Saturday, October 19, 2019

How third world countries Infrastructure have a profound effect on Research Paper

How third world countries Infrastructure have a profound effect on Logistics - Research Paper Example The logistic performance of the countries was measured on six components out of which the quality of infrastructure related to trade and transport such as ports, roads, railroads and communication technology topped the list. The other components were the efficiency with which customs and other border control agencies carried out the clearance process, the quality and competency of logistic services, ease of tracing and tracking of consignments, the ability to arrange shipments at competitive price and the reaching of the shipment within time schedule (SC Digest Editorial, 2012). Good quality infrastructure is considered to be the main requirement for sustainable development of a country. Efficient transport system and proper energy, sanitation and communication systems are needed not only for a decent standard of living but also for the economic growth and prosperity of a country (European Commission, 2014). Ondiege et al (2013) studied the less developed countries in Africa and found that they suffer from marked infrastructure deficit which has largely hampered growth prospects. Research done by Razzaque (1997) also showed that the Third World countries not only lacked logistic facilities but developing a good infrastructure in these nations was a daunting task. This was mainly due to rampant corruption, civil wars and lack of funds. In most countries the governments were also not committed enough as projects to improve infrastructure were abandoned halfway through Razzaque, 1997). In order to boost growth and development and respond to the changes in glob al businesses (developing logistics being one of them), the third world countries need to invest in infrastructure. Studies conducted by (Bhattacharya et al., 2012) show that infrastructure is one of the main determinants of logistic costs. Where logistics cost is

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