Moving Goods Sustainably for Resilient Economic Growth and Integration

The COVID Pandemic, the Russian invasion of Ukraine, and other conflicts and economic shocks around the world disrupt the global supply chain system, increasing transport and logistics costs and food insecurity. Recent shocks also have reminded us on the importance of resilient transport logistic networks to keep the economy growing, ensure food is accessible at affordable prices, and alleviate poverty.

The first challenge for most developing countries and emerging economies is to remove domestic frictions that keep the costs of moving goods through their borders and within countries high. The high cost of moving goods within countries in Africa and South Asia, for example, is one of the main reasons for the limited and geographically unbalanced success of translating reduced tariffs into increased international trade, food security, and economic growth. Reducing transport and logistic costs will bring all regions within a country closer to each other, to their neighbors, and to the rest of the world, allowing for inclusive and sustainable growth.

In this panel discussion, we will explore the nexus between transport and logistic costs, economic integration and sustainable growth, and the policies and investments to remove frictions that keep transport costs high, and the need for more data to identify such frictions and design adequate policies and interventions. We will discuss lessons from regional economic union, such how the TEN-T was used to reduce transport costs and facilitate deeper integration in the European Union and with neighbor regions. We will also explore what various integrational organizations and development financial institutions are doing to support low-income countries to develop low-carbon transport and logistic network that enable sustainable economies and reduce the carbon-foot print of freight transport.