Question:

What influence has the WTO had on the service sector?

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  1. It is the tertiary (services) sector that is the real challenge to WTO. Now in 21st century, jobs in some skill-areas simply fly around to the seeker of the job. All this was made possible because of the revolution in computer communications & networking. There was a time when computer companies used to work in isolation from communication companies. With the convergence of these two economic activities enormous number of jobs was created that migrate across the borders to the chagrin of the politicians of the country concerned, who has coined phrases like 'jobs are Bangalored' (Bengalurued?). It ensures the provider of service to maintain his standard of living at far cheaper expenditure to the client. Or else the worker has to go to the site which is generally in the high-cost first world economy. It costs enhanced expenditure to the client and possible disruption in the worker's environment and home-life.

    The problem is compounded by some leading Transnational companies who view borders and governments with disdain and open their offices (workplaces) in spots where such manpower is localised. Much software is generated for general services like 'routine computing', 'financial services', 'Engineering design' and so on, which are the inputs at times, for manufacturing in some other corner of globe.

    WTO is unable to get a grip on this way of functioning. 'Insurance', 'Banking' even though are Legacy industries have been totally computerised and need to be viewed accordingly. Though computer/software part of the bigger activity is viewed integral to the latter, the inputs coming from different geographical areas and costing accordingly has a bearing on 'costing' of the product. Mostly the differential of software cost, essentially due to the PPP (Purchasing Power Parity) is pocketed by the Banking, Insurance, Engineering Transnational with effectively none staking a claim. It may be viewed as unethical from several angles.

    WTO has responsibility there. Being a consultative organisation & negotiating platform of almost all the UN member states, it needs to accomodate even conflicting views and opinions of states who have a stake. As a question, 'what is the influence of WTO' evaporates in the face of its members' participatory nature. The question smacks of the monopolistic, arrogant attitude of dictating terms to others that is typically practiced by G-8 countries and cohorts. It even suggests of forming controlling cliques, ganging up into cartels to the detriment of helpless customer members - careful enough to take up one or the other ethical principle as an excuse (NSG is an example) and the consequent arm twisting. Though of not of immediate relevance, in the long run it vitiates the harmony amongst members resulting in permanent animosity that can go to any extent. An extreme example but a reality defying any solution is the Islamic Terrorism. Who knows what lurking national feeling fuels a global catastrophe in decades to come, particularly the ones nurtured on the affluence of some countries to start with?

    Even your wording of the question shouldn't be unfortunate and slackness that may even betray your national attitude.

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