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212 International Trade in Services Table 6.6. A Checklist of Questions on Trade-Related Aspects of Construction Service Reform (continued ) 8. Do local or foreign contractors follow any of the anticorruption guidelines provided by, for example, Transparency International Does local government have an anticorruption strategy in place for government procurement Would the country benefit from signing the WTO Agreement on Government Procurement Facilitating commercial presence 1. Are there legal restrictions to market entry through commercial presence by foreign contractors If so, what types of restrictions are there, and what are their impact on foreign direct investment What is the motivation for imposing the restrictions 2. Is there a requirement for foreign contractors to form joint ventures with local contractors Have such joint ventures been successful and fulfilled the prospective motivation of fostering the transfer of technology and management knowledge Have they helped build local expertise in the industry 3. Are potential restrictions to commercial presence compliant with the country’s prospective WTO commitments 4. How does competition law deal with cartels 5. Do foreign contractors need to register and obtain licenses that are different (for example, in terms of costs) from the licenses required of local contractors 6. Are there staffing requirements for the establishment of branch offices Are there requirements that foreign contractors must hire local executives 7. Can the policy rationale of restrictions be addressed through other, less trade-restrictive means Facilitating the temporary movement of service providers 1. What types of restrictions exist on foreign providers of services Does the country impose bans, quotas, economic needs tests, or other impediments to the movement of project staff 2. If a quota system is in place, does the labor quota change frequently 3. Are the rules different for intracorporate transferees and contractual service providers 4. Is there implicit or explicit discrimination with regard to the nationality of service providers 5. Is the application process for business visas and work permits administered in a reasonably expedient and cost-effective way Or is it opaque, slow, and cumbersome What can be done to improve administrative efficiency in the application process 6. Are there restrictions or other issues related to the nonrecognition of qualifications for construction workers at home or in major export markets 7. Are there domestic regulations that have an adverse effect on foreign providers of services or that affect their welfare or the local labor market (for example, discriminatory remuneration and benefit structures) Do local policies give rise to illegal migration 8. What are the policy objectives of the restrictions Can the policy rationale be addressed through other, less trade-restrictive means Reviewing other trade-distorting rules and regulations 1. What types of subsidies are provided to contractors operating in the local market Are subsidies allocated in an equitable way or tied to specific criteria (if so, what are the criteria)
Building Empires Overseas 213 2. What are the rules with regard to the ownership of land and real estate by foreign contractors Are they different from the rules covering local investors What effect do potential differences have on building activity 3. Can foreign contractors bring in construction equipment for projects without the imposition of major taxes and waiting time at customs 4. What types of margin preferences are provided to local contractors How do these rules apply to exporters from developing countries Integrating local product standards and building codes with international good practice 1. Who establishes and monitors product standards and building codes in the industry 2. What laws and regulations discipline construction companies How are these enforced 3. Are foreign contractors subject to different licensing conditions relative to domestic suppliers 4. How effective are the practices of the local authorities who inspect the work of contractors Is it a frequent or random process 5. Do inspections tend to involve rent-seeking activity Are foreign contractors particularly targeted 6. Would it make economic sense and does the government have the necessary capacity to adopt any regional or international product standards or building codes that would facilitate the integration of the local market with international markets (in addition to maintaining or improving quality, health, safety, and other standards) Source: Authors’ compilation. Conclusion Few sectors of an economy are as prominent as the construction service sector in terms of value added and employment. This sector absorbs large numbers of lowskilled and medium-skilled workers and supports strong backward links to other parts of the economy, including suppliers of construction equipment and input materials, as well as architectural and engineering services. Construction services make up, on average, 6 percent of the GDP of countries, and the share increases to nearly 10 percent for the construction sector generally. The sector is also particularly pertinent in the daily lives of people as a provider of thephysical infrastructure for personal shelter, sanitation, water, energy, schooling, health services, transportation, and private sector activities. The World Bank is a major financier of construction projects in the developing world, and the sector is one of the keys in helping achieve the World Bank’s mission of eradicating poverty. There are gains from the trade in construction service imports and exports, and open markets for construction services are therefore in the national interest of developed and developing countries alike. Open markets allow countries to specialize in what they do best, which expands the quality and quantity of goods and services that can be produced and consumed, thereby leading to the more efficient allocation of resources. The resulting gain in economic welfare helps raise overall living
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Public Disclosure Authorized Public
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International Trade in Services New
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CONTENTS About the Editors and Cont
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Contents vii Boxes 2.1 Extent of Te
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Contents ix 1.4 Worker Remittances
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Contents xi 6.6 A Checklist of Ques
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xiv About the Editors and Contribut
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xvi Foreword Beyond describing the
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xviii Acknowledgments Finally, this
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1 Assessing the Potential of Servic
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Assessing the Potential of Services
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2 Increasing Labor Mobility: Option
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Increasing Labor Mobility 31 unders
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Table 2.2. Quantitative Estimates o
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Borjas, George “Heaven’s Doors:
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Increasing Labor Mobility 37 contri
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Increasing Labor Mobility 39 must h
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Worker categories covered Specifica
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Provisions on professionals Annex o
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Increasing Labor Mobility 45 The EU
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Table 2.7. Agreements between Austr
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Specified quotas n.a. Entry subject
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Increasing Labor Mobility 55 Figure
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Increasing Labor Mobility 57 Bilate
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Increasing Labor Mobility 59 Jamaic
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Increasing Labor Mobility 61 factor
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Increasing Labor Mobility 63 indivi
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Increasing Labor Mobility 65 that a
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3 Legal Services: Does More Trade R
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Legal Services: Does More Trade Rhy
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Table 3.3. Trade in Legal Services:
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Table 3.8. Uruguay Round Commitment
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100 International Trade in Services
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8 Accounting Services: Ensuring Goo
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Accounting Services 265 exceeding 5
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Accounting Services 267 Links to la
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Accounting Services 269 The account
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Accounting Services 271 Box 8.3: Ex
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Accounting Services 273 service mar
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Accounting Services 275 Table 8.5.
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Accounting Services 277 Box 8.6: Re
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Accounting Services 279 Box 8.7: An
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Accounting Services 281 Table 8.6.
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Accounting Services 283 Restriction
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Accounting Services 285 Commercial
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Accounting Services 287 Colleges of
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Accounting Services 289 Administrat
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Accounting Services 291 IESBA (Inte
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350 Index Association of Certified
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352 Index Convention on Combating B
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354 Index Former Yugoslav Republic
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356 Index International Public Sect
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358 Index migrants. See labor mobil
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360 Index public-private partnershi
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362 Index Thailand construction ser
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ECO-AUDIT Environmental Benefits St
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