 Experts examined regulatory and institutional issues affecting financial, telecommunications, transport and energy services. They emphasized the important role of government in ensuring efficient, accessible and sustainable infrastructure services.
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UNCTAD Secretary-General
tells experts |
Meeting in Geneva from 17-19 March, international experts emphasized the important role of government as a fair and effective regulator, balancing stakeholders' interests to ensure efficient, accessible and sustainable supply, attract infrastructure investment, create a competitive environment and to advance consumer interests, including universal access for the poor.
Recognizing the high costs of regulatory failure associated in key infrastructure services, as amply illustrated by the current global financial crisis, the Secretary-General of UNCTAD stressed the need for governments to remain vigilant. By continually monitoring the performance of financial services and other infrastructure services sectors, governments can proactively undertake regulatory and institutional reforms to help prevent future crises.
The need for a more proactive stance was echoed by Dr. Yaga Venugopal Reddy, Former Governor, Reserve Bank of India and Member of the Commission of Experts of the President of the UN General Assembly on Reforms of the International Monetary and Financial System. He noted that although the crisis has its origins in developed countries, contagion to developing countries has occurred significantly through volatility in capital flows.
Ambassador Clarke of Barbados, who chaired the meeting, stressed that developing countries must take local country realities into account when establishing regulations and institutions that govern infrastructure services. He added that regional solutions and mechanisms are also important, particularly for small countries like Barbados.
Experts recalled that the WTO General Agreement on Trade in Services guarantees countries' 'right to regulate'. With the right to regulate comes the responsibility for each country to craft its own regulatory and institutional frameworks. But experts agreed that there is no "one-size-fits-all" model for regulation.
They said that sufficient policy space must remain available to countries so that they can regulate effectively. Country-specific approaches must be identified and implemented, and many developing countries require gradualism and experimentation using different options as well as capacity building assistance.
Experts noted that opportunities during the meeting to exchange national experiences and share lessons learned were a valuable element in building knowledge and capacity.
In concluding the meeting, experts proposed that UNCTAD has an important role to play in advancing analytical, consensus building and technical cooperation related work at the trade and development interface of regulation, and in assisting developing countries to develop effective regulatory and institutional frameworks for infrastructure services.
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