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This book, released in May 2007, distils the lessons arising from a body of IDRC-financed research for the effective implementation of competition law. Download full document:

Preliminaries & Executive Summary

FOREWORD

This book is a contribution by the IDRC to the understanding of competition policy and law for all stakeholders focusing in a special way on emerging and developing economies. It provides a valuable historical perspective, which traces the role played by various international organizations in shaping the course of Competition Policy as it is implemented, not only in developed economies but in developing ones as well. Indeed, it is a widely held view that the impetus for competition is externally driven; and this accounts for the limited political commitment which it enjoys in some developing countries.

For the competition tenderfoot the book successfully explains the relationship between competition policy and competition law. The authors note the wide range of policy matters that comprise competition; and this is very useful, especially for policy makers. Often individual issues are pigeonholed without due regard for other issues.

In this context, the specific experiences of selected countries provide a practical guide to governments and government officials struggling with designing an appropriate policy and/or drafting a complementary Law. The South African and the Uzbekistan experiences are rich examples of the kinds of issues that might be considered. In both cases, improving consumer welfare was a core consideration in determining the scope of the law. In highlighting these examples, the authors are also providing the business sector as well as consumers with an insight into what goes into the making of the law.

There is no equivocation: the strongest law can be rendered useless by weak and/or mindless enforcement. All competition authorities that enforce merger control provisions are faced with the challenge of determining which consolidations are likely to have anticompetitive effects; and which will produce those outcomes which will enhance competition. Inexperienced authorities will find in the South African Commission’s treatment of concentration in the steel industry a real lesson in applying merger law. Private sector firms and their lawyers, particularly in jurisdictions which are averse to merger control, ought to gain a great deal of assurance from the authors’ careful outline of what amounts to a proper application of merger law.

In a timely word to the political directorate, the book makes the critical point that effective competition enforcement requires adequate human and financial resources; a sound statutory instrument with appropriate and meaningful sanctions. It stresses too the need for the authority to be independent from routine control by politicians and holds a mirror up to governments and government officials, in highlighting the dangers of “cronyism” and weak political will to protect the competitive process.

The book targets all persons who are likely to have an interest in Competition Policy and Law at some level; and succeeds in adding significantly to the knowledge base of all target groups. The authors’ deep insight is reflected in their recommendation that each country establish a standing consultative committee for the purpose of undertaking periodic reviews of the efficiency of the law.

I recommend this book as a major resource not only for young competition authorities, but also for agencies and government officials of developed countries, given the value of periodic review in competition law enforcement.

Barbara Lee

Executive Director
Jamaican Fair Trading Commission

 TABLE OF CONTENTS

Readers of an electronic version of the complete book can click on the page number to link to the section.

Table of Contents
The Authors
Acknowledgments
Abbreviations
Executive Summary
Index Table of Developing Countries’ Experiences

Part 1: Introducing IDRC Research into Competition Issues

Part 2: The Issues

2.1. Why has Competition Policy become an issue?
2.2. What is Competition Policy?
2.3. Challenges of Introducing Competition Law

Part 3: Developing Countries’ Experiences

3.1. Has enforcement of Competition Law benefited developing economies?
3.2. How can Competition Law be tailored to meet the needs of a specific economy?
3.3. What are the challenges to legislating and implementing Competition Law?
3.4. How and why are stakeholders involved in the implementation process?
3.5. How can Competition Authorities deal with cross-border anticompetitive conduct?

Part 4: Recommendations

4.1. Drafting and implementing competition law
4.2. Engaging stakeholders in implementation
4.3. Contending with anticompetitive conduct across national borders

Part 5: A Vision for the Future

References & Closing Matters

References

Short Glossary of Competition Law Terms Used

THE AUTHORS Taimoon Stewart is a Senior Advisor on Trade and Competition to the Business Development Office of the University of West Indies, Trinidad and Tobago and a Consultant in International Trade and Competition Policy. Julian Clarke works as a consultant to IDRC and the International Monetary Fund (IMF) in Geneva. He is currently completing his PhD in Economics at the University of St Gallen, Switzerland. Susan Joekes is a Program Specialist at the IDRC, based in Cairo, Egypt at the Middle East and North Africa Regional Office of IDRC and attached to the Globalization, Growth, and Poverty Program.

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