2016年-PIIE彼得森国际经济研究所_Further_Financial_Services_Liberalization_in_the_Doha_Round__11页_334kb

Summary of "Further Financial Services Liberalization in the Doha Round?"

Core Content

This policy brief by Wendy Dobson explores the potential for further financial services liberalization in the context of the Doha Round of WTO negotiations. It examines the relationship between financial reform and economic growth, the challenges in liberalizing financial markets, and the implications of the GATS framework for future multilateral agreements.

Main Questions and Themes

The brief addresses the following key questions:

• How can WTO negotiations strengthen the link between financial reform and economic growth?
• Why do developing countries resist opening their financial markets?
• What are the risks and benefits of financial services liberalization?
• How can the WTO better support financial reforms that occur outside of multilateral rounds?

Key Points

1. Financial Reform and Liberalization

• Financial reform refers to domestic deregulation, including privatization of state-owned banks, freeing intrasectoral activities, and strengthening financial institutions.
• Liberalization in the WTO context means market opening, allowing foreign financial service providers to enter domestic markets.
• The two processes—domestic reform and market liberalization—are closely linked. Financial reform is a prerequisite for successful market opening.

2. Challenges in Financial Services Liberalization

• The 1997 Financial Services Agreement (FSA) marked a milestone, but it did not lead to significant further market opening.
• OECD countries and developing countries have different interests. OECD nations seek access to developing markets, while developing countries aim to attract foreign capital to boost growth.
• There is a risk of financial instability if liberalization is not accompanied by strong regulatory and supervisory frameworks.

3. GATS Framework and Its Limitations

• The GATS framework uses a positive list approach, which lists sectors where commitments are made, rather than those where they are not.
• This approach makes it difficult to liberalize new or emerging financial services sectors.
• Reciprocity is a major weakness in GATS negotiations, as it is hard to achieve balanced market access between developed and developing countries.
• The GATS also protects prudential regulation, allowing governments to maintain oversight of financial systems.

4. Evidence of Financial Development and Growth

• There is strong evidence linking financial development to long-term economic growth.
• The East Asian financial crisis demonstrated that weak financial systems can contribute to economic instability.
• Financial development, measured by private credit growth, shows a markedly positive relationship with GDP growth.

5. Recommendations for the Doha Round

a. Liberalize Whenever and Wherever Possible

• Market access improvements will not come solely from multilateral negotiations.
• Gradual unilateral opening and regional/bilateral agreements have also played a role.
• The WTO should support reforms agreed in other forums (e.g., IMF programs) by binding them into international agreements.

b. Priority Areas for Liberalization Should Reflect Best Practice

• WTO negotiations should focus on best practices in financial services.
• A Model Schedule for insurance was proposed, emphasizing:
  • Freedom of establishment and operation
  • Market access and national treatment
  • Procompetitive regulatory principles
  • Transparency and grandfathering to protect existing investments

c. Improve WTO Role in Binding Reforms Outside of a Round

• Financial reforms agreed through non-WTO processes (e.g., IMF programs) should be integrated into WTO agreements.
• This would allow countries to receive credit for reforms that align with long-term interests.

d. Use WTO Accession Agreements to Push for Reform

• Countries like China are examples of how financial sector reforms can be advanced through WTO accession processes.
• Similar approaches could be used in negotiations with other countries, such as Russia.

e. Improve Data Transparency and Barrier Analysis

• Better data on cross-border transaction barriers and foreign entry restrictions is needed to support informed policy decisions.
• Transparent data helps in identifying areas for reform and liberalization.

Conclusion

While financial services liberalization has potential to boost growth and development, it must be approached carefully. The key is to strengthen regulatory and supervisory frameworks to manage risks while promoting efficiency and transparency. The WTO should play a more active role in binding reforms and promoting best practices, but multilateral progress may be limited unless the framework is improved and political will is present.