This means that existing and new companies in developing countries will be able to adapt best practice business models from around the world and tap global investment funds to challenge the incumbents in local service industries. Implications of the Next Wave of Globalization Service sector businesses in any country with leading-edge knowledge, skills or processes can export these outside their national borders. Businesses that have thrived by holding a privileged position in underexposed markets must adopt better methods, or use their privileged position to partner with those who have them. Developed-country businesses should consider the potential benefits of using more remote services as these become feasible. Governments in Latin America and Asia should focus their regulatory policies on maximizing the efficiency of essential infrastructure industries - telecommunications, transportation, electric power, financial services and wholesale distribution.
Maximum efficiency means lower costs and more affordability of crucial services.
That will sometimes mean deregulating or even privatizing industries. Public investment should be focused on public and quasi-public goods, such as rural infrastructure and above all on education and human capital. This mix of policies will increasingly allow developing countries to keep their best talent at home, with access to global markets for goods and services and capital. Transparent and accountable governments will gradually work their way toward the right policy choices. But whether governments will become or remain transparent and accountable is another question altogether.