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1 13 'b - ""1 Septem _erl 99P.:: CONTENTS SERVICES MEETINGS IN GENEVA. :>,.:'1:' '~ ": The First Geneva Forum on Global Services ~~~' Trade' Liber~+i~ation '. Th~ S~~ Annua! Seminar,qn the Servlf~ Eco~orpy 6 THE sqc~ ~F TIiE SERVIQE ~CONf)M"Y; THE Et),UR BILLAAS 8TMTEGY. -,-" 8. r '.... ',;.~. :: ':'. :. '::. ~" ~ ':.=< 9...'. UPCOMING: EVENTS :' ~ ~ to. ;...:.:'.".~.::' 9 ~ES~Aij~H CENTiRi ACTIVITIES t.".. M_ """." BIBLIOORARldY ': ",:"'~ -:: ':', -1;::'!. 19

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3 SERVICE MEETINGS IN GENEVA ASEC (Applied Services Economic Center) organized with the collaboration of PROGRES lithe First Geneva Forum on Global Services and Trade Liberalization" on May 16-17, The success of this recent services forum was mainly due to its timing, which coincided with the current GATT Services Negotiations, combined with the quality of the speakers representing the major service sectors and top-level government officials. Raymond Barre delivered a speech on the radical changes, in economic terms, of the notion of "services". Traditionally, economic activity was divided into three sectors: primary, secondary and tertiary. The first two were considered of major importance and their productivity sustained the tertiary. However, industrial leaders became increasingly aware of the fact that a product was no more than a cqmbination of services and that the quality of the product itself depended upon the quality of services available. The growing inclusion of immaterial goods to the GNP reflects this viewpoint. Services are now considered to be an essential element of economic growth and for the creation of new jobs. The moment has come to establish rules for the liberalization of services which will be the basis of the human capital economy of tomorrow. PROGRAMME THE FIRST GENEVA FORUM ON GLOBAL SERVICES AND TRADE LIBERALIZATION May 16-17, 1990 Introduction Orio Giarini, Research Programme on the Service Economy (PROGRES) and ASEC M.G. Mathur, Deputy Director-General, GATT, Responsible the GNS Harry Freeman, President, The Freeman Company International Organisation Perspectives of Trade in Services Liberalization Shivinder Singh Sidhu, Secretary General, International Civil Aviation Organization (delivered by John Gunther) Pekka Tarjanne, Secretary General, International Telecommunication Union (delivered by Anthony Rutkowski) Francis Loheac, Secretary General, European Insurance Committee Umberto Burani, Secretary General, European Community Bankers' Federation Helen Junz, Director of Geneva Office, International Monetary Fund

4 Overview of Services Trade and the Uruguay Round Patrick A. Messerlin, International Trade Division, The World Bank R. Brian Woodrow, University of Guelph, Canada, and ASEC Juan F. Rada, Director General, International Institute for Management Development Trade Negotiations on Objectives of a Services Trade Agreement H.E. Felipe Jaramillo, Colombia, Chairman, GNS H.E. Rufus H. Yerxa, United States of America H.E. David Hawes, Australia John Beck, Deputy Director, Permanent Delegation to EC Martin de Walterskirchen, Swiss Federal Department of Foreign Affairs Karl Leifland, First Secretary, Permanent Mission of Sweden International Business and User Assessments of a Services Trade Agreement John Kraus, International Chamber of Commerce (ICC) Julian Arkell, British Invisible Exports Council (LOTIS) Geo Besse,lnternational Air Transport Association (lata) Charles Heeter, Coalition of Services Industries (CSI) Derek Nicholas,lnternational Telecommunications Users Group (INTUG) Raymond Barre, Former Prime Minister of France Corporate Roundtable on the Implications of a Services Trade Agreement Jean-Claude Delorme, President, Teleglobe Canada Geoffrey Lipman, "Global Aviation Associates Ltd David Lomax, Group Economic Adviser, National Westminster Bank Ruy de Carvalho, President, Portuguese Insurance Federation John Greig, Chairman, Greig & Fester, Ltd., Lloyd's John Hegarty, Secretary General, Federation des Experts Comptables Europeens Gary Sampson, Director, Group of Negotiations on Services, GAD Concluding Remarks: The Challenges Ahead Raymond Barre, Former Prime Minister of France Farewell G. Russell Pipe, ASEC and Telecommunications Services Trade Project * * * * Proceedings of THE FIRST GENEVA FORUM ON GLOBAL SERVICES AND TRADE LIBERALIZATION are in the process of being edited and should be made available by October, For more information, please contact : ASEC, 18 Chemin Rieu, Geneva, Switzerland Tel. : Fax:

5 THE SECOND GENEVA FORUM ON GLOBAL SERVICES AND TRADE LIBERALIZATION will take placeon May 15-16, 1991 at the Hotel Metropole - Geneva, Switzerland The following Introduction was given by Orio Giarini on the occasion of The First Geneva Forum on Global Services and Trade Liberalization : "This forum is the first public initiative of ASEC, but its real origin goes back to almost twenty years ago. The first ideas about services originated almost twenty years ago from a direct experience within the chemical industry. During the 1960's, it became increasingly apparent that, in modern industry, a major part of the costs of production within the manufacturing process itself were due to service activities. Perhaps only 25% or so of the cost of a product was actually accounted for by the raw materials and labour required to produce that product. A considerable and increasing share of the total cost of production was being directed towards services of different branches: before production (such as research and development, financial engineering and planning); during production (storage, maintenance, safety and vulnerability management); in the course of distribution (storage, marketing); during utilization of any product (consumer's or user's maintenance and learning processes); and finally after use (waste management). In other words, it was becoming obvious in the advanced economies, that the higher the level of technology, the greater the relevance of all service functions within the manufacturing system. During the 1970's, my involvement with services was in the quite different context of insurance. Insurance is one of those services - indeed a service sector in its own right - which underlies productive activities as well as our whole way of life and work. It is a service which deals with uncertainty and the management of risk in many contexts. Risk and uncertainty are at the very core of all the services economy. Insurance as a service allows modern economies to be productive and allows individuals, business and society to control uncertainty and risk. Nowadays, within the insurance framework, we are assisting to the emergence of what has been called "The Four Pillars" strategy as the social policy of a services economy. At that time, there was a lot of talk on the "post-industrial society": and the "services economy". If this connotation had any meaning, it was in the sense of underlining the fact that any advanced industrial system needed a greater quantity and a higher quality of services. Services could not be considered any more as a secondary 3

6 economic output as classical economists have been saying for two centuries, but they were indeed the evidence of an advanced economic system. Services and manufacturing production are not in opposition, but they are closely interrelated and interdependent. This transition towards seeing service functions as taking the lead in contributing to the "wealth of nations", has probably been the main phenomenon explaining the economic turbulence of the '70s. A few words about what I and my colleagues have been doing in exploring the role of services. You may have been confused by some of the acronyms you have run into. Since 1983, I have taught at the Graduate Institute of European Studies at the University of Geneva. PROGRES is the Research Program on the Services Economy, also begun in 1983 in part as the result of growing interest in a course, seeks to advance basic research on services as functions and the services economy and currently distributes a bi-annual newsletter to 2200 individuals and organizations worldwide. In 1985, we started the Services World Forum - SWF - which is a network of professionals, public servants and academics interested in the services field and brings them together to an annual meeting dealing with all aspects of services research. More recently, in 1987 came ASEC - the Applied Services Economics Center - which is attempting through conferences such as this to treat services more in a business context. In the last five to six years, the evidence of the importance of services both as functions within the industrial sector as well as specific sectors, have stimulated many initiatives among practically all the international organizations. One of the most interesting and significant breakthroughs has been the beginning of the negotiations on services trade liberalization within the context of the Uruguay Round. This initiative has already had a very important effect in stimulating a tremendous amount of research. all through the world in order to.better understand the significance pf services and trade in services within national and international economy. It is obvious that we are just at the beginning of a very long learning process and that reasonable solutions and advancements can only be prepared step by step, through a responsible process of rapidly changing economic realities and accommodating the interests of various sectors, groups and nations. ASEC thinks that in the year 2000 (and maybe even a little earlier) services will be at the center of liberalization processes encompassing the whole of the global economy and within which all sectors of the economy will have a role to play. Business has a major stake in the ongoing processes of internationalization/ globalization and liberalization which are taking place. The Uruguay Round services trade negotiations are a major impetus in that direction. This First Geneva International Forum on Global Services and Trade Liberalization attempts to better understand the role and implications of the trade in services issue for major services sectors - telecommunications and information services, banking, insurance and other financial services, civil aviation and maritime shipping, and for professional and business services. By organizing this Forum, ASEC has tried to contribute to the ongoing process of discussion and understanding and we would hope to continue that process in future." 4

7 WHAT IS ASEC? ASEC is a consortium of consultants, researchers and practitioners in the field of services. It was established in 1988, with offices located in Geneva to advise on services issues, conduct studies in a wide range of service sectors, and operate as a forum for discussion of services issues. It also attempts to stimulate interaction among business executives, officials of national governments and international organizations by applying practical experience and research results to problems in services development. In this role ASEC has the goal of becoming a clearinghouse for documentation and expertise in this field. ASEC is not committed to any particular point of view or commercial interest. Rather, it is oriented to the perspective that services underlie and will increasingly drive national and international economies and trade. Therefore, the challenges, the opportunities - and the risks - associated with services growth and development require careful study and informed discussion. ASEC includes prominent professionals involved in services and with specific expertise in areas such as banking and insurance, telecommunications and informatics, transportation and services in components manufacturing processes. WHAT ASEC DOES. ASEC responds to requirements of business, governmental and international organizations. There are four main lines of ASEC: * Consultancy and Specialized Research: ASEC keeps a significant library and a group of consultants and senior researchers available to undertake projects in many services fields, such as insurancei banking, telecommunications, informatics, and transportation. * Organizing Meetings and Conferences : ASEC facilitates the conduct of specialized meetings and conferences on a variety of topics and, through its First Geneva International Forum on Global Services and Trade Liberalization, is establishing a continuing forum for business-oriented discussion of services issues. * Conducting Multi-client Studies : ASEC will support and extend into other areas experience with multi-client studies such as the Telecommunications Services Trade Project, which since 1988 has provided continuing information and analysis of Uruguay Round developments for a select number of telecommunications industry clients. * Specialized Newsletter on Services : ASEC assists business and governmental organizations by keeping them informed of ongoing developments affecting various services fields through a Services Trade Newsletter providing information on the Uruguay Round and developments in 1991 across the whole range of services areas. Enquiries should be addressed to : ASEC, 18 chemin Rieu, 1208 Geneva, Switzerland - Tel Fax:

8 THE SIXTH ANNUAL SEMINAR ON THE SERVICE ECONOMY organized by PROGRES on May 14-15, 1990 When the First International Seminar on the Service Economy was launched in 1985, within the framework of the first course and seminar on service economics to be given in Europe, its purpose was to put in evidence how service activities were a key element of economic development. Following Since then, interest for service economics increased considerably when GAIT started to discuss liberalization of services within the framework of the Uruguay Round. On the occasion of the Sixth Annual Seminar on the Service Economy, another step forward was made with the analysis of the importance of service activities within the Eastern European countries. A correct appreciation of the function of services in the modern economies represents an essential condition for their development. Eastern European countries suffered more than Western ones from the rigidities of an economic theory founded on the absolute priority of the industrialization process which did not take into consideration the importance of service activities. Classical and neo-classical economist, either liberals or marxistes, until very recent times, had related services to a secondary role in the economy and defined them as nonproductive. For the countries still in an earlier phase of economic development, it is through a special effort in the amelioration of all sorts of services, from research up to waste management and going through maintenance, financing, quality control and distribution activities that they can achieve better economic growth. It is through the service function that real progress and advancement can be achieved in the production of the wealth of nations. PROGRAMME The Sixth Annual Seminar on the Service Economy May 14 SPECIAL SESSION ON SERVICES IN EAST AND CENTRAL EUROPEAN COUNTRIES Welcome by Orio Giarini, PROGRES Chairman: Jiri Skolka, Austrian Institute of Economics, Vienna Services in Hungary, , by Eva Ehrlich, Institute for World Economics of the Hungarian Academy of Sciences, BUdapest-H The Present State and Latest Development trends of the service sector in Czechoslovakia by Alena Nesporova, Institute for Forecasting, Czechoslovak Academy of Sciences Optetalova, Prague - CZ The Services Sector in the German Democratic Republic - its State and Outlook, by Udo LUdwig and Hans Mittlebach, Central Institute of Economic Sciences, Academy of Sciences of the GDR, Berlin-DDR 6

9 The Role of Services Sector in the Siovenian and Yugoslave Economy in the Eighties, by Zarjan Fabjancic, Siovenian Institute for Social Planning, Ljubljana - Yugoslavia Services in Centralized Economies, by Algirdas Miskinis Inst. of Economics, Lithuanian Academy of Sciences, Lithuania, Vilnius Poland's Trade Policy Options Towards The Uruguay Round of Negotiations in the Field of Services, J. Pietras, University of Warsaw, Poland and Fulbright Visiting Scholar, Duke University, USA The Role of Services in Czechoslovakia (The Social and Economic Aspects of Services) Antonin Kerner, Faculty of Law, Charles's University, Prague -CZ Spread of Services in Time and Space in Hungary, by Tamas Fleischer, Institute for World Economics of the Hungarian Academy of Sciences, BUdapest-H Infrastructural Services for Stabilizing and Innovating the Reorganized Economy of the GDR E. Schmidt Kigyossy, Central Inst. of Economic Sciences, Academy of Sciences of the GDR, Berlin The Role of Business Services in Polish Economy, by Jan Maciejewicz, Central School of Planning and Statistics, Warsaw - P Direct and Feed-back Links between Economic Development and Services, by Viola Fronkova, The Central Institute of the National Economic Research, Drienova 34, Bratislava-CZ and Valeria Michalova, The Research Institute of Social Development and Labour, Bratislava-CZ Development and Problems of Transport Services in Bulgaria, by Todor Velev, Dept. Socio-Economic Planning, High Institute of Economics, Studentski Grad, Sofia-B Some Reflections on the Tertiarization of Rumanian Economy, by Agnes Ghibutiu, Institute for World Economy, Bucharest May 15 The Service Sector in a Planned Economy, by P. Caselli and G. Pastrello, Facolta di Economia e Commercio, Universita di Modena, Italy Present Situation, Problems and Development of Chinese Service Sector, by Li Jiangfan, South China Normal University, Guangzhou The Role of Services in Structural Transformation, by H. Schaumburg-MOiler, Inst. for Internal'l Economics and Business Administration, Copenhagen, Denmark Information Technology and International Tradability in Insurance, by O.M. Westall, Lancaster University Innovation and Knowledge in the Producer Services, by M. de Jong, University of Amsterdam How to Define Services Quality, by Anne Mayere, CEDES - Center d'echange et d'information sur les activites de service Business Service Production and Consumption: Some Conceptual Issues by P.N. Farrell, Heriot-Watt University, Edinburgh Leadership/Management in Service-Sector Organizations Does this Differ from Industrial Organizations by C.P. Wilderom, Free University Amsterdam Produits et Services: Deux Axes de la Modernisation Industrielle - Le Cas de L'Electromenager by Quynh Delaunay, Center d'etudes de l'emploi, Ministere de l'emploi, Paris Growth and Contracyclic Behaviour of Services in Spain, by Juan R. Cuadrad Roura and Clemente del Rio, University of Alcala and FIES, Madrid For more information, please contact : PROGRES, 18 ch. Rieu, 1208 Geneva, Switzerland, Tel: Fax:

10 CALL FOR PAPERS THE SEVENTH ANNUAL SEMINAR ON THE SERVICE ECONOMY will take place on May 13-14, 1991 (location to be determined) Those interested in contributing to this seminar should send an outline of their topic to: PROGRES, 18 ch. Rieu, 1208 Geneva - Switzerland, Tel , Fax: * * * * * THE SOCIAL POLICY OF THE SERVICE ECONOMY: THE FOUR PILLARS STRATEGY Within the next 25 years, the number of people over 60 years of age will reach the level of 850 million, the world over. From an economic and social point of view, the most important issue of the new service economy will be the profound changes in the quality of work and of productive activities thereby completely changing the previous rules and definitions concerning the notions of productive work and employment. On the basis of these premises, the following elements are proposed for a scenario to be explored 25 to 30 years from now : a) The notion of basic employment and income could be based on what is now considered to be a part-time job (about 1,000 hours per year). Full employment policies of governments would then be concentrated in guaranteeing this first basic layer of employment. The notion of unemployment itself could be defined in relation to this first basic year..b) Whereas this first layer of employment would be highly socially organized and promoted, a second additional layer of activity could, on the contrary, be based on individual initiative. 8

11 c) The first layer activity could cover the period of life from 18 to 20 years of age (before entering a university of higher education level) to the age of 70 or more. In this way, the great majority of the population could extend and self-finance their higher educatio right after high school. This development should facilitate the integration of the vocation of the higher education institutions with the function of continuing education and updating in all fields. d) Fundamental changes will probably take place both in the social, psychological and biological sector concern the limits of productive aging. In fact, the notion of compulsory retirement at a given age will most likely disappear, except for very specific jobs. A key social issue will in any case be the better integration of all those over 60 years of age as productive individuals in the society, in the best possible conditions. e) The general orientation of social policy, might evolve towards a "Four Pillars System" based on: 1. The public guarantee of first layer of financial resources for those excluded from any productive activity for reason of age or of incapacity. This pillar would always be based on a pay-as-you-go system and as such be integrated into the fiscal system. It should or could be managed at a public level in full complementary to the first layer of employment. 2. The resources collected and managed by private institutions on a capitalization basis, within the framework of collective arrangements or legal prescription. 3. The private savings, managed directly by the individuals (benefitting in various ways, but not always systematically of specific incentives). 4. The resources deriving from productive activities over the extended life time whereas the fine tuning of this pillar with the three others on the fiscal level will probably take many years to achieve a satisfactory equilibrium. * * * * * 9

12 The the recent study prepared by the Geneva Association takes an indepth view of the subject in the issue of The Geneva Papers on Risk and Insurance, No. 55 (April 1990) - Studies on the Four Pillars. Introduction: The Opportunities of the Four Pillars' Strategy, by Orio Giarini - Work and Retirement: Future Prospects for the Baby-Boom Generation, by G. Reday-Mulvey - New Technologies and Aged Workers, by Luigi Frey - Solutions to the Coming Crisis in Social Security: Save Today or Work Tomorrow?, by D. Kessler - Part-time Early Retirement in Europe, by L. Delsen - Prolonged Lifetime Employment and Flexible Transition from Labour Force Participation to Retirement in View of Future Requirements of the Labour Market and Old Age Pensions, by J. Kruse and W. Steinjan - From Research to Practical Application: A Comment, by G. Laskowski - The Fourth Pillar and the UK Insurance Industry, by A. Rajan and P. van Eupen Copies can be ordered from: The Geneva Association, 18 ch. Rieu, 1208 Geneva, Switzerland - Tel. (022) Fax: (022) * * * * * 10

13 RECENT SEMINARS INNOVATION IN MARKETING OF SERVICES SEMINAR - IMSS April 23-27, Lausanne, Switzerland The International Institute for Management Development (IMD) organized this seminar for those executives involved with market-driven senices. The objectives were to increase understanding of the critical role of senices in creating and maintaining customers; to highlight the effects of environmental trends; to provide different approaches; and to formulate and execute market strategies for senices within a company or institution. More information is available from: Sandra Vandermerwe, Program Director, IMD, 23 chemin de Bellerive, CH Lausanne. Tel:(41 21) Fax: (41 21) UPCOMING EVENTS THE ROLE OF SERVICES IN THE SOCIO-ECONOMIC TRANSFORMATION AND INTEGRATION OF WESTERN AND EASTERN EUROPE September 10-11, Budapest, Hungary The Institute for World Economics (lwe) of the Hungarian Academy of Sciences (Budapest), SeNices World Forum and PROMETHEE are organizing this conference which will examine the following themes: - Main lessons from 10 years of the senices debate in the West and their implications for East West integration - SeNices issues and the socio-economic transformation of Eastern Europe - Modernizing Eastern European networks and promoting East West interconnection - Information networks in a Pan-European perspective - "Europe 1992" and its implications for Eastern Europe - European integration and the global economic trends - Scenarios for the 1990s and beyond Enquiries: SWF, 12 rue du Havre, Paris, France. Tel: Fax: SEMINAR ON PERSONAL AND COLLECTIVE SERVICES October 9-27, The Hague, Netherlands The Senior Economic Advisors to ECE Governments (SEA) decided to convene this seminar for the purpose to analyse the factors determining the future growth of senices and the new opportunities which they may provide for international trade and co-operation. The three following topics will be covered: 1. Economics of personal and collective senices growth 2. Policy implications 3. International aspects Inquiries should be directed to : BA van Hamel, Chief, Division of International Economic Analysis, Central Planning Bureau, van Stolkweg 14, NL Fax:

14 KEY TECHNOLOGIES, EXPERIENCE, NEW CONCEPTS November 14-16, 1990.IDATE is organizing its 12th International Conference on November 14-16, 1990 which will cover the entire communication field and make available the first results of major European project programs such as RACE, ESPRIT, MEDIA, EUREKA and others. Main topics also covered in this encounter are : - Key technologies at the heart of the debates on the potential for new systems generation, - The construction kit for building applications into their context, pilot experiments with their approach to their potential impact in concrete environments - The ideas laboratory for investigating new concepts and analysing the issues surrounding the economic, social and cultural status of communications systems in today's world, and the obstacle to their development. For further information, please contact: IDATE JII 90, Bureaux du Polygone - F 3400 Montpellier, Tel : +33/ Fax: TOURISM RESEARCH : INTO THE December 10-12, University College, Durham, UK The conference will focus on recent and current tourism research on a wide range of theoretical and empirical topics (including forecasts), cost structures, tourism trends, management strategy, policy evaluation, employment, tourism and the community. It shall also explore future research needs and directions. Further information can be obtained from: J. Bushby, Department of Economics, University of Durham, Old Elvet, Durham DH1 3HY, UK. Tel LA GESTION DES SERVICES SOCIAUX 2-3 Juillet Copenhague, Danemark L'lnstitut International des Sciences Administrative et Ie Ministere des Finances de la Danemark organisent une Table Ronde qui a pour but d'analyser Ie choix des types de gestion des services sociaux tels que la Securite Sociale, les services de sante, I'education et I'assistance des defavories dans les societes industrielles et en developpement, ainsi que dans les societes post-socialistes. Les themes explores comprennent en autres : - La gestion dans un contexte social, politique et economique changeant - La gestion dans Ie contexte de fourniture de services par les secteur public, prive et associatif - La gestion de la privatisation et de I'application du principe du paiement par I'usager - La gestion visant a ameliorer Ie caractere coot/efficience de la fourniture de services Pour de plus d'information, priere contacter : lisa, rue Defacqz 1, Bte 11, B-1050 Bruxelles. Tel : Fax:

15 RESEARCH CENTERS ACTIVITIES - La Fondation pour la Recherche Economigue et Financiere a publie une serie de monographies sur des etudes conduites en 1989 et 1990 traitant la Remuneration des depots a vue et Facturation des services bancaires, par D. Kessler, A. Lavigne et C. Pardo La dereglemenation touche, a des degres divers, tous les secteurs de I'economie et tous les pays d'europe, a la veille de La facturation des services bancaires de base, avec son pendant, la remuneration des comptes courants, comporte des avantages et des inconvenients, des opportunites mais aussi des risques pour les institutions financieres. La remuneration des comptes courants va se reveler une arme decisive et dangereuse entre institutions de nature differente, de pays d'origine differents, pour la conquete d'un marcm de particuliers deja tres bancarise. Les cinq etudes proposees permettent d'observer les effets potentiels d'une telle dereglementation, en fonction de la structure des institutions financieres, de I'evolution de la reglementation et du comportement des consommateurs. - Dereglementation des taux crediteurs et facturation des services financers en Belgique - Dereglementation des taux crediteurs et facturation des services financiers en Espagne - La remuneration des comptes courants et la facturation des services financiers en italie - Dereglementation financiere, remuneration des depots en comptes courants, et facturation des services financiers en RFA. Pour obtenir, priere contacter : H. Mantoux, EFMA, 16 rue d'aguesseau, F Paris, Tel Fax: ****** - The Centre d'estudis de Planificacio (CEP) of Barcelona has collected the presentations made during the Seminar Nr. 32 -II held in The articles deal with the subject of "Services to Firms' analyse both the general (structural change in modern economies and the process of integration of industry and services), the territorial (role of tertiary firms in regional, metropolitan and local development and the specific point of view in determined areas (Milan, Rhone-Alpes and Barcelona). For more information, please contact: Centre d'estudis de Planificacio, Carrer Gran de Gracia, 71 Barcelona Spain - Tel ******* - The Institute for Retail Studies at the University of Stirling which monitors the evolution of the retail industry, remarks that the steady transfer of technology and know-how from the first World retailers to those in the Third World. In the 1980s much of the development emphasis has been on getting the physical structure of retailing into place. Whilst the high-level of investment is expected to continue, there is the beginnings of a change in investment emphasis towards lifeware. Having created the hardware of retailing the challenge for the 1990s will be development of the liveware to operate and manage the retail sector. More information on the Institute's activities and publications are available from : Professor John A. Dawson, Fraser of Allander Professor of Distributive Studies, Institute for retail Studies, University of Stirling, Stirling FK9 4LA, Scotland. Tel : Ext 2778, Fax:

16 - Le Centre Universitaire de Recherche Europeenne et Internationale de l'universite des Sciences sociales de Grenoble vient d'editer Ie Cahier No 6 'Speciale Services' qui contient les articles suivants: - Modernisation et Services, par L. Reboud - Le Nouveau Role de I'information dans Ie Systeme productif, par N. Mavraganis - l'emergence de la Notion de Reseau en Economie, par B. Fave - Telecommunications ~ Informations - Services: Interrelations et Enjeux, par I. Pavageau - Un Espace Europeen des Services: Problemes et Perspectives, par T. Coulet - La Signification de la Libre Prestation de Services dans Ie Dommaine des Assurance, par C. Berr Pour obtenir : CUREI, Universite des Sciences Sociales, 47 x Grenoble Cedex, France, Tel ******* - A study group from The Annenberg Washington Program of Northwestern University, assessed the communication technologies in Central Europe and more specifically broadcasting in Warsaw, Budapest and Prague. More information is available by contacting : The Annenburg Washington Program, The Willard Office Building, 1455 Pennsylvania Avenue, NW, Suite 200, Washington D.C Tel ******** NEWSLETTERS AND JOURNALS The first issue of the International Journal of Service Industry Management contains the following contributions: - Service Management : A Management Focus for Service Competitition, by C. Gronroos - Service Typologies: A Transaction Modelling Approach, by. R. Haynes - Management Consulting - Towards a Successful Relationship, by B. Edvardsson - Measuring Productivity in Services, by C. McLaughlin and S. Coffey - A Synthesized Service Quality Model with Managerial Implications, by A. Brodgowicz - Revitalising Service Innovations, by. S. Brown, R. Haynes and D. Saunders Enquiries and orders: A. Stowe, MCB University Press Ltd, 62 Toller Lane, Bradford, England BD8 9BY - Tel. (0274) Fax: (0274) ******** 14

17 '- The Journal, of Financial Management and Analysis (JMFA) deals with such' issues as comprehensive treatment of Multinational Corporations in developing countries, financial management ways and means of promoting joint ventures with developing countries in the Middle East, Africa, Latin America, USSR, China and tapping of American, European and Japanese markets, anaylsis of management information systems in the fertilizer, textile, tractor, cement, building, chemical, computer industries. For more information and subscriptions : Managing Editor, JFMA, Om Sai Centre for Financial Management Research and Training, 15 Prakash Cooperative Housing Society, Relief Road, Juhu, Santacruz (West), Bombay , India. ****** - Dans Ie cadre de son programme scientifique, qui vise a etudier la conjoncture sociale internationale, I'lnstitut de Recherches Economigues et Sociales (IRES) publie :. une "Revue de I'IRES", et. un bulletin d'information trimestriel. Pour commander: IRS, 1, rue de la Faisanderie, Paris, Tel ****** - Le Communicateur est une revue d'information pour les metiers de la communication. Un numero special entitule: Reseaux informatigues: moteurs de I'economie, No 8. qui fait Ie point sur I'explosion des prestations de communications. Des services a forte marge et a forte valeur ajoutee apparaissent partout dans les circuits economique dont beacoup sont rentables et efficaces, tandisque d'autres seront des echecs. Le commerce international est un univers de risque. Ce sera desormais Ie sort des telecommunications. Pour s'abonner: Le Communicateur, Boite Postale 52 - F-75362, Paris Cedex 08 ABSTRACTS - Service Management and Marketing - Managing the Moments of Truth in Service Competition, by C. Gronroos, Ed. Lexington Books, D.C. Heath and Co, Lexington, Mass. ISBN In the Western world, more than half of the gross national product is produced in the service sector. This shift from manufacturing as the main source of economic development to an economy based on service as the critical source of wealth has created the need for a solid theory of service competition. Most of what has been written on the subject deals with competition based on the production of goods. As the goods components get increasingly similar between competitors, and if a firm wants to avoid a devastating price competition, other ways of offering value added to customers must be found. The present book offers a contribution to such a theory. Building upon modern research and practical experience from areas such as management and marketing, as well as operations and organizational behaviour in service contexts, it offers a comprehensive body of knowledge on service management, that is, how to develop and execute a market-oriented service strategy. 15

18 - The Uruguay Round Services in the World Economy, by Patrick A Messerlin and K. Sauvant, Editors, Copublished by the World Bank and The United Nations Centre on Transnational Corporations, 226p, ISBN Negotiations are underway in the Uruguay Round to create the first multilateral framework for international trade in services. An agreement on trade in services, which could be put into place by the end of 1990, would present significant opportunities for developing countries seeking economic growth. The 20 papers in this collection provide an overview of the main issues involved with trade in services. Contents Part I : The Constitutional Framework 1. Principles in Trade in Services - RH. Snape, Monash University 2. Principles in Factor-Related Trade in Services - B. Hindley, London School of Economics 3. Negotiations on Trade in Services: The Evolving Conceptual Framework - M. Marconini, GATT 4. Service-Related Production, Employment, Trade, and Factor Movements: A Global Perspective B.M. Hoekman, GATT Part II: Sector Studies 5. Banking Services - AH. Gelb and S.B. Sagari, The World Bank 6. Insurance - RL. Carter, University of Nottingham 7. Construction - J. Lee, Data Resources Inc. 8. Air Transport- C. Findlay, University of Adelaide 9. Maritime Transport - A.J. Yeats, The World Bank 10. Professional Services - P. Mallampally, UN Centre on Transnational Corporations 11. Telecommunications - G. Russell Pipe, Telecom Services Trade Project 12. The Tradability of Services - K. P. Sauvant, UN Centre on Transnational Corporations Part III: Country Perspectives 13. The United States - B. Balassa, The John Hopkins University and The World Bank 14. The European Communities - P.A. Messerlin, The World Bank and Institut d'etudes Politiques de Paris 15. Lessons from the Experience of the Organisation for Economic Co-operation and Development (OECD) - R Geiger, OECD 16. A Global Perspective - K. Heydon, OECD 17. Mexico - L. Rubio, E. Jaime and A. Diaz, Centro de Investigacion para el Desarrolo 18. Developing East Asian countries - C.H. Lee, University of Hawaii at Manoa and the East-West Center 19. India - S.S. Bhalla, The Policy Group 20. Brazil - C.A Primo Braga, University of Sao Paulo - Rapports Sociaux de Service : Une Autre Regulation, par Jean Gadrey - Revue economique, Vol. 41, No 1, janvier 1990, pp Cet article developpe "idee selon laquelle, pour integrer les activites de service aux schemas theorique selon laquelle, il faut commencer par analyser la relation de service et les "rapports sociaux de service", en tant que modalites techniques, sociales et institutionnelles de rapprochement et partois d'integration des processus et des acteurs de I'offre et de la demande, concernant d'ailleurs non seulement les activites tertiaires mais egalement I'industrie. On precise d'abord les activites tertiaires mais egalement I'industrie et puis les principales dimensions de ces relations. Leurs modalites de regulation sont ensuite analysees. En conclusion, est presentee une reflexion sur la regulation "post-fordiste" et sur I'importance croissante que devrait y prendre I'institutionnalisation des rapports sociaux de service. 16

19 - New Evidence on theexpansionof~service EmploymenhincAdvanced'Ecoh0mies"insReview of. Income' and Wealth Series"-'35/ Number 4;'--Oecember' 19a9, by T.' Elfring, Rotterdam School of Management, Erasmus University. In this article, the expansion of service sector employment is examined in detail in seven OECD countries, Le. France, Germany, Japan, Netherlands, Sweden, United Kingdom and the United States using a newly developed set of estimates for service employment. A sufficient degree of disaggregation, consistency and harmonization was attained by merging existing national sources on employment. The twenty two distinguished service activities are aggregated into four subsectors Le. producer, distributive, personal and social services. The new evidence revealed that the characteristics of the expansion of services claimed by a number of studies needs adjustment, and for some services the figures of recent years indicate serious changes in trends. In the sixties, the growing service employment share was largely due to the expansion of social services. In the seventies and eighties growth in social services slowed down and the expansion of producer services became more prominent. Further, employment growth in personal services started to accelerate after substantial declines in the sixties. These changing trends were most pronounced in the United States, but other countries seem to be following the same pattern with some lag. - Technical Engineering Services, OECO, Jan This report stems from work at OECD on engineering, technical and other services to industry. Its major concern is with the role of services in increasing the efficiency of manufacturing firms. It provides a case study of what has been called "Technical Engineering Services" (res) to illustrate this role. It forms part of what has been described as "intangible" investment and as such it is inherently difficult to measure and, as the report show, there are few sources of statistics. Overall, TES is estimated to amount to about 2-3 per cent of the GOP of OECD but its role in the process of industrial change is far greater than that facilitating function, by assessing feasibility and tackling the practical difficulties of bringing forward new products, technologies, projects, plant and equipment. As such it plays a complex role in the processes of change and growth at all stages. It is not just a link in the process of innovation but a part of bringing together the ideas and skills of producers, the available technologies and the needs and requirements of purchasers. TES is thus not just a production aid but a sales aid and a purchase aid as well. Technical engineering service (res) lacks a clear definition. The activities performed under this general heading vary from one country to another, but also over time, more particularly under the pressure of the rate of earlier stage of a project starting e.g. with the prefeasability studies with a broader scope to include market and economic evaluation. Activities such as construction services and procurement as well as operation management are also often covered. for the purposes of this report TES has been described to include : - The provision of design services for the construction of a goods-or-power producing facility or of infrastructure, - Inspection and technical supervision of this construction, - Preparation for industrial production of new products, - The design, construction and start-up of industrial production capacity for new or modified product, - The testing, improvement and modification of capacity and products. 17

20 - Osterreichs Aussenhandel mit Dienstleistungen, J. Lamel, M. Mesch und J. Skolka (Hrsg), Wirschaftswissenschaftlich, Beitrage 27, Physica-Verlag Heidelberg ISBN Dem Arbeitskreis for bkonomische und soziologische Studien, Wien, initiiert und koordiniert hat. Insbesondere die Zunahme der Arbeitslosigkeit und das Beharrungsvermbgen derselben motiviertern Studien Ober das Absorptionspotential des Dienstleistungssektors, die Wachstumsursachen und aussichten einzelner Dienstleistungsbereiche, die Auswirkungen des technischen Fortschritts auf Beschaftigungs- und Produktivitatsentwicklung ebendort, sowie zu vielen anderen Fragestellungen. Der Aussenhandel mit Dienstleistungen blieb hingegen ein vergleichsweise unbeachtetes Thema. Erst wahrend der letzen Jahre wandte sich die Aufmerksamkeit in starkerem Masse diesen Problemen zu.aussenhandel mit Dienstleistungen ist seit 1982 Gegenstand intensiver internationaler Verhandlungen - EC Services Export to Japan, a report prepared for the ECC on July This report provides an analysis of comparative advantage in service industries between Europe and Japan, the standardized promotion strategy for service industries makes little sense because they have different competitive advantage according to the kind and form of business. The form of services can be classified into the following four types: 1. Service which is already internationally standardized (Le. international basic telecommunications such as international telephone, TLX, international transportation), 2. Service which is delayed in international standardization due to differences in systems (Le. insurance commodity which is liberalized in Europe but restricted in Japan), 3. Service which is delayed in standardization due to difference in cultural value and historical background (Le. difference in wholesale commodities of the tourism industry such as the long-stay vacation type in Europe and the short-stay circuit type in Japan). 4. Service which is not yet standardized due to new consumer needs and rapid innovation (Le. VAN, database, computer software). Contents Part 1 : Analysis of the competitiveness of fourteen service sectors Part 2 : An analysis on Japanese measures that facilitate trade in services Part 3 : A recommendation to promote exports of EC services to Japan * * * 18

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