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Services Policy Reviews: A Detailed Methodology for Reviewing Policy, Regulatory and Institutional Frameworks

Policy brief by UNCTAD/DITC/TNCD, 2013

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The SPRs are a systematic review of economic, regulatory and institutional frameworks characterizing the services sectors, with the aim of identifying trade policy options that advance national sectoral development objectives. In addition to reviewing the development benefits of services and services trade, this review explains the methodology behind the SPR process itself: the purpose, the structure, the outcome, stakeholder participation and activities that are involved in the process.

UN I T ED NAT IONS CONFERENCE ON TRADE AND DEVELOPMENT


SERVICES POLICY REVIEWS


A DETAILED METHODOLOGY
FOR REVIEWING POLICY,
REGULATORY AND
INSTITUTIONAL FRAMEWORKS
FOR SERVICES




UN I T ED NAT IONS CONFERENCE ON TRADE AND DEVELOPMENT


SERVICES POLICY REVIEWS


A DETAILED METHODOLOGY
FOR REVIEWING POLICY,
REGULATORY AND
INSTITUTIONAL FRAMEWORKS
FOR SERVICES


New York and Geneva 2013




ii


© Copyright United Nations 2013
All rights reserved


UNCTAD/DITC/TNCD/2013/1


NOTE


The symbols of United Nations documents are composed of capital letters
combined with figures. Mention of such a symbol indicates a reference to a United
Nations document.


The designations employed and the presentation of the material do not imply the
expression of any opinion on the part of the United Nations concerning the legal
status of any country, territory, city or area, or of authorities or concerning the
delimitation of its frontiers or boundaries.


Material in this publication may be freely quoted or reprinted, but acknowledgement
is requested, together with a reference to the document number. A copy of the
publication containing the quotation or reprint should be sent to the UNCTAD
secretariat at: Palais des Nations, 1211 Geneva 10, Switzerland.


All references to dollars ($) in this publication are to United States dollars, unless
otherwise stated.


For further information on the Trade Negotiations and Commercial Diplomacy
Branch and its activities, please contact:


Mina Mashayekhi
Head, Trade Negotiations and
Commercial Diplomacy Branch


Division on International Trade in Goods and Services,
and Commodities
Tel.: 41 22 907 5866
Fax: 41 22 907 0044


mina.mashayekhi@unctad.org




iiiSERVICES POLICY REVIEWS


CONTENTS


Note .................................................................................................................... ii


I. Introduction ................................................................................................... 1


II. Reaping the development benefits of services and services trade ........... 2


III. The SPR process ......................................................................................... 4


A. Purpose ..................................................................................................... 4


B. Outcome ................................................................................................... 4


C. Stakeholder participation ........................................................................... 4


D. Activities .................................................................................................... 5


1. Launch of the SPR process ................................................................... 5


2. UNCTAD desk study.............................................................................. 6


3. First national workshop .......................................................................... 6


4. SPR report preparation .......................................................................... 8


5. Validation and finalization of the report ................................................... 8


6. Dissemination ...................................................................................... 10


IV. The SPR report .......................................................................................... 10


Structure of the SPR report ..................................................................... 11


V. Implementation and follow-up ................................................................... 13


Annex ............................................................................................................... 15


Boxes


Box 1: Objectives of SPRs .................................................................................. 5


Box 2: SPR as an opportunity to review and improve services data .................... 7


Box 3: The inventory of regulations and institutions affecting
sectoral activity ...................................................................................... 12


Figures


Figure 1: The SPR activities ................................................................................ 9


Figure 2: From implementation to the development of a


Services Master Plan .......................................................................... 14






1SERVICES POLICY REVIEWS


I. INTRODUCTION


Across countries, services’ contribution to income generation, employment creation
and foreign exchange earnings has increased significantly over the last two decades.
The importance of services in developed countries has grown continuously with
services now accounting for over 70 per cent of both Gross Domestic Product
(GDP) and total employment. Growth of the sector has also occurred in developing
countries, however, the share of services in GDP and employment remains at 50
per cent and 35 per cent respectively.


Since 1990, service exports from developing countries have grown at an average
annual rate of 8 per cent and their share of world service exports increased from
23 per cent to 30 per cent between 2000 and 2010. For a growing number of
developing countries, service exports contribute significantly to economic growth,
and increasingly in new sectors such as business, telecommunications, construction,
environmental, distribution, healthcare, education and cultural services.


These figures suggest a large untapped potential for developing countries to
advance the development of the service sectors. Principal approaches towards
this goal include the creation of an enabling environment through improved policy,
regulatory and institutional frameworks for the service economy and more liberalized
services trade to enhance market access and investment opportunities.


The need to strengthen the service economies of developing countries and countries
with economies in transition was recognized by Member States of the United Nations
at the UNCTAD XII Conference in April 2008 in the Accra Accord which recalls that
“[t]he service economy is the new frontier for the expansion of trade, productivity and
competitiveness, and for the provision of essential services and universal access.”
However, while noting that some developing countries have performed well in
trade in services in recent years, the Accra Accord also recognizes that “positively
integrating developing countries, especially LDCs, into the global services economy
and increasing their participation in services trade, particularly in modes and sectors
of export interest to them, remains a major development challenge.” To help address
this challenge, the Accord calls upon UNCTAD to assist developing countries
and countries with economies in transition to establish regulatory and institutional
frameworks and cooperative mechanisms to strengthen the capacity, efficiency
and competitiveness of their service sectors, and to increase their participation in
global services production and trade, including by providing support in services
policy reviews (SPRs). The Doha Mandate reiterates that the development of, and
access to, services, supported by adequate regulatory and institutional frameworks,
are important for sound socio-economic development. UNCTAD members have
therefore requested UNCTAD to continue its work on services.




2


Important opportunities now exist for developing countries to identify and pursue
the best approach to developing their services sector, suited to their national
objectives and evolving capacities. Deliberate policies and reforms, as well as
improved institutions, can help create an enabling environment at the domestic level,
which coupled with greater openness of services markets, can promote increased
investment and trade flows. An enabling environment and liberalized regimes
can help attract the needed financial resources, skill-transfer and technologies
to modernize service sectors, thereby helping to build supply capacities for the
provision of higher quality and higher value added services for both domestic and
export markets.


The recent financial and economic crisis affected trade in services differently
from trade in merchandise. Fluctuations in service exports experienced lower
magnitudes of decline and recovered more completely. The lower volatility of total
service exports highlighted the relative “resilience” of services trade to the crisis.
Despite these positive trends, the gains from services trade liberalization continue
to manifest unevenly among developing countries. For example, during 2011,
transition economies’ and developing countries’ total exports of services expanded
at a pace greater than the world average of 11 per cent, with the exception of the
African region, which marked a very modest estimated growth of 0.3 per cent.
Liberalization of services trade has not generated the trade and development gains
anticipated in many developing countries, and some have experienced declines
in trade balances, employment and access to basic human services in liberalized
sectors.


II. REAPING THE DEVELOPMENT BENEFITS OF
SERVICES AND SERVICES TRADE


Importantly, a dynamic service economy can make significant contributions
towards the achievement of national development objectives relating to economic
diversification, investment, employment generation, poverty reduction and an overall
improvement of social welfare. As such, it can also make significant contributions to
the achievement of Millennium Development Goals (MDGs).


In recent years, following the conclusion of the World Trade Organization (WTO)
General Agreement on Trade in Services (GATS) and of a wide array of bilateral
and regional trade agreements covering services, trade has emerged as a major
contributor to growth in the services sector of developing countries. The integration
of developing countries into the global service economy through increased
services trade, including through participation in global services supply chains,
requires their designing and implementing appropriate policies and regulatory




3SERVICES POLICY REVIEWS


frameworks, establishing institutional structures, creating an enabling environment
for entrepreneurship, and building competitive services supply capacities. The
development of services contributes to countries’ overall national development by
ensuring universal access to basic services such as health, education, energy, water
services and telecommunications. However, to ensure gains from services and
services trade liberalization, adequate content, pacing and sequencing of domestic
reforms and bilateral, regional and multilateral liberalization remain essential.


For some developing countries with nascent service sectors and limited experience
with privatization, emphasis may be placed on creating an enabling environment
for domestic services firms, most of which may be small and medium-sized
enterprises (SMEs). For others with more developed service sectors, increasing
supply capacity and market access are priorities, including to progress in integrating
their services industries into global services value chains. Developing national plans
to advance service economies thus involves a thorough stock-taking exercise to
examine what has been, can and should be done across various policy domains
– including privatization, regulation, institutions and international cooperation and
trade. An assessment of the services sector is essential in providing insights into
strategic national planning for the services sector, which ultimately should lead to
the development of a services master plan.


A growing number of country studies – including many undertaken by UNCTAD
– indicate that an appropriate content, pacing and sequencing of regulatory
reform, market opening and flanking policies – including in the areas of investment,
competition and consumer protection – are essential in delivering balanced
development gains from the liberalization process. Lessons learned and success
stories suggest that in many sectors the challenge now facing many developing
countries is not be ‘whether or not to reform’ but rather ‘when and how to do so’.


Given the multifaceted nature of the service economy, with its successful
development strongly affected by diverse resource requirements, inter-sectoral
linkages and critical roles played by carefully designed national regulatory and
incentive-based policies, many developing countries require technical assistance to
identify and construct effective institutional frameworks and policy reform packages
needed to ensure development gains from services and services trade liberalization.
The SPRs performed by UNCTAD are designed to meet this need. SPRs examine
the dynamics of specific national service sectors and outline policy approaches to
advance sectoral, and broader national economic and social objectives.


Being able to construct reasonable scenarios on how changing underlying
conditions and reforms are likely to impact sectoral performance requires the
availability of timely and often detailed data, including based on informal sectoral
estimates; knowledge of relevant regulations, institutions and policies affecting




4


sectoral dynamics; and consideration of challenges and opportunities perceived
by sectoral stakeholders. Collecting and synthesizing these various inputs is
necessarily an empirical process specific to each country and sector, and for this
reason, the SPR methodology employed by UNCTAD is based on a case-study
approach to assessment employing both qualitative and quantitative analyses.
Moreover, recognizing the difficulties of accessing sufficient data for assessments,
the methodology relies on the use of various national and international databases,
analytical tools and sector-specific questionnaires for use in surveys of national
stakeholders. It further encourages national stakeholders to improve data collection,
dissemination and analysis activities.


III. THE SPR PROCESS


UNCTAD’s SPR work is financed through the General Trust Fund on Services,
Development and Trade and the United Nations’ Development Account.


A. Purpose


SPRs respond to increased demand, from developing countries and economies in
transition, for national services assessment studies. Each SPR guides requesting
countries through a systematic review of the economic, regulatory, institutional
and trade policy environments characterizing their service sectors with the aim of
assisting them to improve regulatory and institutional frameworks and identify trade
policy options that advance national sectoral development objectives.


B. Outcome


The outcome of the SPR is a report that provides analysis, recommendations and
an action plan to policymakers and trade negotiators to assist them with future
development of regulatory, institutional and trade policy regimes.


C. Stakeholder participation


The participation of stakeholders is an integral and essential part of the SPR process.
They are involved through interviews, questionnaires and national workshops. They
provide inputs to the report and review and discuss recommendations. They also
participate actively in the drafting of action plans aiming to designate national entities
responsible for leading the implementation of each adopted recommendation, as
well as an approximate timeframe of each adopted recommendation.




5SERVICES POLICY REVIEWS


Box 1. Objectives of SPRs


The objectives of UNCTAD SPRs are to assist developing countries and countries
with economies in transition to:


(a) Manage a successful services reform process: The country projects on
assessments of service economies and of trade in services carried out by
UNCTAD aim to assist developing country Governments and regulatory
authorities in designing, pacing and sequencing regulatory, institutional and
trade policy reforms.


(b) Ensure sustainable development gains through services reform: Integrated
by design, the SPRs extend beyond an assessment of the economic impacts
of services reform packages to reveal many of the social and environmental
implications of prospective policies to allow for the fine-tuning of reform
packages, including through the development of flanking policies, so that
balanced developmental gains can be achieved through reform. Special
attention is given to ensuring national MDGs are advanced by services
sector reform packages. In addition to MDGs 1, 3 and 8 which all SPRs aim
to promote, other MDGs are specifically addressed to an extent that varies
depending on the specific sector(s) under assessment in a project (i.e., health,
educational, environmental services, etc.), including through a comprehensive
consideration of relevant universal access criteria and schemes.


(c) Strengthen negotiating capacities on services trade negotiations: Results
from UNCTAD SPRs also help trade negotiators to identify and promote
conditions for increasing the beneficial participation of their countries in
international trade in services through trade negotiations.


(d) Monitor results achieved through reforms and adjust related policies over
time: Experience demonstrates that policymaking in any realm is invariably
iterative and incremental. For this reason UNCTAD provides continued advisory
services to countries participating in its technical assistance projects. In relation
to SPRs, UNCTAD will maintain regular two-way contact with project experts
and national ministries, and with Geneva-based missions, to assist beneficiaries
in achieving benchmarks set for reforms that have been adopted based on
project recommendations.


D. Activities


1. Launch of the SPR


The first step in a SPR involves an official request from a Government to undertake
a SPR. Governments can request a SPR for a particular services sector or,
alternatively, they may also request a SPR covering the services sector more
generally, while specifying one or several sectors of particular focus.




6


During this first phase, the main counterpart in the Government that will act as focal
point, to provide sustained support and collaboration during the review process
will also be identified. UNCTAD will then develop terms of reference for the study
and identify with the designated focal point, the national expert team which will
contribute to the project.


2. UNCTAD desk study


UNCTAD prepares a desk study which provides a comprehensive overview of
the service economy of the country and in-depth analysis of the impacts of the
regulatory, institutional and trade reforms undertaken to date. The desk study
also identifies and analyzes the development and trade-related opportunities and
challenges in each of the priority service sectors.


Once the desk study is ready for circulation, a national stakeholder workshop is
organized to seek inputs and guidance from stakeholders on the study and next
steps of the SPR process.


3. First national workshop


The objective of the first workshop is to raise awareness of the project among
national stakeholders and secure their support and commitment for the project.
The workshop also allows all the actors that will be involved in the SPR process to
meet and agree on each one’s role.


The main document discussed at this workshop is the desk study, prepared by
UNCTAD, which will constitute the starting point and basis for the drafting of the SPR
report. UNCTAD presents the findings of the desk study, including in sector-specific
sessions which delve into the key economic, social, development, regulatory and
trade specificities of each sector, building on UNCTAD extensive research and analy-
sis of trade and development opportunities and challenges in various service sectors.


UNCTAD also presents the SPR methodology and introduces the team of national
experts to the stakeholders. This workshop provides an opportunity forstakeholders
to help define the scope of the project, identify major challenges and opportunities
in relevant sectors and form new networks among themselves to open new
channels of communication. An important output of this activity is the constitution
of a broad group of national stakeholders with an appreciation of the importance of
the services sector in the economy.




7SERVICES POLICY REVIEWS


Box 2. SPR as an opportunity to review and improve services data


Despite the increased importance of the services sector, the availability of statistical


data covering the services sector remains extremely limited in most countries.


Increasing demand from policymakers and the private sector has been an important


factor in the development of services statistics. However, given the large range of


data needed for analyses of service sectors, these data are necessarily collected


and maintained by a diverse set of national institutions. As a result, national teams


will need to consult various national institutions and private sector organisations,


including chambers of commerce as well as trade and industry associations, in


order to collect much of the data required for a SPR.


National teams should consult the following sources of services statistics by


contacting relevant national institutions (which often vary from one country to


another) or by accessing this information from international databases such as


those maintained by the United Nations and other international organizations: i)


National Account, ii) National Balance of Payments (BOP), iii) Industry Surveys, iv)


National Population Surveys, v) National Tourism Satellite Accounts, vi) National


Health Accounts, vii) National Statistics in other sectors (e.g. Communications,


Education, Energy, Transportation, etc.).


Notwithstanding these efforts, national teams will identify, early in the implementation


of the SPR activities, the need for additional data which can only be collected


through surveys, questionnaires, visits and interviews with sectoral actors. While the


time and resources needed to fully undertake these activities in a comprehensive


way are substantial, extending beyond the scope of the SPR, it is expected that


selected use of representative surveys, questionnaires, visits and interviews with


sectoral actors will be undertaken so that estimates of various important parameters


can be made. Moreover, the national teams will also be in a position, at the end


of the SPR exercise, to identify those sectors where data gaps are particularly


crucial and, where relevant, to make some specific recommendations relating to


the improvement of data collection and analysis.




8


4. SPR report preparation


UNCTAD and the national experts teams work together to prepare the SPR Report.


The report contains research and analysis of the service economy and priority


sectors. The analysis is deepened through:


• Interaction with national stakeholders, which will allow obtaining recent


policy documents, statistics, other data and information pertaining the


priority sectors, and;


• Feedback from the stakeholders and peer review team.


The SPR reports include draft recommendations to improve the overall contribution


of the services sector to the national economy and to strengthen the trade


performance of sectors under review.


5. Validation and finalization of the report


In the second national stakeholder workshop, stakeholders review a set of


recommendations for each sector examined in the SPR. These recommendations,


and others proposed by workshop participants, are critically considered and


discussed during the workshop resulting in a set of agreed recommendations that


are adopted by stakeholders and submitted to the Government for action.


The final recommendations endorsed by stakeholders should include the following


three essential elements:


• a set of reforms (or reform measures) to enhance sector performance;


• a set of development objectives that ireform are expected to advance,


and;


• a core set of indicators against which the effects of proposed reforms can


be assessed.


National stakeholders will also develop, during this second workshop, an action


plan aiming to designate national entities responsible for leading the implementation


of each adopted recommendation, as well as an approximate timeframe and


sequence for the implementation of each recommendation.




9SERVICES POLICY REVIEWS


1. Launch of the SPR process


• Officialrequestsubmittedbysponsoringministry
(TradeorFA)


• Selectionofsectorsofinterest
• Identificationofnationalfocalpoint
• Identificationofexpertstojointhenationalteam
• Identificationofpeerreviewers


2. Introductory desk study


• Researchandliteraturereviewundertaken
byUNCTAD,includingonthebasisofstudies
submittedbythesponsoringministry


• Identificationofareasforin-depthresearch(by
nationalteam)


• Parallelrecruitmentofnationalteam
• Peerreviewcommentsofdeskstudybynational


andregionalresearchinstitutionsandinternational
organizations


3. First national workshop


• Presentationoftheintroductorydeskstudyand
feedbackfromstakeholders


• Definitionofscopeofworkbynationalteam
• Definitionofworkscheduleofnationalteam


4. SPR report preparation


• Researchanddraftingundertakenbynational
team,includingdraftrecommendations


• Inputsfromstakeholdersthroughcollectionof
information,statisticsandpolicyandregulatory
documents,surveys,interviews


• CommentsbyUNCTADondrafttexts
• Commentsbyfocalpoint
• Commentsbyrelevantnationalagencies
• Peerreviewcomments


5. Validation and finalization of
the report


• Secondstakeholderworkshop:
–Discussion,furtherrefinementandadoptionof


recommendations
–Draftingofactionplans


• Incorporationofstakeholders’commentsinfinal
report


6. Dissemination
• Editingandprintingofreport
• Disseminationthroughregionalmeetingsand


meetingsheldinGeneva


7. Implementation and follow-up


• Nationalactiononrecommendations
• Consultationstodetermineanynecessary


technicalassistancerequiredfromUNCTAD
• Continuedinteractionswithsponsoringministry


Figure 1. The SPR process




10


6. Dissemination


SPR reports are published and disseminated by UNCTAD. Dissemination at the
international level will take place through intergovernmental forums organized
regionally and in Geneva, which provide an opportunity: (a) to communicate and
discuss findings and recommendations with researchers, national decision-makers
and trade negotiators in the wider trade and development community, and; (b) for the
exchange of success stories and lessons learned among countries. At the national
level the published report aims to provide sectoral analyses to policymakers and
trade negotiators in order to assist them with future development of regulatory and
trade policy regimes. It also provides stakeholders with insights that will inform their
positions in the participatory processes that the country has in place for developing
its trade policy and negotiating positions.


IV. THE SPR REPORT


A SPR leads national policymakers and other stakeholders to examine a range of
important issues for the services sector(s) under study within the context of the
overall policy framework for the services economy.


Each SPR report begins by examining the broad economic – and associated
social and environmental – dynamics of the national services economy as a whole.
Subsequently, the review focuses on a specific sector(s) selected by the requesting
country for in-depth study.


The SPR assesses the impacts of economic and demographic changes, and of
regulatory, institutional and trade reforms on future performance of the services
sector(s) in a national economy. Issues examined include:


• National development objectives for the sector;
• Areas of effectiveness and weakness in the current policy framework for


the sector;
• Regulatory and institutional challenges inhibiting sectoral development;
• Innovative approaches to strengthening backward and forward inter-


sectoral linkages within the national economy;
• The likely impacts of sectoral reforms on access to essential services,


especially for the poor;
• Prospects for trade liberalization to generate increased efficiency,


employment and access to foreign markets, particularly among SMEs;
• The extent to which domestic reform and trade liberalization can affect


social policy objectives, e.g., in areas such as education, health and culture;




11SERVICES POLICY REVIEWS


• The effect of varied liberalization options – autonomous, bilateral, regional
and multilateral – on the development of domestic supply capacity and
SMEs, considering that some services activities may require a certain
degree of protection before achieving international competitiveness;


• Short-term adjustment costs and how to address them;
• The impact of trade liberalization on foreign and domestic investment; and
• The overall impact of domestic reform and trade liberalization on sectoral


development.


Structure of the SPR report


A typical SPR report consists of a comprehensive introductory chapter, a chapter
which reviews the service economy of the country, one or several chapters focusing
on the priority service sectors, and a closing chapter that presents the overall
recommendations, sector-specific recommendations and action plan.


The introductory chapter presents the objectives of the paper and the methodology
used. It also provides the rationale for the SPR and how the Government hopes to
integrate the findings of the study in its policy-making. Finally, the chapter presents
the expected outcomes of the SPR process.


The subsequent chapter provides an overview of the country’s service economy,
including by discussing the sector’s economic performance and contributions to
GDP, trade, foreign investment, and social performance indicators (e.g. linkages
to poverty reduction, employment of women, infrastructure services, health and
education). The chapter also provides an overview of the relevant institutions which
govern the national services sector.


The report then includes one or more chapters on the selected priority sectors.
Each sector-specific chapter begins with a description of that sector’s economic
impact (including its contribution to GDP and employment) and the country’s
strategy for the sector through the analysis of sector policies. National and trade
objectives for the sector are then discussed including any quantitative targets, as
well as the sectoral performance by sub-sector in terms of output, employment,
trade and investment.This chapter also describes the economic actors (parastatals
or private firms, domestic or foreign firms, etc.) in the selected service sectors
and will be based on interviews with some of these agents. A principal objective
of these sectoral analyses will be to identify the factors that play a major role in
the structuring of supply by service providers and in the development of demand
by final users (industrial firms, municipalities, commercial establishments and
residential consumers). Particular attention is paid to the specific situation of SMEs.
The analysis also draws the relevant linkages to national development strategies




12


Box 3. The inventory of regulations and institutions affecting sectoral activity


The SPR should provide a detailed picture of the regulatory framework and national
institutions that characterize the selected services industries. Attention should
be given to how the sectors’ operators are regulated – parastatals only, mixed
participation of public and private firms, limited number of licenses, price regulation,
regulation by type of output, regulation by limitation on geographical presence – and
how this has changed or is changing. Particular attention should also be given to
the participation of foreign service providers in these sectors and to the limitations
placed on their participation. In this connection, the SPR report identifies regulations
that discriminate between domestic and foreign service providers as regards
conditions of market access, taxation, etc. Some presentation of regulations on
foreign direct investment, joint ventures, and the like are also made, pointing out
in particular where foreign firms are allowed to participate and where they are not.
Likewise, the report reviews how the entry of employees of foreign service providers
is regulated through visas, work permits, and temporary permits, as well as the
larger issue of the role of foreign workers in the national economy. Finally, the role of
regulations that support universal access to services is discussed in detail.


and objectives (e.g. Vision 2020 or 2030 documents and other MDG targets) and
between services sectors and between the services economy and other sectors
of the economy. Data should be presented to demonstrate the role each sub-
sector plays in meeting various development objectives, including the provision
of adequate services for industrial and social development, attracting domestic
and foreign investment, using trade as an engine of national development and
generating employment opportunities and poverty alleviation.


The sector-specific chapters also focus on a review of sector policy measures,
regulations, and institutions. Sector objectives and reforms, as embodied in key
policy documents, are critically reviewed. The regulatory environment (including
regional regulation where relevant) is described and analyzed with the objective
of providing a clear understanding of the laws and regulations determining the
functioning of sectoral activity. Any regulatory gaps receive particular attention as
they could be the basis for recommendations. Similarly, sector-specific institutions
are reviewed and analyzed to determine the adequacy of the institutional
environment and any specific (human, financial, or substantive) challenges that the
country is facing in this area.




13SERVICES POLICY REVIEWS


Finally, the sector-specific chapters also provide an analysis of the trade liberalization
(whether on an autonomous basis or as the result of bilateral, regional or multilateral
trade negotiations) undertaken by the country in each priority sector. All relevant
trade measures and liberalization commitments are identified, including their main
features, the date of their entry into force, their resulting effect on the regulatory
framework of the sector, and, to the extent possible, their positive or negative
impacts on the supply of, and demand for, the priority services, including through
the four modes of services trade. In particular an assessment is provided on the
effectiveness of the current regulatory and institutional frameworks in a liberalized
trade environment. This analysis includes an examination of all the relevant texts
of trade and related agreements (e.g. investment or broader regional integration
agreements), as well as any pertinent literature assessing and analyzing their effects.


The sector-specific chapters conclude with an analysis of the strengths, weaknesses,
opportunities and threats (SWOT) that the country faces in developing its service
sectors. The SWOT should seek to evaluate opportunities and barriers associated
with improved development of the selected service sectors, identify a set of policies
to improve performance of the sector, reveal the main development objectives and
elaborate stakeholders’ policy recommendations.


A final chapter presents overall recommendations for the services sector before
providing the sector-specific recommendations. The recommendations relate, inter
alia to socio-economic and political opportunities and challenges, increasing the
linkages between the services sector and the rest of the economy so as to improve
the development impact of reform/liberalization in service sectors and sub-sectors,
and areas for regulatory and institutional change. It also provides an action plan
which details specific short, medium and long-term actions to solve the problems
identified with indicative timelines for the completion of such actions and identifies
the entities that will be responsible for undertaking the various actions.


V. IMPLEMENTATION AND FOLLOW-UP


The dissemination of the SPR report should provide the basis for the sponsoring
ministry to further engage with the relevant Government entities and other
stakeholders in further reforming the service economy and related trade policies
so as to leverage the services sector’s contribution to the country’s overall
development. Where an action plan is developed, this provides concrete steps and
timelines for such a reform process, which is expected to lead to the development
of a national services strategy in the form of a Services Master Plan.




14


The sponsoring ministry should ensure that regular monitoring of implementation
of the Services Master Plan is undertaken and that an assessment of the impacts
of the implemented measures be carried out. The results of such monitoring and
assessment can then be presented to the stakeholders, providing the basis for a
revision of the Services Master Plan. Technical assistance from UNCTAD can be
requested for the implementation and follow-up phase.


Figure 2. From implementation to the development of the Services Master Plan


‘roundtables’


Results


Monitoring
and


Assessment


Master Plan




15SERVICES POLICY REVIEWS


ANNEX


SPRs undertaken by UNCTAD:


• Kyrgyzstan (UNCTAD/DITC/TNCD/2010/2)


• Nepal (UNCTAD/DITC/TNCD/2010/3)


• Uganda (UNCTAD/DITC/TNCD/2010/1)


The above-mentioned reports are available at: http://www.unctad.org/sprs


Forthcoming:


• Lesotho


• Nicaragua


• Peru


• Rwanda






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