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Most people work in order to earn their living. They produce goods and services. Goods are either produced on farms, like maize and milk, or in factories, like cars and paper. Services are provided by such things as schools, hospitals and shops. Some people provide goods; some provide services. Other people provide both goods and services. For example, in the same garage, a man may buy a car, or he may buy some service which helps him to maintain his car. The work which people do is called their economic activity. Economic activities make up the economic system | Analysis has been undertaken in the United States on the impact of introducing more competitive market structures and changing regulatory frameworks. These studies focussed on the impact of eliminating the regulatory restrictions which were imposed on the Regional Bell Operating Companies by the Modification of Final Judgement. For example, the United States Council of Economic Advisers estimated in 1995 that, the legislative proposal which had been put forward at that time by the Administration aimed at opening the telecommunication markets to more competition (much of which has been incorporated in the Telecommunication Act of 1996), could add $100 billion to GDP over the next decade. Further the estimates indicate that the share of the telecommunication and information sector in GDP could double by 2003 and that there could be a net increase of 1.4 million jobs in that sector. Incremental capital investment over the next decade is estimated to reach $75 billion. The significance of the Council of Economic Advisers’ study is the underlying recognition that existing regulatory frameworks are an impediment to investment, service development and employment growth. A similar study estimated that by eliminating line of business restrictions on the BELL Operating Companies (the present Act has in effect eliminated them), the economy would gain 3.6 million additional jobs over the next 10 years, 0.5 per cent in manufacturing output and $247 billion would be added to GDP.
