World Bank – Trade in services for development

This co-publication by the World Bank and the WTO emphasizes the importance of trade in services for economic growth and development. It highlights the need for greater policy attention and international cooperation in this area. The publication aims to remind policymakers of the benefits of advancing negotiations on trade in services and the potential costs of not doing so. It also seeks to encourage support and assistance for developing economies in implementing reforms and benefiting from expanded trade and investment in services. The ultimate goal of policy reform efforts is to improve the development prospects and welfare of countries and their citizens. Trade and economic diversification can help achieve these aims, and deeper integration is an important channel for pursuing broader development goals. The publication acknowledges that domestic policy reforms in areas such as education, infrastructure, and regulation are crucial for maximizing the development benefits of services trade. The services sector is diverse, and policy reforms need to take into account the various roles, trade patterns, regulatory scrutiny, public policy aims, and political economy forces associated with different services. Services sector governance cannot be one-size-fits-all, and domestic reforms that are anchored in trade agreements usually progress gradually. Despite the challenges and heterogeneity of the services sector, a commitment to supportive business environments and trade openness is necessary for comprehensive growth-enhancing policies. The world economy has undergone structural shifts, with services becoming a prominent sector. Services account for a significant share of global economic activity, GDP, employment, and job creation, particularly for women and young workers. Services contribute to growth by acting as inputs in the production of other goods and services.