Services Snapshots:
Related articles
Training modules aimed at enterprises:
Training modules aimed at support organizations and governments:
Gender and trade in
services:
Data and research
While global awareness is still at a relatively low
level, the services sector is becoming a dominant driver of economic growth,
including in developing countries.
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information.
Figure 1: Services as a Source of
Growth
The services sector accounts for 72 per cent of GDP in high-income
countries, 53 per cent in middle-income countries and 46 per cent in low-income
countries. World Bank evidence (Figure 2) shows that a stronger correlation
exists between services growth and GDP than is the case for manufacturing
growth and GDP.
Figure 2: Services as a Driver of
Growth
The potential for services-sector contributions to employment is even
more striking. On average, services account for more than 74 per cent of
employment in high income countries and more than 86 per cent of female
employment. While aggregated developing country employment data is difficult to
obtain, World Bank research shows the higher the level of employment in the
services sector, the higher the female participation rate. A strong correlation
also exists between services growth and poverty reduction (Figure 3), chiefly
because the services sector generally employs more women (Figure 4).
Figure 3: Services and Poverty Reduction
Figure 4: Female Participation in Services
World Bank findings indicate that developing countries are shifting
towards services sooner, and at a lower level of per capita income, than has
been the case in the traditional development trajectory. This suggests that
services could provide an alternative engine of growth, enabling some
latecomers to development to leapfrog what has been seen as the traditional
route to development through developing manufacturing first. Of particular
interest in this regard is that the contribution to growth generated by
services exports is especially strong for low-income countries and well above
world average (Figure 5).
Figure 5: Growing Contribution of
Services Exports to GDP
Meanwhile, despite strong global growth (Figure 6), services exports,
as measured by the balance of payments, continue to make up less than 25 per
cent of world exports. The difference between the size of the sector and its
importance in exports points to a huge, untapped potential in services trade.
Developing countries’ share in services exports has doubled over the last two
decades; even LDCs now figure among the ranks of the world’s services
exporters.
Figure 6: Growth in Commercial Services
Exports
Despite the growth potential, however, developing countries’ share in
world services exports is still only 30 per cent as too few developing
countries are taking advantage of new opportunities to specialize in the
export of services tasks. The extent of these opportunities is highlighted by
the new WTO/OECD trade in value-added data, which, based on global
input/output analysis, shows that when intermediate services tasks are
included, services make up nearly half of total global exports (Figure 7).
Figure 7: Services Share in Global exports
Advisory Services
ITC focuses on producing and improving access to
services related trade intelligence; building and
strengthening trade support institutions’ capacities to enable an
effective policy framework; and enhancing the export
readiness of small- and medium-sized enterprises (SMEs) in services
sectors to respond to market opportunities. In order to fulfill these
targets, ITC is currently implementing the following activities:
- Provide handbooks and guides, such as the trade promotion
organization (TPO) guide, coalition guide and handbook on quality;
services-snapshots business briefs and an eco-system portraits series.
- Assist with the creation of coalition of services industries (CSI) in
South Africa and Indonesia.
- Develop TPO capacities in promoting
trade in services (e.g.: transfer of know-how from the Malaysia External
Trade Development Corporation to Uganda Export Promotion Board)
Network
ITC
works in close partnership with a variety of national, regional and
international organizations regarding trade in services. One of ITC’s
strengths is its ability to quickly identify and mobilize sectoral and
geographical expertise at the internal (regional offices and technical
sections) and external (extensive network of national and international
consultants) levels. In close partnership with the World Trade Organization
(WTO) and the United Nations Conference on Trade and Development (UNCTAD),
ITC has enriched results by adding enterprise level experience. The outcomes
are rolled out in user-friendly ways to services exporters and trade support
institutions.
ITC is actively building relationships on
services trade with a number of organizations, including the Organisation for
Economic Co-operation and Development, the Commonwealth Secretariat, World
Bank, Asian Development Bank, Inter-American Development Bank, International
Finance Corporation, United Nations Industrial Development Organization,
International Organization for Standardization, World Intellectual Property
Organization and United Nations Educational, Scientific and Cultural
Organization. ITC is also in the process of strengthening its relationship
with the International Chamber of Commerce and the B20, as well as national
and regional chambers of commerce, think tanks, universities, associations
and NGOs. Particular attention is given to identifying opportunities for
public-private partnerships.