET.partB.r1

6/2/08

10:39 PM

Page 104

Azerbaijan
Key indicators
Population (millions), 2007 .............................................8.5
Surface area (1,000 square kilometers)........................86.6
GDP (US$ billions), 2007 ..............................................31.1

GDP (current prices, US$) per capita, 2007 ............3,633.0
GDP per capita (rank out of 118), 2007...........................63
Real GDP growth (percent), 2007 ................................29.3

Source: International Monetary Fund, World Economic Outlook Database (October 2007); United Nations Population Fund,
State of World Population 2007; The World Bank, World Development Indicators 2007 (CD version)

Main trade data
Current account balance (share of GDP), 2007............31.4
Merchandise exports, f.o.b. (US$ millions) .............6,372.2
Merchandise imports, c.i.f. (US$ millions) ..............5,267.6
Commercial services exports (US$ millions)..............841.5
Commercial services imports (US$ millions)...........2,783.9
Goods RTAs notified to WTO ........................................3.0
WTO accession year.............................................Observer
Source: International Monetary Fund, World Economic Outlook
Database (October 2007); World Trade Organization, Statistics
Database, Trade profiles 2007

Trade as a percentage of GDP, 1994–2006
120

Azerbaijan

World average

100
80
60
40
1994

1996

1998

2000

2002

2004

2006

Source: IMF, World Economic Outlook Database (Oct. 2007); WTO, Statistics
Database, Time series on merchandise & commercial services (Apr. 2008)

Main trading partners, 2006

Exports and imports by sector, 2006

Share of total volume of merchandise trade (percent)

Share of total volume of merchandise trade (percent)

104
100

100

5.7

Others: 17.3

80
60

Iran, Islamic Rep.: 4.6
Russian Fed.: 5.4
Turkey: 6.1
Israel: 10.7

40

Others: 27.4

■ Manufactures

80

Ukraine: 6.0
Turkmenistan: 7.0
Turkey: 7.3

60

Russian Fed.: 22.4

40

■ Fuels and mining
products

74.4
88.4

■ Agricultural
products

EU25: 55.8

20

20

EU25: 29.8

0

14.0
5.7

11.4

Exports

Imports

0

Exports destination

Imports orgin

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Enabling Trade Index

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Rank
(out of 118)

Score
(1–7 scale)

2008 Index......................................................................................................76
Market access ...................................................................................................65

3.7
4.2

Tariff and non-tariff barriers..............................................................................38
Proclivity to trade ................................................................................................79

4.6
3.7

Border administration.....................................................................................112

2.6

Efficiency of customs administration...............................................................67
Efficiency of import-export procedures ........................................................115
Transparency of border administration.........................................................114

3.5
1.8
2.6

Transport and communications infrastructure ............................................64

3.3

Availability and quality of transport infrastructure .......................................50
Availability and quality of transport services.................................................70
Availability and use of ICTs................................................................................76

4.1
3.4
2.4

Business environment ......................................................................................46

4.7

Regulatory environment .....................................................................................50
Physical security .................................................................................................50

4.6
4.8
1

2

3

4

Note: For descriptions of variables and detailed sources, please refer to “How to Read the Country/Economy Profiles.”

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

5

6

7

6/2/08

10:39 PM

Page 105

Azerbaijan
The Enabling Trade Index in detail
INDICATOR

■ Competitive Advantage ■ Competitive Disadvantage
RANK/118

SCORE

BEST PERFORMER

SCORE

1st pillar: Tariff and non-tariff barriers
1.01
1.02

Tariff barriers .........................................................................63 .....■ ........6.0
Non-tariff barriers..................................................................n/a.................n/a

Hong Kong SAR .............................0.0
Uganda...........................................0.1

2.1: Country/Economy Profiles

ET.partB.r1

2nd pillar: Proclivity to trade
2.01
2.02
2.03
2.04

Breadth of international markets...........................................59 .....■ ........3.6
Extent of regional sales.........................................................69 .....■ ........4.2
Openness to multilateral trade rules.....................................30 .....■ ......73.0
Share of duty-free imports ..................................................112 .....■ ...........8

Germany ........................................6.8
Germany ........................................6.7
Hungary........................................88.5
Hong Kong SAR ............................100

3rd pillar: Efficiency of customs administration
3.01
3.02

Burden of customs procedures.............................................72 .....■ ........3.5
Customs services index .......................................................n/a.................n/a

Singapore .......................................6.4
Lithuania.......................................10.2

4th pillar: Efficiency of import-export procedures
4.01
4.02
4.03
4.04

Effectiveness and efficiency of clearance.............................81 .....■ ........2.2
Time for import....................................................................104 .....■ .........56
Documents for import.........................................................114 .....■ .........14
Cost to import .....................................................................108 .....■ ....2,945

Netherlands....................................4.0
Singapore ..........................................3
Multiple economies1 ........................3
Singapore ......................................367

5th pillar: Transparency of border administration
5.01
5.02

Irregular payments in exports and imports .........................112 .....■ ........2.9
Corruption Perceptions Index..............................................107 .....■ ........2.1

Denmark ........................................6.7
Multiple economies2 ......................9.4

6th pillar: Availability and quality of transport infrastructure
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08

Airport density .......................................................................88 .....■ ........0.4
Transshipment connectivity index ........................................n/a.................n/a
Paved roads...........................................................................65 .....■ ......49.4
Road congestion....................................................................11 .....■ ...........9
Quality of air transport infrastructure ....................................46 .....■ ........5.1
Quality of railroad infrastructure............................................32 .....■ ........3.9
Quality of roads .....................................................................61 .....■ ........3.5
Quality of port infrastructure .................................................43 .....■ ........4.4

Norway.........................................10.9
United Kingdom ............................580
Multiple economies3 ..................100.0
Bangladesh .......................................1
Singapore .......................................6.9
Switzerland ....................................6.8
France ............................................6.7
Singapore .......................................6.8

7th pillar: Availability and quality of transport services
7.01
7.02
7.03
7.04
7.05
7.06

Liner Shipping Connectivity Index ........................................n/a.................n/a
Ease and affordability of shipment........................................77 .....■ ........2.5
Competence of the logistics industry .................................106 .....■ ........2.0
Ability and ease of tracking ...................................................86 .....■ ........2.4
Timeliness of shipments in reaching destination ................105 .....■ ........2.6
Postal service efficiency........................................................53 .....■ ........4.5

China ..........................................127.8
Netherlands....................................4.1
Netherlands....................................4.3
Singapore .......................................4.3
Singapore .......................................4.5
Japan..............................................6.8

8th pillar: Availability and use of ICTs
8.01
8.02
8.03
8.04
8.05

Firm-level technology absorption ..........................................55 .....■ ........4.9
Mobile telephone subscribers...............................................76 .....■ ......39.2
Broadband Internet subscribers ............................................96 .....■ ........0.0
Internet users ........................................................................77 .....■ ........9.8
Telephone lines .....................................................................69 .....■ ......14.0

Sweden..........................................6.3
Luxembourg...............................151.6
Denmark ......................................31.7
Netherlands..................................88.9
Switzerland ..................................69.4

9th pillar: Regulatory environment
9.01
9.02
9.03
9.04

Ease of hiring foreign labor ...................................................40 .....■ ........5.1
Openness of bilateral Air Service Agreements .....................44 .....■ ......11.1
Prevalence of foreign ownership ..........................................47 .....■ ........5.3
Business impact of rules on FDI ...........................................77 .....■ ........4.8

Kuwait ............................................6.2
El Salvador ...................................33.7
Ireland ............................................6.5
Ireland ............................................6.5

10th pillar: Physical security
10.01
10.02
10.03

Reliability of police services ..................................................62 .....■ ........4.1
Business costs of crime and violence...................................24 .....■ ........5.5
Business costs of terrorism ..................................................63 .....■ ........5.4

Finland............................................6.7
Syria ...............................................6.7
Finland............................................6.6

1 Two economies: Denmark, Sweden
2 Three economies: Denmark, Finland, New Zealand
3 Nineteen economies: Armenia, Austria, Czech Republic, Denmark, France, Germany, Hong Kong SAR, Ireland, Israel, Italy, Jordan, Latvia, Luxembourg, Mauritius,

Singapore, Slovenia, Switzerland, United Arab Emirates, United Kingdom

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

105

2.1: Country/Economy Profiles

ET.partB.r1

6/2/08

10:39 PM

Page 106

Bahrain
Key indicators
Population (millions), 2007 .............................................0.7
Surface area (1,000 square kilometers)..........................0.7
GDP (US$ billions), 2007 ..............................................16.9

GDP (current prices, US$) per capita, 2007 ..........22,108.9
GDP per capita (rank out of 118), 2007...........................28
Real GDP growth (percent), 2007 ..................................6.8

Source: International Monetary Fund, World Economic Outlook Database (October 2007); United Nations Population Fund,
State of World Population 2007; The World Bank, World Development Indicators 2007 (CD version)

Main trade data
Current account balance (share of GDP), 2007............17.2
Merchandise exports, f.o.b. (US$ millions) ...........11,562.8
Merchandise imports, c.i.f. (US$ millions) ..............8,944.4
Commercial services exports (US$ millions)...........1,849.3
Commercial services imports (US$ millions)...........1,152.6
Goods RTAs notified to WTO ........................................3.0
WTO accession year ...................................................1995

Trade as a percentage of GDP, 1994–2006
200

Bahrain

World average

150
100
50

Source: International Monetary Fund, World Economic Outlook
Database (October 2007); World Trade Organization, Statistics
Database, Trade profiles 2007

0
1994

1996

1998

2000

2002

2004

2006

Source: IMF, World Economic Outlook Database (Oct. 2007); WTO, Statistics
Database, Time series on merchandise & commercial services (Apr. 2008)

Main trading partners, 2006

Exports and imports by sector, 2006

Share of total volume of merchandise trade (percent)

Share of total volume of merchandise trade (percent)

106
100

100

80

80
Others: 78.4

60

6.9

■ Fuels and mining
products

60

Others: 95.3

60.9

40

20
Saudi Arabia: 4.7

Exports destination

20

Saudi Arabia: 5.3
Japan: 5.4
EU25: 10.9

6.2

0.5

0

Imports orgin

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Enabling Trade Index

■ Agricultural
products

92.6

40

0

■ Manufactures

32.9

Exports

Imports

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Rank
(out of 118)

Score
(1–7 scale)

2008 Index......................................................................................................37
Market access ...................................................................................................46

4.5
4.7

Tariff and non-tariff barriers..............................................................................12
Proclivity to trade ................................................................................................85

5.9
3.5

Border administration.......................................................................................41

4.5

Efficiency of customs administration...............................................................43
Efficiency of import-export procedures ..........................................................58
Transparency of border administration...........................................................32

4.3
4.6
4.7

Transport and communications infrastructure ............................................40

4.0

Availability and quality of transport infrastructure .......................................38
Availability and quality of transport services.................................................53
Availability and use of ICTs................................................................................39

4.3
3.8
3.9

Business environment ......................................................................................34

4.9

Regulatory environment .....................................................................................34
Physical security .................................................................................................37

4.8
5.0
1

2

3

4

Note: For descriptions of variables and detailed sources, please refer to “How to Read the Country/Economy Profiles.”

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

5

6

7

6/2/08

10:39 PM

Page 107

Bahrain
The Enabling Trade Index in detail
INDICATOR

■ Competitive Advantage ■ Competitive Disadvantage
RANK/118

SCORE

BEST PERFORMER

SCORE

1st pillar: Tariff and non-tariff barriers
1.01
1.02

Tariff barriers .........................................................................53 .....■ ........5.0
Non-tariff barriers ....................................................................5 .....■ ........3.6

Hong Kong SAR .............................0.0
Uganda...........................................0.1

2.1: Country/Economy Profiles

ET.partB.r1

2nd pillar: Proclivity to trade
2.01
2.02
2.03
2.04

Breadth of international markets...........................................68 .....■ ........3.4
Extent of regional sales.........................................................71 .....■ ........4.2
Openness to multilateral trade rules.....................................66 .....■ ......58.3
Share of duty-free imports ....................................................89 .....■ .........23

Germany ........................................6.8
Germany ........................................6.7
Hungary........................................88.5
Hong Kong SAR ............................100

3rd pillar: Efficiency of customs administration
3.01
3.02

Burden of customs procedures.............................................14 .....■ ........5.3
Customs services index ........................................................65 .....■ ........5.0

Singapore .......................................6.4
Lithuania.......................................10.2

4th pillar: Efficiency of import-export procedures
4.01
4.02
4.03
4.04

Effectiveness and efficiency of clearance.............................22 .....■ ........3.4
Time for import .....................................................................n/a.................n/a
Documents for import ..........................................................n/a.................n/a
Cost to import ......................................................................n/a.................n/a

Netherlands....................................4.0
Singapore ..........................................3
Multiple economies1 ........................3
Singapore ......................................367

5th pillar: Transparency of border administration
5.01
5.02

Irregular payments in exports and imports ...........................31 .....■ ........5.4
Corruption Perceptions Index................................................38 .....■ ........5.0

Denmark ........................................6.7
Multiple economies2 ......................9.4

6th pillar: Availability and quality of transport infrastructure
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08

Airport density .......................................................................28 .....■ ........1.4
Transshipment connectivity index .........................................92 .....■ .......379
Paved roads...........................................................................42 .....■ ......79.1
Road congestion...................................................................n/a.................n/a
Quality of air transport infrastructure ....................................24 .....■ ........5.7
Quality of railroad infrastructure ...........................................n/a .....■ .......n.a.
Quality of roads .....................................................................32 .....■ ........4.9
Quality of port infrastructure .................................................25 .....■ ........5.3

Norway.........................................10.9
United Kingdom ............................580
Multiple economies3 ..................100.0
Bangladesh .......................................1
Singapore .......................................6.9
Switzerland ....................................6.8
France ............................................6.7
Singapore .......................................6.8

7th pillar: Availability and quality of transport services
7.01
7.02
7.03
7.04
7.05
7.06

Liner Shipping Connectivity Index.........................................84 .....■ ........6.0
Ease and affordability of shipment........................................26 .....■ ........3.3
Competence of the logistics industry ...................................56 .....■ ........2.8
Ability and ease of tracking ...................................................44 .....■ ........3.0
Timeliness of shipments in reaching destination ..................72 .....■ ........3.0
Postal service efficiency........................................................38 .....■ ........5.2

China ..........................................127.8
Netherlands....................................4.1
Netherlands....................................4.3
Singapore .......................................4.3
Singapore .......................................4.5
Japan..............................................6.8

8th pillar: Availability and use of ICTs
8.01
8.02
8.03
8.04
8.05

Firm-level technology absorption ..........................................38 .....■ ........5.2
Mobile telephone subscribers.................................................7 .....■ ....121.7
Broadband Internet subscribers ............................................39 .....■ ........5.2
Internet users ........................................................................49 .....■ ......21.3
Telephone lines .....................................................................45 .....■ ......26.2

Sweden..........................................6.3
Luxembourg...............................151.6
Denmark ......................................31.7
Netherlands..................................88.9
Switzerland ..................................69.4

9th pillar: Regulatory environment
9.01
9.02
9.03
9.04

Ease of hiring foreign labor ...................................................72 .....■ ........4.6
Openness of bilateral Air Service Agreements .....................52 .....■ ......10.2
Prevalence of foreign ownership ..........................................20 .....■ ........5.9
Business impact of rules on FDI .............................................8 .....■ ........6.0

Kuwait ............................................6.2
El Salvador ...................................33.7
Ireland ............................................6.5
Ireland ............................................6.5

10th pillar: Physical security
10.01
10.02
10.03

Reliability of police services ..................................................36 .....■ ........4.8
Business costs of crime and violence...................................30 .....■ ........5.4
Business costs of terrorism ..................................................78 .....■ ........5.1

Finland............................................6.7
Syria ...............................................6.7
Finland............................................6.6

1 Two economies: Denmark, Sweden
2 Three economies: Denmark, Finland, New Zealand
3 Nineteen economies: Armenia, Austria, Czech Republic, Denmark, France, Germany, Hong Kong SAR, Ireland, Israel, Italy, Jordan, Latvia, Luxembourg, Mauritius,

Singapore, Slovenia, Switzerland, United Arab Emirates, United Kingdom

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

107

2.1: Country/Economy Profiles

ET.partB.r1

6/2/08

10:39 PM

Page 108

Bangladesh
Key indicators
Population (millions), 2007 .........................................147.1
Surface area (1,000 square kilometers)......................144.0
GDP (US$ billions), 2007 ..............................................70.6

GDP (current prices, US$) per capita, 2007 ...............444.0
GDP per capita (rank out of 118), 2007.........................111
Real GDP growth (percent), 2007 ..................................5.8

Source: International Monetary Fund, World Economic Outlook Database (October 2007); United Nations Population Fund,
State of World Population 2007; The World Bank, World Development Indicators 2007 (CD version)

Main trade data
Current account balance (share of GDP), 2007..............1.3
Merchandise exports, f.o.b. (US$ millions) ...........11,802.2
Merchandise imports, c.i.f. (US$ millions) ............16,086.0
Commercial services exports (US$ millions)..............493.0
Commercial services imports (US$ millions)...........2,319.7
Goods RTAs notified to WTO ........................................4.0
WTO accession year ...................................................1995

Trade as a percentage of GDP, 1994–2006
80

Bangladesh

World average

70
60
50
40
30

Source: International Monetary Fund, World Economic Outlook
Database (October 2007); World Trade Organization, Statistics
Database, Trade profiles 2007

20
1994

1996

1998

2000

2002

2004

2006

Source: IMF, World Economic Outlook Database (Oct. 2007); WTO, Statistics
Database, Time series on merchandise & commercial services (Apr. 2008)

Main trading partners, 2006

Exports and imports by sector, 2006

Share of total volume of merchandise trade (percent)

Share of total volume of merchandise trade (percent)

108
100

100
Others: 17.7

80

■ Manufactures

80
United States: 26.2

Others: 51.0

60

40
EU25: 56.1

20

Singapore: 4.3
Japan: 9.6
EU25: 9.9

40

India: 11.2

20

92.1

China: 13.9

Imports orgin

Enabling Trade Index

21.0

0.7

7.2

0

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

■ Agricultural
products
14.7

0

Exports destination

■ Fuels and mining
products

63.7

60

Exports

Imports

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Rank
(out of 118)

Score
(1–7 scale)

2008 Index....................................................................................................110
Market access .................................................................................................104

3.0
2.9

Tariff and non-tariff barriers..............................................................................97
Proclivity to trade ..............................................................................................108

3.0
2.8

Border administration.......................................................................................97

3.1

Efficiency of customs administration...............................................................78
Efficiency of import-export procedures ..........................................................86
Transparency of border administration.........................................................118

3.2
4.0
2.2

Transport and communications infrastructure ..........................................103

2.5

Availability and quality of transport infrastructure .......................................99
Availability and quality of transport services.................................................94
Availability and use of ICTs..............................................................................109

2.8
3.0
1.7

Business environment ....................................................................................111

3.6

Regulatory environment .....................................................................................90
Physical security ...............................................................................................112

4.1
3.1
1

2

3

4

Note: For descriptions of variables and detailed sources, please refer to “How to Read the Country/Economy Profiles.”

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

5

6

7

6/2/08

10:39 PM

Page 109

Bangladesh
The Enabling Trade Index in detail
INDICATOR

■ Competitive Advantage ■ Competitive Disadvantage
RANK/118

SCORE

BEST PERFORMER

SCORE

1st pillar: Tariff and non-tariff barriers
1.01
1.02

Tariff barriers .......................................................................105 .....■ ......13.0
Non-tariff barriers ..................................................................42 .....■ ......33.5

Hong Kong SAR .............................0.0
Uganda...........................................0.1

2.1: Country/Economy Profiles

ET.partB.r1

2nd pillar: Proclivity to trade
2.01
2.02
2.03
2.04

Breadth of international markets...........................................80 .....■ ........3.1
Extent of regional sales.......................................................107 .....■ ........3.0
Openness to multilateral trade rules...................................101 .....■ ......47.0
Share of duty-free imports ..................................................102 .....■ .........15

Germany ........................................6.8
Germany ........................................6.7
Hungary........................................88.5
Hong Kong SAR ............................100

3rd pillar: Efficiency of customs administration
3.01
3.02

Burden of customs procedures...........................................116 .....■ ........2.3
Customs services index ........................................................50 .....■ ........6.0

Singapore .......................................6.4
Lithuania.......................................10.2

4th pillar: Efficiency of import-export procedures
4.01
4.02
4.03
4.04

Effectiveness and efficiency of clearance...........................103 .....■ ........2.0
Time for import......................................................................81 .....■ .........32
Documents for import...........................................................78 .....■ ...........9
Cost to import .......................................................................63 .....■ ....1,148

Netherlands....................................4.0
Singapore ..........................................3
Multiple economies1 ........................3
Singapore ......................................367

5th pillar: Transparency of border administration
5.01
5.02

Irregular payments in exports and imports .........................118 .....■ ........2.2
Corruption Perceptions Index..............................................114 .....■ ........2.0

Denmark ........................................6.7
Multiple economies2 ......................9.4

6th pillar: Availability and quality of transport infrastructure
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08

Airport density .....................................................................118 .....■ ........0.1
Transshipment connectivity index .........................................89 .....■ .......410
Paved roads.........................................................................107 .....■ ........9.5
Road congestion......................................................................1 .....■ ...........1
Quality of air transport infrastructure ..................................111 .....■ ........3.0
Quality of railroad infrastructure............................................68 .....■ ........2.3
Quality of roads .....................................................................75 .....■ ........3.1
Quality of port infrastructure ...............................................109 .....■ ........2.4

Norway.........................................10.9
United Kingdom ............................580
Multiple economies3 ..................100.0
Bangladesh .......................................1
Singapore .......................................6.9
Switzerland ....................................6.8
France ............................................6.7
Singapore .......................................6.8

7th pillar: Availability and quality of transport services
7.01
7.02
7.03
7.04
7.05
7.06

Liner Shipping Connectivity Index.........................................81 .....■ ........6.4
Ease and affordability of shipment........................................86 .....■ ........2.5
Competence of the logistics industry ...................................89 .....■ ........2.3
Ability and ease of tracking ...................................................81 .....■ ........2.5
Timeliness of shipments in reaching destination ..................53 .....■ ........3.3
Postal service efficiency........................................................91 .....■ ........2.7

China ..........................................127.8
Netherlands....................................4.1
Netherlands....................................4.3
Singapore .......................................4.3
Singapore .......................................4.5
Japan..............................................6.8

8th pillar: Availability and use of ICTs
8.01
8.02
8.03
8.04
8.05

Firm-level technology absorption ..........................................98 .....■ ........4.0
Mobile telephone subscribers.............................................102 .....■ ......13.2
Broadband Internet subscribers ..........................................110 .....■ ........0.0
Internet users ......................................................................116 .....■ ........0.3
Telephone lines ...................................................................108 .....■ ........0.8

Sweden..........................................6.3
Luxembourg...............................151.6
Denmark ......................................31.7
Netherlands..................................88.9
Switzerland ..................................69.4

9th pillar: Regulatory environment
9.01
9.02
9.03
9.04

Ease of hiring foreign labor .................................................112 .....■ ........3.7
Openness of bilateral Air Service Agreements .....................98 .....■ ........5.8
Prevalence of foreign ownership ..........................................67 .....■ ........5.1
Business impact of rules on FDI ...........................................30 .....■ ........5.5

Kuwait ............................................6.2
El Salvador ...................................33.7
Ireland ............................................6.5
Ireland ............................................6.5

10th pillar: Physical security
10.01
10.02
10.03

Reliability of police services ................................................113 .....■ ........2.4
Business costs of crime and violence...................................95 .....■ ........3.5
Business costs of terrorism ................................................107 .....■ ........4.2

Finland............................................6.7
Syria ...............................................6.7
Finland............................................6.6

1 Two economies: Denmark, Sweden
2 Three economies: Denmark, Finland, New Zealand
3 Nineteen economies: Armenia, Austria, Czech Republic, Denmark, France, Germany, Hong Kong SAR, Ireland, Israel, Italy, Jordan, Latvia, Luxembourg, Mauritius,

Singapore, Slovenia, Switzerland, United Arab Emirates, United Kingdom

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

109

2.1: Country/Economy Profiles

ET.partB.r1

6/2/08

10:39 PM

Page 110

Belgium
Key indicators
Population (millions), 2007 ...........................................10.5
Surface area (1,000 square kilometers)........................30.5
GDP (US$ billions), 2007 ............................................442.8

GDP (current prices, US$) per capita, 2007 ..........41,605.5
GDP per capita (rank out of 118), 2007...........................16
Real GDP growth (percent), 2007 ..................................2.6

Source: International Monetary Fund, World Economic Outlook Database (October 2007); United Nations Population Fund,
State of World Population 2007; The World Bank, World Development Indicators 2007 (CD version)

Main trade data
Current account balance (share of GDP), 2007..............2.5
Merchandise exports, f.o.b. (US$ millions) .........369,166.0
Merchandise imports, c.i.f. (US$ millions) ..........353,720.0
Commercial services exports (US$ millions).........57,628.7
Commercial services imports (US$ millions).........53,992.3
Goods RTAs notified to WTO ......................................23.0
WTO accession year ...................................................1995

Trade as a percentage of GDP, 1994–2006
250

Belgium

World average

200
150
100
50

Source: International Monetary Fund, World Economic Outlook
Database (October 2007); World Trade Organization, Statistics
Database, Trade profiles 2007

0
1994

1996

1998

2000

2002

2004

2006

Source: The World Bank, World Development Indicators 2007
(CD version)

Main trading partners, 2006

Exports and imports by sector, 2006

Share of total volume of merchandise trade (percent)

Share of total volume of merchandise trade (percent)

110
100

100
Others: 17.2

80

Others: 22.7

■ Manufactures

80

United States: 6.1

■ Fuels and mining
products

United States: 5.3

60
40

EU25: 76.8

■ Agricultural
products

40

EU25: 72.0

20

20

0

Imports orgin

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Enabling Trade Index

18.9

11.6
9.3

8.7

Exports

Imports

0

Exports destination

71.8

78.1

60

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Rank
(out of 118)

Score
(1–7 scale)

2008 Index......................................................................................................18
Market access ...................................................................................................16

5.2
5.1

Tariff and non-tariff barriers..............................................................................41
Proclivity to trade ................................................................................................13

4.5
5.7

Border administration.......................................................................................25

5.2

Efficiency of customs administration...............................................................29
Efficiency of import-export procedures ..........................................................27
Transparency of border administration...........................................................20

4.8
5.4
5.5

Transport and communications infrastructure ............................................16

5.3

Availability and quality of transport infrastructure .........................................8
Availability and quality of transport services...................................................9
Availability and use of ICTs................................................................................23

5.4
5.5
5.1

Business environment ......................................................................................20

5.2

Regulatory environment .....................................................................................28
Physical security .................................................................................................23

4.9
5.4
1

2

3

4

Note: For descriptions of variables and detailed sources, please refer to “How to Read the Country/Economy Profiles.”

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

5

6

7

6/2/08

10:39 PM

Page 111

Belgium
The Enabling Trade Index in detail
INDICATOR

■ Competitive Advantage ■ Competitive Disadvantage
RANK/118

SCORE

BEST PERFORMER

SCORE

1st pillar: Tariff and non-tariff barriers
1.01
1.02

Tariff barriers ...........................................................................3 .....■ ........1.1
Non-tariff barriers ..................................................................53 .....■ ......52.5

Hong Kong SAR .............................0.0
Uganda...........................................0.1

2.1: Country/Economy Profiles

ET.partB.r1

2nd pillar: Proclivity to trade
2.01
2.02
2.03
2.04

Breadth of international markets...........................................22 .....■ ........5.2
Extent of regional sales.........................................................11 .....■ ........6.0
Openness to multilateral trade rules.....................................22 .....■ ......76.9
Share of duty-free imports ....................................................11 .....■ .........79

Germany ........................................6.8
Germany ........................................6.7
Hungary........................................88.5
Hong Kong SAR ............................100

3rd pillar: Efficiency of customs administration
3.01
3.02

Burden of customs procedures.............................................19 .....■ ........5.1
Customs services index ........................................................32 .....■ ........6.7

Singapore .......................................6.4
Lithuania.......................................10.2

4th pillar: Efficiency of import-export procedures
4.01
4.02
4.03
4.04

Effectiveness and efficiency of clearance.............................16 .....■ ........3.6
Time for import......................................................................13 .....■ ...........9
Documents for import...........................................................13 .....■ ...........5
Cost to import .......................................................................93 .....■ ....1,600

Netherlands....................................4.0
Singapore ..........................................3
Multiple economies1 ........................3
Singapore ......................................367

5th pillar: Transparency of border administration
5.01
5.02

Irregular payments in exports and imports ...........................22 .....■ ........5.8
Corruption Perceptions Index................................................20 .....■ ........7.1

Denmark ........................................6.7
Multiple economies2 ......................9.4

6th pillar: Availability and quality of transport infrastructure
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08

Airport density .......................................................................83 .....■ ........0.4
Transshipment connectivity index ...........................................2 .....■ .......574
Paved roads...........................................................................43 .....■ ......78.0
Road congestion....................................................................52 .....■ .........37
Quality of air transport infrastructure ....................................17 .....■ ........6.0
Quality of railroad infrastructure..............................................6 .....■ ........5.8
Quality of roads .....................................................................10 .....■ ........6.0
Quality of port infrastructure ...................................................6 .....■ ........6.4

Norway.........................................10.9
United Kingdom ............................580
Multiple economies3 ..................100.0
Bangladesh .......................................1
Singapore .......................................6.9
Switzerland ....................................6.8
France ............................................6.7
Singapore .......................................6.8

7th pillar: Availability and quality of transport services
7.01
7.02
7.03
7.04
7.05
7.06

Liner Shipping Connectivity Index.........................................10 .....■ ......73.9
Ease and affordability of shipment........................................16 .....■ ........3.7
Competence of the logistics industry ...................................10 .....■ ........4.0
Ability and ease of tracking ...................................................14 .....■ ........4.0
Timeliness of shipments in reaching destination ..................10 .....■ ........4.3
Postal service efficiency........................................................37 .....■ ........5.2

China ..........................................127.8
Netherlands....................................4.1
Netherlands....................................4.3
Singapore .......................................4.3
Singapore .......................................4.5
Japan..............................................6.8

8th pillar: Availability and use of ICTs
8.01
8.02
8.03
8.04
8.05

Firm-level technology absorption ..........................................29 .....■ ........5.3
Mobile telephone subscribers...............................................35 .....■ ......92.6
Broadband Internet subscribers ............................................18 .....■ ......19.1
Internet users ........................................................................25 .....■ ......45.7
Telephone lines .....................................................................18 .....■ ......45.2

Sweden..........................................6.3
Luxembourg...............................151.6
Denmark ......................................31.7
Netherlands..................................88.9
Switzerland ..................................69.4

9th pillar: Regulatory environment
9.01
9.02
9.03
9.04

Ease of hiring foreign labor ...................................................78 .....■ ........4.5
Openness of bilateral Air Service Agreements .....................29 .....■ ......12.6
Prevalence of foreign ownership ............................................8 .....■ ........6.1
Business impact of rules on FDI ...........................................19 .....■ ........5.8

Kuwait ............................................6.2
El Salvador ...................................33.7
Ireland ............................................6.5
Ireland ............................................6.5

10th pillar: Physical security
10.01
10.02
10.03

Reliability of police services ..................................................27 .....■ ........5.4
Business costs of crime and violence...................................27 .....■ ........5.5
Business costs of terrorism ..................................................62 .....■ ........5.4

Finland............................................6.7
Syria ...............................................6.7
Finland............................................6.6

1 Two economies: Denmark, Sweden
2 Three economies: Denmark, Finland, New Zealand
3 Nineteen economies: Armenia, Austria, Czech Republic, Denmark, France, Germany, Hong Kong SAR, Ireland, Israel, Italy, Jordan, Latvia, Luxembourg, Mauritius,

Singapore, Slovenia, Switzerland, United Arab Emirates, United Kingdom

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

111

2.1: Country/Economy Profiles

ET.partB.r1

6/2/08

10:39 PM

Page 112

Benin
Key indicators
Population (millions), 2007 .............................................9.0
Surface area (1,000 square kilometers)......................112.6
GDP (US$ billions), 2007 ................................................5.4

GDP (current prices, US$) per capita, 2007 ...............690.5
GDP per capita (rank out of 118), 2007.........................103
Real GDP growth (percent), 2007 ..................................4.0

Source: International Monetary Fund, World Economic Outlook Database (October 2007); United Nations Population Fund,
State of World Population 2007; The World Bank, World Development Indicators 2007 (CD version)

Main trade data
Current account balance (share of GDP), 2007 ............–6.3
Merchandise exports, f.o.b. (US$ millions) ................560.0
Merchandise imports, c.i.f. (US$ millions) .................990.0
Commercial services exports (US$ millions)..............179.3
Commercial services imports (US$ millions)..............267.2
Goods RTAs notified to WTO ........................................3.0
WTO accession year ...................................................1996

Trade as a percentage of GDP, 1994–2006

Source: International Monetary Fund, World Economic Outlook
Database (October 2007); World Trade Organization, Statistics
Database, Trade profiles 2007

40

80

Benin

World average

70
60
50

1994

1996

1998

2000

2002

2004

2006

Source: IMF, World Economic Outlook Database (Oct. 2007); WTO, Statistics
Database, Time series on merchandise & commercial services (Apr. 2008)

Main trading partners, 2006

Exports and imports by sector, 2006

Share of total volume of merchandise trade (percent)

Share of total volume of merchandise trade (percent)

112
100

100

80

Others: 35.9

Others: 32.0

60
40

Niger: 5.3
Nigeria: 5.8
India: 6.9
EU25: 10.1

Thailand: 6.7
Côte d’Ivoire: 6.9
Ghana: 7.2
China: 8.8

20

China: 36.2

EU25: 38.5

80

■ Manufactures

44.1

■ Fuels and mining
products

60
6.3

■ Agricultural
products

21.4

0.6

40
20

0

42.2

34.2

Exports

Imports

0

Exports destination

Imports orgin

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Enabling Trade Index

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Rank
(out of 118)

Score
(1–7 scale)

2008 Index......................................................................................................98
Market access ...................................................................................................94

3.3
3.4

Tariff and non-tariff barriers..............................................................................82
Proclivity to trade ..............................................................................................103

3.9
2.9

Border administration.......................................................................................89

3.3

Efficiency of customs administration...............................................................95
Efficiency of import-export procedures ..........................................................88
Transparency of border administration...........................................................91

2.8
3.9
3.1

Transport and communications infrastructure ..........................................101

2.6

Availability and quality of transport infrastructure .....................................109
Availability and quality of transport services.................................................72
Availability and use of ICTs................................................................................98

2.5
3.3
1.9

Business environment ......................................................................................85

4.2

Regulatory environment .....................................................................................93
Physical security .................................................................................................71

4.0
4.3
1

2

3

4

Note: For descriptions of variables and detailed sources, please refer to “How to Read the Country/Economy Profiles.”

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

5

6

7

6/2/08

10:39 PM

Page 113

Benin
The Enabling Trade Index in detail
INDICATOR

■ Competitive Advantage ■ Competitive Disadvantage
RANK/118

SCORE

BEST PERFORMER

SCORE

1st pillar: Tariff and non-tariff barriers
1.01
1.02

Tariff barriers .........................................................................74 .....■ ........7.8
Non-tariff barriers..................................................................n/a.................n/a

Hong Kong SAR .............................0.0
Uganda...........................................0.1

2.1: Country/Economy Profiles

ET.partB.r1

2nd pillar: Proclivity to trade
2.01
2.02
2.03
2.04

Breadth of international markets.........................................103 .....■ ........2.5
Extent of regional sales.........................................................91 .....■ ........3.6
Openness to multilateral trade rules.....................................87 .....■ ......52.0
Share of duty-free imports ..................................................104 .....■ .........13

Germany ........................................6.8
Germany ........................................6.7
Hungary........................................88.5
Hong Kong SAR ............................100

3rd pillar: Efficiency of customs administration
3.01
3.02

Burden of customs procedures.............................................87 .....■ ........3.1
Customs services index ........................................................80 .....■ ........3.8

Singapore .......................................6.4
Lithuania.......................................10.2

4th pillar: Efficiency of import-export procedures
4.01
4.02
4.03
4.04

Effectiveness and efficiency of clearance...........................117 .....■ ........1.8
Time for import......................................................................95 .....■ .........41
Documents for import...........................................................39 .....■ ...........7
Cost to import .......................................................................71 .....■ ....1,202

Netherlands....................................4.0
Singapore ..........................................3
Multiple economies1 ........................3
Singapore ......................................367

5th pillar: Transparency of border administration
5.01
5.02

Irregular payments in exports and imports ...........................92 .....■ ........3.5
Corruption Perceptions Index................................................87 .....■ ........2.7

Denmark ........................................6.7
Multiple economies2 ......................9.4

6th pillar: Availability and quality of transport infrastructure
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08

Airport density .....................................................................112 .....■ ........0.1
Transshipment connectivity index .........................................54 .....■ .......488
Paved roads.........................................................................107 .....■ ........9.5
Road congestion...................................................................n/a.................n/a
Quality of air transport infrastructure ....................................94 .....■ ........3.5
Quality of railroad infrastructure............................................93 .....■ ........1.5
Quality of roads .....................................................................83 .....■ ........2.7
Quality of port infrastructure .................................................91 .....■ ........2.9

Norway.........................................10.9
United Kingdom ............................580
Multiple economies3 ..................100.0
Bangladesh .......................................1
Singapore .......................................6.9
Switzerland ....................................6.8
France ............................................6.7
Singapore .......................................6.8

7th pillar: Availability and quality of transport services
7.01
7.02
7.03
7.04
7.05
7.06

Liner Shipping Connectivity Index.........................................63 .....■ ......11.2
Ease and affordability of shipment........................................59 .....■ ........2.8
Competence of the logistics industry ...................................68 .....■ ........2.6
Ability and ease of tracking ...................................................52 .....■ ........2.9
Timeliness of shipments in reaching destination ..................94 .....■ ........2.8
Postal service efficiency........................................................70 .....■ ........3.7

China ..........................................127.8
Netherlands....................................4.1
Netherlands....................................4.3
Singapore .......................................4.3
Singapore .......................................4.5
Japan..............................................6.8

8th pillar: Availability and use of ICTs
8.01
8.02
8.03
8.04
8.05

Firm-level technology absorption ..........................................76 .....■ ........4.4
Mobile telephone subscribers.............................................103 .....■ ......12.1
Broadband Internet subscribers ..........................................105 .....■ ........0.0
Internet users ........................................................................82 .....■ ........8.0
Telephone lines ...................................................................105 .....■ ........0.9

Sweden..........................................6.3
Luxembourg...............................151.6
Denmark ......................................31.7
Netherlands..................................88.9
Switzerland ..................................69.4

9th pillar: Regulatory environment
9.01
9.02
9.03
9.04

Ease of hiring foreign labor ...................................................33 .....■ ........5.2
Openness of bilateral Air Service Agreements ...................110 .....■ ........3.9
Prevalence of foreign ownership ..........................................81 .....■ ........4.8
Business impact of rules on FDI ...........................................95 .....■ ........4.4

Kuwait ............................................6.2
El Salvador ...................................33.7
Ireland ............................................6.5
Ireland ............................................6.5

10th pillar: Physical security
10.01
10.02
10.03

Reliability of police services ..................................................58 .....■ ........4.2
Business costs of crime and violence...................................93 .....■ ........3.6
Business costs of terrorism ..................................................67 .....■ ........5.3

Finland............................................6.7
Syria ...............................................6.7
Finland............................................6.6

1 Two economies: Denmark, Sweden
2 Three economies: Denmark, Finland, New Zealand
3 Nineteen economies: Armenia, Austria, Czech Republic, Denmark, France, Germany, Hong Kong SAR, Ireland, Israel, Italy, Jordan, Latvia, Luxembourg, Mauritius,

Singapore, Slovenia, Switzerland, United Arab Emirates, United Kingdom

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

113

2.1: Country/Economy Profiles

ET.partB.r1

6/2/08

10:39 PM

Page 114

Bolivia
Key indicators
Population (millions), 2007 .............................................9.5
Surface area (1,000 square kilometers)...................1,098.6
GDP (US$ billions), 2007 ..............................................12.7

GDP (current prices, US$) per capita, 2007 ............1,293.3
GDP per capita (rank out of 118), 2007...........................89
Real GDP growth (percent), 2007 ..................................3.9

Source: International Monetary Fund, World Economic Outlook Database (October 2007); United Nations Population Fund,
State of World Population 2007; The World Bank, World Development Indicators 2007 (CD version)

Main trade data
Current account balance (share of GDP), 2007............15.1
Merchandise exports, f.o.b. (US$ millions) .............3,863.0
Merchandise imports, c.i.f. (US$ millions) ..............2,818.6
Commercial services exports (US$ millions)..............419.2
Commercial services imports (US$ millions)..............787.3
Goods RTAs notified to WTO ........................................3.0
WTO accession year ...................................................1995

Trade as a percentage of GDP, 1994–2006

Source: International Monetary Fund, World Economic Outlook
Database (October 2007); World Trade Organization, Statistics
Database, Trade profiles 2007

40

80

Bolivia

World average

70
60
50

1994

1996

1998

2000

2002

2004

2006

Source: IMF, World Economic Outlook Database (Oct. 2007); WTO, Statistics
Database, Time series on merchandise & commercial services (Apr. 2008)

Main trading partners, 2006

Exports and imports by sector, 2006

Share of total volume of merchandise trade (percent)

Share of total volume of merchandise trade (percent)

114
100

100
11.2

80

Others: 28.4

Others: 34.1

80

60

Peru: 5.9
Japan: 8.9
Argentina: 9.3

Chile: 8.3
EU25: 9.3

60

40

United States: 9.8

United States: 12.1

40

20

Brazil: 37.7

■ Manufactures
■ Fuels and mining
products

78.2
71.5

■ Agricultural
products

Argentina: 15.8

20

10.5

Brazil: 20.4

0

17.3

10.6

Exports

Imports

0

Exports destination

Imports orgin

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Enabling Trade Index

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Rank
(out of 118)

Score
(1–7 scale)

2008 Index......................................................................................................94
Market access ...................................................................................................84

3.4
3.7

Tariff and non-tariff barriers..............................................................................69
Proclivity to trade ................................................................................................92

4.2
3.2

Border administration.......................................................................................83

3.4

Efficiency of customs administration...............................................................93
Efficiency of import-export procedures ..........................................................80
Transparency of border administration...........................................................75

2.8
4.1
3.4

Transport and communications infrastructure ............................................96

2.7

Availability and quality of transport infrastructure .......................................93
Availability and quality of transport services.................................................85
Availability and use of ICTs..............................................................................101

3.1
3.1
1.9

Business environment ....................................................................................110

3.6

Regulatory environment ...................................................................................102
Physical security ...............................................................................................104

3.8
3.5
1

2

3

4

Note: For descriptions of variables and detailed sources, please refer to “How to Read the Country/Economy Profiles.”

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

5

6

7

6/2/08

10:39 PM

Page 115

Bolivia
The Enabling Trade Index in detail
INDICATOR

■ Competitive Advantage ■ Competitive Disadvantage
RANK/118

SCORE

BEST PERFORMER

SCORE

1st pillar: Tariff and non-tariff barriers
1.01
1.02

Tariff barriers .........................................................................76 .....■ ........8.0
Non-tariff barriers ..................................................................35 .....■ ......29.0

Hong Kong SAR .............................0.0
Uganda...........................................0.1

2.1: Country/Economy Profiles

ET.partB.r1

2nd pillar: Proclivity to trade
2.01
2.02
2.03
2.04

Breadth of international markets.........................................109 .....■ ........2.3
Extent of regional sales.........................................................95 .....■ ........3.4
Openness to multilateral trade rules...................................109 .....■ ......41.8
Share of duty-free imports ....................................................53 .....■ .........60

Germany ........................................6.8
Germany ........................................6.7
Hungary........................................88.5
Hong Kong SAR ............................100

3rd pillar: Efficiency of customs administration
3.01
3.02

Burden of customs procedures.............................................91 .....■ ........3.0
Customs services index ........................................................77 .....■ ........4.0

Singapore .......................................6.4
Lithuania.......................................10.2

4th pillar: Efficiency of import-export procedures
4.01
4.02
4.03
4.04

Effectiveness and efficiency of clearance...........................103 .....■ ........2.0
Time for import......................................................................88 .....■ .........36
Documents for import...........................................................39 .....■ ...........7
Cost to import .......................................................................73 .....■ ....1,230

Netherlands....................................4.0
Singapore ..........................................3
Multiple economies1 ........................3
Singapore ......................................367

5th pillar: Transparency of border administration
5.01
5.02

Irregular payments in exports and imports ...........................77 .....■ ........4.0
Corruption Perceptions Index................................................78 .....■ ........2.9

Denmark ........................................6.7
Multiple economies2 ......................9.4

6th pillar: Availability and quality of transport infrastructure
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08

Airport density .......................................................................27 .....■ ........1.4
Transshipment connectivity index ........................................n/a.................n/a
Paved roads.........................................................................111 .....■ ........7.0
Road congestion......................................................................7 .....■ ...........7
Quality of air transport infrastructure ..................................108 .....■ ........3.1
Quality of railroad infrastructure............................................92 .....■ ........1.5
Quality of roads ...................................................................113 .....■ ........1.9
Quality of port infrastructure .................................................78 .....■ ........3.3

Norway.........................................10.9
United Kingdom ............................580
Multiple economies3 ..................100.0
Bangladesh .......................................1
Singapore .......................................6.9
Switzerland ....................................6.8
France ............................................6.7
Singapore .......................................6.8

7th pillar: Availability and quality of transport services
7.01
7.02
7.03
7.04
7.05
7.06

Liner Shipping Connectivity Index ........................................n/a.................n/a
Ease and affordability of shipment........................................88 .....■ ........2.4
Competence of the logistics industry ...................................99 .....■ ........2.2
Ability and ease of tracking ...................................................86 .....■ ........2.4
Timeliness of shipments in reaching destination ..................92 .....■ ........2.8
Postal service efficiency........................................................87 .....■ ........3.1

China ..........................................127.8
Netherlands....................................4.1
Netherlands....................................4.3
Singapore .......................................4.3
Singapore .......................................4.5
Japan..............................................6.8

8th pillar: Availability and use of ICTs
8.01
8.02
8.03
8.04
8.05

Firm-level technology absorption ........................................118 .....■ ........3.2
Mobile telephone subscribers...............................................85 .....■ ......28.8
Broadband Internet subscribers ............................................87 .....■ ........0.1
Internet users ........................................................................90 .....■ ........6.2
Telephone lines .....................................................................86 .....■ ........7.1

Sweden..........................................6.3
Luxembourg...............................151.6
Denmark ......................................31.7
Netherlands..................................88.9
Switzerland ..................................69.4

9th pillar: Regulatory environment
9.01
9.02
9.03
9.04

Ease of hiring foreign labor ...................................................49 .....■ ........4.9
Openness of bilateral Air Service Agreements .....................61 .....■ ........9.5
Prevalence of foreign ownership ........................................106 .....■ ........4.0
Business impact of rules on FDI .........................................115 .....■ ........3.5

Kuwait ............................................6.2
El Salvador ...................................33.7
Ireland ............................................6.5
Ireland ............................................6.5

10th pillar: Physical security
10.01
10.02
10.03

Reliability of police services ................................................116 .....■ ........2.3
Business costs of crime and violence...................................85 .....■ ........3.8
Business costs of terrorism ..................................................54 .....■ ........5.5

Finland............................................6.7
Syria ...............................................6.7
Finland............................................6.6

1 Two economies: Denmark, Sweden
2 Three economies: Denmark, Finland, New Zealand
3 Nineteen economies: Armenia, Austria, Czech Republic, Denmark, France, Germany, Hong Kong SAR, Ireland, Israel, Italy, Jordan, Latvia, Luxembourg, Mauritius,

Singapore, Slovenia, Switzerland, United Arab Emirates, United Kingdom

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

115

2.1: Country/Economy Profiles

ET.partB.r1

6/2/08

10:39 PM

Page 116

Bosnia and Herzegovina
Key indicators
Population (millions), 2007 .............................................3.9
Surface area (1,000 square kilometers)........................51.2
GDP (US$ billions), 2007 ..............................................13.5

GDP (current prices, US$) per capita, 2007 ............3,399.6
GDP per capita (rank out of 118), 2007...........................68
Real GDP growth (percent), 2007 ..................................5.8

Source: International Monetary Fund, World Economic Outlook Database (October 2007); United Nations Population Fund,
State of World Population 2007; The World Bank, World Development Indicators 2007 (CD version)

Main trade data
Current account balance (share of GDP), 2007 ..........–15.3
Merchandise exports, f.o.b. (US$ millions) .............3,312.0
Merchandise imports, c.i.f. (US$ millions) ..............7,305.0
Commercial services exports (US$ millions)...........1,116.4
Commercial services imports (US$ millions)..............493.2
Goods RTAs notified to WTO ........................................2.0
WTO accession year.............................................Observer
Source: International Monetary Fund, World Economic Outlook
Database (October 2007); World Trade Organization, Statistics
Database, Trade profiles 2007

Trade as a percentage of GDP, 1994–2006
150

Bosnia and Herzegovina

World average

120
90
60
30
1994

1996

1998

2000

2002

2004

2006

Source: The World Bank, World Development Indicators 2007
(CD version)

Main trading partners, 2006

Exports and imports by sector, 2006

Share of total volume of merchandise trade (percent)

Share of total volume of merchandise trade (percent)

116
100
80

100

Others: 10.5
Serbia: 13.2
Croatia: 18.7

60

■ Manufactures

Others: 26.4

80
Serbia: 9.7

■ Fuels and mining
products

60.9
45.0

60

Croatia: 16.7

40

■ Agricultural
products

40
EU25: 57.6

20

0

0

Exports destination

Imports orgin

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Enabling Trade Index

25.5

19.8

13.1

18.9

Exports

Imports

EU25: 47.1

20

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Rank
(out of 118)

Score
(1–7 scale)

2008 Index......................................................................................................89
Market access ...................................................................................................97

3.5
3.3

Tariff and non-tariff barriers..............................................................................85
Proclivity to trade ................................................................................................98

3.4
3.1

Border administration.......................................................................................72

3.7

Efficiency of customs administration...............................................................80
Efficiency of import-export procedures ..........................................................51
Transparency of border administration...........................................................88

3.1
4.8
3.2

Transport and communications infrastructure ............................................86

2.9

Availability and quality of transport infrastructure .....................................108
Availability and quality of transport services.................................................62
Availability and use of ICTs................................................................................65

2.5
3.5
2.7

Business environment ......................................................................................90

4.0

Regulatory environment ...................................................................................101
Physical security .................................................................................................79

3.8
4.2
1

2

3

4

Note: For descriptions of variables and detailed sources, please refer to “How to Read the Country/Economy Profiles.”

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

5

6

7

6/2/08

10:39 PM

Page 117

Bosnia and Herzegovina
The Enabling Trade Index in detail
INDICATOR

■ Competitive Advantage ■ Competitive Disadvantage
RANK/118

SCORE

BEST PERFORMER

SCORE

1st pillar: Tariff and non-tariff barriers
1.01
1.02

Tariff barriers .........................................................................83 .....■ ........8.9
Non-tariff barriers..................................................................n/a.................n/a

Hong Kong SAR .............................0.0
Uganda...........................................0.1

2.1: Country/Economy Profiles

ET.partB.r1

2nd pillar: Proclivity to trade
2.01
2.02
2.03
2.04

Breadth of international markets.........................................111 .....■ ........2.3
Extent of regional sales.......................................................108 .....■ ........2.9
Openness to multilateral trade rules.....................................59 .....■ ......61.6
Share of duty-free imports ....................................................83 .....■ .........31

Germany ........................................6.8
Germany ........................................6.7
Hungary........................................88.5
Hong Kong SAR ............................100

3rd pillar: Efficiency of customs administration
3.01
3.02

Burden of customs procedures.............................................77 .....■ ........3.4
Customs services index ........................................................68 .....■ ........4.3

Singapore .......................................6.4
Lithuania.......................................10.2

4th pillar: Efficiency of import-export procedures
4.01
4.02
4.03
4.04

Effectiveness and efficiency of clearance.............................75 .....■ ........2.3
Time for import......................................................................40 .....■ .........18
Documents for import...........................................................39 .....■ ...........7
Cost to import .......................................................................45 .....■ .......985

Netherlands....................................4.0
Singapore ..........................................3
Multiple economies1 ........................3
Singapore ......................................367

5th pillar: Transparency of border administration
5.01
5.02

Irregular payments in exports and imports ...........................94 .....■ ........3.3
Corruption Perceptions Index................................................65 .....■ ........3.3

Denmark ........................................6.7
Multiple economies2 ......................9.4

6th pillar: Availability and quality of transport infrastructure
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08

Airport density .......................................................................48 .....■ ........0.8
Transshipment connectivity index ........................................n/a.................n/a
Paved roads...........................................................................60 .....■ ......52.3
Road congestion...................................................................n/a.................n/a
Quality of air transport infrastructure ..................................115 .....■ ........2.8
Quality of railroad infrastructure............................................91 .....■ ........1.6
Quality of roads ...................................................................115 .....■ ........1.7
Quality of port infrastructure ...............................................116 .....■ ........1.6

Norway.........................................10.9
United Kingdom ............................580
Multiple economies3 ..................100.0
Bangladesh .......................................1
Singapore .......................................6.9
Switzerland ....................................6.8
France ............................................6.7
Singapore .......................................6.8

7th pillar: Availability and quality of transport services
7.01
7.02
7.03
7.04
7.05
7.06

Liner Shipping Connectivity Index ........................................n/a.................n/a
Ease and affordability of shipment........................................77 .....■ ........2.5
Competence of the logistics industry ...................................86 .....■ ........2.4
Ability and ease of tracking ...................................................95 .....■ ........2.3
Timeliness of shipments in reaching destination ..................72 .....■ ........3.0
Postal service efficiency........................................................55 .....■ ........4.5

China ..........................................127.8
Netherlands....................................4.1
Netherlands....................................4.3
Singapore .......................................4.3
Singapore .......................................4.5
Japan..............................................6.8

8th pillar: Availability and use of ICTs
8.01
8.02
8.03
8.04
8.05

Firm-level technology absorption ........................................115 .....■ ........3.5
Mobile telephone subscribers...............................................74 .....■ ......48.3
Broadband Internet subscribers ............................................60 .....■ ........1.0
Internet users ........................................................................46 .....■ ......24.3
Telephone lines .....................................................................47 .....■ ......25.3

Sweden..........................................6.3
Luxembourg...............................151.6
Denmark ......................................31.7
Netherlands..................................88.9
Switzerland ..................................69.4

9th pillar: Regulatory environment
9.01
9.02
9.03
9.04

Ease of hiring foreign labor ...................................................94 .....■ ........4.3
Openness of bilateral Air Service Agreements .....................67 .....■ ........9.3
Prevalence of foreign ownership ..........................................88 .....■ ........4.6
Business impact of rules on FDI .........................................112 .....■ ........3.6

Kuwait ............................................6.2
El Salvador ...................................33.7
Ireland ............................................6.5
Ireland ............................................6.5

10th pillar: Physical security
10.01
10.02
10.03

Reliability of police services ..................................................95 .....■ ........3.1
Business costs of crime and violence...................................69 .....■ ........4.3
Business costs of terrorism ....................................................7 .....■ ........6.2

Finland............................................6.7
Syria ...............................................6.7
Finland............................................6.6

1 Two economies: Denmark, Sweden
2 Three economies: Denmark, Finland, New Zealand
3 Nineteen economies: Armenia, Austria, Czech Republic, Denmark, France, Germany, Hong Kong SAR, Ireland, Israel, Italy, Jordan, Latvia, Luxembourg, Mauritius,

Singapore, Slovenia, Switzerland, United Arab Emirates, United Kingdom

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

117

2.1: Country/Economy Profiles

ET.partB.r1

6/2/08

10:39 PM

Page 118

Brazil
Key indicators
Population (millions), 2007 .........................................191.3
Surface area (1,000 square kilometers)...................8,514.9
GDP (US$ billions), 2007 .........................................1,295.4

GDP (current prices, US$) per capita, 2007 ............6,841.6
GDP per capita (rank out of 118), 2007...........................49
Real GDP growth (percent), 2007 ..................................4.4

Source: International Monetary Fund, World Economic Outlook Database (October 2007); United Nations Population Fund,
State of World Population 2007; The World Bank, World Development Indicators 2007 (CD version)

Main trade data
Current account balance (share of GDP), 2007..............0.8
Merchandise exports, f.o.b. (US$ millions) .........137,470.0
Merchandise imports, c.i.f. (US$ millions) ............95,886.3
Commercial services exports (US$ millions).........17,920.4
Commercial services imports (US$ millions).........26,884.5
Goods RTAs notified to WTO ........................................4.0
WTO accession year ...................................................1995

Trade as a percentage of GDP, 1994–2006
80

Brazil

World average

70
60
50
40
30
20

Source: International Monetary Fund, World Economic Outlook
Database (October 2007); World Trade Organization, Statistics
Database, Trade profiles 2007

10
1994

1996

1998

2000

2002

2004

2006

Source: IMF, World Economic Outlook Database (Oct. 2007); WTO, Statistics
Database, Time series on merchandise & commercial services (Apr. 2008)

Main trading partners, 2006

Exports and imports by sector, 2006

Share of total volume of merchandise trade (percent)

Share of total volume of merchandise trade (percent)

118
100

100

80

49.8

60
40

■ Manufactures

80

Others: 39.9

Others: 45.3

China: 6.1
Argentina: 8.5
United States: 18.0

40

■ Agricultural
products

19.2

United States: 16.3

20

20
EU25: 22.1

24.3

28.8

EU25: 22.0

0

6.2

0

Exports destination

Imports orgin

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Enabling Trade Index

■ Fuels and mining
products

69.1

60

Nigeria: 4.3
China: 8.7
Argentina: 8.8

Exports

Imports

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Rank
(out of 118)

Score
(1–7 scale)

2008 Index......................................................................................................80
Market access ...................................................................................................92

3.6
3.4

Tariff and non-tariff barriers..............................................................................98
Proclivity to trade ................................................................................................68

2.9
4.0

Border administration.......................................................................................66

3.9

Efficiency of customs administration...............................................................73
Efficiency of import-export procedures ..........................................................61
Transparency of border administration...........................................................58

3.3
4.6
3.8

Transport and communications infrastructure ............................................62

3.3

Availability and quality of transport infrastructure .......................................91
Availability and quality of transport services.................................................42
Availability and use of ICTs................................................................................56

3.1
3.9
2.9

Business environment ......................................................................................96

3.9

Regulatory environment .....................................................................................70
Physical security ...............................................................................................101

4.3
3.5
1

2

3

4

Note: For descriptions of variables and detailed sources, please refer to “How to Read the Country/Economy Profiles.”

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

5

6

7

6/2/08

10:39 PM

Page 119

Brazil
The Enabling Trade Index in detail
INDICATOR

■ Competitive Advantage ■ Competitive Disadvantage
RANK/118

SCORE

BEST PERFORMER

SCORE

1st pillar: Tariff and non-tariff barriers
1.01
1.02

Tariff barriers .........................................................................81 .....■ ........8.5
Non-tariff barriers ..................................................................63 .....■ ......56.3

Hong Kong SAR .............................0.0
Uganda...........................................0.1

2.1: Country/Economy Profiles

ET.partB.r1

2nd pillar: Proclivity to trade
2.01
2.02
2.03
2.04

Breadth of international markets...........................................41 .....■ ........4.4
Extent of regional sales.........................................................40 .....■ ........5.1
Openness to multilateral trade rules.....................................93 .....■ ......50.8
Share of duty-free imports ....................................................80 .....■ .........31

Germany ........................................6.8
Germany ........................................6.7
Hungary........................................88.5
Hong Kong SAR ............................100

3rd pillar: Efficiency of customs administration
3.01
3.02

Burden of customs procedures...........................................112 .....■ ........2.5
Customs services index ........................................................50 .....■ ........6.0

Singapore .......................................6.4
Lithuania.......................................10.2

4th pillar: Efficiency of import-export procedures
4.01
4.02
4.03
4.04

Effectiveness and efficiency of clearance.............................67 .....■ ........2.4
Time for import......................................................................58 .....■ .........22
Documents for import...........................................................39 .....■ ...........7
Cost to import .......................................................................74 .....■ ....1,240

Netherlands....................................4.0
Singapore ..........................................3
Multiple economies1 ........................3
Singapore ......................................367

5th pillar: Transparency of border administration
5.01
5.02

Irregular payments in exports and imports ...........................57 .....■ ........4.5
Corruption Perceptions Index................................................58 .....■ ........3.5

Denmark ........................................6.7
Multiple economies2 ......................9.4

6th pillar: Availability and quality of transport infrastructure
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08

Airport density .......................................................................70 .....■ ........0.5
Transshipment connectivity index .........................................17 .....■ .......523
Paved roads.........................................................................113 .....■ ........5.5
Road congestion....................................................................27 .....■ .........18
Quality of air transport infrastructure ....................................79 .....■ ........4.0
Quality of railroad infrastructure............................................82 .....■ ........1.7
Quality of roads .....................................................................98 .....■ ........2.3
Quality of port infrastructure ...............................................104 .....■ ........2.6

Norway.........................................10.9
United Kingdom ............................580
Multiple economies3 ..................100.0
Bangladesh .......................................1
Singapore .......................................6.9
Switzerland ....................................6.8
France ............................................6.7
Singapore .......................................6.8

7th pillar: Availability and quality of transport services
7.01
7.02
7.03
7.04
7.05
7.06

Liner Shipping Connectivity Index.........................................24 .....■ ......31.6
Ease and affordability of shipment........................................70 .....■ ........2.6
Competence of the logistics industry ...................................46 .....■ ........2.9
Ability and ease of tracking ...................................................62 .....■ ........2.8
Timeliness of shipments in reaching destination ..................67 .....■ ........3.1
Postal service efficiency........................................................31 .....■ ........5.4

China ..........................................127.8
Netherlands....................................4.1
Netherlands....................................4.3
Singapore .......................................4.3
Singapore .......................................4.5
Japan..............................................6.8

8th pillar: Availability and use of ICTs
8.01
8.02
8.03
8.04
8.05

Firm-level technology absorption ..........................................52 .....■ ........4.9
Mobile telephone subscribers...............................................75 .....■ ......46.2
Broadband Internet subscribers ............................................50 .....■ ........2.4
Internet users ........................................................................58 .....■ ......17.2
Telephone lines .....................................................................53 .....■ ......21.4

Sweden..........................................6.3
Luxembourg...............................151.6
Denmark ......................................31.7
Netherlands..................................88.9
Switzerland ..................................69.4

9th pillar: Regulatory environment
9.01
9.02
9.03
9.04

Ease of hiring foreign labor ...................................................63 .....■ ........4.7
Openness of bilateral Air Service Agreements .....................33 .....■ ......12.1
Prevalence of foreign ownership ..........................................87 .....■ ........4.6
Business impact of rules on FDI ...........................................87 .....■ ........4.6

Kuwait ............................................6.2
El Salvador ...................................33.7
Ireland ............................................6.5
Ireland ............................................6.5

10th pillar: Physical security
10.01
10.02
10.03

Reliability of police services ................................................108 .....■ ........2.6
Business costs of crime and violence.................................110 .....■ ........2.8
Business costs of terrorism ....................................................8 .....■ ........6.2

Finland............................................6.7
Syria ...............................................6.7
Finland............................................6.6

1 Two economies: Denmark, Sweden
2 Three economies: Denmark, Finland, New Zealand
3 Nineteen economies: Armenia, Austria, Czech Republic, Denmark, France, Germany, Hong Kong SAR, Ireland, Israel, Italy, Jordan, Latvia, Luxembourg, Mauritius,

Singapore, Slovenia, Switzerland, United Arab Emirates, United Kingdom

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

119

2.1: Country/Economy Profiles

ET.partB.r1

6/2/08

10:39 PM

Page 120

Bulgaria
Key indicators
Population (millions), 2007 .............................................7.6
Surface area (1,000 square kilometers)......................111.0
GDP (US$ billions), 2007 ..............................................39.1

GDP (current prices, US$) per capita, 2007 ............5,116.0
GDP per capita (rank out of 118), 2007...........................58
Real GDP growth (percent), 2007 ..................................6.0

Source: International Monetary Fund, World Economic Outlook Database (October 2007); United Nations Population Fund,
State of World Population 2007; The World Bank, World Development Indicators 2007 (CD version)

Main trade data
Current account balance (share of GDP), 2007 ..........–20.3
Merchandise exports, f.o.b. (US$ millions) ...........15,064.2
Merchandise imports, c.i.f. (US$ millions) ............23,135.9
Commercial services exports (US$ millions)...........5,041.3
Commercial services imports (US$ millions)...........4,103.1
Goods RTAs notified to WTO ......................................23.0
WTO accession year ...................................................1996

Trade as a percentage of GDP, 1994–2006
200

Bulgaria

World average

150
100
50

Source: International Monetary Fund, World Economic Outlook
Database (October 2007); World Trade Organization, Statistics
Database, Trade profiles 2007

0
1994

1996

1998

2000

2002

2004

2006

Source: IMF, World Economic Outlook Database (Oct. 2007); WTO, Statistics
Database, Time series on merchandise & commercial services (Apr. 2008)

Main trading partners, 2006

Exports and imports by sector, 2006

Share of total volume of merchandise trade (percent)

Share of total volume of merchandise trade (percent)

120
100
80

100
Others: 33.0

Others: 28.6

■ Manufactures

80

Turkey: 6.1

60

Turkey: 10.5

■ Fuels and mining
products

53.3

60

Russian Fed.: 15.6

■ Agricultural
products

62.4

40

40
EU25: 56.5

33.3

EU25: 49.7

20

20

0

0

Exports destination

Imports orgin

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Enabling Trade Index

13.8
10.3

5.0

Exports

Imports

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Rank
(out of 118)

Score
(1–7 scale)

2008 Index......................................................................................................60
Market access ...................................................................................................56

3.9
4.3

Tariff and non-tariff barriers..............................................................................42
Proclivity to trade ................................................................................................58

4.5
4.1

Border administration.......................................................................................57

4.1

Efficiency of customs administration...............................................................56
Efficiency of import-export procedures ..........................................................63
Transparency of border administration...........................................................56

3.8
4.5
3.8

Transport and communications infrastructure ............................................54

3.5

Availability and quality of transport infrastructure .......................................76
Availability and quality of transport services.................................................60
Availability and use of ICTs................................................................................44

3.4
3.6
3.5

Business environment ....................................................................................107

3.7

Regulatory environment ...................................................................................103
Physical security .................................................................................................93

3.8
3.7
1

2

3

4

Note: For descriptions of variables and detailed sources, please refer to “How to Read the Country/Economy Profiles.”

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

5

6

7

6/2/08

10:39 PM

Page 121

Bulgaria
The Enabling Trade Index in detail
INDICATOR

■ Competitive Advantage ■ Competitive Disadvantage
RANK/118

SCORE

BEST PERFORMER

SCORE

1st pillar: Tariff and non-tariff barriers
1.01
1.02

Tariff barriers ...........................................................................3 .....■ ........1.1
Non-tariff barriers ..................................................................54 .....■ ......53.1

Hong Kong SAR .............................0.0
Uganda...........................................0.1

2.1: Country/Economy Profiles

ET.partB.r1

2nd pillar: Proclivity to trade
2.01
2.02
2.03
2.04

Breadth of international markets...........................................81 .....■ ........3.0
Extent of regional sales.........................................................84 .....■ ........3.7
Openness to multilateral trade rules.......................................5 .....■ ......83.8
Share of duty-free imports ....................................................77 .....■ .........35

Germany ........................................6.8
Germany ........................................6.7
Hungary........................................88.5
Hong Kong SAR ............................100

3rd pillar: Efficiency of customs administration
3.01
3.02

Burden of customs procedures.............................................79 .....■ ........3.4
Customs services index ........................................................42 .....■ ........6.3

Singapore .......................................6.4
Lithuania.......................................10.2

4th pillar: Efficiency of import-export procedures
4.01
4.02
4.03
4.04

Effectiveness and efficiency of clearance.............................62 .....■ ........2.5
Time for import......................................................................53 .....■ .........21
Documents for import...........................................................39 .....■ ...........7
Cost to import .......................................................................85 .....■ ....1,377

Netherlands....................................4.0
Singapore ..........................................3
Multiple economies1 ........................3
Singapore ......................................367

5th pillar: Transparency of border administration
5.01
5.02

Irregular payments in exports and imports ...........................69 .....■ ........4.2
Corruption Perceptions Index................................................51 .....■ ........4.1

Denmark ........................................6.7
Multiple economies2 ......................9.4

6th pillar: Availability and quality of transport infrastructure
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08

Airport density .......................................................................82 .....■ ........0.4
Transshipment connectivity index .........................................84 .....■ .......439
Paved roads...........................................................................20 .....■ ......99.0
Road congestion....................................................................64 .....■ .........63
Quality of air transport infrastructure ....................................96 .....■ ........3.5
Quality of railroad infrastructure............................................45 .....■ ........3.2
Quality of roads .....................................................................94 .....■ ........2.4
Quality of port infrastructure .................................................69 .....■ ........3.6

Norway.........................................10.9
United Kingdom ............................580
Multiple economies3 ..................100.0
Bangladesh .......................................1
Singapore .......................................6.9
Switzerland ....................................6.8
France ............................................6.7
Singapore .......................................6.8

7th pillar: Availability and quality of transport services
7.01
7.02
7.03
7.04
7.05
7.06

Liner Shipping Connectivity Index.........................................87 .....■ ........4.8
Ease and affordability of shipment........................................57 .....■ ........2.8
Competence of the logistics industry ...................................50 .....■ ........2.9
Ability and ease of tracking ...................................................39 .....■ ........3.1
Timeliness of shipments in reaching destination ..................42 .....■ ........3.6
Postal service efficiency........................................................68 .....■ ........3.8

China ..........................................127.8
Netherlands....................................4.1
Netherlands....................................4.3
Singapore .......................................4.3
Singapore .......................................4.5
Japan..............................................6.8

8th pillar: Availability and use of ICTs
8.01
8.02
8.03
8.04
8.05

Firm-level technology absorption ........................................109 .....■ ........3.6
Mobile telephone subscribers...............................................18 .....■ ....107.6
Broadband Internet subscribers ............................................41 .....■ ........5.0
Internet users ........................................................................45 .....■ ......24.4
Telephone lines .....................................................................34 .....■ ......31.3

Sweden..........................................6.3
Luxembourg...............................151.6
Denmark ......................................31.7
Netherlands..................................88.9
Switzerland ..................................69.4

9th pillar: Regulatory environment
9.01
9.02
9.03
9.04

Ease of hiring foreign labor ...................................................77 .....■ ........4.5
Openness of bilateral Air Service Agreements .....................90 .....■ ........7.0
Prevalence of foreign ownership ..........................................98 .....■ ........4.3
Business impact of rules on FDI .........................................107 .....■ ........4.0

Kuwait ............................................6.2
El Salvador ...................................33.7
Ireland ............................................6.5
Ireland ............................................6.5

10th pillar: Physical security
10.01
10.02
10.03

Reliability of police services ..................................................94 .....■ ........3.1
Business costs of crime and violence...................................87 .....■ ........3.7
Business costs of terrorism ..................................................92 .....■ ........4.7

Finland............................................6.7
Syria ...............................................6.7
Finland............................................6.6

1 Two economies: Denmark, Sweden
2 Three economies: Denmark, Finland, New Zealand
3 Nineteen economies: Armenia, Austria, Czech Republic, Denmark, France, Germany, Hong Kong SAR, Ireland, Israel, Italy, Jordan, Latvia, Luxembourg, Mauritius,

Singapore, Slovenia, Switzerland, United Arab Emirates, United Kingdom

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

121

2.1: Country/Economy Profiles

ET.partB.r1

6/2/08

10:39 PM

Page 122

Burkina Faso
Key indicators
Population (millions), 2007 ...........................................14.0
Surface area (1,000 square kilometers)......................274.0
GDP (US$ billions), 2007 ................................................6.9

GDP (current prices, US$) per capita, 2007 ...............499.6
GDP per capita (rank out of 118), 2007.........................110
Real GDP growth (percent), 2007 ..................................6.0

Source: International Monetary Fund, World Economic Outlook Database (October 2007); United Nations Population Fund,
State of World Population 2007; The World Bank, World Development Indicators 2007 (CD version)

Main trade data
Current account balance (share of GDP), 2007 ..........–11.4
Merchandise exports, f.o.b. (US$ millions) ................440.0
Merchandise imports, c.i.f. (US$ millions) ..............1,450.0
Commercial services exports (US$ millions)..............210.2
Commercial services imports (US$ millions)..............345.4
Goods RTAs notified to WTO ........................................2.0
WTO accession year ...................................................1995

Trade as a percentage of GDP, 1994–2006
80

Burkina Faso

World average

70
60
50
40

Source: International Monetary Fund, World Economic Outlook
Database (October 2007); World Trade Organization, Statistics
Database, Trade profiles 2007

30
1994

1996

1998

2000

2002

2004

2006

Source: IMF, World Economic Outlook Database (Oct. 2007); WTO, Statistics
Database, Time series on merchandise & commercial services (Apr. 2008)

Main trading partners, 2006

Exports and imports by sector, 2006

Share of total volume of merchandise trade (percent)

Share of total volume of merchandise trade (percent)

122
100

100
Others: 23.8

80

Others: 27.4

60

South Africa: 4.9
United States: 7.1
Japan: 13.1

60

40

Côte d’Ivoire: 17.9

40

EU25: 15.4

80

■ Manufactures

6.5

2.7

■ Agricultural
products

72.4

Ghana: 60.9

20

■ Fuels and mining
products

62.0

25.0

20

EU25: 29.7

12.5

0

0

Exports destination

Imports orgin

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Enabling Trade Index

Exports

Imports

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Rank
(out of 118)

Score
(1–7 scale)

2008 Index......................................................................................................99
Market access ...................................................................................................82

3.3
3.8

Tariff and non-tariff barriers..............................................................................32
Proclivity to trade ..............................................................................................107

4.8
2.8

Border administration.....................................................................................106

2.8

Efficiency of customs administration...............................................................94
Efficiency of import-export procedures ........................................................107
Transparency of border administration...........................................................79

2.8
2.2
3.3

Transport and communications infrastructure ..........................................110

2.4

Availability and quality of transport infrastructure .....................................112
Availability and quality of transport services.................................................92
Availability and use of ICTs..............................................................................107

2.4
3.0
1.8

Business environment ......................................................................................74

4.3

Regulatory environment .....................................................................................79
Physical security .................................................................................................64

4.2
4.5
1

2

3

4

Note: For descriptions of variables and detailed sources, please refer to “How to Read the Country/Economy Profiles.”

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

5

6

7

6/2/08

10:39 PM

Page 123

Burkina Faso
The Enabling Trade Index in detail
INDICATOR

■ Competitive Advantage ■ Competitive Disadvantage
RANK/118

SCORE

BEST PERFORMER

SCORE

1st pillar: Tariff and non-tariff barriers
1.01
1.02

Tariff barriers .........................................................................89 .....■ ........9.9
Non-tariff barriers ..................................................................10 .....■ ........5.0

Hong Kong SAR .............................0.0
Uganda...........................................0.1

2.1: Country/Economy Profiles

ET.partB.r1

2nd pillar: Proclivity to trade
2.01
2.02
2.03
2.04

Breadth of international markets.........................................108 .....■ ........2.4
Extent of regional sales.........................................................98 .....■ ........3.4
Openness to multilateral trade rules.....................................97 .....■ ......48.5
Share of duty-free imports ....................................................91 .....■ .........22

Germany ........................................6.8
Germany ........................................6.7
Hungary........................................88.5
Hong Kong SAR ............................100

3rd pillar: Efficiency of customs administration
3.01
3.02

Burden of customs procedures.............................................56 .....■ ........3.9
Customs services index ........................................................99 .....■ ........2.7

Singapore .......................................6.4
Lithuania.......................................10.2

4th pillar: Efficiency of import-export procedures
4.01
4.02
4.03
4.04

Effectiveness and efficiency of clearance.............................97 .....■ ........2.1
Time for import....................................................................103 .....■ .........54
Documents for import...........................................................98 .....■ .........11
Cost to import .....................................................................111 .....■ ....3,522

Netherlands....................................4.0
Singapore ..........................................3
Multiple economies1 ........................3
Singapore ......................................367

5th pillar: Transparency of border administration
5.01
5.02

Irregular payments in exports and imports ...........................84 .....■ ........3.9
Corruption Perceptions Index................................................78 .....■ ........2.9

Denmark ........................................6.7
Multiple economies2 ......................9.4

6th pillar: Availability and quality of transport infrastructure
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08

Airport density .....................................................................108 .....■ ........0.1
Transshipment connectivity index ........................................n/a.................n/a
Paved roads...........................................................................74 .....■ ......31.2
Road congestion...................................................................n/a.................n/a
Quality of air transport infrastructure ....................................99 .....■ ........3.4
Quality of railroad infrastructure............................................77 .....■ ........1.9
Quality of roads .....................................................................96 .....■ ........2.4
Quality of port infrastructure .................................................60 .....■ ........3.9

Norway.........................................10.9
United Kingdom ............................580
Multiple economies3 ..................100.0
Bangladesh .......................................1
Singapore .......................................6.9
Switzerland ....................................6.8
France ............................................6.7
Singapore .......................................6.8

7th pillar: Availability and quality of transport services
7.01
7.02
7.03
7.04
7.05
7.06

Liner Shipping Connectivity Index ........................................n/a.................n/a
Ease and affordability of shipment........................................66 .....■ ........2.7
Competence of the logistics industry ...................................89 .....■ ........2.3
Ability and ease of tracking .................................................106 .....■ ........2.1
Timeliness of shipments in reaching destination ................114 .....■ ........2.3
Postal service efficiency.......................................................n/a.................n/a

China ..........................................127.8
Netherlands....................................4.1
Netherlands....................................4.3
Singapore .......................................4.3
Singapore .......................................4.5
Japan..............................................6.8

8th pillar: Availability and use of ICTs
8.01
8.02
8.03
8.04
8.05

Firm-level technology absorption ..........................................77 .....■ ........4.4
Mobile telephone subscribers.............................................109 .....■ ........7.5
Broadband Internet subscribers ..........................................100 .....■ ........0.0
Internet users ......................................................................112 .....■ ........0.6
Telephone lines ...................................................................109 .....■ ........0.7

Sweden..........................................6.3
Luxembourg...............................151.6
Denmark ......................................31.7
Netherlands..................................88.9
Switzerland ..................................69.4

9th pillar: Regulatory environment
9.01
9.02
9.03
9.04

Ease of hiring foreign labor ...................................................43 .....■ ........5.1
Openness of bilateral Air Service Agreements ...................115 .....■ ........1.9
Prevalence of foreign ownership ..........................................59 .....■ ........5.2
Business impact of rules on FDI ...........................................59 .....■ ........5.2

Kuwait ............................................6.2
El Salvador ...................................33.7
Ireland ............................................6.5
Ireland ............................................6.5

10th pillar: Physical security
10.01
10.02
10.03

Reliability of police services ..................................................49 .....■ ........4.5
Business costs of crime and violence...................................83 .....■ ........3.8
Business costs of terrorism ..................................................70 .....■ ........5.3

Finland............................................6.7
Syria ...............................................6.7
Finland............................................6.6

1 Two economies: Denmark, Sweden
2 Three economies: Denmark, Finland, New Zealand
3 Nineteen economies: Armenia, Austria, Czech Republic, Denmark, France, Germany, Hong Kong SAR, Ireland, Israel, Italy, Jordan, Latvia, Luxembourg, Mauritius,

Singapore, Slovenia, Switzerland, United Arab Emirates, United Kingdom

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

123

2.1: Country/Economy Profiles

ET.partB.r1

6/2/08

10:39 PM

Page 124

Burundi
Key indicators
Population (millions), 2007 .............................................8.1
Surface area (1,000 square kilometers)........................27.8
GDP (US$ billions), 2007 ................................................1.0

GDP (current prices, US$) per capita, 2007 ...............126.9
GDP per capita (rank out of 118), 2007.........................118
Real GDP growth (percent), 2007 ..................................3.5

Source: International Monetary Fund, World Economic Outlook Database (October 2007); United Nations Population Fund,
State of World Population 2007; The World Bank, World Development Indicators 2007 (CD version)

Main trade data
Current account balance (share of GDP), 2007 ..........–14.2
Merchandise exports, f.o.b. (US$ millions) ..................58.7
Merchandise imports, c.i.f. (US$ millions) .................431.0
Commercial services exports (US$ millions)..................6.5
Commercial services imports (US$ millions)..............103.9
Goods RTAs notified to WTO ........................................1.0
WTO accession year ...................................................1995

Trade as a percentage of GDP, 1994–2006
80

Burundi

World average

70
60
50
40
30

Source: International Monetary Fund, World Economic Outlook
Database (October 2007); World Trade Organization, Statistics
Database, Trade profiles 2007

20
1994

1996

1998

2000

2002

2004

2006

Source: IMF, World Economic Outlook Database (Oct. 2007); WTO, Statistics
Database, Time series on merchandise & commercial services (Apr. 2008)

Main trading partners, 2006

Exports and imports by sector, 2006

Share of total volume of merchandise trade (percent)

Share of total volume of merchandise trade (percent)

124
100
80

100
Others: 11.3
Kenya: 7.1

Others: 31.8

EU25: 20.2

UAE: 25.3

40
20

Switzerland: 36.2

2.7

■ Manufactures

80

Tanzania: 4.9
Turkey: 8.1
Japan: 8.8
Kenya: 12.2

60

6.7

60

■ Agricultural
products

90.3

40
20

EU25: 34.2

0

8.9
7.5

0

Exports destination

Imports orgin

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Enabling Trade Index

■ Fuels and mining
products

79.2

Exports

Imports

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Rank
(out of 118)

Score
(1–7 scale)

2008 Index....................................................................................................117
Market access .................................................................................................115

2.7
2.2

Tariff and non-tariff barriers............................................................................106
Proclivity to trade ..............................................................................................118

2.3
2.1

Border administration.....................................................................................109

2.7

Efficiency of customs administration...............................................................97
Efficiency of import-export procedures ........................................................112
Transparency of border administration...........................................................76

2.7
2.0
3.4

Transport and communications infrastructure ..........................................116

2.1

Availability and quality of transport infrastructure .....................................116
Availability and quality of transport services...............................................104
Availability and use of ICTs..............................................................................116

2.0
2.9
1.6

Business environment ....................................................................................104

3.7

Regulatory environment ...................................................................................107
Physical security .................................................................................................86

3.7
3.8
1

2

3

4

Note: For descriptions of variables and detailed sources, please refer to “How to Read the Country/Economy Profiles.”

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

5

6

7

6/2/08

10:39 PM

Page 125

Burundi
The Enabling Trade Index in detail
INDICATOR

■ Competitive Advantage ■ Competitive Disadvantage
RANK/118

SCORE

BEST PERFORMER

SCORE

1st pillar: Tariff and non-tariff barriers
1.01
1.02

Tariff barriers .........................................................................96 .....■ ......11.6
Non-tariff barriers..................................................................n/a.................n/a

Hong Kong SAR .............................0.0
Uganda...........................................0.1

2.1: Country/Economy Profiles

ET.partB.r1

2nd pillar: Proclivity to trade
2.01
2.02
2.03
2.04

Breadth of international markets.........................................118 .....■ ........1.8
Extent of regional sales.......................................................116 .....■ ........2.5
Openness to multilateral trade rules...................................113 .....■ ......34.0
Share of duty-free imports ..................................................101 .....■ .........16

Germany ........................................6.8
Germany ........................................6.7
Hungary........................................88.5
Hong Kong SAR ............................100

3rd pillar: Efficiency of customs administration
3.01
3.02

Burden of customs procedures...........................................105 .....■ ........2.7
Customs services index .......................................................n/a.................n/a

Singapore .......................................6.4
Lithuania.......................................10.2

4th pillar: Efficiency of import-export procedures
4.01
4.02
4.03
4.04

Effectiveness and efficiency of clearance.............................86 .....■ ........2.2
Time for import....................................................................110 .....■ .........71
Documents for import...........................................................89 .....■ .........10
Cost to import .....................................................................112 .....■ ....3,705

Netherlands....................................4.0
Singapore ..........................................3
Multiple economies1 ........................3
Singapore ......................................367

5th pillar: Transparency of border administration
5.01
5.02

Irregular payments in exports and imports ...........................67 .....■ ........4.2
Corruption Perceptions Index................................................95 .....■ ........2.5

Denmark ........................................6.7
Multiple economies2 ......................9.4

6th pillar: Availability and quality of transport infrastructure
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08

Airport density .....................................................................111 .....■ ........0.1
Transshipment connectivity index ........................................n/a.................n/a
Paved roads.........................................................................105 .....■ ......10.4
Road congestion...................................................................n/a.................n/a
Quality of air transport infrastructure ..................................112 .....■ ........2.9
Quality of railroad infrastructure ...........................................n/a .....■ .......n.a.
Quality of roads ...................................................................110 .....■ ........2.0
Quality of port infrastructure .................................................88 .....■ ........3.0

Norway.........................................10.9
United Kingdom ............................580
Multiple economies3 ..................100.0
Bangladesh .......................................1
Singapore .......................................6.9
Switzerland ....................................6.8
France ............................................6.7
Singapore .......................................6.8

7th pillar: Availability and quality of transport services
7.01
7.02
7.03
7.04
7.05
7.06

Liner Shipping Connectivity Index ........................................n/a.................n/a
Ease and affordability of shipment........................................77 .....■ ........2.5
Competence of the logistics industry ...................................71 .....■ ........2.5
Ability and ease of tracking .................................................108 .....■ ........2.0
Timeliness of shipments in reaching destination ................118 .....■ ........2.0
Postal service efficiency.......................................................n/a.................n/a

China ..........................................127.8
Netherlands....................................4.1
Netherlands....................................4.3
Singapore .......................................4.3
Singapore .......................................4.5
Japan..............................................6.8

8th pillar: Availability and use of ICTs
8.01
8.02
8.03
8.04
8.05

Firm-level technology absorption ........................................104 .....■ ........3.7
Mobile telephone subscribers.............................................117 .....■ ........2.0
Broadband Internet subscribers ..........................................110 .....■ ........0.0
Internet users ......................................................................110 .....■ ........0.8
Telephone lines ...................................................................113 .....■ ........0.4

Sweden..........................................6.3
Luxembourg...............................151.6
Denmark ......................................31.7
Netherlands..................................88.9
Switzerland ..................................69.4

9th pillar: Regulatory environment
9.01
9.02
9.03
9.04

Ease of hiring foreign labor ...................................................67 .....■ ........4.6
Openness of bilateral Air Service Agreements ...................102 .....■ ........5.4
Prevalence of foreign ownership ........................................111 .....■ ........3.9
Business impact of rules on FDI ...........................................97 .....■ ........4.4

Kuwait ............................................6.2
El Salvador ...................................33.7
Ireland ............................................6.5
Ireland ............................................6.5

10th pillar: Physical security
10.01
10.02
10.03

Reliability of police services ..................................................84 .....■ ........3.6
Business costs of crime and violence...................................86 .....■ ........3.7
Business costs of terrorism ................................................106 .....■ ........4.2

Finland............................................6.7
Syria ...............................................6.7
Finland............................................6.6

1 Two economies: Denmark, Sweden
2 Three economies: Denmark, Finland, New Zealand
3 Nineteen economies: Armenia, Austria, Czech Republic, Denmark, France, Germany, Hong Kong SAR, Ireland, Israel, Italy, Jordan, Latvia, Luxembourg, Mauritius,

Singapore, Slovenia, Switzerland, United Arab Emirates, United Kingdom

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

125

2.1: Country/Economy Profiles

ET.partB.r1

6/2/08

10:39 PM

Page 126

Cambodia
Key indicators
Population (millions), 2007 ...........................................14.6
Surface area (1,000 square kilometers)......................181.0
GDP (US$ billions), 2007 ................................................8.5

GDP (current prices, US$) per capita, 2007 ...............592.0
GDP per capita (rank out of 118), 2007.........................107
Real GDP growth (percent), 2007 ..................................9.5

Source: International Monetary Fund, World Economic Outlook Database (October 2007); United Nations Population Fund,
State of World Population 2007; The World Bank, World Development Indicators 2007 (CD version)

Main trade data
Current account balance (share of GDP), 2007 ............–2.8
Merchandise exports, f.o.b. (US$ millions) .............3,800.0
Merchandise imports, c.i.f. (US$ millions) ..............4,900.0
Commercial services exports (US$ millions)...........1,052.0
Commercial services imports (US$ millions)..............619.9
Goods RTAs notified to WTO ........................................2.0
WTO accession year ...................................................2004
Source: International Monetary Fund, World Economic Outlook
Database (October 2007); World Trade Organization, Statistics
Database, Trade profiles 2007

Trade as a percentage of GDP, 1994–2006
150

Cambodia

World average

120
90
60
30
1994

1996

1998

2000

2002

2004

2006

Source: IMF, World Economic Outlook Database (Oct. 2007); WTO, Statistics
Database, Time series on merchandise & commercial services (Apr. 2008)

Main trading partners, 2006

Exports and imports by sector, 2006

Share of total volume of merchandise trade (percent)

Share of total volume of merchandise trade (percent)

126
100

100

Others: 9.9

80

EU25: 21.2

Others: 32.5

60

Hong Kong SAR: 22.0

Vietnam: 8.2
Thailand: 11.2

60

Taiwan, China: 11.8

40

40

■ Manufactures

80

■ Fuels and mining
products
97.5

■ Agricultural
products

46.1

China: 16.5

20

United States: 46.9

20
10.9
5.3

Hong Kong SAR: 19.9

0

2.4

0

Exports destination

Imports orgin

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Enabling Trade Index

Exports

Imports

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Rank
(out of 118)

Score
(1–7 scale)

2008 Index....................................................................................................113
Market access .................................................................................................108

3.0
2.6

Tariff and non-tariff barriers............................................................................103
Proclivity to trade ..............................................................................................112

2.5
2.7

Border administration.....................................................................................107

2.7

Efficiency of customs administration.............................................................110
Efficiency of import-export procedures ..........................................................98
Transparency of border administration.........................................................117

2.3
3.6
2.3

Transport and communications infrastructure ..........................................105

2.5

Availability and quality of transport infrastructure .......................................98
Availability and quality of transport services...............................................101
Availability and use of ICTs..............................................................................112

2.8
2.9
1.7

Business environment ......................................................................................93

4.0

Regulatory environment .....................................................................................74
Physical security .................................................................................................90

4.2
3.7
1

2

3

4

Note: For descriptions of variables and detailed sources, please refer to “How to Read the Country/Economy Profiles.”

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

5

6

7

6/2/08

10:39 PM

Page 127

Cambodia
The Enabling Trade Index in detail
INDICATOR

■ Competitive Advantage ■ Competitive Disadvantage
RANK/118

SCORE

BEST PERFORMER

SCORE

1st pillar: Tariff and non-tariff barriers
1.01
1.02

Tariff barriers .........................................................................94 .....■ ......11.2
Non-tariff barriers..................................................................n/a.................n/a

Hong Kong SAR .............................0.0
Uganda...........................................0.1

2.1: Country/Economy Profiles

ET.partB.r1

2nd pillar: Proclivity to trade
2.01
2.02
2.03
2.04

Breadth of international markets...........................................88 .....■ ........2.9
Extent of regional sales.......................................................110 .....■ ........2.9
Openness to multilateral trade rules.....................................84 .....■ ......53.2
Share of duty-free imports ..................................................111 .....■ ...........8

Germany ........................................6.8
Germany ........................................6.7
Hungary........................................88.5
Hong Kong SAR ............................100

3rd pillar: Efficiency of customs administration
3.01
3.02

Burden of customs procedures...........................................111 .....■ ........2.5
Customs services index ........................................................93 .....■ ........3.2

Singapore .......................................6.4
Lithuania.......................................10.2

4th pillar: Efficiency of import-export procedures
4.01
4.02
4.03
4.04

Effectiveness and efficiency of clearance.............................90 .....■ ........2.2
Time for import......................................................................99 .....■ .........46
Documents for import...........................................................98 .....■ .........11
Cost to import .......................................................................35 .....■ .......852

Netherlands....................................4.0
Singapore ..........................................3
Multiple economies1 ........................3
Singapore ......................................367

5th pillar: Transparency of border administration
5.01
5.02

Irregular payments in exports and imports .........................117 .....■ ........2.4
Corruption Perceptions Index..............................................114 .....■ ........2.0

Denmark ........................................6.7
Multiple economies2 ......................9.4

6th pillar: Availability and quality of transport infrastructure
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08

Airport density .......................................................................99 .....■ ........0.3
Transshipment connectivity index .........................................87 .....■ .......419
Paved roads.........................................................................112 .....■ ........6.3
Road congestion....................................................................42 .....■ .........31
Quality of air transport infrastructure ....................................76 .....■ ........4.1
Quality of railroad infrastructure............................................87 .....■ ........1.6
Quality of roads .....................................................................72 .....■ ........3.1
Quality of port infrastructure .................................................75 .....■ ........3.4

Norway.........................................10.9
United Kingdom ............................580
Multiple economies3 ..................100.0
Bangladesh .......................................1
Singapore .......................................6.9
Switzerland ....................................6.8
France ............................................6.7
Singapore .......................................6.8

7th pillar: Availability and quality of transport services
7.01
7.02
7.03
7.04
7.05
7.06

Liner Shipping Connectivity Index.........................................91 .....■ ........3.2
Ease and affordability of shipment........................................85 .....■ ........2.5
Competence of the logistics industry ...................................73 .....■ ........2.5
Ability and ease of tracking ...................................................76 .....■ ........2.5
Timeliness of shipments in reaching destination ..................70 .....■ ........3.1
Postal service efficiency........................................................96 .....■ ........2.7

China ..........................................127.8
Netherlands....................................4.1
Netherlands....................................4.3
Singapore .......................................4.3
Singapore .......................................4.5
Japan..............................................6.8

8th pillar: Availability and use of ICTs
8.01
8.02
8.03
8.04
8.05

Firm-level technology absorption ..........................................94 .....■ ........4.2
Mobile telephone subscribers.............................................108 .....■ ........7.9
Broadband Internet subscribers ..........................................102 .....■ ........0.0
Internet users ......................................................................115 .....■ ........0.3
Telephone lines ...................................................................117 .....■ ........0.2

Sweden..........................................6.3
Luxembourg...............................151.6
Denmark ......................................31.7
Netherlands..................................88.9
Switzerland ..................................69.4

9th pillar: Regulatory environment
9.01
9.02
9.03
9.04

Ease of hiring foreign labor ...................................................62 .....■ ........4.7
Openness of bilateral Air Service Agreements .....................78 .....■ ........8.1
Prevalence of foreign ownership ..........................................77 .....■ ........4.8
Business impact of rules on FDI ...........................................70 .....■ ........5.0

Kuwait ............................................6.2
El Salvador ...................................33.7
Ireland ............................................6.5
Ireland ............................................6.5

10th pillar: Physical security
10.01
10.02
10.03

Reliability of police services ..................................................97 .....■ ........3.0
Business costs of crime and violence...................................80 .....■ ........3.9
Business costs of terrorism ..................................................83 .....■ ........4.9

Finland............................................6.7
Syria ...............................................6.7
Finland............................................6.6

1 Two economies: Denmark, Sweden
2 Three economies: Denmark, Finland, New Zealand
3 Nineteen economies: Armenia, Austria, Czech Republic, Denmark, France, Germany, Hong Kong SAR, Ireland, Israel, Italy, Jordan, Latvia, Luxembourg, Mauritius,

Singapore, Slovenia, Switzerland, United Arab Emirates, United Kingdom

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

127

2.1: Country/Economy Profiles

ET.partB.r1

6/2/08

10:39 PM

Page 128

Cameroon
Key indicators
Population (millions), 2007 ...........................................16.9
Surface area (1,000 square kilometers)......................475.4
GDP (US$ billions), 2007 ..............................................20.9

GDP (current prices, US$) per capita, 2007 ............1,109.8
GDP per capita (rank out of 118), 2007...........................92
Real GDP growth (percent), 2007 ..................................3.8

Source: International Monetary Fund, World Economic Outlook Database (October 2007); United Nations Population Fund,
State of World Population 2007; The World Bank, World Development Indicators 2007 (CD version)

Main trade data
Current account balance (share of GDP), 2007 ............–1.5
Merchandise exports, f.o.b. (US$ millions) .............3,573.4
Merchandise imports, c.i.f. (US$ millions) ..............2,990.0
Commercial services exports (US$ millions)..............452.5
Commercial services imports (US$ millions)..............956.5
Goods RTAs notified to WTO ........................................2.0
WTO accession year ...................................................1995

Trade as a percentage of GDP, 1994–2006
80

Cameroon

World average

70
60
50
40

Source: International Monetary Fund, World Economic Outlook
Database (October 2007); World Trade Organization, Statistics
Database, Trade profiles 2007

30
1994

1996

1998

2000

2002

2004

2006

Source: IMF, World Economic Outlook Database (Oct. 2007); WTO, Statistics
Database, Time series on merchandise & commercial services (Apr. 2008)

Main trading partners, 2006

Exports and imports by sector, 2006

Share of total volume of merchandise trade (percent)

Share of total volume of merchandise trade (percent)

128
100

100

3.0

Others: 19.4

80

United States: 6.4

60

Others: 36.5

80

China: 6.3

60

■ Manufactures
45.4

■ Fuels and mining
products

66.6

■ Agricultural
products

Nigeria: 23.3

40

40

EU25: 74.3

20

35.2

20

EU25: 33.8

0

28.3

19.3

0

Exports destination

Imports orgin

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Enabling Trade Index

Exports

Imports

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Rank
(out of 118)

Score
(1–7 scale)

2008 Index......................................................................................................92
Market access ...................................................................................................87

3.4
3.6

Tariff and non-tariff barriers..............................................................................79
Proclivity to trade ................................................................................................95

4.0
3.2

Border administration.......................................................................................84

3.4

Efficiency of customs administration...............................................................68
Efficiency of import-export procedures ..........................................................82
Transparency of border administration.........................................................109

3.5
4.1
2.7

Transport and communications infrastructure ..........................................112

2.4

Availability and quality of transport infrastructure .....................................113
Availability and quality of transport services...............................................103
Availability and use of ICTs..............................................................................105

2.4
2.9
1.8

Business environment ......................................................................................78

4.3

Regulatory environment .....................................................................................63
Physical security .................................................................................................77

4.4
4.2
1

2

3

4

Note: For descriptions of variables and detailed sources, please refer to “How to Read the Country/Economy Profiles.”

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

5

6

7

6/2/08

10:39 PM

Page 129

Cameroon
The Enabling Trade Index in detail
INDICATOR

■ Competitive Advantage ■ Competitive Disadvantage
RANK/118

SCORE

BEST PERFORMER

SCORE

1st pillar: Tariff and non-tariff barriers
1.01
1.02

Tariff barriers .......................................................................107 .....■ ......14.1
Non-tariff barriers ....................................................................8 .....■ ........4.5

Hong Kong SAR .............................0.0
Uganda...........................................0.1

2.1: Country/Economy Profiles

ET.partB.r1

2nd pillar: Proclivity to trade
2.01
2.02
2.03
2.04

Breadth of international markets...........................................82 .....■ ........3.0
Extent of regional sales.........................................................55 .....■ ........4.7
Openness to multilateral trade rules.....................................90 .....■ ......51.1
Share of duty-free imports ..................................................114 .....■ ...........6

Germany ........................................6.8
Germany ........................................6.7
Hungary........................................88.5
Hong Kong SAR ............................100

3rd pillar: Efficiency of customs administration
3.01
3.02

Burden of customs procedures.............................................89 .....■ ........3.0
Customs services index ........................................................54 .....■ ........5.8

Singapore .......................................6.4
Lithuania.......................................10.2

4th pillar: Efficiency of import-export procedures
4.01
4.02
4.03
4.04

Effectiveness and efficiency of clearance.............................56 .....■ ........2.6
Time for import......................................................................82 .....■ .........33
Documents for import...........................................................59 .....■ ...........8
Cost to import .......................................................................90 .....■ ....1,529

Netherlands....................................4.0
Singapore ..........................................3
Multiple economies1 ........................3
Singapore ......................................367

5th pillar: Transparency of border administration
5.01
5.02

Irregular payments in exports and imports .........................109 .....■ ........3.0
Corruption Perceptions Index................................................99 .....■ ........2.4

Denmark ........................................6.7
Multiple economies2 ......................9.4

6th pillar: Availability and quality of transport infrastructure
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08

Airport density .......................................................................86 .....■ ........0.4
Transshipment connectivity index .........................................41 .....■ .......498
Paved roads.........................................................................106 .....■ ......10.0
Road congestion...................................................................n/a.................n/a
Quality of air transport infrastructure ..................................116 .....■ ........2.7
Quality of railroad infrastructure............................................75 .....■ ........1.9
Quality of roads ...................................................................108 .....■ ........2.0
Quality of port infrastructure ...............................................106 .....■ ........2.6

Norway.........................................10.9
United Kingdom ............................580
Multiple economies3 ..................100.0
Bangladesh .......................................1
Singapore .......................................6.9
Switzerland ....................................6.8
France ............................................6.7
Singapore .......................................6.8

7th pillar: Availability and quality of transport services
7.01
7.02
7.03
7.04
7.05
7.06

Liner Shipping Connectivity Index.........................................62 .....■ ......11.7
Ease and affordability of shipment........................................95 .....■ ........2.3
Competence of the logistics industry ...................................93 .....■ ........2.3
Ability and ease of tracking ...................................................78 .....■ ........2.5
Timeliness of shipments in reaching destination ..................55 .....■ ........3.3
Postal service efficiency......................................................105 .....■ ........2.0

China ..........................................127.8
Netherlands....................................4.1
Netherlands....................................4.3
Singapore .......................................4.3
Singapore .......................................4.5
Japan..............................................6.8

8th pillar: Availability and use of ICTs
8.01
8.02
8.03
8.04
8.05

Firm-level technology absorption ..........................................87 .....■ ........4.3
Mobile telephone subscribers.............................................101 .....■ ......13.8
Broadband Internet subscribers ..........................................106 .....■ ........0.0
Internet users ......................................................................105 .....■ ........2.2
Telephone lines ...................................................................111 .....■ ........0.6

Sweden..........................................6.3
Luxembourg...............................151.6
Denmark ......................................31.7
Netherlands..................................88.9
Switzerland ..................................69.4

9th pillar: Regulatory environment
9.01
9.02
9.03
9.04

Ease of hiring foreign labor ...................................................47 .....■ ........5.0
Openness of bilateral Air Service Agreements .....................56 .....■ ........9.8
Prevalence of foreign ownership ..........................................61 .....■ ........5.1
Business impact of rules on FDI ...........................................90 .....■ ........4.5

Kuwait ............................................6.2
El Salvador ...................................33.7
Ireland ............................................6.5
Ireland ............................................6.5

10th pillar: Physical security
10.01
10.02
10.03

Reliability of police services ..................................................78 .....■ ........3.7
Business costs of crime and violence...................................89 .....■ ........3.6
Business costs of terrorism ..................................................37 .....■ ........5.7

Finland............................................6.7
Syria ...............................................6.7
Finland............................................6.6

1 Two economies: Denmark, Sweden
2 Three economies: Denmark, Finland, New Zealand
3 Nineteen economies: Armenia, Austria, Czech Republic, Denmark, France, Germany, Hong Kong SAR, Ireland, Israel, Italy, Jordan, Latvia, Luxembourg, Mauritius,

Singapore, Slovenia, Switzerland, United Arab Emirates, United Kingdom

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

129

2.1: Country/Economy Profiles

ET.partB.r1

6/2/08

10:39 PM

Page 130

Canada
Key indicators
Population (millions), 2007 ...........................................32.9
Surface area (1,000 square kilometers)...................9,984.7
GDP (US$ billions), 2007 .........................................1,406.4

GDP (current prices, US$) per capita, 2007 ..........42,738.2
GDP per capita (rank out of 118), 2007...........................13
Real GDP growth (percent), 2007 ..................................2.5

Source: International Monetary Fund, World Economic Outlook Database (October 2007); United Nations Population Fund,
State of World Population 2007; The World Bank, World Development Indicators 2007 (CD version)

Main trade data
Current account balance (share of GDP), 2007..............1.8
Merchandise exports, f.o.b. (US$ millions) .........389,538.0
Merchandise imports, c.i.f. (US$ millions) ..........357,652.0
Commercial services exports (US$ millions).........57,749.8
Commercial services imports (US$ millions).........71,745.6
Goods RTAs notified to WTO ........................................4.0
WTO accession year ...................................................1995
Source: International Monetary Fund, World Economic Outlook
Database (October 2007); World Trade Organization, Statistics
Database, Trade profiles 2007

Trade as a percentage of GDP, 1994–2006
100

Canada

World average

80

60

40
1994

1996

1998

2000

2002

2004

2006

Source: IMF, World Economic Outlook Database (Oct. 2007); WTO, Statistics
Database, Time series on merchandise & commercial services (Apr. 2008)

Main trading partners, 2006

Exports and imports by sector, 2006

Share of total volume of merchandise trade (percent)

Share of total volume of merchandise trade (percent)

130
100
80

100
Others: 11.8
EU25: 6.6

Others: 20.1

60
40

■ Manufactures

80

Mexico: 4.0
China: 8.7
EU25: 12.3

■ Fuels and mining
products

55.6
78.2

60

United States: 81.6

■ Agricultural
products

40
United States: 54.9

20

20

0

0

27.4
12.4

Exports destination

Imports orgin

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Enabling Trade Index

11.4

6.8

Exports

Imports

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Rank
(out of 118)

Score
(1–7 scale)

2008 Index........................................................................................................5
Market access .....................................................................................................3

5.6
5.9

Tariff and non-tariff barriers................................................................................2
Proclivity to trade ................................................................................................17

6.1
5.6

Border administration.........................................................................................9

5.8

Efficiency of customs administration...............................................................12
Efficiency of import-export procedures ..........................................................18
Transparency of border administration...........................................................10

5.5
5.6
6.2

Transport and communications infrastructure ............................................11

5.5

Availability and quality of transport infrastructure .........................................3
Availability and quality of transport services.................................................15
Availability and use of ICTs................................................................................14

5.8
5.2
5.6

Business environment ......................................................................................16

5.3

Regulatory environment .....................................................................................23
Physical security .................................................................................................18

5.0
5.6
1

2

3

4

Note: For descriptions of variables and detailed sources, please refer to “How to Read the Country/Economy Profiles.”

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

5

6

7

6/2/08

10:39 PM

Page 131

Canada
The Enabling Trade Index in detail
INDICATOR

■ Competitive Advantage ■ Competitive Disadvantage
RANK/118

SCORE

BEST PERFORMER

SCORE

1st pillar: Tariff and non-tariff barriers
1.01
1.02

Tariff barriers .........................................................................32 .....■ ........2.6
Non-tariff barriers ..................................................................20 .....■ ........9.1

Hong Kong SAR .............................0.0
Uganda...........................................0.1

2.1: Country/Economy Profiles

ET.partB.r1

2nd pillar: Proclivity to trade
2.01
2.02
2.03
2.04

Breadth of international markets...........................................26 .....■ ........5.1
Extent of regional sales...........................................................4 .....■ ........6.3
Openness to multilateral trade rules.....................................53 .....■ ......62.9
Share of duty-free imports ......................................................4 .....■ .........94

Germany ........................................6.8
Germany ........................................6.7
Hungary........................................88.5
Hong Kong SAR ............................100

3rd pillar: Efficiency of customs administration
3.01
3.02

Burden of customs procedures.............................................23 .....■ ........4.9
Customs services index ..........................................................5 .....■ ........9.0

Singapore .......................................6.4
Lithuania.......................................10.2

4th pillar: Efficiency of import-export procedures
4.01
4.02
4.03
4.04

Effectiveness and efficiency of clearance...............................9 .....■ ........3.8
Time for import......................................................................19 .....■ .........11
Documents for import.............................................................3 .....■ ...........4
Cost to import .......................................................................87 .....■ ....1,425

Netherlands....................................4.0
Singapore ..........................................3
Multiple economies1 ........................3
Singapore ......................................367

5th pillar: Transparency of border administration
5.01
5.02

Irregular payments in exports and imports ...........................15 .....■ ........6.1
Corruption Perceptions Index..................................................8 .....■ ........8.7

Denmark ........................................6.7
Multiple economies2 ......................9.4

6th pillar: Availability and quality of transport infrastructure
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08

Airport density .........................................................................2 .....■ ........7.8
Transshipment connectivity index .........................................17 .....■ .......523
Paved roads ..........................................................................n/a.................n/a
Road congestion....................................................................49 .....■ .........34
Quality of air transport infrastructure ....................................15 .....■ ........6.0
Quality of railroad infrastructure............................................15 .....■ ........5.2
Quality of roads .....................................................................11 .....■ ........5.9
Quality of port infrastructure .................................................13 .....■ ........5.7

Norway.........................................10.9
United Kingdom ............................580
Multiple economies3 ..................100.0
Bangladesh .......................................1
Singapore .......................................6.9
Switzerland ....................................6.8
France ............................................6.7
Singapore .......................................6.8

7th pillar: Availability and quality of transport services
7.01
7.02
7.03
7.04
7.05
7.06

Liner Shipping Connectivity Index.........................................22 .....■ ......34.4
Ease and affordability of shipment..........................................7 .....■ ........3.8
Competence of the logistics industry ...................................12 .....■ ........3.9
Ability and ease of tracking ...................................................11 .....■ ........4.0
Timeliness of shipments in reaching destination ..................13 .....■ ........4.2
Postal service efficiency........................................................17 .....■ ........6.2

China ..........................................127.8
Netherlands....................................4.1
Netherlands....................................4.3
Singapore .......................................4.3
Singapore .......................................4.5
Japan..............................................6.8

8th pillar: Availability and use of ICTs
8.01
8.02
8.03
8.04
8.05

Firm-level technology absorption ..........................................19 .....■ ........5.6
Mobile telephone subscribers...............................................67 .....■ ......52.5
Broadband Internet subscribers ..............................................9 .....■ ......23.6
Internet users ..........................................................................9 .....■ ......67.9
Telephone lines .......................................................................3 .....■ ......64.1

Sweden..........................................6.3
Luxembourg...............................151.6
Denmark ......................................31.7
Netherlands..................................88.9
Switzerland ..................................69.4

9th pillar: Regulatory environment
9.01
9.02
9.03
9.04

Ease of hiring foreign labor ...................................................89 .....■ ........4.4
Openness of bilateral Air Service Agreements .....................10 .....■ ......20.2
Prevalence of foreign ownership ..........................................26 .....■ ........5.7
Business impact of rules on FDI ...........................................45 .....■ ........5.4

Kuwait ............................................6.2
El Salvador ...................................33.7
Ireland ............................................6.5
Ireland ............................................6.5

10th pillar: Physical security
10.01
10.02
10.03

Reliability of police services ..................................................10 .....■ ........6.1
Business costs of crime and violence...................................35 .....■ ........5.3
Business costs of terrorism ..................................................77 .....■ ........5.1

Finland............................................6.7
Syria ...............................................6.7
Finland............................................6.6

1 Two economies: Denmark, Sweden
2 Three economies: Denmark, Finland, New Zealand
3 Nineteen economies: Armenia, Austria, Czech Republic, Denmark, France, Germany, Hong Kong SAR, Ireland, Israel, Italy, Jordan, Latvia, Luxembourg, Mauritius,

Singapore, Slovenia, Switzerland, United Arab Emirates, United Kingdom

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

131

2.1: Country/Economy Profiles

ET.partB.r1

6/2/08

10:39 PM

Page 132

Chad
Key indicators
Population (millions), 2007 ...........................................10.3
Surface area (1,000 square kilometers)...................1,284.0
GDP (US$ billions), 2007 ................................................6.4

GDP (current prices, US$) per capita, 2007 ...............676.9
GDP per capita (rank out of 118), 2007.........................104
Real GDP growth (percent), 2007 ..................................1.5

Source: International Monetary Fund, World Economic Outlook Database (October 2007); United Nations Population Fund,
State of World Population 2007; The World Bank, World Development Indicators 2007 (CD version)

Main trade data
Current account balance (share of GDP), 2007 ............–1.0
Merchandise exports, f.o.b. (US$ millions) .............3,750.0
Merchandise imports, c.i.f. (US$ millions) ..............1,250.0
Commercial services exports (US$ millions)................64.3
Commercial services imports (US$ millions)...........1,497.5
Goods RTAs notified to WTO ........................................1.0
WTO accession year ...................................................1996
Source: International Monetary Fund, World Economic Outlook
Database (October 2007); World Trade Organization, Statistics
Database, Trade profiles 2007

Trade as a percentage of GDP, 1994–2006
150

Chad

World average

120
90
60
30
1994

1996

1998

2000

2002

2004

2006

Source: IMF, World Economic Outlook Database (Oct. 2007); WTO, Statistics
Database, Time series on merchandise & commercial services (Apr. 2008)

Main trading partners, 2006
Share of total volume of merchandise trade (percent)

132
100

Others: 9.0
China: 10.4

80
Others: 47.1

60
40

United States: 80.6

Cameroon: 7.1
Germany: 8.7
United States: 14.9

20
France: 22.2

0

Exports destination

Imports orgin

Source: International Trade Centre, Trade Competitiveness
Map, Trade performance, accessed April 2008

Enabling Trade Index

Rank
(out of 118)

Score
(1–7 scale)

2008 Index....................................................................................................118
Market access .................................................................................................101

2.6
3.0

Tariff and non-tariff barriers..............................................................................81
Proclivity to trade ..............................................................................................117

3.9
2.1

Border administration.....................................................................................118

2.2

Efficiency of customs administration.............................................................116
Efficiency of import-export procedures ........................................................110
Transparency of border administration.........................................................116

2.0
2.1
2.4

Transport and communications infrastructure ..........................................118

1.9

Availability and quality of transport infrastructure .....................................118
Availability and quality of transport services...............................................114
Availability and use of ICTs..............................................................................117

1.7
2.6
1.5

Business environment ....................................................................................115

3.3

Regulatory environment ...................................................................................110
Physical security ...............................................................................................115

3.7
2.9
1

2

3

4

Note: For descriptions of variables and detailed sources, please refer to “How to Read the Country/Economy Profiles.”

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

5

6

7

6/2/08

10:39 PM

Page 133

Chad
The Enabling Trade Index in detail
INDICATOR

■ Competitive Advantage ■ Competitive Disadvantage
RANK/118

SCORE

BEST PERFORMER

SCORE

1st pillar: Tariff and non-tariff barriers
1.01
1.02

Tariff barriers .......................................................................109 .....■ ......14.7
Non-tariff barriers ....................................................................3 .....■ ........2.8

Hong Kong SAR .............................0.0
Uganda...........................................0.1

2.1: Country/Economy Profiles

ET.partB.r1

2nd pillar: Proclivity to trade
2.01
2.02
2.03
2.04

Breadth of international markets.........................................116 .....■ ........2.1
Extent of regional sales.......................................................111 .....■ ........2.8
Openness to multilateral trade rules...................................114 .....■ ......33.7
Share of duty-free imports ..................................................106 .....■ .........12

Germany ........................................6.8
Germany ........................................6.7
Hungary........................................88.5
Hong Kong SAR ............................100

3rd pillar: Efficiency of customs administration
3.01
3.02

Burden of customs procedures...........................................118 .....■ ........2.0
Customs services index .......................................................n/a.................n/a

Singapore .......................................6.4
Lithuania.......................................10.2

4th pillar: Efficiency of import-export procedures
4.01
4.02
4.03
4.04

Effectiveness and efficiency of clearance...........................103 .....■ ........2.0
Time for import....................................................................114 .....■ .......102
Documents for import...........................................................78 .....■ ...........9
Cost to import .....................................................................115 .....■ ....5,520

Netherlands....................................4.0
Singapore ..........................................3
Multiple economies1 ........................3
Singapore ......................................367

5th pillar: Transparency of border administration
5.01
5.02

Irregular payments in exports and imports .........................115 .....■ ........2.7
Corruption Perceptions Index..............................................117 .....■ ........1.8

Denmark ........................................6.7
Multiple economies2 ......................9.4

6th pillar: Availability and quality of transport infrastructure
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08

Airport density .....................................................................114 .....■ ........0.1
Transshipment connectivity index ........................................n/a.................n/a
Paved roads.........................................................................115 .....■ ........0.8
Road congestion...................................................................n/a.................n/a
Quality of air transport infrastructure ..................................114 .....■ ........2.8
Quality of railroad infrastructure ...........................................n/a .....■ .......n.a.
Quality of roads ...................................................................118 .....■ ........1.5
Quality of port infrastructure .................................................95 .....■ ........2.8

Norway.........................................10.9
United Kingdom ............................580
Multiple economies3 ..................100.0
Bangladesh .......................................1
Singapore .......................................6.9
Switzerland ....................................6.8
France ............................................6.7
Singapore .......................................6.8

7th pillar: Availability and quality of transport services
7.01
7.02
7.03
7.04
7.05
7.06

Liner Shipping Connectivity Index ........................................n/a.................n/a
Ease and affordability of shipment......................................117 .....■ ........1.8
Competence of the logistics industry .................................115 .....■ ........1.8
Ability and ease of tracking .................................................113 .....■ ........1.9
Timeliness of shipments in reaching destination ................108 .....■ ........2.6
Postal service efficiency........................................................94 .....■ ........2.7

China ..........................................127.8
Netherlands....................................4.1
Netherlands....................................4.3
Singapore .......................................4.3
Singapore .......................................4.5
Japan..............................................6.8

8th pillar: Availability and use of ICTs
8.01
8.02
8.03
8.04
8.05

Firm-level technology absorption ........................................113 .....■ ........3.5
Mobile telephone subscribers.............................................113 .....■ ........4.6
Broadband Internet subscribers ..........................................110 .....■ ........0.0
Internet users ......................................................................111 .....■ ........0.6
Telephone lines ...................................................................118 .....■ ........0.1

Sweden..........................................6.3
Luxembourg...............................151.6
Denmark ......................................31.7
Netherlands..................................88.9
Switzerland ..................................69.4

9th pillar: Regulatory environment
9.01
9.02
9.03
9.04

Ease of hiring foreign labor ...................................................96 .....■ ........4.2
Openness of bilateral Air Service Agreements .....................64 .....■ ........9.4
Prevalence of foreign ownership ........................................100 .....■ ........4.2
Business impact of rules on FDI .........................................113 .....■ ........3.6

Kuwait ............................................6.2
El Salvador ...................................33.7
Ireland ............................................6.5
Ireland ............................................6.5

10th pillar: Physical security
10.01
10.02
10.03

Reliability of police services ................................................117 .....■ ........2.2
Business costs of crime and violence.................................111 .....■ ........2.8
Business costs of terrorism ................................................103 .....■ ........4.4

Finland............................................6.7
Syria ...............................................6.7
Finland............................................6.6

1 Two economies: Denmark, Sweden
2 Three economies: Denmark, Finland, New Zealand
3 Nineteen economies: Armenia, Austria, Czech Republic, Denmark, France, Germany, Hong Kong SAR, Ireland, Israel, Italy, Jordan, Latvia, Luxembourg, Mauritius,

Singapore, Slovenia, Switzerland, United Arab Emirates, United Kingdom

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

133

2.1: Country/Economy Profiles

ET.partB.r1

6/2/08

10:39 PM

Page 134

Chile
Key indicators
Population (millions), 2007 ...........................................16.6
Surface area (1,000 square kilometers)......................756.6
GDP (US$ billions), 2007 ............................................160.8

GDP (current prices, US$) per capita, 2007 ............9,697.7
GDP per capita (rank out of 118), 2007...........................44
Real GDP growth (percent), 2007 ..................................5.9

Source: International Monetary Fund, World Economic Outlook Database (October 2007); United Nations Population Fund,
State of World Population 2007; The World Bank, World Development Indicators 2007 (CD version)

Main trade data
Current account balance (share of GDP), 2007..............3.7
Merchandise exports, f.o.b. (US$ millions) ...........58,116.4
Merchandise imports, c.i.f. (US$ millions) ............38,409.1
Commercial services exports (US$ millions)...........7,406.1
Commercial services imports (US$ millions)...........8,289.2
Goods RTAs notified to WTO ......................................14.0
WTO accession year ...................................................1995

Trade as a percentage of GDP, 1994–2006

Source: International Monetary Fund, World Economic Outlook
Database (October 2007); World Trade Organization, Statistics
Database, Trade profiles 2007

40

80

Chile

World average

70
60
50

1994

1996

1998

2000

2002

2004

2006

Source: IMF, World Economic Outlook Database (Oct. 2007); WTO, Statistics
Database, Time series on merchandise & commercial services (Apr. 2008)

Main trading partners, 2006

Exports and imports by sector, 2006

Share of total volume of merchandise trade (percent)

Share of total volume of merchandise trade (percent)

134
100
80
60

100
Others: 31.5

Others: 30.0

Korea, Rep.: 5.7

China: 8.5

China: 11.4

10.3

63.1

United States: 15.8

40

■ Fuels and mining
products

58.6

60

Brazil: 12.7

Japan: 11.8

■ Manufactures

80

■ Agricultural
products

40

United States: 16.2
Argentina: 16.1

20

20
EU25: 23.5

24.9
19.8

EU25: 16.9

0

6.9

0

Exports destination

Imports orgin

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Enabling Trade Index

Exports

Imports

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Rank
(out of 118)

Score
(1–7 scale)

2008 Index......................................................................................................27
Market access ...................................................................................................40

4.9
4.8

Tariff and non-tariff barriers..............................................................................49
Proclivity to trade ................................................................................................31

4.4
5.2

Border administration.......................................................................................20

5.4

Efficiency of customs administration...............................................................17
Efficiency of import-export procedures ..........................................................30
Transparency of border administration...........................................................18

5.3
5.2
5.7

Transport and communications infrastructure ............................................42

3.9

Availability and quality of transport infrastructure .......................................45
Availability and quality of transport services.................................................38
Availability and use of ICTs................................................................................45

4.1
4.2
3.5

Business environment ......................................................................................12

5.4

Regulatory environment .....................................................................................12
Physical security .................................................................................................25

5.4
5.4
1

2

3

4

Note: For descriptions of variables and detailed sources, please refer to “How to Read the Country/Economy Profiles.”

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

5

6

7

6/2/08

10:39 PM

Page 135

Chile
The Enabling Trade Index in detail
INDICATOR

■ Competitive Advantage ■ Competitive Disadvantage
RANK/118

SCORE

BEST PERFORMER

SCORE

1st pillar: Tariff and non-tariff barriers
1.01
1.02

Tariff barriers .........................................................................50 .....■ ........4.7
Non-tariff barriers ..................................................................46 .....■ ......39.0

Hong Kong SAR .............................0.0
Uganda...........................................0.1

2.1: Country/Economy Profiles

ET.partB.r1

2nd pillar: Proclivity to trade
2.01
2.02
2.03
2.04

Breadth of international markets...........................................15 .....■ ........5.6
Extent of regional sales.........................................................35 .....■ ........5.3
Openness to multilateral trade rules.....................................55 .....■ ......62.5
Share of duty-free imports ....................................................41 .....■ .........69

Germany ........................................6.8
Germany ........................................6.7
Hungary........................................88.5
Hong Kong SAR ............................100

3rd pillar: Efficiency of customs administration
3.01
3.02

Burden of customs procedures.............................................10 .....■ ........5.5
Customs services index ........................................................22 .....■ ........7.7

Singapore .......................................6.4
Lithuania.......................................10.2

4th pillar: Efficiency of import-export procedures
4.01
4.02
4.03
4.04

Effectiveness and efficiency of clearance.............................24 .....■ ........3.3
Time for import......................................................................53 .....■ .........21
Documents for import...........................................................39 .....■ ...........7
Cost to import .......................................................................17 .....■ .......685

Netherlands....................................4.0
Singapore ..........................................3
Multiple economies1 ........................3
Singapore ......................................367

5th pillar: Transparency of border administration
5.01
5.02

Irregular payments in exports and imports ...........................14 .....■ ........6.2
Corruption Perceptions Index................................................21 .....■ ........7.0

Denmark ........................................6.7
Multiple economies2 ......................9.4

6th pillar: Availability and quality of transport infrastructure
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08

Airport density .......................................................................33 .....■ ........1.1
Transshipment connectivity index .........................................47 .....■ .......492
Paved roads...........................................................................87 .....■ ......20.2
Road congestion....................................................................36 .....■ .........26
Quality of air transport infrastructure ....................................28 .....■ ........5.7
Quality of railroad infrastructure............................................63 .....■ ........2.5
Quality of roads .....................................................................22 .....■ ........5.4
Quality of port infrastructure .................................................30 .....■ ........4.8

Norway.........................................10.9
United Kingdom ............................580
Multiple economies3 ..................100.0
Bangladesh .......................................1
Singapore .......................................6.9
Switzerland ....................................6.8
France ............................................6.7
Singapore .......................................6.8

7th pillar: Availability and quality of transport services
7.01
7.02
7.03
7.04
7.05
7.06

Liner Shipping Connectivity Index.........................................48 .....■ ......17.5
Ease and affordability of shipment........................................33 .....■ ........3.2
Competence of the logistics industry ...................................34 .....■ ........3.2
Ability and ease of tracking ...................................................37 .....■ ........3.2
Timeliness of shipments in reaching destination ..................44 .....■ ........3.6
Postal service efficiency........................................................40 .....■ ........5.1

China ..........................................127.8
Netherlands....................................4.1
Netherlands....................................4.3
Singapore .......................................4.3
Singapore .......................................4.5
Japan..............................................6.8

8th pillar: Availability and use of ICTs
8.01
8.02
8.03
8.04
8.05

Firm-level technology absorption ..........................................36 .....■ ........5.2
Mobile telephone subscribers...............................................48 .....■ ......75.6
Broadband Internet subscribers ............................................34 .....■ ........5.9
Internet users ........................................................................43 .....■ ......25.2
Telephone lines .....................................................................54 .....■ ......20.2

Sweden..........................................6.3
Luxembourg...............................151.6
Denmark ......................................31.7
Netherlands..................................88.9
Switzerland ..................................69.4

9th pillar: Regulatory environment
9.01
9.02
9.03
9.04

Ease of hiring foreign labor ...................................................25 .....■ ........5.3
Openness of bilateral Air Service Agreements .....................12 .....■ ......18.9
Prevalence of foreign ownership ..........................................12 .....■ ........6.0
Business impact of rules on FDI ...........................................14 .....■ ........5.8

Kuwait ............................................6.2
El Salvador ...................................33.7
Ireland ............................................6.5
Ireland ............................................6.5

10th pillar: Physical security
10.01
10.02
10.03

Reliability of police services ..................................................24 .....■ ........5.6
Business costs of crime and violence...................................57 .....■ ........4.6
Business costs of terrorism ..................................................23 .....■ ........6.0

Finland............................................6.7
Syria ...............................................6.7
Finland............................................6.6

1 Two economies: Denmark, Sweden
2 Three economies: Denmark, Finland, New Zealand
3 Nineteen economies: Armenia, Austria, Czech Republic, Denmark, France, Germany, Hong Kong SAR, Ireland, Israel, Italy, Jordan, Latvia, Luxembourg, Mauritius,

Singapore, Slovenia, Switzerland, United Arab Emirates, United Kingdom

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

135

2.1: Country/Economy Profiles

ET.partB.r1

6/2/08

10:39 PM

Page 136

China
Key indicators
Population (millions), 2007 ......................................1,331.4
Surface area (1,000 square kilometers)...................9,598.1
GDP (US$ billions), 2007 .........................................3,248.5

GDP (current prices, US$) per capita, 2007 ............2,459.8
GDP per capita (rank out of 118), 2007...........................77
Real GDP growth (percent), 2007 ................................11.5

Source: International Monetary Fund, World Economic Outlook Database (October 2007); United Nations Population Fund,
State of World Population 2007; The World Bank, World Development Indicators 2007 (CD version)

Main trade data
Current account balance (share of GDP), 2007............11.7
Merchandise exports, f.o.b. (US$ millions) .........968,936.0
Merchandise imports, c.i.f. (US$ millions) ..........791,461.0
Commercial services exports (US$ millions).........91,420.5
Commercial services imports (US$ millions).......100,326.8
Goods RTAs notified to WTO ........................................5.0
WTO accession year ...................................................2001

Trade as a percentage of GDP, 1994–2006
80

China

World average

70
60
50
40

Source: International Monetary Fund, World Economic Outlook
Database (October 2007); World Trade Organization, Statistics
Database, Trade profiles 2007

30
1994

1996

1998

2000

2002

2004

2006

Source: IMF, World Economic Outlook Database (Oct. 2007); WTO, Statistics
Database, Time series on merchandise & commercial services (Apr. 2008)

Main trading partners, 2006
Share of total volume of merchandise trade (percent)

Exports and imports by sector, 2006
Share of total volume of merchandise trade (percent)

136

100
80
60

100

Others: 30.1
Others: 42.4

Hong Kong SAR: 16.0

China: 9.3
Taiwan, China: 11.0

60

EU25: 18.8

Korea, Rep.: 11.3

40

40
20

■ Manufactures

80

Korea, Rep.: 4.6
Japan: 9.5

■ Fuels and mining
products

73.2
92.4

■ Agricultural
products

EU25: 11.4
United States: 21.0

20

Japan: 14.6

20.0

0

Exports destination

Imports orgin

4.0 3.4

0

Exports
Source: World Trade Organization, Statistics Database, Trade profiles 2007
Note: China is cited as its own trading partner, as, according to the WTO,
its deep integration with the economy of Hong Kong makes it difficult to
clearly separate foreign from domestic trade.

Enabling Trade Index

6.5

Imports

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Rank
(out of 118)

Score
(1–7 scale)

2008 Index......................................................................................................48
Market access ...................................................................................................71

4.3
4.1

Tariff and non-tariff barriers..............................................................................90
Proclivity to trade ................................................................................................40

3.3
4.8

Border administration.......................................................................................43

4.5

Efficiency of customs administration...............................................................39
Efficiency of import-export procedures ..........................................................28
Transparency of border administration...........................................................62

4.5
5.3
3.7

Transport and communications infrastructure ............................................36

4.1

Availability and quality of transport infrastructure .......................................36
Availability and quality of transport services.................................................17
Availability and use of ICTs................................................................................55

4.4
5.1
2.9

Business environment ......................................................................................77

4.3

Regulatory environment .....................................................................................84
Physical security .................................................................................................67

4.1
4.4
1

2

3

4

Note: For descriptions of variables and detailed sources, please refer to “How to Read the Country/Economy Profiles.”

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

5

6

7

6/2/08

10:39 PM

Page 137

China
The Enabling Trade Index in detail
INDICATOR

■ Competitive Advantage ■ Competitive Disadvantage
RANK/118

SCORE

BEST PERFORMER

SCORE

1st pillar: Tariff and non-tariff barriers
1.01
1.02

Tariff barriers .......................................................................108 .....■ ......14.2
Non-tariff barriers ..................................................................29 .....■ ......19.3

Hong Kong SAR .............................0.0
Uganda...........................................0.1

2.1: Country/Economy Profiles

ET.partB.r1

2nd pillar: Proclivity to trade
2.01
2.02
2.03
2.04

Breadth of international markets...........................................38 .....■ ........4.5
Extent of regional sales.........................................................45 .....■ ........5.0
Openness to multilateral trade rules.......................................6 .....■ ......83.2
Share of duty-free imports ....................................................73 .....■ .........39

Germany ........................................6.8
Germany ........................................6.7
Hungary........................................88.5
Hong Kong SAR ............................100

3rd pillar: Efficiency of customs administration
3.01
3.02

Burden of customs procedures.............................................45 .....■ ........4.2
Customs services index ........................................................31 .....■ ........7.0

Singapore .......................................6.4
Lithuania.......................................10.2

4th pillar: Efficiency of import-export procedures
4.01
4.02
4.03
4.04

Effectiveness and efficiency of clearance.............................35 .....■ ........3.0
Time for import......................................................................69 .....■ .........24
Documents for import...........................................................28 .....■ ...........6
Cost to import .........................................................................4 .....■ .......430

Netherlands....................................4.0
Singapore ..........................................3
Multiple economies1 ........................3
Singapore ......................................367

5th pillar: Transparency of border administration
5.01
5.02

Irregular payments in exports and imports ...........................60 .....■ ........4.4
Corruption Perceptions Index................................................58 .....■ ........3.5

Denmark ........................................6.7
Multiple economies2 ......................9.4

6th pillar: Availability and quality of transport infrastructure
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08

Airport density .....................................................................113 .....■ ........0.1
Transshipment connectivity index .........................................10 .....■ .......552
Paved roads...........................................................................39 .....■ ......81.0
Road congestion....................................................................15 .....■ .........11
Quality of air transport infrastructure ....................................78 .....■ ........4.1
Quality of railroad infrastructure............................................33 .....■ ........3.9
Quality of roads .....................................................................49 .....■ ........3.9
Quality of port infrastructure .................................................59 .....■ ........4.0

Norway.........................................10.9
United Kingdom ............................580
Multiple economies3 ..................100.0
Bangladesh .......................................1
Singapore .......................................6.9
Switzerland ....................................6.8
France ............................................6.7
Singapore .......................................6.8

7th pillar: Availability and quality of transport services
7.01
7.02
7.03
7.04
7.05
7.06

Liner Shipping Connectivity Index...........................................1 .....■ ....127.8
Ease and affordability of shipment........................................27 .....■ ........3.3
Competence of the logistics industry ...................................26 .....■ ........3.4
Ability and ease of tracking ...................................................31 .....■ ........3.4
Timeliness of shipments in reaching destination ..................36 .....■ ........3.7
Postal service efficiency........................................................43 .....■ ........5.0

China ..........................................127.8
Netherlands....................................4.1
Netherlands....................................4.3
Singapore .......................................4.3
Singapore .......................................4.5
Japan..............................................6.8

8th pillar: Availability and use of ICTs
8.01
8.02
8.03
8.04
8.05

Firm-level technology absorption ..........................................47 .....■ ........5.0
Mobile telephone subscribers...............................................78 .....■ ......34.8
Broadband Internet subscribers ............................................45 .....■ ........3.8
Internet users ........................................................................74 .....■ ......10.4
Telephone lines .....................................................................42 .....■ ......27.8

Sweden..........................................6.3
Luxembourg...............................151.6
Denmark ......................................31.7
Netherlands..................................88.9
Switzerland ..................................69.4

9th pillar: Regulatory environment
9.01
9.02
9.03
9.04

Ease of hiring foreign labor ...................................................54 .....■ ........4.9
Openness of bilateral Air Service Agreements ...................101 .....■ ........5.5
Prevalence of foreign ownership ..........................................94 .....■ ........4.4
Business impact of rules on FDI ...........................................54 .....■ ........5.3

Kuwait ............................................6.2
El Salvador ...................................33.7
Ireland ............................................6.5
Ireland ............................................6.5

10th pillar: Physical security
10.01
10.02
10.03

Reliability of police services ..................................................53 .....■ ........4.4
Business costs of crime and violence...................................64 .....■ ........4.4
Business costs of terrorism ..................................................98 .....■ ........4.6

Finland............................................6.7
Syria ...............................................6.7
Finland............................................6.6

1 Two economies: Denmark, Sweden
2 Three economies: Denmark, Finland, New Zealand
3 Nineteen economies: Armenia, Austria, Czech Republic, Denmark, France, Germany, Hong Kong SAR, Ireland, Israel, Italy, Jordan, Latvia, Luxembourg, Mauritius,

Singapore, Slovenia, Switzerland, United Arab Emirates, United Kingdom

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

137

2.1: Country/Economy Profiles

ET.partB.r1

6/2/08

10:39 PM

Page 138

Colombia
Key indicators
Population (millions), 2007 ...........................................47.0
Surface area (1,000 square kilometers)...................1,141.8
GDP (US$ billions), 2007 ............................................171.7

GDP (current prices, US$) per capita, 2007 ............3,614.2
GDP per capita (rank out of 118), 2007...........................65
Real GDP growth (percent), 2007 ..................................6.6

Source: International Monetary Fund, World Economic Outlook Database (October 2007); United Nations Population Fund,
State of World Population 2007; The World Bank, World Development Indicators 2007 (CD version)

Main trade data
Current account balance (share of GDP), 2007 ............–3.9
Merchandise exports, f.o.b. (US$ millions) ...........24,387.7
Merchandise imports, c.i.f. (US$ millions) ............26,046.0
Commercial services exports (US$ millions)...........3,297.0
Commercial services imports (US$ millions)...........5,414.2
Goods RTAs notified to WTO ........................................3.0
WTO accession year ...................................................1995

Trade as a percentage of GDP, 1994–2006
80

Colombia

World average

70
60
50
40
30

Source: International Monetary Fund, World Economic Outlook
Database (October 2007); World Trade Organization, Statistics
Database, Trade profiles 2007

20
1994

1996

1998

2000

2002

2004

2006

Source: IMF, World Economic Outlook Database (Oct. 2007); WTO, Statistics
Database, Time series on merchandise & commercial services (Apr. 2008)

Main trading partners, 2006

Exports and imports by sector, 2006

Share of total volume of merchandise trade (percent)

Share of total volume of merchandise trade (percent)

138
100

100

80

Others: 27.8

60

Ecuador: 5.1
Venezuela: 11.1
EU25: 15.2

40

Others: 35.7

80

Brazil: 7.2
China: 8.5
Mexico: 8.8

60

■ Manufactures
35.6

■ Fuels and mining
products

82.6

■ Agricultural
products

40.8

40

EU25: 13.3

20

United States: 40.8

20
United States: 26.6

0

20.2

6.0
10.4

Exports

Imports

0

Exports destination

Imports orgin

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Enabling Trade Index

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Rank
(out of 118)

Score
(1–7 scale)

2008 Index......................................................................................................75
Market access ...................................................................................................96

3.7
3.3

Tariff and non-tariff barriers............................................................................101
Proclivity to trade ................................................................................................63

2.6
4.0

Border administration.......................................................................................48

4.2

Efficiency of customs administration...............................................................37
Efficiency of import-export procedures ..........................................................73
Transparency of border administration...........................................................55

4.6
4.2
3.9

Transport and communications infrastructure ............................................72

3.1

Availability and quality of transport infrastructure .......................................83
Availability and quality of transport services.................................................67
Availability and use of ICTs................................................................................63

3.3
3.4
2.7

Business environment ......................................................................................87

4.1

Regulatory environment .....................................................................................46
Physical security .................................................................................................99

4.6
3.6
1

2

3

4

Note: For descriptions of variables and detailed sources, please refer to “How to Read the Country/Economy Profiles.”

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

5

6

7

6/2/08

10:39 PM

Page 139

Colombia
The Enabling Trade Index in detail
INDICATOR

■ Competitive Advantage ■ Competitive Disadvantage
RANK/118

SCORE

BEST PERFORMER

SCORE

1st pillar: Tariff and non-tariff barriers
1.01
1.02

Tariff barriers .........................................................................91 .....■ ......10.3
Non-tariff barriers ..................................................................56 .....■ ......54.2

Hong Kong SAR .............................0.0
Uganda...........................................0.1

2.1: Country/Economy Profiles

ET.partB.r1

2nd pillar: Proclivity to trade
2.01
2.02
2.03
2.04

Breadth of international markets...........................................75 .....■ ........3.1
Extent of regional sales.........................................................42 .....■ ........5.1
Openness to multilateral trade rules.....................................47 .....■ ......65.8
Share of duty-free imports ....................................................78 .....■ .........33

Germany ........................................6.8
Germany ........................................6.7
Hungary........................................88.5
Hong Kong SAR ............................100

3rd pillar: Efficiency of customs administration
3.01
3.02

Burden of customs procedures.............................................71 .....■ ........3.5
Customs services index ........................................................15 .....■ ........8.3

Singapore .......................................6.4
Lithuania.......................................10.2

4th pillar: Efficiency of import-export procedures
4.01
4.02
4.03
4.04

Effectiveness and efficiency of clearance.............................98 .....■ ........2.1
Time for import......................................................................49 .....■ .........20
Documents for import...........................................................59 .....■ ...........8
Cost to import .......................................................................89 .....■ ....1,440

Netherlands....................................4.0
Singapore ..........................................3
Multiple economies1 ........................3
Singapore ......................................367

5th pillar: Transparency of border administration
5.01
5.02

Irregular payments in exports and imports ...........................54 .....■ ........4.5
Corruption Perceptions Index................................................55 .....■ ........3.8

Denmark ........................................6.7
Multiple economies2 ......................9.4

6th pillar: Availability and quality of transport infrastructure
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08

Airport density .......................................................................32 .....■ ........1.1
Transshipment connectivity index .........................................38 .....■ .......502
Paved roads...........................................................................98 .....■ ......14.4
Road congestion....................................................................30 .....■ .........19
Quality of air transport infrastructure ....................................58 .....■ ........4.7
Quality of railroad infrastructure..........................................101 .....■ ........1.4
Quality of roads .....................................................................84 .....■ ........2.6
Quality of port infrastructure .................................................98 .....■ ........2.7

Norway.........................................10.9
United Kingdom ............................580
Multiple economies3 ..................100.0
Bangladesh .......................................1
Singapore .......................................6.9
Switzerland ....................................6.8
France ............................................6.7
Singapore .......................................6.8

7th pillar: Availability and quality of transport services
7.01
7.02
7.03
7.04
7.05
7.06

Liner Shipping Connectivity Index.........................................28 .....■ ......29.1
Ease and affordability of shipment........................................70 .....■ ........2.6
Competence of the logistics industry ...................................77 .....■ ........2.4
Ability and ease of tracking ...................................................67 .....■ ........2.6
Timeliness of shipments in reaching destination ..................77 .....■ ........2.9
Postal service efficiency........................................................72 .....■ ........3.5

China ..........................................127.8
Netherlands....................................4.1
Netherlands....................................4.3
Singapore .......................................4.3
Singapore .......................................4.5
Japan..............................................6.8

8th pillar: Availability and use of ICTs
8.01
8.02
8.03
8.04
8.05

Firm-level technology absorption ..........................................88 .....■ ........4.2
Mobile telephone subscribers...............................................58 .....■ ......64.3
Broadband Internet subscribers ............................................58 .....■ ........1.4
Internet users ........................................................................65 .....■ ......14.5
Telephone lines .....................................................................61 .....■ ......17.0

Sweden..........................................6.3
Luxembourg...............................151.6
Denmark ......................................31.7
Netherlands..................................88.9
Switzerland ..................................69.4

9th pillar: Regulatory environment
9.01
9.02
9.03
9.04

Ease of hiring foreign labor ...................................................39 .....■ ........5.1
Openness of bilateral Air Service Agreements .....................37 .....■ ......11.8
Prevalence of foreign ownership ..........................................68 .....■ ........5.0
Business impact of rules on FDI ...........................................63 .....■ ........5.1

Kuwait ............................................6.2
El Salvador ...................................33.7
Ireland ............................................6.5
Ireland ............................................6.5

10th pillar: Physical security
10.01
10.02
10.03

Reliability of police services ..................................................61 .....■ ........4.1
Business costs of crime and violence.................................101 .....■ ........3.2
Business costs of terrorism ................................................116 .....■ ........3.1

Finland............................................6.7
Syria ...............................................6.7
Finland............................................6.6

1 Two economies: Denmark, Sweden
2 Three economies: Denmark, Finland, New Zealand
3 Nineteen economies: Armenia, Austria, Czech Republic, Denmark, France, Germany, Hong Kong SAR, Ireland, Israel, Italy, Jordan, Latvia, Luxembourg, Mauritius,

Singapore, Slovenia, Switzerland, United Arab Emirates, United Kingdom

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

139

2.1: Country/Economy Profiles

ET.partB.r1

6/2/08

10:39 PM

Page 140

Costa Rica
Key indicators
Population (millions), 2007 .............................................4.5
Surface area (1,000 square kilometers)........................51.1
GDP (US$ billions), 2007 ..............................................22.8

GDP (current prices, US$) per capita, 2007 ............5,102.5
GDP per capita (rank out of 118), 2007...........................59
Real GDP growth (percent), 2007 ..................................6.0

Source: International Monetary Fund, World Economic Outlook Database (October 2007); United Nations Population Fund,
State of World Population 2007; The World Bank, World Development Indicators 2007 (CD version)

Main trade data
Current account balance (share of GDP), 2007 ............–4.8
Merchandise exports, f.o.b. (US$ millions) .............8,215.5
Merchandise imports, c.i.f. (US$ millions) ............11,520.1
Commercial services exports (US$ millions)...........2,844.4
Commercial services imports (US$ millions)...........1,664.7
Goods RTAs notified to WTO ........................................4.0
WTO accession year ...................................................1995
Source: International Monetary Fund, World Economic Outlook
Database (October 2007); World Trade Organization, Statistics
Database, Trade profiles 2007

Trade as a percentage of GDP, 1994–2006
120

Costa Rica

World average

100
80
60
40
1994

1996

1998

2000

2002

2004

2006

Source: IMF, World Economic Outlook Database (Oct. 2007); WTO, Statistics
Database, Time series on merchandise & commercial services (Apr. 2008)

Main trading partners, 2006

Exports and imports by sector, 2006

Share of total volume of merchandise trade (percent)

Share of total volume of merchandise trade (percent)

140
100

100
Others: 33.3

80

Others: 40.0

60

China: 4.6
Hong Kong SAR: 4.7
EU25: 14.9

Japan: 4.7
Venezuela: 5.2
Mexico: 5.2
EU25: 13.2

United States: 35.9

United States: 38.3

40
20

■ Manufactures

80
73.9

■ Agricultural
products

40

2.0

20

0

15.9

32.6

10.2

0

Exports destination

Imports orgin

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Enabling Trade Index

■ Fuels and mining
products

65.5

60

Exports

Imports

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Rank
(out of 118)

Score
(1–7 scale)

2008 Index......................................................................................................44
Market access ...................................................................................................10

4.4
5.3

Tariff and non-tariff barriers..............................................................................10
Proclivity to trade ................................................................................................42

5.9
4.7

Border administration.......................................................................................49

4.2

Efficiency of customs administration...............................................................65
Efficiency of import-export procedures ..........................................................53
Transparency of border administration...........................................................42

3.6
4.7
4.4

Transport and communications infrastructure ............................................66

3.3

Availability and quality of transport infrastructure .......................................68
Availability and quality of transport services.................................................88
Availability and use of ICTs................................................................................52

3.6
3.1
3.0

Business environment ......................................................................................37

4.9

Regulatory environment .......................................................................................7
Physical security .................................................................................................74

5.4
4.3
1

2

3

4

Note: For descriptions of variables and detailed sources, please refer to “How to Read the Country/Economy Profiles.”

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

5

6

7

6/2/08

10:39 PM

Page 141

Costa Rica
The Enabling Trade Index in detail
INDICATOR

■ Competitive Advantage ■ Competitive Disadvantage
RANK/118

SCORE

BEST PERFORMER

SCORE

1st pillar: Tariff and non-tariff barriers
1.01
1.02

Tariff barriers .........................................................................33 .....■ ........3.0
Non-tariff barriers ..................................................................23 .....■ ......11.2

Hong Kong SAR .............................0.0
Uganda...........................................0.1

2.1: Country/Economy Profiles

ET.partB.r1

2nd pillar: Proclivity to trade
2.01
2.02
2.03
2.04

Breadth of international markets...........................................34 .....■ ........4.8
Extent of regional sales.........................................................26 .....■ ........5.6
Openness to multilateral trade rules.....................................97 .....■ ......48.5
Share of duty-free imports ....................................................39 .....■ .........71

Germany ........................................6.8
Germany ........................................6.7
Hungary........................................88.5
Hong Kong SAR ............................100

3rd pillar: Efficiency of customs administration
3.01
3.02

Burden of customs procedures.............................................80 .....■ ........3.3
Customs services index ........................................................55 .....■ ........5.7

Singapore .......................................6.4
Lithuania.......................................10.2

4th pillar: Efficiency of import-export procedures
4.01
4.02
4.03
4.04

Effectiveness and efficiency of clearance.............................60 .....■ ........2.5
Time for import......................................................................72 .....■ .........25
Documents for import...........................................................59 .....■ ...........8
Cost to import .......................................................................13 .....■ .......660

Netherlands....................................4.0
Singapore ..........................................3
Multiple economies1 ........................3
Singapore ......................................367

5th pillar: Transparency of border administration
5.01
5.02

Irregular payments in exports and imports ...........................50 .....■ ........4.7
Corruption Perceptions Index................................................38 .....■ ........5.0

Denmark ........................................6.7
Multiple economies2 ......................9.4

6th pillar: Availability and quality of transport infrastructure
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08

Airport density .......................................................................11 .....■ ........3.6
Transshipment connectivity index .........................................47 .....■ .......492
Paved roads...........................................................................81 .....■ ......24.4
Road congestion....................................................................34 .....■ .........24
Quality of air transport infrastructure ....................................61 .....■ ........4.6
Quality of railroad infrastructure............................................99 .....■ ........1.4
Quality of roads ...................................................................109 .....■ ........2.0
Quality of port infrastructure ...............................................113 .....■ ........2.2

Norway.........................................10.9
United Kingdom ............................580
Multiple economies3 ..................100.0
Bangladesh .......................................1
Singapore .......................................6.9
Switzerland ....................................6.8
France ............................................6.7
Singapore .......................................6.8

7th pillar: Availability and quality of transport services
7.01
7.02
7.03
7.04
7.05
7.06

Liner Shipping Connectivity Index.........................................55 .....■ ......15.3
Ease and affordability of shipment........................................75 .....■ ........2.5
Competence of the logistics industry ...................................79 .....■ ........2.4
Ability and ease of tracking ...................................................72 .....■ ........2.6
Timeliness of shipments in reaching destination ..................81 .....■ ........2.9
Postal service efficiency........................................................86 .....■ ........3.1

China ..........................................127.8
Netherlands....................................4.1
Netherlands....................................4.3
Singapore .......................................4.3
Singapore .......................................4.5
Japan..............................................6.8

8th pillar: Availability and use of ICTs
8.01
8.02
8.03
8.04
8.05

Firm-level technology absorption ..........................................53 .....■ ........4.9
Mobile telephone subscribers...............................................80 .....■ ......32.8
Broadband Internet subscribers ............................................59 .....■ ........1.3
Internet users ........................................................................42 .....■ ......27.6
Telephone lines .....................................................................35 .....■ ......30.7

Sweden..........................................6.3
Luxembourg...............................151.6
Denmark ......................................31.7
Netherlands..................................88.9
Switzerland ..................................69.4

9th pillar: Regulatory environment
9.01
9.02
9.03
9.04

Ease of hiring foreign labor ...................................................31 .....■ ........5.2
Openness of bilateral Air Service Agreements .......................9 .....■ ......22.0
Prevalence of foreign ownership ..........................................15 .....■ ........6.0
Business impact of rules on FDI ...........................................26 .....■ ........5.6

Kuwait ............................................6.2
El Salvador ...................................33.7
Ireland ............................................6.5
Ireland ............................................6.5

10th pillar: Physical security
10.01
10.02
10.03

Reliability of police services ..................................................70 .....■ ........4.0
Business costs of crime and violence...................................98 .....■ ........3.4
Business costs of terrorism ..................................................30 .....■ ........5.8

Finland............................................6.7
Syria ...............................................6.7
Finland............................................6.6

1 Two economies: Denmark, Sweden
2 Three economies: Denmark, Finland, New Zealand
3 Nineteen economies: Armenia, Austria, Czech Republic, Denmark, France, Germany, Hong Kong SAR, Ireland, Israel, Italy, Jordan, Latvia, Luxembourg, Mauritius,

Singapore, Slovenia, Switzerland, United Arab Emirates, United Kingdom

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

141

2.1: Country/Economy Profiles

ET.partB.r1

6/2/08

10:39 PM

Page 142

Croatia
Key indicators
Population (millions), 2007 .............................................4.6
Surface area (1,000 square kilometers)........................56.5
GDP (US$ billions), 2007 ..............................................50.1

GDP (current prices, US$) per capita, 2007 ..........11,271.4
GDP per capita (rank out of 118), 2007...........................41
Real GDP growth (percent), 2007 ..................................5.6

Source: International Monetary Fund, World Economic Outlook Database (October 2007); United Nations Population Fund,
State of World Population 2007; The World Bank, World Development Indicators 2007 (CD version)

Main trade data
Current account balance (share of GDP), 2007 ............–8.4
Merchandise exports, f.o.b. (US$ millions) ...........10,376.3
Merchandise imports, c.i.f. (US$ millions) ............21,488.3
Commercial services exports (US$ millions).........10,806.4
Commercial services imports (US$ millions)...........3,484.2
Goods RTAs notified to WTO ........................................3.0
WTO accession year ...................................................2000
Source: International Monetary Fund, World Economic Outlook
Database (October 2007); World Trade Organization, Statistics
Database, Trade profiles 2007

Trade as a percentage of GDP, 1994–2006
120

Croatia

World average

100
80
60
40
1994

1996

1998

2000

2002

2004

2006

Source: IMF, World Economic Outlook Database (Oct. 2007); WTO, Statistics
Database, Time series on merchandise & commercial services (Apr. 2008)

Main trading partners, 2006

Exports and imports by sector, 2006

Share of total volume of merchandise trade (percent)

Share of total volume of merchandise trade (percent)

142
100
80
60

100
Others: 18.8

Others: 19.6

Serbia: 5.3
Bosnia and
Herzegovina: 12.6

China: 5.3
Russian Fed.: 10.1

40
EU25: 63.2

■ Manufactures

80
65.6

60

■ Agricultural
products

40

EU25: 65.0

20

19.5

20

0

18.5
14.6

9.4

Exports

Imports

0

Exports destination

Imports orgin

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Enabling Trade Index

■ Fuels and mining
products

72.0

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Rank
(out of 118)

Score
(1–7 scale)

2008 Index......................................................................................................42
Market access ...................................................................................................12

4.5
5.2

Tariff and non-tariff barriers................................................................................5
Proclivity to trade ................................................................................................47

6.0
4.5

Border administration.......................................................................................52

4.1

Efficiency of customs administration...............................................................53
Efficiency of import-export procedures ..........................................................60
Transparency of border administration...........................................................54

4.0
4.6
3.9

Transport and communications infrastructure ............................................43

3.9

Availability and quality of transport infrastructure .......................................49
Availability and quality of transport services.................................................54
Availability and use of ICTs................................................................................35

4.1
3.6
3.9

Business environment ......................................................................................56

4.5

Regulatory environment .....................................................................................78
Physical security .................................................................................................45

4.2
4.9
1

2

3

4

Note: For descriptions of variables and detailed sources, please refer to “How to Read the Country/Economy Profiles.”

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

5

6

7

6/2/08

10:39 PM

Page 143

Croatia
The Enabling Trade Index in detail
INDICATOR

■ Competitive Advantage ■ Competitive Disadvantage
RANK/118

SCORE

BEST PERFORMER

SCORE

1st pillar: Tariff and non-tariff barriers
1.01
1.02

Tariff barriers .........................................................................31 .....■ ........2.5
Non-tariff barriers..................................................................n/a.................n/a

Hong Kong SAR .............................0.0
Uganda...........................................0.1

2.1: Country/Economy Profiles

ET.partB.r1

2nd pillar: Proclivity to trade
2.01
2.02
2.03
2.04

Breadth of international markets...........................................86 .....■ ........3.0
Extent of regional sales.........................................................70 .....■ ........4.2
Openness to multilateral trade rules.......................................4 .....■ ......84.2
Share of duty-free imports ....................................................64 .....■ .........52

Germany ........................................6.8
Germany ........................................6.7
Hungary........................................88.5
Hong Kong SAR ............................100

3rd pillar: Efficiency of customs administration
3.01
3.02

Burden of customs procedures.............................................48 .....■ ........4.1
Customs services index ........................................................57 .....■ ........5.7

Singapore .......................................6.4
Lithuania.......................................10.2

4th pillar: Efficiency of import-export procedures
4.01
4.02
4.03
4.04

Effectiveness and efficiency of clearance.............................71 .....■ ........2.4
Time for import......................................................................35 .....■ .........16
Documents for import...........................................................59 .....■ ...........8
Cost to import .......................................................................70 .....■ ....1,200

Netherlands....................................4.0
Singapore ..........................................3
Multiple economies1 ........................3
Singapore ......................................367

5th pillar: Transparency of border administration
5.01
5.02

Irregular payments in exports and imports ...........................62 .....■ ........4.3
Corruption Perceptions Index................................................51 .....■ ........4.1

Denmark ........................................6.7
Multiple economies2 ......................9.4

6th pillar: Availability and quality of transport infrastructure
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08

Airport density .......................................................................19 .....■ ........1.7
Transshipment connectivity index .........................................60 .....■ .......480
Paved roads...........................................................................37 .....■ ......84.7
Road congestion....................................................................61 .....■ .........58
Quality of air transport infrastructure ....................................68 .....■ ........4.3
Quality of railroad infrastructure............................................48 .....■ ........3.1
Quality of roads .....................................................................35 .....■ ........4.9
Quality of port infrastructure .................................................80 .....■ ........3.3

Norway.........................................10.9
United Kingdom ............................580
Multiple economies3 ..................100.0
Bangladesh .......................................1
Singapore .......................................6.9
Switzerland ....................................6.8
France ............................................6.7
Singapore .......................................6.8

7th pillar: Availability and quality of transport services
7.01
7.02
7.03
7.04
7.05
7.06

Liner Shipping Connectivity Index.........................................61 .....■ ......12.3
Ease and affordability of shipment........................................64 .....■ ........2.7
Competence of the logistics industry ...................................52 .....■ ........2.8
Ability and ease of tracking ...................................................81 .....■ ........2.5
Timeliness of shipments in reaching destination ..................47 .....■ ........3.5
Postal service efficiency........................................................44 .....■ ........4.9

China ..........................................127.8
Netherlands....................................4.1
Netherlands....................................4.3
Singapore .......................................4.3
Singapore .......................................4.5
Japan..............................................6.8

8th pillar: Availability and use of ICTs
8.01
8.02
8.03
8.04
8.05

Firm-level technology absorption ..........................................86 .....■ ........4.3
Mobile telephone subscribers...............................................29 .....■ ......98.1
Broadband Internet subscribers ............................................38 .....■ ........5.5
Internet users ........................................................................34 .....■ ......34.6
Telephone lines .....................................................................29 .....■ ......40.2

Sweden..........................................6.3
Luxembourg...............................151.6
Denmark ......................................31.7
Netherlands..................................88.9
Switzerland ..................................69.4

9th pillar: Regulatory environment
9.01
9.02
9.03
9.04

Ease of hiring foreign labor ...................................................87 .....■ ........4.4
Openness of bilateral Air Service Agreements .....................41 .....■ ......11.2
Prevalence of foreign ownership ..........................................74 .....■ ........4.9
Business impact of rules on FDI ...........................................93 .....■ ........4.5

Kuwait ............................................6.2
El Salvador ...................................33.7
Ireland ............................................6.5
Ireland ............................................6.5

10th pillar: Physical security
10.01
10.02
10.03

Reliability of police services ..................................................56 .....■ ........4.3
Business costs of crime and violence...................................55 .....■ ........4.9
Business costs of terrorism ..................................................16 .....■ ........6.0

Finland............................................6.7
Syria ...............................................6.7
Finland............................................6.6

1 Two economies: Denmark, Sweden
2 Three economies: Denmark, Finland, New Zealand
3 Nineteen economies: Armenia, Austria, Czech Republic, Denmark, France, Germany, Hong Kong SAR, Ireland, Israel, Italy, Jordan, Latvia, Luxembourg, Mauritius,

Singapore, Slovenia, Switzerland, United Arab Emirates, United Kingdom

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

143

2.1: Country/Economy Profiles

ET.partB.r1

6/2/08

10:39 PM

Page 144

Cyprus
Key indicators
Population (millions), 2007 .............................................0.8
Surface area (1,000 square kilometers)..........................9.3
GDP (US$ billions), 2007 ..............................................20.5

GDP (current prices, US$) per capita, 2007 ..........26,385.9
GDP per capita (rank out of 118), 2007...........................27
Real GDP growth (percent), 2007 ..................................3.8

Source: International Monetary Fund, World Economic Outlook Database (October 2007); United Nations Population Fund,
State of World Population 2007; The World Bank, World Development Indicators 2007 (CD version)

Main trade data
Current account balance (share of GDP), 2007 ............–5.5
Merchandise exports, f.o.b. (US$ millions) .............1,333.0
Merchandise imports, c.i.f. (US$ millions) ..............6,928.0
Commercial services exports (US$ millions)...........6,877.1
Commercial services imports (US$ millions)...........2,898.3
Goods RTAs notified to WTO ......................................23.0
WTO accession year ...................................................1995

Trade as a percentage of GDP, 1994–2006
140

Cyprus

World average

120
100
80
60

Source: International Monetary Fund, World Economic Outlook
Database (October 2007); World Trade Organization, Statistics
Database, Trade profiles 2007

40
1994

1996

1998

2000

2002

2004

2006

Source: IMF, World Economic Outlook Database (Oct. 2007); WTO, Statistics
Database, Time series on merchandise & commercial services (Apr. 2008)

Main trading partners, 2006

Exports and imports by sector, 2006

Share of total volume of merchandise trade (percent)

Share of total volume of merchandise trade (percent)

144
100

100

■ Manufactures

Others: 24.2

80

Others: 44.5

80

China: 4.2
Israel: 6.2

56.5

60

■ Fuels and mining
products

65.9

60
UAE: 4.6

40

■ Agricultural
products

40
EU25: 65.4

25.0

EU25: 51.0

20

19.7

20

0

17.8

12.9

Exports

Imports

0

Exports destination

Imports orgin

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Enabling Trade Index

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Rank
(out of 118)

Score
(1–7 scale)

2008 Index......................................................................................................39
Market access ...................................................................................................49

4.5
4.5

Tariff and non-tariff barriers..............................................................................65
Proclivity to trade ................................................................................................41

4.3
4.8

Border administration.......................................................................................44

4.4

Efficiency of customs administration...............................................................30
Efficiency of import-export procedures ..........................................................95
Transparency of border administration...........................................................34

4.8
3.7
4.7

Transport and communications infrastructure ............................................32

4.4

Availability and quality of transport infrastructure .......................................21
Availability and quality of transport services.................................................41
Availability and use of ICTs................................................................................31

5.0
4.0
4.2

Business environment ......................................................................................41

4.7

Regulatory environment .....................................................................................88
Physical security .................................................................................................28

4.1
5.3
1

2

3

4

Note: For descriptions of variables and detailed sources, please refer to “How to Read the Country/Economy Profiles.”

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

5

6

7

6/2/08

10:39 PM

Page 145

Cyprus
The Enabling Trade Index in detail
INDICATOR

■ Competitive Advantage ■ Competitive Disadvantage
RANK/118

SCORE

BEST PERFORMER

SCORE

1st pillar: Tariff and non-tariff barriers
1.01
1.02

Tariff barriers ...........................................................................3 .....■ ........1.1
Non-tariff barriers ..................................................................74 .....■ ......59.0

Hong Kong SAR .............................0.0
Uganda...........................................0.1

2.1: Country/Economy Profiles

ET.partB.r1

2nd pillar: Proclivity to trade
2.01
2.02
2.03
2.04

Breadth of international markets...........................................71 .....■ ........3.3
Extent of regional sales.........................................................77 .....■ ........4.0
Openness to multilateral trade rules.....................................16 .....■ ......78.2
Share of duty-free imports ....................................................11 .....■ .........79

Germany ........................................6.8
Germany ........................................6.7
Hungary........................................88.5
Hong Kong SAR ............................100

3rd pillar: Efficiency of customs administration
3.01
3.02

Burden of customs procedures.............................................31 .....■ ........4.6
Customs services index ........................................................28 .....■ ........7.3

Singapore .......................................6.4
Lithuania.......................................10.2

4th pillar: Efficiency of import-export procedures
4.01
4.02
4.03
4.04

Effectiveness and efficiency of clearance.............................41 .....■ ........2.8
Time for import .....................................................................n/a.................n/a
Documents for import ..........................................................n/a.................n/a
Cost to import ......................................................................n/a.................n/a

Netherlands....................................4.0
Singapore ..........................................3
Multiple economies1 ........................3
Singapore ......................................367

5th pillar: Transparency of border administration
5.01
5.02

Irregular payments in exports and imports ...........................34 .....■ ........5.2
Corruption Perceptions Index................................................31 .....■ ........5.3

Denmark ........................................6.7
Multiple economies2 ......................9.4

6th pillar: Availability and quality of transport infrastructure
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08

Airport density .......................................................................10 .....■ ........3.8
Transshipment connectivity index .........................................71 .....■ .......463
Paved roads...........................................................................57 .....■ ......63.0
Road congestion...................................................................n/a.................n/a
Quality of air transport infrastructure ....................................51 .....■ ........4.9
Quality of railroad infrastructure ...........................................n/a .....■ .......n.a.
Quality of roads .....................................................................23 .....■ ........5.4
Quality of port infrastructure .................................................35 .....■ ........4.8

Norway.........................................10.9
United Kingdom ............................580
Multiple economies3 ..................100.0
Bangladesh .......................................1
Singapore .......................................6.9
Switzerland ....................................6.8
France ............................................6.7
Singapore .......................................6.8

7th pillar: Availability and quality of transport services
7.01
7.02
7.03
7.04
7.05
7.06

Liner Shipping Connectivity Index.........................................46 .....■ ......18.0
Ease and affordability of shipment........................................50 .....■ ........2.9
Competence of the logistics industry ...................................55 .....■ ........2.8
Ability and ease of tracking ...................................................49 .....■ ........2.9
Timeliness of shipments in reaching destination ..................60 .....■ ........3.3
Postal service efficiency........................................................21 .....■ ........6.0

China ..........................................127.8
Netherlands....................................4.1
Netherlands....................................4.3
Singapore .......................................4.3
Singapore .......................................4.5
Japan..............................................6.8

8th pillar: Availability and use of ICTs
8.01
8.02
8.03
8.04
8.05

Firm-level technology absorption ..........................................61 .....■ ........4.7
Mobile telephone subscribers...............................................36 .....■ ......92.1
Broadband Internet subscribers ............................................35 .....■ ........5.9
Internet users ........................................................................28 .....■ ......42.2
Telephone lines .....................................................................16 .....■ ......48.3

Sweden..........................................6.3
Luxembourg...............................151.6
Denmark ......................................31.7
Netherlands..................................88.9
Switzerland ..................................69.4

9th pillar: Regulatory environment
9.01
9.02
9.03
9.04

Ease of hiring foreign labor ...................................................93 .....■ ........4.3
Openness of bilateral Air Service Agreements ...................106 .....■ ........4.6
Prevalence of foreign ownership ..........................................70 .....■ ........4.9
Business impact of rules on FDI ...........................................51 .....■ ........5.3

Kuwait ............................................6.2
El Salvador ...................................33.7
Ireland ............................................6.5
Ireland ............................................6.5

10th pillar: Physical security
10.01
10.02
10.03

Reliability of police services ..................................................32 .....■ ........5.0
Business costs of crime and violence...................................20 .....■ ........5.7
Business costs of terrorism ..................................................42 .....■ ........5.6

Finland............................................6.7
Syria ...............................................6.7
Finland............................................6.6

1 Two economies: Denmark, Sweden
2 Three economies: Denmark, Finland, New Zealand
3 Nineteen economies: Armenia, Austria, Czech Republic, Denmark, France, Germany, Hong Kong SAR, Ireland, Israel, Italy, Jordan, Latvia, Luxembourg, Mauritius,

Singapore, Slovenia, Switzerland, United Arab Emirates, United Kingdom

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

145

2.1: Country/Economy Profiles

ET.partB.r1

6/2/08

10:39 PM

Page 146

Czech Republic
Key indicators
Population (millions), 2007 ...........................................10.2
Surface area (1,000 square kilometers)........................78.9
GDP (US$ billions), 2007 ............................................168.1

GDP (current prices, US$) per capita, 2007 ..........16,371.9
GDP per capita (rank out of 118), 2007...........................33
Real GDP growth (percent), 2007 ..................................5.6

Source: International Monetary Fund, World Economic Outlook Database (October 2007); United Nations Population Fund,
State of World Population 2007; The World Bank, World Development Indicators 2007 (CD version)

Main trade data
Current account balance (share of GDP), 2007 ............–3.4
Merchandise exports, f.o.b. (US$ millions) ...........95,077.0
Merchandise imports, c.i.f. (US$ millions) ............93,217.0
Commercial services exports (US$ millions).........11,759.4
Commercial services imports (US$ millions).........11,139.6
Goods RTAs notified to WTO ......................................23.0
WTO accession year ...................................................1995

Trade as a percentage of GDP, 1994–2006
180

Czech Republic

World average

150
120
90
60

Source: International Monetary Fund, World Economic Outlook
Database (October 2007); World Trade Organization, Statistics
Database, Trade profiles 2007

30
1994

1996

1998

2000

2002

2004

2006

Source: IMF, World Economic Outlook Database (Oct. 2007); WTO, Statistics
Database, Time series on merchandise & commercial services (Apr. 2008)

Main trading partners, 2006

Exports and imports by sector, 2006

Share of total volume of merchandise trade (percent)

Share of total volume of merchandise trade (percent)

146
100

100
Others: 16.0

80

Others: 17.9

60
40

■ Manufactures

80

Russian Fed.: 6.0
China: 6.1

EU25: 84.0

EU25: 70.0

20

0

0

■ Agricultural
products

13.8

4.9
4.9

Imports orgin

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Enabling Trade Index

89.4

40

20

Exports destination

■ Fuels and mining
products

79.3

60

6.5

Exports

Imports

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Rank
(out of 118)

Score
(1–7 scale)

2008 Index......................................................................................................32
Market access ...................................................................................................33

4.7
4.9

Tariff and non-tariff barriers..............................................................................64
Proclivity to trade ................................................................................................19

4.3
5.6

Border administration.......................................................................................31

4.9

Efficiency of customs administration...............................................................23
Efficiency of import-export procedures ..........................................................37
Transparency of border administration...........................................................38

5.0
5.1
4.5

Transport and communications infrastructure ............................................34

4.2

Availability and quality of transport infrastructure .......................................43
Availability and quality of transport services.................................................44
Availability and use of ICTs................................................................................29

4.2
3.9
4.4

Business environment ......................................................................................38

4.8

Regulatory environment .....................................................................................26
Physical security .................................................................................................52

5.0
4.7
1

2

3

4

Note: For descriptions of variables and detailed sources, please refer to “How to Read the Country/Economy Profiles.”

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

5

6

7

6/2/08

10:39 PM

Page 147

Czech Republic
The Enabling Trade Index in detail
INDICATOR

■ Competitive Advantage ■ Competitive Disadvantage
RANK/118

SCORE

BEST PERFORMER

SCORE

1st pillar: Tariff and non-tariff barriers
1.01
1.02

Tariff barriers ...........................................................................3 .....■ ........1.1
Non-tariff barriers ..................................................................73 .....■ ......58.6

Hong Kong SAR .............................0.0
Uganda...........................................0.1

2.1: Country/Economy Profiles

ET.partB.r1

2nd pillar: Proclivity to trade
2.01
2.02
2.03
2.04

Breadth of international markets...........................................27 .....■ ........5.0
Extent of regional sales.........................................................14 .....■ ........5.9
Openness to multilateral trade rules.....................................24 .....■ ......75.4
Share of duty-free imports ....................................................11 .....■ .........79

Germany ........................................6.8
Germany ........................................6.7
Hungary........................................88.5
Hong Kong SAR ............................100

3rd pillar: Efficiency of customs administration
3.01
3.02

Burden of customs procedures.............................................37 .....■ ........4.4
Customs services index ........................................................15 .....■ ........8.3

Singapore .......................................6.4
Lithuania.......................................10.2

4th pillar: Efficiency of import-export procedures
4.01
4.02
4.03
4.04

Effectiveness and efficiency of clearance.............................36 .....■ ........3.0
Time for import......................................................................40 .....■ .........18
Documents for import...........................................................39 .....■ ...........7
Cost to import .......................................................................37 .....■ .......860

Netherlands....................................4.0
Singapore ..........................................3
Multiple economies1 ........................3
Singapore ......................................367

5th pillar: Transparency of border administration
5.01
5.02

Irregular payments in exports and imports ...........................46 .....■ ........4.8
Corruption Perceptions Index................................................33 .....■ ........5.2

Denmark ........................................6.7
Multiple economies2 ......................9.4

6th pillar: Availability and quality of transport infrastructure
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08

Airport density .......................................................................72 .....■ ........0.5
Transshipment connectivity index .........................................88 .....■ .......414
Paved roads.............................................................................1 .....■ ....100.0
Road congestion....................................................................42 .....■ .........31
Quality of air transport infrastructure ....................................44 .....■ ........5.2
Quality of railroad infrastructure............................................25 .....■ ........4.4
Quality of roads .....................................................................63 .....■ ........3.4
Quality of port infrastructure .................................................48 .....■ ........4.3

Norway.........................................10.9
United Kingdom ............................580
Multiple economies3 ..................100.0
Bangladesh .......................................1
Singapore .......................................6.9
Switzerland ....................................6.8
France ............................................6.7
Singapore .......................................6.8

7th pillar: Availability and quality of transport services
7.01
7.02
7.03
7.04
7.05
7.06

Liner Shipping Connectivity Index.........................................93 .....■ ........0.4
Ease and affordability of shipment........................................42 .....■ ........3.1
Competence of the logistics industry ...................................39 .....■ ........3.0
Ability and ease of tracking ...................................................34 .....■ ........3.3
Timeliness of shipments in reaching destination ..................42 .....■ ........3.6
Postal service efficiency........................................................35 .....■ ........5.2

China ..........................................127.8
Netherlands....................................4.1
Netherlands....................................4.3
Singapore .......................................4.3
Singapore .......................................4.5
Japan..............................................6.8

8th pillar: Availability and use of ICTs
8.01
8.02
8.03
8.04
8.05

Firm-level technology absorption ..........................................33 .....■ ........5.3
Mobile telephone subscribers.................................................8 .....■ ....119.0
Broadband Internet subscribers ............................................30 .....■ ......10.6
Internet users ........................................................................33 .....■ ......34.7
Telephone lines .....................................................................33 .....■ ......31.5

Sweden..........................................6.3
Luxembourg...............................151.6
Denmark ......................................31.7
Netherlands..................................88.9
Switzerland ..................................69.4

9th pillar: Regulatory environment
9.01
9.02
9.03
9.04

Ease of hiring foreign labor ...................................................35 .....■ ........5.2
Openness of bilateral Air Service Agreements .....................28 .....■ ......12.8
Prevalence of foreign ownership ..........................................27 .....■ ........5.7
Business impact of rules on FDI ...........................................24 .....■ ........5.7

Kuwait ............................................6.2
El Salvador ...................................33.7
Ireland ............................................6.5
Ireland ............................................6.5

10th pillar: Physical security
10.01
10.02
10.03

Reliability of police services ..................................................77 .....■ ........3.8
Business costs of crime and violence...................................38 .....■ ........5.3
Business costs of terrorism ..................................................13 .....■ ........6.1

Finland............................................6.7
Syria ...............................................6.7
Finland............................................6.6

1 Two economies: Denmark, Sweden
2 Three economies: Denmark, Finland, New Zealand
3 Nineteen economies: Armenia, Austria, Czech Republic, Denmark, France, Germany, Hong Kong SAR, Ireland, Israel, Italy, Jordan, Latvia, Luxembourg, Mauritius,

Singapore, Slovenia, Switzerland, United Arab Emirates, United Kingdom

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

147

2.1: Country/Economy Profiles

ET.partB.r1

6/2/08

10:39 PM

Page 148

Denmark
Key indicators
Population (millions), 2007 .............................................5.5
Surface area (1,000 square kilometers)........................43.1
GDP (US$ billions), 2007 ............................................310.7

GDP (current prices, US$) per capita, 2007 ..........57,034.9
GDP per capita (rank out of 118), 2007.............................5
Real GDP growth (percent), 2007 ..................................1.9

Source: International Monetary Fund, World Economic Outlook Database (October 2007); United Nations Population Fund,
State of World Population 2007; The World Bank, World Development Indicators 2007 (CD version)

Main trade data
Current account balance (share of GDP), 2007..............1.3
Merchandise exports, f.o.b. (US$ millions) ...........92,752.0
Merchandise imports, c.i.f. (US$ millions) ............86,273.0
Commercial services exports (US$ millions).........51,749.2
Commercial services imports (US$ millions).........44,952.5
Goods RTAs notified to WTO ......................................23.0
WTO accession year ...................................................1995
Source: International Monetary Fund, World Economic Outlook
Database (October 2007); World Trade Organization, Statistics
Database, Trade profiles 2007

Trade as a percentage of GDP, 1994–2006
100

Denmark

World average

80

60

40
1994

1996

1998

2000

2002

2004

2006

Source: IMF, World Economic Outlook Database (Oct. 2007); WTO, Statistics
Database, Time series on merchandise & commercial services (Apr. 2008)

Main trading partners, 2006

Exports and imports by sector, 2006

Share of total volume of merchandise trade (percent)

Share of total volume of merchandise trade (percent)

148
100

100
Others: 17.5

Others: 23.1

80

Norway: 5.7
United States: 6.0

Norway: 4.6
China: 5.3

■ Manufactures

80

60

63.9

60

40

■ Fuels and mining
products

76.5

■ Agricultural
products

40

EU25: 72.6
EU25: 65.2

12.6

20

20

7.8
20.6

0

14.2

0

Exports destination

Imports orgin

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Enabling Trade Index

Exports

Imports

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Rank
(out of 118)

Score
(1–7 scale)

2008 Index........................................................................................................6
Market access ...................................................................................................15

5.6
5.2

Tariff and non-tariff barriers..............................................................................61
Proclivity to trade ..................................................................................................6

4.3
6.0

Border administration.........................................................................................5

6.1

Efficiency of customs administration...............................................................18
Efficiency of import-export procedures ............................................................1
Transparency of border administration.............................................................1

5.2
6.5
6.6

Transport and communications infrastructure ............................................10

5.5

Availability and quality of transport infrastructure .........................................4
Availability and quality of transport services.................................................20
Availability and use of ICTs..................................................................................7

5.7
5.0
5.8

Business environment ........................................................................................5

5.7

Regulatory environment .....................................................................................22
Physical security ...................................................................................................2

5.1
6.3
1

2

3

4

Note: For descriptions of variables and detailed sources, please refer to “How to Read the Country/Economy Profiles.”

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

5

6

7

6/2/08

10:39 PM

Page 149

Denmark
The Enabling Trade Index in detail
INDICATOR

■ Competitive Advantage ■ Competitive Disadvantage
RANK/118

SCORE

BEST PERFORMER

SCORE

1st pillar: Tariff and non-tariff barriers
1.01
1.02

Tariff barriers ...........................................................................3 .....■ ........1.1
Non-tariff barriers ..................................................................69 .....■ ......57.6

Hong Kong SAR .............................0.0
Uganda...........................................0.1

2.1: Country/Economy Profiles

ET.partB.r1

2nd pillar: Proclivity to trade
2.01
2.02
2.03
2.04

Breadth of international markets...........................................10 .....■ ........5.9
Extent of regional sales.........................................................10 .....■ ........6.2
Openness to multilateral trade rules.....................................13 .....■ ......79.4
Share of duty-free imports ....................................................11 .....■ .........79

Germany ........................................6.8
Germany ........................................6.7
Hungary........................................88.5
Hong Kong SAR ............................100

3rd pillar: Efficiency of customs administration
3.01
3.02

Burden of customs procedures...............................................5 .....■ ........5.8
Customs services index ........................................................33 .....■ ........6.7

Singapore .......................................6.4
Lithuania.......................................10.2

4th pillar: Efficiency of import-export procedures
4.01
4.02
4.03
4.04

Effectiveness and efficiency of clearance...............................2 .....■ ........4.0
Time for import........................................................................2 .....■ ...........5
Documents for import.............................................................1 .....■ ...........3
Cost to import .........................................................................8 .....■ .......540

Netherlands....................................4.0
Singapore ..........................................3
Multiple economies1 ........................3
Singapore ......................................367

5th pillar: Transparency of border administration
5.01
5.02

Irregular payments in exports and imports .............................1 .....■ ........6.7
Corruption Perceptions Index..................................................1 .....■ ........9.4

Denmark ........................................6.7
Multiple economies2 ......................9.4

6th pillar: Availability and quality of transport infrastructure
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08

Airport density .......................................................................18 .....■ ........1.9
Transshipment connectivity index .........................................40 .....■ .......499
Paved roads.............................................................................1 .....■ ....100.0
Road congestion....................................................................45 .....■ .........32
Quality of air transport infrastructure ......................................6 .....■ ........6.5
Quality of railroad infrastructure..............................................8 .....■ ........5.8
Quality of roads .......................................................................5 .....■ ........6.4
Quality of port infrastructure ...................................................5 .....■ ........6.4

Norway.........................................10.9
United Kingdom ............................580
Multiple economies3 ..................100.0
Bangladesh .......................................1
Singapore .......................................6.9
Switzerland ....................................6.8
France ............................................6.7
Singapore .......................................6.8

7th pillar: Availability and quality of transport services
7.01
7.02
7.03
7.04
7.05
7.06

Liner Shipping Connectivity Index.........................................39 .....■ ......22.1
Ease and affordability of shipment........................................14 .....■ ........3.7
Competence of the logistics industry ...................................15 .....■ ........3.8
Ability and ease of tracking ...................................................17 .....■ ........3.8
Timeliness of shipments in reaching destination ..................18 .....■ ........4.1
Postal service efficiency..........................................................2 .....■ ........6.6

China ..........................................127.8
Netherlands....................................4.1
Netherlands....................................4.3
Singapore .......................................4.3
Singapore .......................................4.5
Japan..............................................6.8

8th pillar: Availability and use of ICTs
8.01
8.02
8.03
8.04
8.05

Firm-level technology absorption ............................................9 .....■ ........6.0
Mobile telephone subscribers...............................................19 .....■ ....107.3
Broadband Internet subscribers ..............................................1 .....■ ......31.7
Internet users ........................................................................14 .....■ ......58.2
Telephone lines .......................................................................7 .....■ ......56.9

Sweden..........................................6.3
Luxembourg...............................151.6
Denmark ......................................31.7
Netherlands..................................88.9
Switzerland ..................................69.4

9th pillar: Regulatory environment
9.01
9.02
9.03
9.04

Ease of hiring foreign labor ...................................................42 .....■ ........5.1
Openness of bilateral Air Service Agreements .....................16 .....■ ......15.3
Prevalence of foreign ownership ..........................................23 .....■ ........5.8
Business impact of rules on FDI ...........................................25 .....■ ........5.7

Kuwait ............................................6.2
El Salvador ...................................33.7
Ireland ............................................6.5
Ireland ............................................6.5

10th pillar: Physical security
10.01
10.02
10.03

Reliability of police services ....................................................2 .....■ ........6.6
Business costs of crime and violence.....................................3 .....■ ........6.5
Business costs of terrorism ..................................................43 .....■ ........5.6

Finland............................................6.7
Syria ...............................................6.7
Finland............................................6.6

1 Two economies: Denmark, Sweden
2 Three economies: Denmark, Finland, New Zealand
3 Nineteen economies: Armenia, Austria, Czech Republic, Denmark, France, Germany, Hong Kong SAR, Ireland, Israel, Italy, Jordan, Latvia, Luxembourg, Mauritius,

Singapore, Slovenia, Switzerland, United Arab Emirates, United Kingdom

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

149

2.1: Country/Economy Profiles

ET.partB.r1

6/2/08

10:39 PM

Page 150

Dominican Republic
Key indicators
Population (millions), 2007 .............................................9.1
Surface area (1,000 square kilometers)........................48.7
GDP (US$ billions), 2007 ..............................................35.5

GDP (current prices, US$) per capita, 2007 ............4,044.5
GDP per capita (rank out of 118), 2007...........................60
Real GDP growth (percent), 2007 ..................................8.0

Source: International Monetary Fund, World Economic Outlook Database (October 2007); United Nations Population Fund,
State of World Population 2007; The World Bank, World Development Indicators 2007 (CD version)

Main trade data
Current account balance (share of GDP), 2007 ............–3.4
Merchandise exports, f.o.b. (US$ millions) .............6,440.0
Merchandise imports, c.i.f. (US$ millions) ............11,190.0
Commercial services exports (US$ millions)...........4,144.0
Commercial services imports (US$ millions)...........1,502.8
Goods RTAs notified to WTO ........................................1.0
WTO accession year ...................................................1995

Trade as a percentage of GDP, 1994–2006
140

Dominican Republic

World average

120
100
80
60

Source: International Monetary Fund, World Economic Outlook
Database (October 2007); World Trade Organization, Statistics
Database, Trade profiles 2007

40
1994

1996

1998

2000

2002

2004

2006

Source: IMF, World Economic Outlook Database (Oct. 2007); WTO, Statistics
Database, Time series on merchandise & commercial services (Apr. 2008)

Main trading partners, 2006

Exports and imports by sector, 2006

Share of total volume of merchandise trade (percent)

Share of total volume of merchandise trade (percent)

150
100
80
60

100
Others: 32.1

80

Haiti: 8.8

Mexico: 6.7
EU25: 10.8

EU25: 18.8

Venezuela: 13.4

■ Fuels and mining
products

62.7

60

40
20

■ Manufactures

Others: 24.3

84.9

■ Agricultural
products

40
United States: 40.2

United States: 44.8

25.3

20

0

5.5
9.5

11.9

Exports

Imports

0

Exports destination

Imports orgin

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Enabling Trade Index

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Rank
(out of 118)

Score
(1–7 scale)

2008 Index......................................................................................................63
Market access ...................................................................................................85

3.9
3.7

Tariff and non-tariff barriers..............................................................................51
Proclivity to trade ..............................................................................................101

4.4
3.0

Border administration.......................................................................................58

4.1

Efficiency of customs administration...............................................................50
Efficiency of import-export procedures ..........................................................47
Transparency of border administration...........................................................78

4.0
4.9
3.3

Transport and communications infrastructure ............................................79

3.0

Availability and quality of transport infrastructure .......................................73
Availability and quality of transport services...............................................109
Availability and use of ICTs................................................................................66

3.5
2.7
2.7

Business environment ......................................................................................42

4.7

Regulatory environment .......................................................................................2
Physical security .................................................................................................95

5.7
3.7
1

2

3

4

Note: For descriptions of variables and detailed sources, please refer to “How to Read the Country/Economy Profiles.”

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

5

6

7

6/2/08

10:39 PM

Page 151

Dominican Republic
The Enabling Trade Index in detail
INDICATOR

■ Competitive Advantage ■ Competitive Disadvantage
RANK/118

SCORE

BEST PERFORMER

SCORE

1st pillar: Tariff and non-tariff barriers
1.01
1.02

Tariff barriers .........................................................................68 .....■ ........6.6
Non-tariff barriers..................................................................n/a.................n/a

Hong Kong SAR .............................0.0
Uganda...........................................0.1

2.1: Country/Economy Profiles

ET.partB.r1

2nd pillar: Proclivity to trade
2.01
2.02
2.03
2.04

Breadth of international markets...........................................96 .....■ ........2.6
Extent of regional sales.........................................................80 .....■ ........3.9
Openness to multilateral trade rules.....................................96 .....■ ......49.7
Share of duty-free imports ....................................................99 .....■ .........18

Germany ........................................6.8
Germany ........................................6.7
Hungary........................................88.5
Hong Kong SAR ............................100

3rd pillar: Efficiency of customs administration
3.01
3.02

Burden of customs procedures.............................................65 .....■ ........3.7
Customs services index ........................................................42 .....■ ........6.3

Singapore .......................................6.4
Lithuania.......................................10.2

4th pillar: Efficiency of import-export procedures
4.01
4.02
4.03
4.04

Effectiveness and efficiency of clearance.............................73 .....■ ........2.3
Time for import......................................................................27 .....■ .........13
Documents for import...........................................................39 .....■ ...........7
Cost to import .......................................................................50 .....■ ....1,015

Netherlands....................................4.0
Singapore ..........................................3
Multiple economies1 ........................3
Singapore ......................................367

5th pillar: Transparency of border administration
5.01
5.02

Irregular payments in exports and imports ...........................83 .....■ ........3.9
Corruption Perceptions Index................................................74 .....■ ........3.0

Denmark ........................................6.7
Multiple economies2 ......................9.4

6th pillar: Availability and quality of transport infrastructure
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08

Airport density .......................................................................56 .....■ ........0.7
Transshipment connectivity index .........................................43 .....■ .......497
Paved roads...........................................................................64 .....■ ......49.4
Road congestion...................................................................n/a.................n/a
Quality of air transport infrastructure ....................................34 .....■ ........5.4
Quality of railroad infrastructure..........................................107 .....■ ........1.2
Quality of roads .....................................................................53 .....■ ........3.7
Quality of port infrastructure .................................................67 .....■ ........3.6

Norway.........................................10.9
United Kingdom ............................580
Multiple economies3 ..................100.0
Bangladesh .......................................1
Singapore .......................................6.9
Switzerland ....................................6.8
France ............................................6.7
Singapore .......................................6.8

7th pillar: Availability and quality of transport services
7.01
7.02
7.03
7.04
7.05
7.06

Liner Shipping Connectivity Index.........................................44 .....■ ......19.9
Ease and affordability of shipment........................................94 .....■ ........2.3
Competence of the logistics industry ...................................93 .....■ ........2.3
Ability and ease of tracking ...................................................96 .....■ ........2.3
Timeliness of shipments in reaching destination ..................81 .....■ ........2.9
Postal service efficiency......................................................107 .....■ ........1.5

China ..........................................127.8
Netherlands....................................4.1
Netherlands....................................4.3
Singapore .......................................4.3
Singapore .......................................4.5
Japan..............................................6.8

8th pillar: Availability and use of ICTs
8.01
8.02
8.03
8.04
8.05

Firm-level technology absorption ..........................................59 .....■ ........4.8
Mobile telephone subscribers...............................................71 .....■ ......51.1
Broadband Internet subscribers ............................................65 .....■ ........0.7
Internet users ........................................................................47 .....■ ......22.2
Telephone lines .....................................................................80 .....■ ........9.9

Sweden..........................................6.3
Luxembourg...............................151.6
Denmark ......................................31.7
Netherlands..................................88.9
Switzerland ..................................69.4

9th pillar: Regulatory environment
9.01
9.02
9.03
9.04

Ease of hiring foreign labor .....................................................7 .....■ ........5.8
Openness of bilateral Air Service Agreements .......................4 .....■ ......28.9
Prevalence of foreign ownership ..........................................31 .....■ ........5.7
Business impact of rules on FDI ...........................................40 .....■ ........5.4

Kuwait ............................................6.2
El Salvador ...................................33.7
Ireland ............................................6.5
Ireland ............................................6.5

10th pillar: Physical security
10.01
10.02
10.03

Reliability of police services ................................................106 .....■ ........2.7
Business costs of crime and violence...................................99 .....■ ........3.4
Business costs of terrorism ..................................................27 .....■ ........5.8

Finland............................................6.7
Syria ...............................................6.7
Finland............................................6.6

1 Two economies: Denmark, Sweden
2 Three economies: Denmark, Finland, New Zealand
3 Nineteen economies: Armenia, Austria, Czech Republic, Denmark, France, Germany, Hong Kong SAR, Ireland, Israel, Italy, Jordan, Latvia, Luxembourg, Mauritius,

Singapore, Slovenia, Switzerland, United Arab Emirates, United Kingdom

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

151

2.1: Country/Economy Profiles

ET.partB.r1

6/2/08

10:39 PM

Page 152

Ecuador
Key indicators
Population (millions), 2007 ...........................................13.6
Surface area (1,000 square kilometers)......................283.6
GDP (US$ billions), 2007 ..............................................44.5

GDP (current prices, US$) per capita, 2007 ............3,243.2
GDP per capita (rank out of 118), 2007...........................72
Real GDP growth (percent), 2007 ..................................2.7

Source: International Monetary Fund, World Economic Outlook Database (October 2007); United Nations Population Fund,
State of World Population 2007; The World Bank, World Development Indicators 2007 (CD version)

Main trade data
Current account balance (share of GDP), 2007..............2.4
Merchandise exports, f.o.b. (US$ millions) ...........12,658.1
Merchandise imports, c.i.f. (US$ millions) ............12,048.7
Commercial services exports (US$ millions)..............940.2
Commercial services imports (US$ millions)...........2,209.9
Goods RTAs notified to WTO ........................................3.0
WTO accession year ...................................................1996

Trade as a percentage of GDP, 1994–2006

Source: International Monetary Fund, World Economic Outlook
Database (October 2007); World Trade Organization, Statistics
Database, Trade profiles 2007

40

80

Ecuador

World average

70
60
50

1994

1996

1998

2000

2002

2004

2006

Source: IMF, World Economic Outlook Database (Oct. 2007); WTO, Statistics
Database, Time series on merchandise & commercial services (Apr. 2008)

Main trading partners, 2006

Exports and imports by sector, 2006

Share of total volume of merchandise trade (percent)

Share of total volume of merchandise trade (percent)

152
100

100

8.8

Others: 16.5

80
60

Chile: 4.4
Colombia: 5.6
Peru: 8.2
EU25: 11.7

■ Manufactures

80

Others: 40.5
China: 6.8
Brazil: 7.3
EU25: 10.0

40
United States: 53.6

60.2

■ Agricultural
products

40

Colombia: 12.8

20

20

31.1

22.5

Exports

Imports

United States: 22.6

0

8.1

0

Exports destination

Imports orgin

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Enabling Trade Index

■ Fuels and mining
products

69.3

60

Source: World Trade Organization, Statistics Database,
Trade profiles 2007

Rank
(out of 118)

Score
(1–7 scale)

2008 Index......................................................................................................96
Market access ...................................................................................................77

3.4
4.0

Tariff and non-tariff barriers..............................................................................83
Proclivity to trade ................................................................................................57

3.8
4.1

Border administration.....................................................................................105

2.8

Efficiency of customs administration.............................................................118
Efficiency of import-export procedures ..........................................................87
Transparency of border administration.........................................................108

1.7
4.0
2.7

Transport and communications infrastructure ............................................85

2.9

Availability and quality of transport infrastructure .......................................89
Availability and quality of transport services.................................................87
Availability and use of ICTs................................................................................75

3.2
3.1
2.4

Business environment ....................................................................................109

3.7

Regulatory environment .....................................................................................96
Physical security ...............................................................................................103

3.9
3.5
1

2

3

4

Note: For descriptions of variables and detailed sources, please refer to “How to Read the Country/Economy Profiles.”

The Global Enabling Trade Report 2008 © 2008 World Economic Forum

5

6

7

6/2/08

10:39 PM

Page 153

Ecuador
The Enabling Trade Index in detail
INDICATOR

■ Competitive Advantage ■ Competitive Disadvantage
RANK/118

SCORE

BEST PERFORMER

SCORE

1st pillar: Tariff and non-tariff barriers
1.01
1.02

Tariff barriers .........................................................................82 .....■ ........8.6
Non-tariff barriers ..................................................................41 .....■ ......33.5

Hong Kong SAR .............................0.0
Uganda...........................................0.1

2.1: Country/Economy Profiles

ET.partB.r1

2nd pillar: Proclivity to trade
2.01
2.02
2.03
2.04

Breadth of international markets...........................................89 .....■ ........2.9
Extent of regional sales.........................................................76 .....■ ........4.0
Openness to multilateral trade rules.....................................33 .....■ ......71.1
Share of duty-free imports ....................................................61 .....■ .........53

Germany ........................................6.8
Germany ........................................6.7
Hungary........................................88.5
Hong Kong SAR ............................100

3rd pillar: Efficiency of customs administration
3.01
3.02

Burden of customs procedures...........................................117 .....■ ........2.2
Customs services index ......................................................105 .....■ ........2.0

Singapore .......................................6.4
Lithuania.......................................10.2

4th pillar: Efficiency of import-export procedures
4.01
4.02
4.03
4.04

Effectiveness and efficiency of clearance.............................78 .....■ ........2.3
Time for import......................................................................98 .....■ .........44
Documents for import...........................................................59 .....■ ...........8
Cost to import .......................................................................59 .....■ ....1,090

Netherlands....................................4.0
Singapore ..........................................3
Multiple economies1 ........................3
Singapore ......................................367

5th pillar: Transparency of border administration
5.01
5.02

Irregular payments in exports and imports .........................102 .....■ ........3.2
Corruption Perceptions Index..............................................107 .....■ ........2.1

Denmark ........................................6.7
Multiple economies2 ......................9.4

6th pillar: Availability and quality of transport infrastructure
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08

Airport density .......................................................................40 .....■ ........1.0
Transshipment connectivity index .........................................51 .....■ .......490
Paved roads...........................................................................97 .....■ ......15.0
Road congestion....................................................................25 .....■ .........17
Quality of air transport infrastructure ....................................69 .....■ ........4.3
Quality of railroad infrastructure..........................................108 .....■ ........1.1
Quality of roads .....................................................................77 .....■ ........2.9
Quality of port infrastructure .................................................93 .....■ ........2.8

Norway.........................................10.9
United Kingdom ............................580
Multiple economies3 ..................100.0
Bangladesh .......................................1
Singapore .......................................6.9
Switzerland ....................................6.8
France ............................................6.7
Singapore .......................................6.8

7th pillar: Availability and quality of transport services
7.01
7.02
7.03
7.04
7.05
7.06

Liner Shipping Connectivity Index.........................................56 .....■ ......14.3
Ease and affordability of shipment........................................68 .....■ ........2.6
Competence of the logistics industry ...................................65 .....■ ........2.6
Ability and ease of tracking ...................................................83 .....■ ........2.5
Timeliness of shipments in reaching destination ..................58 .....■ ........3.3
Postal service efficiency......................................................101 .....■ ........2.4

China ..........................................127.8
Netherlands....................................4.1
Netherlands....................................4.3
Singapore .......................................4.3
Singapore .......................................4.5
Japan..............................................6.8

8th pillar: Availability and use of ICTs
8.01
8.02
8.03
8.04
8.05

Firm-level technology absorption ........................................101 .....■ ........3.8
Mobile telephone subscribers...............................................59 .....■ ......63.2
Broadband Internet subscribers ............................................82 .....■ ........0.2
Internet users ........................................................................72 .....■ ......11.5
Telephone lines .....................................................................71 .....■ ......13.1

Sweden..........................................6.3
Luxembourg...............................151.6
Denmark ......................................31.7
Netherlands..................................88.9
Switzerland ..................................69.4

9th pillar: Regulatory environment
9.01
9.02
9.03
9.04

Ease of hiring foreign labor ...................................................90 .....■ ........4.4
Openness of bilateral Air