Services Trade and Development

Aaditya Mattoo And Lucy Payton

Description

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.

Sujets

• Zambia
• Service
• Trade
• WTO
• Development
• Poverty reduction
• Least Developed Country
• Régulation

Informations

• Publié par: world-bank-publications
• Publié le: 21 mars 2007
• Nombre de lectures: 28
• EAN13: 9780821368503
• Langue: English
• Poids de l'ouvrage: 3 Mo

Extrait

SERVICES
TRADE &
DEVELOPMENT
THE EXPERIENCE OF ZAMBIA
Editors
Aaditya Mattoo • Lucy PaytonSERVICES TRADE
and
developmentSERVICES TRADE
and
development
The Experience of Zambia
Edited by Aaditya Mattoo
and Lucy Payton
A copublication of Palgrave Macmillan
and the World Bank© 2007 The International Bank for Reconstruction and Development / The World Bank
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Washington DC 20433
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All rights reserved
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A copublication of The World Bank and Palgrave Macmillan.
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ISBN-10: 0-8213-6849-4
ISBN-13: 978-0-8213-6849-7
eISBN-10: 0-8213-6850-8
DOI: 10.1596/978-0-8213-6849-7
Library of Congress Cataloging-in-Publications Data
Services trade and development : the experience of Zambia / edited by Aaditya Mattoo and Lucy Payton.
p. cm.
Includes bibliographical references and index.
ISBN 978-0-8213-6849-7 (pbk.) — ISBN 978-0-8213-6983-8 (hardback) — ISBN 978-0-8213-6850-3
(electronic (pbk.)) — ISBN 978-0-8213-6984-5 (electronic (hardback))
1. Service industries—Zambia—Evaluation. 2. Service industries—Government policy—Zambia.
3. Free trade—Zambia. 4. International trade. I. Mattoo, Aaditya. II. Payton, Lucy.
HD9988.Z33S47 2007
338.4096894—dc22
2007000445
Cover photos: Corbis.Contents
Acknowledgments xi
Contributors xiii
Abbreviations xv
1 Services Trade for Zambia’s Development: An Overview 1
Aaditya Mattoo and Lucy Payton
2 Services in the Zambian Economy 61
Jens Arnold and Aaditya Mattoo
3 Telecommunications: The Persistence of Monopoly 101
Jens Arnold, Boutheina Guermazi, and Aaditya Mattoo
4 Financial Services: Dealing with Limited and
Unequal Access 155
José de Luna Martinez
5 Air Transport: Revitalizing Yamoussoukro 191
Charles Schlumberger
6 Tourism: Unfulfilled Promise 213
Olivier Cattaneo
7 Migration from Zambia: Ensuring Temporariness
through Cooperation 259
Mohammad Amin and Aaditya Mattoo
Boxes
1.1 The Least Developed Countries and the
WTO Services Negotiations 4
1.2 Trade in Services: Four Modes of Supply 10
1.3 Lessons from Privatization 18
vvi Contents
1.4 From Colonialism to Kaundian Socialism, from Conditionality
to Empowerment: The Present in Historical Context 20
1.5 The Retail Distribution Sector in Zambia: Lessons for the
Interplay between Services and Goods Reform 22
1.6 Some Observations on the Political Economy of Reform 34
2.1 The Potential Gains from Services Reform: International Evidence 74
3.1 The Early History of Telecommunications in Zambia 105
3.2 The Case for Reform: A Comparison of Mauritania and Ethiopia 119
3.3 Estimated Gains from Full Competition in Telecommunications
Services in Zambia 121
4.1 Testimony of the Difficulties Faced by a Banker in Serving
Low-Income Households in Zambia Because of the Know
Your Customer (KYC) Rules 180
4.2 Credit Guarantee Scheme Operations in Zambia (1987–93) 184
5.1 Key Objectives in the National Air Transport Policy, 2002 200
5.2 Technical Assistance for Regulatory Oversight: The Case of
Mozambique 204
5.3 ATC Infrastructure Financing: The Case of Tanzania 206
6.1 Evaluating Zambia’s Performance and Potential
in Tourism Services 224
6.2 Fighting Informality by Easing Business Registration:
The Examples of Vietnam and Uganda 231
6.3 The Regulatory Guillotine: A Model for Zambia? 232
6.4 Level 1: General Level of Taxes for Tourism Activities 234
6.5 Level 2: Subsector and Geographic Tax Exemptions and
Other Incentives of Relevance to Tourism 237
6.6 Level 3: Individually Negotiated Tax Ex
Other Incentives of Relevance to Tourism 238
6.7 Public Sector Organizations 240
6.8 Private Sect 240
7.1 A Model Agreement for the Migration of the Unskilled 268
7.2 Past Experience with Managing Temporary Migration of
the Unskilled 269
7.3 Model Agreement for the Migration of the Skilled 286
Figures
1.1 Structure of the Exercise 7
2.1 Postindependence Growth by Broad Sector 62
2.2 Value Added by Broad Sector and the Contribution of Different
Services Sectors 63
2.3 Zambia: Metal Exports and Nontraditional Exports 65
2.4 Cost Structures: Firm-Level Average by Country 66
2.5 The Productivity of Zambian Firms in International Comparison 68Contents vii
2.6 The Balassa-Gap for Select Countries (reflecting the relative
cost of services) and Export Performance 73
2.7 The Composition of Zambia’s Services Trade 76
2.8 International Comparison: Services Exports per Capita 77
2.9 The Distribution of FDI Inflows by Broad Sectors and across
Services Sectors in 2001 90
2.10 International Comparison: Access to Telecommunications Services 92
2.11 Interomparison: Access to Financial Services 93
2.12 Collateral Required to Obtain a Loan 94
2.13 International Comparison: Access to Air Transport 94
2.14 Interomparison: Access to Education Services 95
2.15 International Comparison: Access to Health Services 96
2.16 Regional Disparities in Teledensity 97
3.1 Access to Telecommunications Services 106
3.2 High International Call Prices Compared with Selected Countries
in Africa and Middle East 107
3.3 Zambia Has One of the Lowest Residential Connection and Local
Call Rates in the SADC Region 111
3.4 Mobile Rates Are Higher in Zambia 113
3.5 The International Gateway Monopoly and Weak Regulation
Adversely Affect Competition in Other Segments 115
3.6 Variations in the Level of Competition by Segment and by Market 116
3.7 International Calls Are Lower with Competition 117
3.8 The Introduction of Competition Often Marks the Start of a
Significant Increase in Fixed-Line Penetration 118
3.9 Percentage of International Traffic Traveling over IP 125
3.10 Perc Countries with Fully or Partially Privatized
Incumbents 126
3.11 Effects of Sequencing on Mainlines 138
4.1 Size of Zambia’s Financial System 162
4.2 Percentage of Population with a Bank Deposit Account in Africa 162
4.3 Distribution of Bank Deposits in Zambia, March 2006 163
4.4 Real Value of a K 320,000 Deposit 164
4.5 Number of Bank Branches in Zambia, 1990–2004 166
4.6 Zambia: Domestic Credit to the Private Sector by Banks 167
4.7 Distribution of Bank Loans and Advances, March 2006 168
4.8 Distr Bank Credit to Private Firms in Zambia, 2005 169
4.9 Assets of MFIs (as percent of assets of all financial institutions) 170
4.10 Sequencing of Financial Sector Reform in Zambia 172
4.11 Zambia: Growth in the Number of Banks, 1990–2004 172
4.12 Z Balance Sheet Structure of 2002–05 176
5.1 Passenger Movements at Lusaka Airport 195viii Contents
5.2 International Freight, 1999–2005 199
6.1 Tourism Bed Nights, 1999–2003 220
6.2 National Park Tourist Entry Trends by Destination,
2000 and 2003 221
6.3 Cost of Regulatory Compliance, 2005 229
6.4 Constraints to Tourism Development as Identified by the
Hospitality Sector in Zambia 247
7.1 Tertiary to Secondary Migration Rate, 2000 265
7.2 Tertiary to Primary Emigre, 2000 266
7.3 Skilled Migration and Human Capital in Africa, 2000 270
7.4 Nurses Recruited in the United Kingdom, 2000 271
7.5