Abstract

The purpose of this policy note is to present reform options on cabotage liberalization. The goal of cabotage liberalization is to help i) foster more competition in the domestic shipping industry, ii) reduce shipping cost, and iii) improve efficiency, maritime services, and safety standards. These, together with complementary reforms in domestic shipping and ports, can help enhance consumer and producer welfare through lower consumer prices, higher household real income, timely delivery of goods, and ultimately, job creation and poverty reduction through greater market access. This policy note on cabotage is organized as follows. Part one provides an overview of the domestic shipping industry and discusses the key issues that it faces. Part two discusses the underlying reasons for the industry’s inefficiency. Part three discusses the concept of cabotage, the cost and benefit of cabotage liberalization, and the cabotage regimes of the Philippines and of selected countries. Part four closes with a discussion of reform options.

Abstract

Rapid urbanization in Ghana over the past three decades has coincided with rapid GDP growth. This has helped to create jobs, increase human capital, decrease poverty, and expand opportunities and improve living conditions for millions of Ghanaians. Ghana’s urban transformation has been momentous, but it is not unique: a similar process has characterized other countries at similar levels of development. Ghana’s key challenge now is to ensure that urbanization continues to complement growth through improvements in productivity and inclusion, rather than detracting from these goals. Many rising problems are related to efficiency and inclusion: these include slums, lack of basic services, underdeveloped manufacturing, and insufficient transport infrastructure.