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Services in Modern Economies Services in Modern Economies
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Services Paradigm Shift Services Paradigm Shift
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Foreword Trade in Services: A Paradigm Shift
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Published:November 2011
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Much attention has been given to the service economy in the last two decades by policy makers, international organizations, academics, market operators, and experts. That attention has been fueled, among other things, by two main factors: The first is the increasing importance of the service sector in modern economies as a determinant of competitiveness and quality of life and its contribution to the generation of wealth. The second is the paradigm shift that has been taking place in the sector, transforming the role of governments in many sectors from suppliers of services to regulators. These two factors have been the main driving forces behind the international community's endeavor to establish a legal framework for services trade in the form of the General Agreement on Trade in Services (GATS) within the World Trade Organization (WTO). The need for such a framework was clear, as services came to function less as government departments and more as businesses and tradable products.
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