Development and building trade capacity
Harnessing Services Trade for Sustainable Growth
The services sector has been the main source of economic growth in recent decades. Logistics finance and information technologies are essential to the functioning of modern economies while business services healthcare and entertainment are among the world’s fastest growing sectors. This publication – co-published by the WTO and the World Bank – underlines the contribution that trade and investment in services can make to economic growth and development. It highlights in particular the importance of re-energizing international cooperation on services trade and encourages reflection on how best to mobilize assistance for developing and least-developed economies in implementing services sector reforms so that they can reap the gains from expanded trade and investment in services.
Acknowledgements / Disclaimer
This publication is the result of a joint effort of the World Bank and the WTO. The publication was co-authored and coordinated by Martin Roy of the WTO and Pierre Sauvé of the World Bank under the supervision of Deputy Director-General Anabel Gonzalez and Xiaolin Chai Director of the Trade in Services and Investment Division at the WTO and Mona Haddad Global Director of Trade Investment and Competitiveness and Sebastien Dessus Practice Manager Trade and Regional Integration at the World Bank. The publication was edited by Ross McRae and Anthony Martin of the WTO.
Executive summary
This co-publication by the World Bank and the WTO is motivated by a shared view that the structural changes associated with a more service-centric world economy and the central contribution that expanded trade and investment in services can make to economic growth and development warrant greater policy attention and revived international cooperation. An important aim of the publication and a key reason for its joint nature is to recall the benefits of advancing the negotiating agenda on trade in services and the opportunity costs of not doing so. Accordingly the publication aims to foster reflection on how best to mobilize additional support – and better assistance – for developing and least-developed economies in implementing services sector reforms and reaping the development gains from expanded trade and investment in services.
Conclusion
The composition of global trade in services has changed markedly in recent years a period that has seen developing economies register significant export gains in the services sector despite the severe impact of the COVID-19 pandemic. Such gains cover a host of non-traditional high-value adding services that can be more readily supplied today through digital means.
Foreword
Services have emerged as the driving force that is shaping the economic landscape of countries at all levels of development. They account for the largest share of global economic activity by generating more than two-thirds of GDP employ the most workers and are the source of most new job creation especially for female and young workers. At the same time services trade has turned into a key element in growth strategies becoming the most dynamic component of global trade in recent times and creating higher value-added jobs.
Foreword
This report is published in the context of the joint OECD-WTO Aid for Trade Monitoring and Evaluation exercise which underpins the WTO’s 8th Global Review of Aid for Trade on “Empowering Connected Sustainable Trade” (July 2022). This is the eighth volume of the Aid for Trade at a Glance series.