Decent Work in Global Supply Chains

Chapter 2.3 The evolution of global trade rules


Public services are:

provided by the public sector (be it directly by a public entity or indirectly once services are procured)
financed at a larger or lower degree by public resources
are considered essential, linked to fundamental rights and usually universal,
This means that public services are in many occasions delivered even if not commercially viable, as the positive externalities overcome the low or negative financial profitability. In other words, they are services provided by the public sector as there are market failures that need to be corrected. In many occasions, they are linked to regulated markets, in order to ensure the universality principle.

Entrance in these market may thus be difficult (if there are barriers to entry, such as licenses, need to ensure universal service, cap prices...) or entirely forbidden.

Corporates may lobby, among other issues, to:

deregulate markets (for example within the wave of deregulation of the transport sector promoted by the European Commission, the operation of rail services has been liberalized, and in Italy two of Italy’s most powerful businessmen, Luca Cordero di Montezemolo, CEO of Ferrari, and Diego Dalle Valle, CEO of Tod’s created Italo, as the first high speed train private operator),
increase subsidies to services provided by private companies (for example in Spain the Popular Party has increased subsidies to private schools)
eliminate tariffs (for example, in Spain, the electricity tariff paid by households was eliminated and each consumer is required to negotiate a contract for the provision of electricity with a local retailer; thus any increase in global energy prices can be directly transferred to the final consumer).

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