WB takes the call, backs trend

WASHINGTON: The World Bank has strongly favoured outsourcing of jobs and free movement of temporary workers in the mutual interest of high income countries like the US and developing countries like India and China. In a paper titled ‘Global Monitoring Report’, which assesses the progress in achieving millennium development goals, the World Bank said countries like India, Philippines, China and South Africa have vast capabilities in IT. The report has been prepared ahead of Sunday’s meeting of the development committee of the World Bank and International Monetary Fund. Stressing that a successful, pro-development outcome of the Doha round of trade talks is critical, the paper said agreement on some focal points or targets for trade policy reform would give it an impetus. Such focal points could include “commitments to ensure free cross-border trade in services delivered via telecommunications networks, complemented by actions to liberalise the temporary movement of service providers.” It also mooted “complete elimination by high-income countries of tariffs on manufactured products by a target date; removal of agricultural export subsidies and complex de-coupling of all domestic agricultural subsidies from production; and reduction of agricultural tariffs.” The World Bank said the services sector is the fastest growing component of world trade. Developing countries have expanded export of services nearly four-fold in the last decade — a faster rate than export of goods.

Source: http://economictimes.indiatimes.com