Services, the Best Shortcut for Developing Countries Economic Boost

August 5, 2002 - 0:0

TEHRAN - The developing countries which pay more heed to the services industry are the ones which would pass the ones which still are engaged in the primary and secondary industries.

Service Industry is group of industries involved in providing services, as opposed to primary industries such as agriculture and mining and secondary industries including manufacturing and production.

Unlike the primary and secondary industries, services industry which is also known as tertiary industry, has no rehabilitation cost and human resources are its primary and most important asset.

The term "services" covers a huge range of economic activities, including retailing, banking, insurance, catering, medicine, law, accountancy, cleaning, teaching, television production, the civil service, sport, transport, and many more activities.

In Britain and France as the two stances of the developed country services industry play made up an important part of the government revenues. For instance some two third of the budget revenues of the Britain is through insurance and banking, which they do call it invisible earning. France also fetch a great deal of revenues through tourism industry.

Frankly speaking almost most of the developing countries including Iran have mainly focused on the two other kind of industries, which means the secondary and primary ones, and the tertiary industry has been undermined.

Taking our country Iran as granted, it seems that the current privatization policy which is under practice throughout the country, is the turning point for further practice of the services industry in the country.

Regulations which has recently passed for privatization of banking and insurance in the country is a positive signal which says the way is getting open for wider practice of these service industries in the country Since the 17th century Britain has been known for its prominence in banking. London still remains a major financial center, and virtually all the world's leading commercial banks are represented.1 As one of the world's richest countries, Japan has a banking sector with considerable influence on the world economy as a whole; it is also home to the world's largest banks in terms of capital holdings. the Japan Export-Import Bank handles large credits for international trade; the Housing Loan Corporation assists the provision of company housing; and the Agriculture, Forestry, and Fisheries Finance Corporation advances loans for equipment purchase. The Japan Development Bank supports industrial finance, assisted by the private Industrial Bank of Japan, Long-Term Credit Bank of Japan, and Nippon Credit Bank Ltd.2 has made These country do earmark a great deal Over the past century the service sector has expanded in the developed world. The service sector is now the most important sector in the advanced economies, accounting for about two thirds of the total economy in countries such as the Britain and the United States.