Globalization and the WTO agreement on financial services in African countries

This paper examines how globalization trends - the internationalization of trade in services, finance and investment;rapid advances in communications and information technology;interdependence as well as competition among developing and developed nations;etc. -- are creating a new and complex global economic order. To ensure rapid economic and social progress, African countries must find ways to compete successfully in this emerging global economy and benefit from trends in globalization. Given the limited capacity of African countries, dealing with the challenges of globalization requires bold steps with a strong sense or urgency, in order to (a) spur private domestic and foreign investment and (b) build well-functioning financial services sectors that are well-integrated with international financial markets. In particular, policies must be designed to foster equitable economic growth and improvement in the economic conditions of the poor, who constitute the majority of the African population. This requires effective financial services delivery to the private sector in areas that can have a direct impact on poverty alleviation -- infrastructure development, the establishment and growth of small- and medium-sized businesses, export trade, microenterprise development, agricultural and rural enterprise development, housing, etc.