Category Archives: Services

Services Trade Liberalisation: Observations on Indonesia

Trade liberalisation has never been a popular policy in Indonesia despite its economic advantages. In contrast, protectionist policies are often believed as a good way to achieve the country’s national priorities. Take for example one of the Indonesia’s priorities to be self-sufficient in food. Import ban is seen by many Indonesians as a good policy to assist farmers. It might be partially true. However, according to Professor Peter Warr of the Australian National University, such a ban will reduce the availability of imported rice and therefore increase the domestic price. Who’s the most affected? Professor Warr suggests “the households for which rice is the highest proportion of their budgets – the poorest consumers. This includes not only the urban poor but also most of the rural poor, a surprising majority of whom are net buyers of rice.” In such a case, policy instruments should have been better targeted to assist the poor (Raskin or ‘rice for the poor’ might be more effective to directly impact on the poor) than a blunt trade instrument in addition to improved productivity.

How about trade in services?

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PECC-ADBI Conference on Trade in Services: will a services only agreement be effective?

Services Trade: New Approaches for the 21st Century‘ conference was held by the Pacific Economic Cooperation Council (PECC) on 1-3 June 2011 in Hong Kong, China in collaboration with the Asian Development Bank Institute (ADBI), the Economic Research Centre of the Hong Kong Institute of Asia-Pacific Studies (HKIAPS), and the Institute of Global Economics and Finance at the Chinese University of Hong Kong (CUHK).

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Filed under Conference, Economic Integration, PECC, Services, Trade