1c. Mode 4: Some preliminary estimates Increase in developed countries quotas on skilled and unskilled temporary labour movement equivalent to 3% of their labour force could lead to an estimated $156 billion increase in world welfare (which is greater than the estimated gains from complete liberalization of goods trade).
2. The elements of successful reform a. Emphasis on competition b. Effective domestic regulation c. Appropriate sequencing
2a. The pattern of reform in basic telecommunications
2a. Questions that remain Are there good reasons to limit entry/ownership? Why is entry/ownership restricted? How much is to be gained from eliminating all barriers to entry/ownership when some is already permitted?
2b. Effective regulation (i) To remedy informational problems (e.g. in financial and professional services) (ii) To remedy market power (e.g. in transport and energy services) (iii) To achieve social objectives (e.g. universal access in transport, telecom, financial and health services; and alleviation of adjustment costs).
2b(i) Regulation to remedy informational problems (e.g. in financial and professional services): – As a precondition for successful liberalization – As an impediment to trade
3. International engagement: trade negotiations Three benefits: Deeper liberalization through reciprocal exchange of concessions Credibility through binding commitments Regulatory cooperation
3. Complementary global efforts Devising sound policy Strengthening the regulatory environment Enhancing developing country participation in international standard setting Ensuring access to essential services in the poorest areas