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For the first time since World War II, global output will drop (-1.7%); per capita income will fall in more than 50 developing countries; net private capital flows will likely turn negative a more than $700 billion drop from the 2007 peak; and trade is expected to decline by 6.1% in 2009 the worst decline in 80 years. In response to this global downturn, a number of governments have passed stimulus packages and other measures that aim to preserve domestic industries and jobs, and sometimes discriminate against foreign producers (e.g. buy local laws). The most recent forecasts announce a...

The services sector is key to economic growth, competitiveness, and poverty alleviation. Comprising more than two-thirds of the world economy, services are now commonly traded across borders, helped by technological progress and the increased mobility of persons. In recent years, a number of developing countries have looked at trade in services as a means to both respond to domestic supply shortages and to diversify and boost exports. Any country can tap into the trade potential of services, but not every country can become a services hub across sectors. The opening of the services sector...