2010年-世界发展银行全球_Reform_and_Regional_Integration_of_Professional_Services_in_East_Africa___Time_for_Action_178页_4mb

Summary of Report No. 57672-AFR: Reform and Regional Integration of Professional Services in East Africa

Core Content

This report examines the development and integration of professional services in East Africa, focusing on accounting, legal, and engineering sectors. It highlights the challenges in policy, education, and labor mobility that hinder the growth and efficiency of these services. The report also outlines recommendations for reform at both national and international levels to enhance regional integration and improve service delivery.

Main Points

1. Importance of Professional Services

• Despite a small share of GDP (1.5% in Uganda to 3% in Kenya), professional services are among the most dynamic sectors in East Africa.
• Business services are critical inputs for other sectors, showing strong linkages in manufacturing, minerals, and services.
• Firms that use professional services have significantly higher labor productivity (10–45% higher) compared to those that do not, especially small firms.

2. Variation in Professional Services Development

• Professional density varies across East African countries and professions, with Kenya having more professionals than Rwanda.
• The per capita availability of professionals is much lower than in more advanced economies like Mauritius and South Africa.
• Wages for professionals in Kenya and Uganda are relatively high when adjusted for purchasing power, indicating a skills gap.

3. Skills Shortages and Mismatches

• The cost of professional education is high, ranging from US$14,000 to US$26,000, making it unaffordable for many.
• Weaknesses in education systems, especially in math and science, contribute to declining applications in science, engineering, and technology courses.
• There is a lack of institutions offering specialized post-graduate courses in legal and engineering services, as well as middle-level professional training.

4. Underdevelopment of Professional Services

• Domestic regulations on entry and operations limit competition and create inefficiencies.
• All three sectors (accounting, legal, engineering) impose entry restrictions, with Kenya and Tanzania being the most restrictive.
• Conduct regulations, including price controls, advertising bans, and restrictions on business structure, are more stringent in East Africa than in most other regions.
• These regulations can create monopolies and limit access for smaller service providers.

5. Trade Barriers and Labor Mobility Restrictions

• Trade barriers in professional services are significant, with legal services being the most protected.
• Cross-border trade in professional services is restricted, especially in areas like domestic law advice, statutory audits, and tax representation.
• Movement of natural persons (foreign professionals) is limited by nationality requirements, labor market tests, and immigration policies.
• Kenya and Tanzania restrict foreign professionals from practicing domestic law, while Rwanda allows more flexibility.
• Foreign accountants can practice in Kenya and Tanzania with certain qualifications and exams, while foreign engineers face fewer restrictions.

6. Recommendations for Policy Action

• National Level:
  • Reform education systems to better align with market needs and improve access to professional training.
  • Harmonize professional qualifications and standards across the region.
  • Simplify and reduce the costs of becoming a professional.
  • Improve transparency in procurement procedures and reduce non-tariff barriers.
• International Level:
  • Promote regional integration through mutual recognition agreements (MRAs).
  • Facilitate the development of regional trade agreements (RTAs) to reduce trade barriers.
  • Encourage the creation of a more competitive and open market for professional services.

Key Information

• Professional Services Sectors: Accounting, legal, and engineering.
• Countries Studied: Kenya, Rwanda, Tanzania, Uganda, and Burundi.
• Challenges Identified:
  • High costs of professional education.
  • Weak education systems and lack of specialized training.
  • Restrictive domestic regulations and conduct rules.
  • Trade barriers and limited labor mobility.
• Positive Trends:
  • Some countries, like Rwanda, have more open policies.
  • Local mid-level accounting firms are gaining market share in Kenya.
  • There is a high demand for professional services due to legal requirements for financial reporting and taxation.

Conclusion

The report emphasizes the urgent need for policy reforms to enhance the development and integration of professional services in East Africa. These reforms should focus on improving education systems, reducing regulatory burdens, and promoting regional cooperation to create a more competitive and efficient market for professional services.