Bhutan 128th in LPI
Bhutan was ranked 128th out of 155 counties in World Bank’s Logistics Performance Indicators (LPI) 2010. Among the Saarc countries, Bhutan was ranked 5th which is not an improvement from the 2007 ranking.
LPI is the weighted average of a country’s score on six key dimensions. Bhutan ranked 118 on customs, 141 on infrastructure, and 120 on international shipments. On logistic competence, Bhutan ranked 127, 105 on tracking, and 112 on timeliness.
The ranking of 155 economies on the ease of importing and exporting goods is the result of a comprehensive survey – much of it conducted during the economic crisis – of nearly 1,000 international freight-forwarders and express carriers on the frontlines of world trade. Germany topped the list while Somalia was last.
Experts attribute the non-improvement of Bhutan to the road widening projects, which delayed transportation of goods and services. An efficient road system for a landlocked country assumes paramount importance as it plays a crucial role in supporting and stimulating domestic and international trade. The other reason cited was geographical location.
An economist said Bhutan has only one airport and the mountainous terrain presents a host of problems which make it difficult to handle large cargo. He said there are just few government-owned warehouses to store huge cargos.
“If developing countries want to come out of the crisis in a stronger and more competitive position, they need to invest in better trade logistics,” said Otaviano Canuto, World Bank Vice President for Poverty Reduction and Economic Management.
Among the Saarc countries India topped the list ranking 47th followed by Bangladesh. Nepal is in the bottom at 147th position.