International Trade in Services.pdf - DSpace at Khazar University

336 International Trade in Services
To implement the reform process, it is essential to establish efficient regulatory
agencies and competition authorities. The role of these authorities is to ensure
that the interests of consumers are protected against potential abuse by private
companies operating in an uncompetitive environment. To be effective, such
authorities should be guided by the principles of coherence, independence,
accountability, transparency, predictability, and capacity.
Enhancing the competitiveness of domestic firms
Environmental service firms in developing countries face a variety of challenges in
the domestic market (box 10.5). These firms would benefit from well-informed
policy makers who are knowledgeable about how the industry operates. Firms
require access to financing, progressive landfill policies that will enhance technological
development, and incentives to enter important subsidiary businesses that
can generate additional revenue streams, such as waste-to-energy systems and
recycling.
Policy makers can undertake specific initiatives to improve the conditions for
environmental service firms at home. To reduce domestic restrictions on export
expansion, policy makers might do the following:
• Review tax policy to reduce the incidence of double taxation
• Reduce capital controls that impede the ability of domestic firms to transact
business in neighboring and regional markets
Box 10.5: Market Challenges Faced by Environmental Service Firms at Home
Environmental service firms in developing countries face the following challenges:
• Adequate financing for capital investment, transport costs, energy costs
• Technical expertise of clients purchasing services
• Informed policies governing landfills: tipping fees, facility requirements
• Availability of incentives for waste-to-energy systems (incineration and gas capture)
• Access to technology as a consequence of the tariff treatment of technological
equipment
• A public informed about how and what to recycle
• Potential for partnerships with international firms, along with adequate legal
representation
• Information management and monitoring systems to ensure the ability of firms to
adjust to changes in waste production
• Professional capacity with regard to management and environmental expertise
• Relationship with local authorities and communities
• Bilateral tax arrangements
• Less than stringent enforcement of environmental regulations
Source: Motalaote (2005).