Governance and export performance of modern services in Latin America and India

Abstract

This publication aims to analyse the policies and initiatives implemented by the governments of eight countries in the region as well as India, with special emphasis on governance. The inclusion of India as a benchmark is of particular interest, as it is the leading exporter of modern services among developing countries. The document finds that policies that were actively adopted by and coordinated among sectoral stakeholders had a greater impact on the development of the industry. This is all the more relevant in initiatives to attract foreign investment and those related to the development of human capital. In the modern services sector, worker skills are the cornerstone for upgrading value chains.

Most countries of the region are lagging behind in both the design and implementation of policies promoting modern services exports, not least with regard to institutional frameworks and governance. Modern services constitute the fastest-growing sector in world trade, yet the region is at risk of being left behind in this area because it lacks an adequate promotion system supported by good governance. In the current complex international context, Latin American and Caribbean countries must implement public policies to take advantage of these new growth opportunities.