Rijit Sengupta CUTS International OPENING MEETING IN ZAMBIA 10
th April 2013, Lusaka (Zambia) Overview of the CREW Project
Competition Reforms in Key Markets for Enhancing Social &
Economic Welfare in Developing Countries
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Outline 2 Introduction About the Project Project Phases
Country-Level Activities & Timeline
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3 I. INTRODUCTION
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1. Linking Competition with Welfare in DCs 4 Competition can
promote consumer and producer/business welfare not much doubt
Competition not an end in itself, but a means for achieving
developmental goals CUTS experience on competition research,
advocacy and outreach in over 30 countries of Africa & Asia
Presence of competition law not adequate, developing countries need
to embrace a comprehensive approach - competition reforms However,
DCs suffer from various challenges: - Government support often
meager - Limited stakeholder awareness & understanding -
Development partners priorities - Etc.
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2. What is Competition Reforms? 5 Competition reforms = A + B +
C A: Enabling government policies designed to facilitate a level
playing field (fair competition) in a market B: Well-designed
regulatory framework, adequately resourced regulatory institutions
& effective actions for promoting fair competition in a market
C: Well defined competition legislation and effective enforcement
mechanisms
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3. Motivation of the CREW project 6 A story from Kenya: Cane
farmers laud increased competition in sugar sector
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7 II. ABOUT THE PROJEC T
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1. Goal & Objectives 8 Goal To better demonstrate
measurable benefits from effective competition reforms in DCs, for
ensuring long-term support for competition Objectives Enhance
understanding of benefits from competition reforms in DCs Develop
& Test a Methodology to assess efficacy of competition reforms
in benefitting consumers and producers Advocate to key actors
(National & International) for greater support to competition
reforms in DCs Sustain momentum on competition reforms and take it
forward
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2. Outputs & Outcome 9 Outputs Documented evidence of
benefits from competition reforms in key markets Dialogues
involving multiple stakeholders on benefits of competition reforms
in DCs Strategy for capacity building of DC competition agencies
and sector regulators Framework (Tool) guiding process of
competition reforms in DCs Demand from elsewhere for similar
exercise Outcome Greater attention and impetus for competition
reforms in key DC markets resulting in consumer and producer
benefits
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3. Implementation Plan 10 4 Countries: Ghana, India, The
Philippines 2 Sectors: Staple Food & Passenger Transport Phase
I: Identify competition reforms undertaken in the two sectors
(specific markets) across 4 countries and assess benefits/impacts
on consumers and producers (Diagnostic Report) RESEARCH &
CONSULTATIONS Phase II: Develop a common methodology for
quantifying benefits/impacts of competition reforms in specific
markets DESIGN THE FRAMEWORK & CONSULTATIONS Phase III: Apply
methodology in micro-locations in project countries to gather
evidence and advocate ADVOCACY & PUBLIC EDUCATION
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4. CREW Project Actors 11 Program Level CREW Implementation
Team Project Advisory Committee (PAC) Country Level Country Partner
Organisation National Reference Group (NRG) National Entities:
Competition/Sector Regulator, Business Associations, Research
Organisation/CSO, Media
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12 III. PROJECT PHASES
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1. PREPARATORY ACTIVITIES 13 Planning Meeting (8-9 November
2012, Bonn) Background Paper Identification of Project Advisory
Committee (PAC) Inception Meeting (13-14 March 2013, Jaipur)
Selection of Project Countries Selection of Sectors
Country-specific research in Sectors Identification of partners and
NRG members in countries
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2. PHASE I Activities Diagnostic Phase (RESEARCH &
OUTREACH/CONSULTATIONS) 14 Identify competition reforms undertaken
in the two sectors Gather information about specific policies,
practices that benefit/impact consumers and producers Identify the
specific markets in each of the two sectors for deeper
investigation How can such benefits/losses (for consumers and
producers in each of the two sectors) be quantified? Collate
experience from four countries for each sector - inputs for the
design phase (Phase-II)
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3. Evidence of Benefits or the lack of it 15 STAPLE
FOODPASSENGER TRANSPORT CONSUMER WELFARE Availability of good
quality staple food at right prices for ordinary consumers
Availability of good quality transport services to ordinary
consumers at right prices (Intra-city Transport services) mostly
used by ordinary consumers to get to workplace, markets, schools,
college/university on daily basis PRODUCER WELFARE Participation of
private entities in procurement, storage and distribution of staple
food and how they benefit Right price and fair terms for producers
(and their groups) selling staple foods in markets Ease of entry of
new players (an operator) in a specific geographic market for
providing such services Fare and terms of service in case of Inter-
city Transport services for small traders travelling to nearest
market town to sell their produce
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4. Programme Logic (Phase-I) 16
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5. Phase II Design Phase [DESIGN THE FRAMEWORK (with
METHODS/TOOLS) & CONSULTATIONS] 17 Draw Inputs from the
Diagnostic Phase (for preparing 2 sectoral frameworks) in terms of:
(a) Indicators of benefits of competition reforms for consumers and
producers (b) Evolve a common methodological framework (c)
Selection of applicable Methods and Tools
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6. Benefits of competition reforms for Consumers (Possible
Indicators) 18 Access: Goods and services reach consumers in areas
where they were not available earlier Quality: Quality of goods and
services enhanced by firms to attract customers Choice: New
firms/products enter otherwise concentrated markets Price: Prices
are reduced in a contestable market Time savings by consumers
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7. Benefits of competition reforms for Producers (Possible
Indicators) 19 Access to essential services: Firms can easily
access infrastructure networks, etc. Free movement of goods &
services: Mobility not affected by policies, practices (inputs
& outputs) Predictability of regulatory actions: Legislations
enforced by autonomous yet accountable institutions
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7. Benefits of competition reforms for Producers (Indicators)
20 Cost savings: Effective implementation of strategies to reduce
costs, e.g. improved application of ICT tools Fair market
processes: Easy entry and exit in markets; considerable ease of
doing business Level-playing field: principle of competitive
neutrality is observed Transparency in market: Well laid out
policies and predictable implementation processes (market
regulators)
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8. Phase III: Validation Phase (MICRO-LEVEL TESTING, ADVOCACY
& PUBLIC EDUCATION) 21 Research: (a) competition distorting
policies & (b) impact of ACPs on producers, consumers
Parliamentary outreach and discussions Government-Business Forum
Media (information) campaign Training Workshop for CAs and Sector
Regulators - Enhance enforcement capacity (based on market studies)
- Highlight need for coordination of actions (CA + SR) National
Orientation Workshop (other sectors) - Expanding support for
competition reforms - Better buy-in (other sectors)