Promotion of trade in service in developing economy: challenges and prospects

• Main Author: AA Okharedia
• Format: Article
• Language: English
• Published: AfricaJournals 2014-01-01
• Series: African Journal of Hospitality, Tourism and Leisure
• Subjects: Trade in Service; Developing Economy; SADC region; Service Industries
• Online Access: http://www.ajhtl.com/uploads/7/1/6/3/7163688/article_32_vol._3_1_june_2014.pdf

In the past, trade in services was not considered important by international Economists. One of the main arguments put forward for ignoring the concept of trade in service was that services were non- tradable In view of this, this paper attempts to investigate the role played by service industries and the associated challenges in a developing economy with particular reference to the SADC countries. This investigation shows that the service industries are uncompetitive and inefficient when compared with their peers in developed economy. This paper recommends that there is an urgent need for a major-shake up especially within the core economic infrastructure services. This paper also highlights that the service industries in the SADC region contributes greatly to GDP, creates employment opportunity, improved access to transport which translates into improved access to customers and suppliers. The transport sector is of crucial importance in poverty alleviation and regional economic integration. Some of the challenges identified include, the need for SADC countries to conform to international standards in delivery of its services since most SADC countries are members of GATS, ILO and WTO. The other challenge is the different legislative framework in the service industries within the SADC region. There is an urgent need to harmonise the different legislative framework.