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Services Trade and Development: The Experience of Zambia
By Aaditya Mattoo and Lucy Payton
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Some see trade in services as irrelevant to the development agenda for least developed countries (LDCs). Others see few benefits from past market openings by LDCs. This book debunks both views. It finds that serious imperfections in Zambia's reform of services trade deprived the country of significant benefits and diminished faith in liberalization.
What is to be done? Move aggressively and consistently to eliminate barriers to entry and competition. Develop and enforce regulations to deal with market failures. And implement proactive policies to widen the access of firms, farms, and consumers to services of all kinds. These lessons from Zambia are applicable to all LDCs.
In all this, international agreements can help. But to succeed, LDCs mustcommit to open markets and their trading partners must provide assistance for complementary reforms. Zambia, which leads the LDC group at the World Trade Organization, can show the way.
What is to be done? Move aggressively and consistently to eliminate barriers to entry and competition. Develop and enforce regulations to deal with market failures. And implement proactive policies to widen the access of firms, farms, and consumers to services of all kinds. These lessons from Zambia are applicable to all LDCs.
In all this, international agreements can help. But to succeed, LDCs mustcommit to open markets and their trading partners must provide assistance for complementary reforms. Zambia, which leads the LDC group at the World Trade Organization, can show the way.
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