aggregated using sector GDP shares as weights<sup>6</sup> . Finally, the regional services trade restrictiveness indices (STRIs) are the simple averages of the country indices within respective regions.

# I. THE STATE OF ACTUAL POLICY IN SERVICES

An evaluation of what Doha offers in services is much harder than in goods. First, there is no database of actual trade policies in specific services sectors – i.e. the counterpart of “applied” tariffs. Second, the Doha negotiations in services are not based on an agreed formula for cuts in protection but on offers by each member of market access (and national treatment) in specific sectors. Third, it is hard to quantify services trade policies, which are akin to non-tariff barriers and include prohibitions, quotas, and discriminatory regulation. We describe here efforts to overcome these difficulties and construct a picture of what Doha offers in services.

Figures 1 to 4 summarize information on actual policies. Figure 1 is a scatter diagram where the location of each country reflects the overall restrictiveness of its services trade policies and its per capita income. The rich countries are clustered together at the bottom-right showing that they are quite open overall (though as we see below, some sectors remain restricted). There is much more variation in the restrictiveness of services policies for low-income countries. Some of the poorest countries, like Cambodia, Ghana, Nigeria, Senegal, and Mongolia are remarkably open – with World Bank-IMF reform programs and accession to the WTO probably playing a significant role.

Interestingly, some of the most restrictive policies today are visible in the fast-growing economies of Asia, including China, India, Indonesia, Malaysia, Philippines and Thailand, as well as in the Middle East, including Egypt, Saudi Arabia and Tunisia. Figure 2, confirms that in terms of regions, the most restrictive policies are observed in MENA and Asian countries. Policies are much more liberal in Latin America, Africa, Eastern Europe and the OECD countries.

The survey reveals that developing countries have significantly liberalized a range of service sectors over the last couple of decades, but in some areas protection persists (Figure 3). In fact, the overall pattern of policies across sectors is increasingly similar in developing and industrial countries. In telecommunications, public monopolies seem in most countries a relic of history, with at least some measure of competition introduced in both mobile and fixed services. In banking too, domination by state-owned banks has given way to increased openness to the presence of foreign and private banks. Very few countries restrict foreign investment in retail. However, even though the markets for these services are now more competitive, they are in most countries some distance from being truly contestable. In telecommunications, governments continue to limit the number of providers and, particularly in Asia, the extent of foreign ownership. In both banking and insurance, the allocation of new licenses remains opaque and highly discretionary. In retail, a range of domestic regulations, such as zoning laws and single brand retailing, severely impede entry in both developing and industrial countries.

> 6 The same sector shares are used for all countries for comparability.

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