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This paper deals with the role of human development and technology in trade in services, the significance of trade in services, and the importance of investment in human resource development. It also outlines the requirements for promoting personnel training and the need for advanced technology. The authors begin by describing what services are, before discussing how trade in services affects economic growth and the role of technology in the services sector. Next, they mention the importance of human capital in the services sector. They assume that the actions of regulatory authorities depend on the availability of human capital, so they refer to the relationship between trade in services and regulations. They also discuss the critical importance of investment for the improvement of human capital and the promotion of human development. The authors describe the impact of technology development in the service sector, and note especially that the improvement of information and communication technology (ICT) brings down costs and raises quality. They also note the role of the private sector in investing in ICT and networks, and the role of governments in creating investment-friendly environments. Finally, they comment on public policy before providing some concluding remarks.

In some ways food is unlike other commodities, as local tastes, delivery costs and quality are particularly significant issues for food producers. Food consumption has traditionally reflected local conditions, particularly the raw materials available in the region. For this reason it has been difficult to compare food industries in different countries. In recent years new farm and food technologies and cheaper international transport have increased trade in food products and reduced the importance of local conditions in determining consumption patterns. Large multinational food companies now trade food globally. Population growth and urbanisation have led to the need for mass production of food and mass transportation to urban areas. Technological progress has improved the quality of food and the speed with which it can be transported. Transportation networks have been expanded and new methods of food processing such as freeze-drying have been introduced. Japan's food industry has changed dramatically as a result. Processed food now accounts for two-thirds of food consumption in Japan, and up to 90 per cent if dining out and other food services are included. An increase in food imports has been one of the main factors driving the rise in processed food consumption. Until the early 1990s, most food imports were of ingredients for processing in Japan. To reduce costs, food processing firms started to relocate abroad as they built up knowledge of how to manage the labour force and the manufacturing process in foreign countries. Processed foods previously manufactured in Japan were then imported directly from overseas affiliates of Japanese multinationals. In addition barriers to trade and investment have been falling and consumer tastes have been diversifying, with Western foods becoming more popular. These trends have put pressure on local food manufacturers who had previously been protected from competition, forcing Japan's food industry into a period of transition. This paper provides an overview of Japan's processed food industry from primary production to retail sale. It discusses the features and the problems of the industry, and the key issues facing government, industry, producers and consumers. The industry is currently facing four types of change: shifts in demand, product or process innovations, changes in market position and policy changes. These four factors are closely related: for instance, consumer Pacific Economic Papers demand affects product and process innovation, and the diversification of industries. What will these changes mean for the food retailing and processing industry, and are they likely to introduce greater competition?