Regional-Level Efforts on Tracking Structural Reform Progress

Transcription

1 2011/SOM3/EC/WKSP/005 Regional-Level Efforts on Tracking Structural Reform Progress Submitted by: Australian National University Workshop on Approaches to Assessing Progress on Structural Reform San Francisco, United States September 2011

2 Regional-level efforts on tracking structural reform progress DR PHILIPPA DEE CRAWFORD SCHOOL OF ECONOMICS AND GOVERNMENT AUSTRALIAN NATIONAL UNIVERSITY WHY TRACK PROGRESS? To maintain pressure to implement what has already been committed eg monitoring progress towards an ASEAN Economic Community To help create the political will to commit in the first place id tif i t iti f t t l f i t t eg identifying opportunities for structural reform in transport, energy and telecommunications in APEC economies 1

3 HOW DOES MONITORING CREATE POLITICAL WILL? The power of a (repeated) number government waste is costing us $ x billion our telecom charges are z% higher than in... our power outages are way more frequent that in... our doing business ranking is way below... The power of mobilising countervailing interests if government waste was lower, we taxpayers would be better off... if telecom charges were lower, our industry could sell more... if power supply was reliable, our industry could export more... if it was easier to get building approvals, we would invest more... WHAT KIND OF MONITORING? Commitments Policies Projected outcomes of what would happen if policies were reformed Actual outcomes necessary, but problematic Perceptions α(policies) ) + (1-α)(outcomes) ) Tracking policies necessary (but not sufficient) You can do it yourself 2

4 THE PROBLEM WITH ACTUAL OUTCOMES THEN Growth at home REFORM Growth at home Growth overseas Growth overseas NOW NOW WITHOUT REFORM BENCHMARKING Restrictions in legal services (OECD PMR) Greece Czech republic Spain Germany Italy Portugal Japan New Zealand Canada Luxembourg Switzerland Hungary Ireland Morocco France Norway Korea

5 BENCHMARKING Restrictions in maritime services (PC index) Morocco Philippines India Thailand USA Korea Indonesia Brazil Malaysia Chile Turkey Mexico Australia Japan Hong Kong Foreign-owned Domestically-owned PROGRESS OVER TIME Restrictions on foreign medical professionals

6 PROGRESS OVER TIME Restrictions on domestic medical professionals Example of policy questionnaire: OECD PMR index for entry into legal services Licensing: How many services does the profession have an exclusive or shared exclusive right to provide? Education requirements (only applies if Licensing restricted): What is the duration of special education/university/or other higher degree? What is the duration of compulsory practise necessary to become a full member of the profession? Are there professional exams that must be passed to become a full member of the profession? Quotas and economic needs tests Is the number of foreign professionals/firms permitted to practice restricted by quotas or economic needs tests? 5

7 Example of policy questionnaire: OECD PMR index for conduct in legal services Regulations on prices and fees Are the fees or prices that a profession charges regulated in any way (by government or self-regulated)? Regulations on advertising Is advertising and marketing by the profession regulated in any way? Regulation on form of business Is the legal form of business restricted to a particular type? Inter-professional cooperation Is cooperation between professionals restricted? Example of policy questionnaire: PC index of restrictions in maritime (1) Restrictions on commercial presence Conditions on right to fly the national flag (scores additive) Commercial presence is required in the national economy 50 per cent or more of the equity participation must be domestic or govt 50 per cent or more of the crew are required to be domestic Ship must be registered Form of commercial presence Measures which restrict or require a specific type of legal entity or joint venture arrangement Shipping service suppliers must be represented by an agent No restrictions on establishment Direct investment in shipping service suppliers The score will be inversely proportional to maximum equity participation permitted in an existing shipping service supplier. For example, ownership to a maximum of 75 per cent of a shipping service supplier would receive a score of Direct investment in onshore maritime service suppliers The score will be inversely proportional to maximum equity participation permitted in an existing onshore maritime service supplier. For example, ownership to a maximum of 75 per cent of an onshore maritime supplier would receive a score of

8 Example of policy questionnaire: PC index of restrictions in maritime (2) Movement of People - Permanent No entry of executives, senior managers or specialists Executives, specialists and/or senior managers can stay a period of up to 1 year Executives, specialists and/or senior managers can stay a period of up to 2 years Executives, specialists and/or senior managers can stay a period of up to 3 years Executives, specialists and/or senior managers can stay a period of up to 4 years Executives, specialists and/or senior managers can stay a period of more than 5 years Other Restrictions Cabotage Foreigners generally cannot provide domestic maritime services Foreigners that t fly the national flag can provide domestic maritime services Restrictions on type and length of time cargoes can be carried No cabotage restrictions Example of policy questionnaire: PC index of restrictions in maritime (3) Transport of non-commercial cargoes Private shipping service suppliers cannot carry non-commercial cargoes, possibly government monopoly National flag shipping i service suppliers can carry non-commercial cargoes No restrictions on non-commercial cargoes Port services (scores additive) Some restrictions on access to ports Mandatory use of pilotage Mandatory use of towing Mandatory use of tug assistance Mandatory use of navigation aids Mandatory use of berthing services Mandatory use of waste disposal Mandatory use of anchorage Mandatory use of casting off Discretionary imposition of restrictions, including for retaliatory purposes Governments are able to impose selective restrictions Governments are unable to impose selective restrictions 7

9 Example of policy questionnaire: PC index of restrictions in maritime (4) United Nations Liner Code Economy is party to the code and applies Article 2 of the code Economy is party to the code but does not apply Article 2 of the code Economy is not party to the code Government permits conferences Government permits the operation of conferences Conferences are subject to effective competition Bilateral maritime services agreements on cargo sharing The score is taken from the 35 by 35 matrix of bilateral agreements on cargo sharing Composition of the board of directors The score is inversely proportional to the percentage of the board that can comprise foreigners. For example, a score of 0.80 is allocated where 20 per cent of the board of directors of a maritime service supplier can comprise foreigners. Movement of people - Temporary No temporary entry of executives, senior managers and/or specialists Temporary entry of executives, senior managers and/or specialists up to 30 days Temporary entry of executives, senior managers and/or specialists up to 60 days Temporary entry of executives, senior managers and/or specialists up to 90 days Temporary entry of executives, senior managers and/or specialists over 90 days YOU DON T HAVE TO REINVENT THE WHEEL Air transport WTO quantitative air services agreements review PSU report ASEAN Banking Barth, Caprio and Levine Compendium ASEAN Distribution Compendium Education APEC education report Electricity PSU report Compendium Gas PSU report Insurance ASEAN Maritime Compendium PC maritime report ASEAN PSU 8

10 YOU DON T HAVE TO REINVENT THE WHEEL Medical and Health ASEAN Postal services Professions (legal, accounting, engineering, architecture) Compendium Rail transport PSU report Road transport PSU report Telecommunications ITU PSU report ASEAN FDI restrictions OECD FDI report ASEAN Logistics (customs etc policy, not perceptions) p ASEAN (2009) SOURCES (1) OECD _1,00.html PSU ASEAN Compendium Barth, Caprio and Levine 9

11 SOURCES (2) WTO quantitative air services agreements review p// g / p_/ _/ p _/ _ e.htm#quasar APEC education report PC maritime report McGuire, G., Schuele, M. and Smith, T. 2000, Restrictiveness of international trade in maritime services, in C. Findlay and T. Warren (eds), Impediments to Trade in Services, Measurement and Policy Implications, Routledge, London and New York, pp OECD FDI report Sources (3) ITU (International Telecommunications Union) int/itu-d/icteye/indicators/indicators.aspxaspx IERN (International Energy Regulation Network) _ARCHIV/Country_Factsheets PLUS MANY MORE Search websites of OECD, WTO, World Bank, WTO, etc 10

12 Regional-level efforts on tracking structural reform progress DR PHILIPPA DEE CRAWFORD SCHOOL OF ECONOMICS AND GOVERNMENT AUSTRALIAN NATIONAL UNIVERSITY 11