49
3.2.3 Convergence Analysis
The main purpose of convergence analysis is to evaluate the viability of regional AEOs/MRAs
in the OIC. APEC (2016) also has the same motivation of providing insights about the feasibility
of regional MRAs between APEC Member States. Furthermore, comparing OIC with APEC,
using the results of a survey -purposefully designed to be very similar with APEC (2016)- can
provide insights into where the AEO programs in the OIC stand when compared to APEC.
In this report, a comparator matrix is employed for its straightforwardness. The comparator
matrix, in essence, is a simple tool to compare different approaches to the AEO concept within
a group of countries.
First, each AEO program is compared based on the survey responses through a determination
of whether each feature is identified by the respondent country as being present in their
program. If the feature is present, one point is assigned in the respected cell of the matrix. If
not, no points are assigned. This procedure is repeated for each AEO program within OIC.
Next, a “convergence percentage” is calculated for each sub-variable. This calculation is
undertaken by dividing the total number of AEO programs with that particular sub-variable by
the total number of OIC member economies with AEO programs. In addition, a “total
convergence percentage by variable” is calculated by taking the mean of each sub-variable
under a variable. Finally, a “total convergence percentage by country” is calculated by
summing identified sub-variables each AEO program has, and comparing the percentage
against the maximum possible score (where a country has all sub-variables).
Finally, once the convergence percentages are calculated, sub-variables that are the most (100
percent convergence) and least (less than 50 percent convergence) commonly incorporated
into member economy AEO programs are identified. That way, it becomes possible to discuss
the key features that member economies can include into their programs for the purpose of a
higher degree of harmonization of AEO programs within OIC.
Furthermore, survey responses and convergence results are used to identify areas in which
best-practice examples would be of most benefit. Better harmonization with best practice
economies is expected to facilitate more MRA negotiations and to further improve worldwide
integration in terms of trade facilitation measures.
3.3 Comparative Findings
This section is based on the findings from responses of 7 out of 12 countries with operational
AEO programs among the OIC member countries: Indonesia, Jordan, Morocco, Oman, Tunisia,
Turkey and Uganda. Summary information obtained from surveys is presented for each
country in Annex III.
3.3.1. Convergence Results within OIC Member Countries
After the design and the deployment of the surveys described above, the survey responses are
analyzed by using the convergence method described in Section 3.2. The comparator matrix is
presented in Annex IV.