Trade in Services for Developing Countries in 1990s-Problems and Prospects


Problems and Prospects Alok Ray A study of the problems and prospects of trade in services for developing countries in 1990s and beyond is important because the scope of traditional merchandise exports is likely to shrink for a variety of reasons whereas the importance of services is likely to increase, a strong degree of complementarity exists between an efficient manufacturing sector and an efficient services sector, many of the developing countries in Asia and Latin America have relatively cheap but highly skilled manpower which many service industries use intensively, the growth of the services sector would alleviate the acute problem of educated unemployed in such countries, and the services trade is likely to remain an intensely debated issue in GATT and other forums.