framework for competition reforms (fcr): guiding principles rijit sengupta cuts international crew...
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Framework for Competition
Reforms (FCR):Guiding Principles
Rijit SenguptaCUTS International
CREW International Conference19th Nov 2014, Bangkok
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What is it?• Guidance for DC policymakers and practitioners about steps for
promoting competition reforms in sectors• Easy to comprehend for civil society actors too• Rationale: DC policymakers are not able to give adequate
priority to promoting competition in sectors• Policies distort competition in markets – CAs can’t do much• Based on experience, CUTS intends to strengthen DC
constituencies for competition reforms: has to go beyond the CA• Possible if:
- benefits are well-demonstrated- process is well-defined and planned- implementation is not expensive- involves multiple SH engagement support
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Framework for Competition Reforms (FCR) is envisaged as a step-wise reference for DC
policymakers and practitioners to promote competition reforms in key sectors………….
COMPETITION REFORMS FOR ENHANCING SOCIAL AND ECONOMIC WELFARE IN DCs
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Outline
• Identifying the sectors• Fixing indicators: consumer & producer
welfare• Identifying & examining sectoral policies• Short-listing ‘relevant’ policies & practices• Assessing welfare implications• Building evidence base and its application• Ensuring local buy-in & ownership• Initiating actions by local SHs• Addressing challenges encountered
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1. Identifying Sectors
• Based on certain criteria• Sign of reforms• Presence of a regulatory framework and institution• Key sectors for ordinary consumers and small producers
(impact)• Nature of markets – dominant players, SoEs, monopolies• Data availability• Of interest to civil society actors
CREW Project Background Paper
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2. Fixing Indicators: Consumer & Producer Welfare
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Consumer Welfare Access Choice Price Quality/Price Time Saving
Producer Welfare Access to inputs Easy of entry Growth Investments Cost savings
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3. Identifying and Examining sectoral policies and practices
• Policy basket: sectoral policies, laws, sectoral programmes, statutory instruments, administrative orders
• Examining policies by applying existing tools (CAF, CAT, CIAT…..), stakeholder feedback & anecdotal evidence
• Nature of market: Porter’s 5 Forces, concentration measures • Identifying possible anti-competitive practices – stakeholder
feedback and existing information
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4. Short-listing of Policies and Practices (pro/anti-competitive market outcomes)
• Short-listing of policies/practices that clearly make a case• Pro/anti-competitive effects on the market • Not too many, not too few (from each sector)• Significance of implications especially on ordinary consumers
and small producers• Stakeholder agreement on the short-list
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5. Assessing welfare implications of policies and practices – evidence from CREW countries
• Obtaining ‘secondary data’ from available sources• Identification of various tools for the application • Analysing secondary data using various tools/methods to
assess impact of policies/practices on beneficiaries (using ‘welfare indicators’)
• Conduct primary perception surveys• Analyse primary data to ascertain welfare impacts ((using
‘welfare indicators’)
COUNTRY-SPECIFIC STORIES OF IMPLICATION OF PRO/ANTI-COMPETITIVE POLICIES ON CONSUMERS/PRODUCERS
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6. Building the evidence and planning its application in countries/sectors
• Links pro/anti-competitive policies and welfare effects• Helps ascertain impact of anti-competitive practices on
beneficiaries• Challenges of attribution• Plan the application of the evidence
- Further research/evidence- Identifying users of evidence- Plan for influencing policy- Stakeholder discussions (govt, business, CSOs)
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7. Ensuring local buy-in and ownership
• Engagement of multi-stakeholder group right from the beginning of the process – National Reference Group/NRG
• Continuous interaction and exchanges (including one-to-one) with senior policymakers and decision-makers
• Convince stakeholders of usefulness of evidence• Ensuring government support, buy-in and local ownership of
findings• Developing locally owned national advocacy agenda
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8. Initiating actions led by local SHs
• Engaging a multi-stakeholder group to oversee actions (monitor) and assess results
• National advocacy agenda reviewed and agreement reached• Initiate actions to for desirable changes (consolidate positive
impacts and address negative impacts)• Target ‘low-hanging’ outcomes/results• Periodically monitor results• Reporting mechanisms
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9. Addressing challenges encounteredChallenges Resolving Challenges
Quantitative data - Data is present but not available easily in one place- Primary data could be obtained- Qualitative data can provide useful information
Vested interests - Employing a multi-stakeholder process- Engaging with some of the high ‘influence’ SHs- Identify ‘Friends of Competition’
Technical component
- Engage with experienced organisations- Refer existing tools/methods