Synergies between services and industry could improve overall productivity.

Expanding the service sector, where productivity is low, will hold back aggregate output.

In particular, they show that services have exhibited unconditional convergence in productivity recently. That is, countries furthest away from the global frontier of labor productivity have seen the fastest productivity growth in services.

To be sure, some modern service activities are capable of productivity convergence as well.

This is true even in services, despite slow productivity growth in Europe.

Government efforts to increase productivity in the service sector probably will be particularly important.

The problem is more than just the tendency of productivity to grow more slowly in services than manufacturing. Service sector productivity growth in formerly manufacturing heavy Asian economies has been dismal by international standards.

Worse, service industries are falling further behind large manufacturers in terms of productivity and wages.

Likewise, service sector liberalization will be essential to promoting productivity and creating jobs.

The problem is more than just the tendency of productivity to grow more slowly in services than manufacturing.

Indeed, productivity growth in India s service sector matches productivity growth in China s manufacturing sector, thereby reducing poverty by enabling wages to rise.

Deep service sector reforms in Germany would also help to unlock the country s productivity potential and open its market to services exports from southern Europe.

Business services are knowledge intensive, allow for technology diffusion and are an important source of productivity growth. Their outsourcing is particularly important for SMEs, as it allows them to focus their limited internal resources on core functions.

Developing the service sector could also diversify the production base, thereby enhancing economic resilience and boosting growth momentum.

It is that service sector productivity growth has run at barely half the rate of the United States.

But most high productivity services require a wide array of skills and institutional capabilities that developing economies accumulate only gradually.

Measures to facilitate capacity building will be identified in order to enhance the productivity, competitiveness and environmental compatibility of service, industrial and agricultural outputs.

Service sector productivity growth in formerly manufacturing heavy Asian economies has been dismal by international standards.

This work is raising many new questions for measurement, including the possible approaches to developing measures of aggregate productivity performance, as well as issues related to productivity measurement in specific sectors of the economy, such as services.

The partnership with the UNDP Regional Bureau for Asia and the Pacific (RBAP) was strengthened with UNCDF given a leadership role in the new UNDP's Regional Governance Programme in the area of local governance and service delivery and the Regional Technical Advisor transferred to the UNDP's Regional Centre in Bangkok. UNCDF technical expertise in the local development area provided technical advisory services in LDCs and non LDCs on a cost recovery basis.

Admittedly, the problem is worse in the government sector, where productivity growth is much slower even than in other service industries.

Government efforts to increase productivity in the service sector probably will be particularly important. For example, Japan is in a good position to exploit synergies between an improved health care sector and its world class manufacturing capabilities, in the development of medical instrumentation.

The UNDP provides assistance to SMEs and supports grass roots initiatives in all sectors of production and transformation, service provision, and trade.

The improvement of knowledge transfer in service statistics is in line with international trade, development, productivity and growth agendas, where there is a need for more countries to improve understanding of the actual and potential contribution of services to growth and development

Why does slow productivity growth translate into high costs? The problem is that service industries ultimately have to compete for workers in the same national labor pool as sectors with fast productivity growth, such as finance, manufacturing, and information technology.

Today, capital in the developed world is abundant the saving ratio declines as people consume more and production shifts increasingly to services, where productivity gains are limited.

Paying for Productivity

The Coming Productivity Revolution

Today s Productivity Paradox

Improving farm productivity.

The services provided under this module are intended to improve the formulation, implementation and monitoring of industrial strategies and policies in order to enhance the contribution of industry to productivity growth and the achievement of the MDGs.

Admittedly, the problem is worse in the government sector, where productivity growth is much slower even than in other service industries. Whereas this might reflect the particular mix of services that governments are asked to provide, that can hardly be the whole story.

Productive synergies with other service providers will help demonstrate to donors that the Agency is capable of combining its strengths with those of other competent actors to maximize efficiency and optimize service outcomes for its beneficiaries.

America, China, and the Productivity Paradox

(a) Production and production capacity

Raising agricultural productivity.

Took note of document DP 2005 CRP.2 on the update on the progress achieved in the partnership between UNDP and UNIFEM

In both Korea and Japan, to cite two key examples, the problem is not simply that productivity in services has grown barely a quarter as fast as it has in manufacturing for a decade.

And a small division of labor means low productivity.

Rising incomes require rising productivity.

Expert Meeting on Enhancing the Productive Capacity of

Contribution of industry to development and poverty reduction Technology diffusion for productivity enhancement Policy choices in the new economic order Private sector development.

Expert Meeting on Enhancing Productive Capacity of

But the bad news is that the transition now being asked of China to shift toward services without experiencing a significant decline in economy wide productivity growth is unprecedented in Asia.

Redundant workers have ended up in worse performing activities, such as informal services, causing economy wide productivity to stagnate, despite impressive manufacturing performance.