Indicators for E-commerce readiness

The following two indexes are presented below – NRI 2023 and LPI 2023.

The Network Readiness Index (NRI) 2023 measures the extent to which countries are prepared to leverage the opportunities provided by information and communications technology. The Network Readiness Index 2023 evaluates 134 economies based on a four-pillar structure: Technology, People, Governance, and Impact, 12 sub-pillars, and 58 indicators related to their capacity to harness the benefits of the digital revolution.

Source: Network Readiness Index Database, Portulans Institute, 2023

The international LPI provides insights into the drivers of overall logistics performance. To unbundle the survey results, it is necessary to refer to the domestic LPI. This is based on the domestic LPI, where surveyed logistics professionals assess the logistics environments in the countries where they work. It contains more detailed information on countries’ logistics environments, processes, and institutions and looks at the logistics constraints within countries, not just at gateways such as ports or borders. It analyzes countries by four major determinants of overall logistics performance: infrastructure, services, border procedures, and supply chain reliability.

Source: World Bank (2023): https://lpi.worldbank.org/

 The best-ranked NRI in 2023 is Serbia (ranked #55 with an index score of 51.7) and Bosnia and Herzegovina has the worst NRI (ranked #92 with an index score of 40.06).

 Central to the networked economy is technology. As a foundational component of the NRI, the Technology pillar aims to evaluate the technological infrastructure crucial for a country’s engagement in the global economy. Best ranked is Montenegro (#47) and Worst Bosnia and Herzegovina (#104)

 The technological landscape mirrors the proficiency, inclusivity, and adeptness of the populace and entities of a nation in harnessing technological assets. The best-ranked is Albania(#43) and the Worst is Bosnia and Herzegovina (#97).

 Governance epitomizes the frameworks that fortify a holistic network, ensuring its users’ safety. Best ranked is Serbia (#48), and the worst is Albania (#86).

 The Impact pillar translates a nation’s readiness in the networked economy into holistic growth and societal enhancement. The best-ranked is Serbia (#46) and the worst is Albania (#86).

Logistics is understood as a network of services that support the physical movement of goods, trade across borders, and commerce within borders. It comprises an array of activities beyond transportation, including warehousing, brokerage, express delivery, terminal operations, and related data and information management. Logistics is one chain in the e-commerce process and measuring performance along the logistics supply chain within a country is important.

The World Bank’s Logistics Performance Index (LPI) analyzes countries through six indicators:

  • 1. The efficiency of customs and border management clearance.
  • 2. The quality of trade- and transport-related infrastructure.
  • 3. The ease of arranging competitively priced international shipments.
  • 4. The competence and quality of logistics services.
  • 5. The ability to track and trace consignments.
  • 6. The frequency with which shipments reach consignees within the scheduled or expected delivery time.

*Source: World Bank (2023): https://lpi.worldbank.org/

The overall LPI score and LPI rank (139 countries) of CEFTA markets excluding Kosovo* in 2023 are shown in the graphs above.

North Macedonia at 57th rank is the best-ranked among the CEFTA markets and Moldova is 97th worst.

 The efficiency of customs and border management clearance is rated from “very low” (1) to “very high” (5). Among CEFTA markets North Macedonia is scored the best ( 3.1) and Moldova the worst (1.9).

 The quality of trade- and transport-related infrastructure is rated from “very low” (1) to “very high” (5) in the survey question and the best rated is North Macedonia (3) and the worst is Moldova (1.9).

 The ease of arranging competitively priced international shipments rated from “very difficult” (1) to “very easy” (5) in the survey question is the best in Bosnia and Herzegovina (3.1) and the worst in Moldova (2.7).

 The competence and quality of logistics services are rated from “very low” (1) to “very high” (5) in the survey. North Macedonia has the best (3.2) and Albania has the worst score (2.3).

 The ability to track and trace consignments rated from “very low” (1) to “very high” (5) in the survey question is best in North Macedonia (3.5) and worst is Albania (2.5).

 The frequency with which shipments reach consignees within the scheduled or expected delivery time is rated from “hardly ever” (1) to “nearly always” (5) in the survey question. Bosnia and Herzegovina, North Macedonia, and Montenegro are the best with a score of 3.2 and the worst is Albania with a score of 2.3.

Source: World Bank (2023) https://lpi.worldbank.org/

* This designation is without prejudice to positions on status and is in line with UNSCR 1244 and the ICJ Opinion on the Kosovo declaration of independence.
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