# **Other considerations**

We recognize that the approach to quantifying policy restrictiveness as described above is not perfect. However, given data constraints and the wide range of sectors covered, there is no obviously superior method of comparable quantification. The imperfection is somewhat mitigated by the extensive consultations that have been conducted with the private sector representatives, regulators and experts in making the assignments of scores to individual and synthetic measures and defining modal and sectoral weights. We believe that the adopted approach to quantifying policy information yields broadly plausible restrictiveness scores.

The reasons for using a simple method are the following: first, methods that assign fixed weights to all types of restrictions (entry, operational, regulatory) and that treat the restrictions as additive are flawed in certain respects. For instance, a foreign equity limit of 49 percent already precludes foreign corporate control and so adding to it a further (frequently encountered) requirement that the majority of board of directors be nationals would amount to double counting. Second, more sophisticated methods have to rely on detailed sets of data that are difficult and costly to collect for many economies, particularly those that are less developed. Third, a parsimonious and straightforward method is likely to be readily understood by a wide range of diverse users. Finally, because of the conceptual separation of scoring and aggregating, the STRI obtained with our methodology do **not** depend on the total number of potentially applicable measures. As a result, it is easily possible to substitute, add or remove measures in the building of the index.

In any case, quantification is merely the tip of the iceberg, and best seen as a first step to create a broader picture of policy patterns and identify certain important issues. The main value of the database is the detailed information at the measure level which enables a more granular analysis of policy issues. In other words, the scores are a first step rather than the end result. The main goal of the database is to give to users the information and tools necessary for services trade policy analysis.

## **4  DATA PRESENTATION IN I-TIP SERVICES**

While a summary measure of restrictiveness is convenient and indeed indispensable for quantitative analysis, we believe that the real strength of this project is the richly textured policy information that has been collected. In addition, different users are likely to have different needs as to the data content, level of detail, and type of presentation. For these reasons, the Database enables users to view the information directly on the results screen of the application, as well as to download data for trade policy analysis and research. The Database will also offer the option of directly linking the applied policy information, to information relating to binding legal commitments made by economies in the context of the GATS or free trade agreements (bilateral or regional).

The joint WTO-World Bank Services Trade Policy Database is disseminated through the I-TIP services portal. I-TIP services consists of a set of linked databases providing information on WTO Members' commitments and MFN exemptions under the General Agreement on Trade in Services (GATS) as well as preferential market access commitments for least developed countries granted by Members under the LDC Services Waiver, services commitments in regional trade agreements (RTAs), applied measures affecting access to and operations in economies' services markets, and relevant services statistics (see figure 5). In its four modules (GATS, RTA commitments, Services Trade Policy Database, and Statistics), the I-TIP interface permits searches by jurisdiction, sector, agreement, or source of information. Search results are presented in summary form, as well as in more detail. Search results can be filtered across a number of additional criteria. Users can easily switch from one module to another by selecting a different module from the menu bar, for example from looking at a particular economy's commitments in a given sector, to relevant commitments in RTAs, and then to applied regulatory information and related services statistics. We will now concentrate in the rest of this section on the description of the Services Trade Policy Database module.

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