Engaging Civil Society to Promote Competitive Reforms in Developing Countries

SEMINAR ON COMPETITION LAW AND CONSUMER WELFARE3rd November, 2011, Malaysia

Udai S. MehtaAsst. Director, CUTS &Centre Coordinator, CCIER

Outline

About CUTS

Overview of Experiences

CSOs participation in evolution of a

competition regime

Impediments in engagement: CSOs

Conclusion & Way Forward World Competition Day

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CUTS InternationalGenesis: Consumer rights organisation est. in 1983

Broad areas of work: Trade, Regulation and Governance

Active programmes on competition, economic regulation and consumer policy and law issues in 30 countries of Africa, and Asia…. and growing

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How we began in 1984….

Matchbox Story Gram Gadar (Village

Revolution)

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Overview of Experiences

Completed projects in more than 30 developing countries across Asia and Africa

In a nutshell, the important considerations: Convergence between competition and

consumer protection policies: Consumer Welfare and Business Welfare

Limited resources within the institutions

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CSO Participation in Evolution

Stage I: Evolution of a Competition Law

Long term planning Botswana

Clear Policy Directives To engage civil society organisations – Kenya, Zambia

and Gambia Seek their participation -- “Working Group on

Competition Policy’ in Mozambique and India

Public Consultation Opportunity to provide comments on draft laws –

Ghana, India, Bangladesh, Zambia, Vietnam, etc Builds up interest, knowledge and ownership

Create a Culture of Competition

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CSO Participation in Evolution (cont’d)

Stage II: Developing the Environment

Sensitisation of Multiple Stakeholders Bottom Up Approach (7Up Model)

Academic curricula in Universities Bangladesh, Ethiopia, India and Vietnam

Motivating Research on Competition: Market Research Studies

DFID, Bangladesh Competition Commission, Kenya Ministry of Corporate Affairs, India

Media has a prominent role to play

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CSO Participation in Evolution (cont’d)

Stage III: Actual Implementation of Law

CSOs working as AlliesLimitations pertaining to human and financial

resources Need to develop synergies with civil society

organisationsPro-active civil society engagement

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Impediments in Civil Society Engagement Lack of Continuity

Garnering resources for functioning Developing capacity Continuous engagement

Contradictions and Conflicts When many CSOs working on policy issues Differences of opinion Difficulty to form consensus

Limited understanding of concepts among Civil Society

Conducive environment for CSO engagement

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Conclusion & Way Forward

ConclusionStrong political will, commitment and visionBuild capacity of CSOs on competition law & policy issuesAbility of CSOs to sensitise other stakeholdersIdentify and report anti-competitive practicesCommitment from the International Development CommunityNetworking (International Network for CSO on Competition (INCSOC)

Way ForwardDeclare and observe a World Competition Day

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Terima kasih

CUTS INTERNATIONALD-217, Bhaskar Marg, Bani Park, Jaipur 302

016, India Ph: 91.141.228 2821; Fx: 91.141.228

2733/2485Em: usm@cuts.org ; cuts@cuts.org

Web: www.cuts-international.org ; www.cuts-ccier.org

ANNEXURES

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The 7UP Model for Competition Reforms

7Up Coverage

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7Up Countries

7Up 1 India, Kenya, Pakistan, South Africa, Sri Lanka, Tanzania and Zambia

7Up 2 Bangladesh, Cambodia, India, Lao PDR, Nepal and Vietnam

7Up 3 Botswana, Ethiopia, Malawi, Mauritius, Mozambique, Namibia and Uganda

7Up 4 Anglophone: Ghana, Nigeria,  Sierra Leone and The GambiaFrancophone: Burkina Faso, Cote D'Ivoire, Senegal and Togo

7Up5 (Proposed

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South East Asia? MENA region?

We did make a difference….. Facilitated forward movement for enactment of

law in Bangladesh, Ghana, etc Significant media attention to create awareness Creation of a network for CSOs – INCSOC Understanding of partner organisations were

improved Inclusion of CSO representatives:

– Jyoti Baniya, Nepal appointed member of the Competition Promotion Board

– Omar Jobe, Gambia appointed as Commissioner of Gambia Competition Commission

– Mbissane Ngom, Sengal appointed as Vice-Chairman of Senegalese Competition Agency

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International Network for Civil Society Organisations on Competition (INCSOC)

A Network of 120 members from 53 countries

Members represent CSOs, Research Institutes and Parliaments

Close contact with international organisations

Milestone Publication Competition Regimes in the World – A

Civil Society Report

World Competition Day-05th December

UN General Assembly adopted the UN Set on Competition Policy on 5th December 1980

Occasion to propagate the benefits of competitive markets and harmful effects of anticompetitive behaviour to citizens

Competition Agencies: Namibia, Pakistan, Russia, Zimbabwe, OFT, Fiji, etc

2nd Call for WCD for 05th, December, 2011: “Cartels and its harmful effects on Consumers”

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