significance tothedevelopment ofmodern producer services, especially fromthe l1 viewpoint ofstrengthening theirinternational competitiveness. Whatever their [j overall policies towards services, foreign direct investment andtransnational ~l corporations inservices weremoreclosely regulated thaninmanufacturing. While t~k!therehadbeenarecent trendtowards liberalization i~developed countries, ~ developing countries werestillatastageofstudyandreview ofexisting H t'·isituations. TheActing Assistant Director pointed outthatthelargeand ., increasing shareofservices ininternational flowsofforeign direct investment U raised thequestion ofitslikelysignificance fordeveloping countries. Inthat '.'.'~.' connection, heelaborated upononeimportant areaofpotential impact of ~ transnational service corporations onhostcountries,namelythatoftechnology ~.'.,! transfer, mainly ofsofttechnologies. Available evidence suggested thatowingto ~~ theirrelatively free-standing nature (ascompared withmanufacturing affiliates),n attributable largely totheasyetlimited tradability ofservices andtheir t.~" components, transnational service corporations offered scopeforlargertransfers (- ~.joftechnology, skills andphysical capital forgivenamounts offoreign direct 11 investment thandidmanufacturing transnational corporations. Finally, theActingr' ~Assistant Director drewattention tothepolicy issues facing developing countriesN withrespect totheservices sector andforeign direct investment andtransnational I.: corporations inservices. Thoseissuesrelated, forexample, totheselection off' priority services whichwerecrucial tooverall economic development, costsof I protecting domestic service industries, andwaysandmeansofenhancing the competitiveness ofinfant service industries. Inthelightofdifferences among developing countries andservice industries, policy options weremostlikelytobe country- andindustry-specific, although therewasroomforsomemeasures that couldbeadopted bydeveloping countries generally forupgrading theircapabilities indealing withtransnational service corporations. 147.Mostdelegations taking thefloorreaffirmed theviewthat,giventhe importance ofservices intheeconomic development ofdeveloping countries andthe growing roleoftransnational service corporations inforeign direct investment, services deserved speci.al attention andtheCentre should continue itsworkon transnational corporations inservices. Somedelegations stressed thatthe importance ofservices stemmed fromtheirinfrastructural andsocial functions. Others focused ontheirroleas~sourceofcompetitiveness andefficiency ofthe wholeeconomy through theirinterlinkages toothersectors. Several delegations expressed theviewthat una~rdeveloped services constitute asevereconstraint on social andeconomic development. Oneexpert adviser stressed, however, that despite thegrowing importance ofservices andforeign direct investment in services, industrial investments needed tobeemphasized, inthelight, amongother things, oftheobserved shortfall ofincomes earned inservices ascompared with thoseinindustry. 148.Mostdelegations acknowledged thecontributions thattransnational service corporations couldmaketotheeconomies ofdeveloping countries andcommended the Centre foritsuseful review ofthosecontributions. Several delegations agreed thattheareaofsofttechnologies wasoneofthemostpromising inthatregard and thattransnational corporations wereimportant actors intheinternational trapsmission oftechnical knowledge, mana0erial, organizational andotherskills.
**Analysis**
The text discusses the significance of transnational service corporations in the economic development of developing countries, specifically in terms of foreign direct investment, technology transfer, and competitiveness. The language used is technical and economic, focusing on concepts such as liberalization, trade, and policy issues. This suggests that the category should be related to economic development and international trade.

**Category**
Economic development, International trade