Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Less bureaucracy at the border reduces poverty

03.04.2009
Less border red tape is a way to combat poverty. Today goods, money, and time are all wasted in the way shipments are dealt with when exported. This is a major conclusion drawn in a new dissertation on trade from the School of Economics and Management, Lund University, in Sweden.

Economist Maria Persson has studied how trade between the EU and developing countries could be increased. Over the last ten years this issue has been discussed more and more heatedly by the WTO (World Trade Organization), and one measure that has been suggested is reduced tariffs. However, Maria Persson's assessment shows that very good results can be achieved by, instead, simplifying procedures that need to be followed every time a good is shipped from one country to another.

"I focus on how to limit the time it takes for goods to cross the border. The more difficult the procedure for exporting, the longer it will take. My estimations show that if it takes a day less for a good to cross the border, the value of exports could increase by one percent," says the researcher, who has used questionnaire material from the World Bank where various intermediaries in commerce were asked how long it takes for goods to pass the border, while also controlling for what the 'normal' level of trade would be.

"If trade increases, this can lead to increased economic growth and thereby reduced poverty in many countries. At the same time exports would be more diversified, since a greater amount of different products could be exported. This would make developing countries less vulnerable, which is an advantage of this type of reform."

Many countries have great costs associated with trade itself, a fact that has previously been invisible. In practice, exaggerated bureaucracy and slow processing, for example, lead to food rotting while it is held before being exported or to some competitor winning the race to get the latest high-tech gadget to the market, which lowers the price the gadget could have commanded. Delays cost exporting countries a great deal of money.

At the same time, the issue of tariffs is becoming less and less important, since their general levels are successively declining. This means that there is great potential for increasing trade by introducing more efficient border bureaucracy.

"Considering that in most developing countries it takes a very long time for exported goods to pass the country's own border, an average of 34 days, it is realistic to expect much larger savings than one day without it costing very much. The positive effects could be very large."

It is often a matter of removing bottlenecks. For instance, more readily available information about what rules apply to exports would simplify matters a great deal for the trader. The countries can limit the number of documents that need to be filled out. Other simple measures are to extend the open hours at offices that perform crucial stamping of documents.

If EU countries also worked to make import procedures more efficient in a corresponding way, the impact would be even greater. At the border, personnel can learn simple techniques for assessing risks by using random inspections, which would help speed up passage and increase security as well.

"'Trade facilitation' does not necessarily mean less monitoring, but rather smarter monitoring. Companies that have shipped goods for twenty years without any problems could be trusted more by customs officials, whereas shipments where the exporter has not been shown to be reliable should be checked more carefully. It's a matter of risk assessment, and that is something that Sweden has been a pioneer in," says Maria Persson.

Contact Maria Persson at cell phone: +46 (0)73-04 12 543 or maria.persson@nek.lu.se

Pressofficer: Kristina Rörström, +46-706 047 037; Kristina.Rorstrom@ehl.lu.se

Kristina Rörström | idw
Further information:
http://www.lu.se
http://www.vr.se

More articles from Social Sciences:

nachricht Geographers provide new insight into commuter megaregions of the US
01.12.2016 | Dartmouth College

nachricht Sustainable Development Goals lead to lower population growth
30.11.2016 | International Institute for Applied Systems Analysis (IIASA)

All articles from Social Sciences >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Novel silicon etching technique crafts 3-D gradient refractive index micro-optics

A multi-institutional research collaboration has created a novel approach for fabricating three-dimensional micro-optics through the shape-defined formation of porous silicon (PSi), with broad impacts in integrated optoelectronics, imaging, and photovoltaics.

Working with colleagues at Stanford and The Dow Chemical Company, researchers at the University of Illinois at Urbana-Champaign fabricated 3-D birefringent...

Im Focus: Quantum Particles Form Droplets

In experiments with magnetic atoms conducted at extremely low temperatures, scientists have demonstrated a unique phase of matter: The atoms form a new type of quantum liquid or quantum droplet state. These so called quantum droplets may preserve their form in absence of external confinement because of quantum effects. The joint team of experimental physicists from Innsbruck and theoretical physicists from Hannover report on their findings in the journal Physical Review X.

“Our Quantum droplets are in the gas phase but they still drop like a rock,” explains experimental physicist Francesca Ferlaino when talking about the...

Im Focus: MADMAX: Max Planck Institute for Physics takes up axion research

The Max Planck Institute for Physics (MPP) is opening up a new research field. A workshop from November 21 - 22, 2016 will mark the start of activities for an innovative axion experiment. Axions are still only purely hypothetical particles. Their detection could solve two fundamental problems in particle physics: What dark matter consists of and why it has not yet been possible to directly observe a CP violation for the strong interaction.

The “MADMAX” project is the MPP’s commitment to axion research. Axions are so far only a theoretical prediction and are difficult to detect: on the one hand,...

Im Focus: Molecules change shape when wet

Broadband rotational spectroscopy unravels structural reshaping of isolated molecules in the gas phase to accommodate water

In two recent publications in the Journal of Chemical Physics and in the Journal of Physical Chemistry Letters, researchers around Melanie Schnell from the Max...

Im Focus: Fraunhofer ISE Develops Highly Compact, High Frequency DC/DC Converter for Aviation

The efficiency of power electronic systems is not solely dependent on electrical efficiency but also on weight, for example, in mobile systems. When the weight of relevant components and devices in airplanes, for instance, is reduced, fuel savings can be achieved and correspondingly greenhouse gas emissions decreased. New materials and components based on gallium nitride (GaN) can help to reduce weight and increase the efficiency. With these new materials, power electronic switches can be operated at higher switching frequency, resulting in higher power density and lower material costs.

Researchers at the Fraunhofer Institute for Solar Energy Systems ISE together with partners have investigated how these materials can be used to make power...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

ICTM Conference 2017: Production technology for turbomachine manufacturing of the future

16.11.2016 | Event News

Innovation Day Laser Technology – Laser Additive Manufacturing

01.11.2016 | Event News

#IC2S2: When Social Science meets Computer Science - GESIS will host the IC2S2 conference 2017

14.10.2016 | Event News

 
Latest News

UTSA study describes new minimally invasive device to treat cancer and other illnesses

02.12.2016 | Medical Engineering

Plasma-zapping process could yield trans fat-free soybean oil product

02.12.2016 | Agricultural and Forestry Science

What do Netflix, Google and planetary systems have in common?

02.12.2016 | Physics and Astronomy

VideoLinks
B2B-VideoLinks
More VideoLinks >>>