Logistics in Lagging Regions : Overcoming Local Barriers to Global Connectivity
This report is based on two case studies carried out in Brazil and India on the impact of various strategies to reduce the cost of trade for small-scale producers. Small scale producers especially those located in lagging regions in developing coun...
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Format: | Publication |
Language: | English |
Published: |
World Bank
2012
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Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000356161_20110107014801 http://hdl.handle.net/10986/2543 |
Summary: | This report is based on two case studies
carried out in Brazil and India on the impact of various
strategies to reduce the cost of trade for small-scale
producers. Small scale producers especially those located in
lagging regions in developing countries lack easy access to
efficient logistics services. They are faced with long
distances from both domestic and international markets.
Unless the enterprises are able to consolidate traffic
volumes they can be excluded from international supply
chains. However, the process of consolidation is not without
cost nor does it occur on its own accord. It is typically
handled by outside parties in the form of intermediaries.
The study was designed around the horizontal relationships
between the small scale producers and their vertical
connections to higher tier parties involved in the same
supply chain. It analyzes the cooperative approach to
linking producers, the role of itinerant traders, and a
newer and innovative approach to the same problem through
virtual integration of farmers using modern information
communication technologies. These approaches were explored
by studying two separate supply chains, sisal in Brazil and
soybean in India, enabling the assessment of logistics
patterns from the farm gate to onboard vessel at the export
gateway. The assessment of logistics performance at the
sub-national level is still evolving. The more widely used
density-type indicators emphasize the infrastructure
dimension of logistics but do not handle effectively the
relationships and service quality attributes identified by
the study. A model built around spatial and social networks
is proposed to represent the horizontal and vertical
attributes of logistics in lagging regions. |
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