“How Can Competition reforms be an Opportunity for Policy Makers in Developing Countries”

1. Seminar Benefits of effective implementation of Competition reforms in Bangladesh “How Can Competition reforms be an Opportunity for Policy Makers in Developing Countries” William E. Kovacic George Washington University Law School Dhaka July 2, 2012

2. Two Recurring Questions For Policy Makers in Developing Countries • How Does Competition Law • Strengthen Economic Performance? • Improve Domestic Industry? • Competitiveness and employment • These Questions Never Go Away

3. Competition Policy and Economic Performance: Three Effects • Growth • Innovation • Economic Opportunity and Social Mobility

4. Typical Policy Context • Policy Options to Promote Economic Progress • Competition policy • Subsidies for specific categories of firms • Public ownership or comprehensive regulation • Public/private partnerships • Some are complements, some are substitutes • Most countries try them all; the ideas never die

5. Overview • Competition Policy Defined • Goals • Competition Policy Strategy to Promote Growth and National Competitiveness • Implications for Competition Agencies • Contact: wkovacic@law.gwu.edu

6. Competition Policy • Enforcement of Prohibitions on Private and Public Conduct that Curbs Rivalry • Advocacy before Other Public Bodies • Education and Guidance • Research

7. Competition Policy Goals • Economic Progress: Superior Efficiency, Innovation, Growth • Distribution Considerations • Political Aims • A Life Cycle Theory of Competition Agencies

8. A Competition Policy Strategy with Three Contributions • Economics • Public Administration • Political Science

9. Economics • Increase Value from Public Expenditures • Promote Domestic Economic Integration • Improve Performance in Key Network Sectors • Facilitate New Entry and Expansion • Preserve Benefits of Privatization

10. Increase Value from Public Expenditures • Public Procurement Pathologies • What’s at Stake • Competition Policy Antidotes • Anti-collusion policy • Cooperation between competition authorities and procurement offices

11. Promote Domestic Economic Integration • Law Enforcement to Challenge Private Market Allocation Schemes • Advocacy to Dismantle Barriers to Inter-Regional Trade

12. Improve Performance in Key Network Sectors • Focal Points: Transportation, Communications, Energy, Finance • Competition Policy Tools • Abuse of dominance oversight • Anti-cartel program • Merger control • Advocacy before sectoral regulators

13. Facilitate New Entry and Expansion • Law Enforcement • Abuse of dominance oversight • Merger control • Anti-cartel programs • Advocacy • Unnecessary requirements for licenses, permits • Subsidy programs that reinforce incumbents only

14. Preserve Benefits of Privatization • Merger Control • Abuse of Dominance and Legacy Firms

15. Public Administration • Competition Agency as Prototype • Transparency measures • Recruiting and training

16. Political Science • Bridge from Planning to Market Processes • Voice for Decentralized Economic Decisionmaking • Agency as educator and advocate

17. Conclusion: Implications for Competition Authority • Clear Definition of Goals • Conscious Process for Setting Strategy • Portfolio of Policy Instruments • Investments in Knowledge • Evaluation • Human Capital • Continuous Upgrades