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COMPETITION POLICY IN MOZAMBIQUE

COMPETITION POLICY IN MOZAMBIQUE. REGIONAL CONFERENCE OF CUTS 7Up3 PROJECT 27-28 March Addis Ababa. Achieved peace and macro-stability Growth as averaged almost 9% since 1996 PARPA envisages poverty reduction of 50-70% PARPA goals require average growth of about 8% for decade 2000-2010 .

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COMPETITION POLICY IN MOZAMBIQUE

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  1. COMPETITION POLICY IN MOZAMBIQUE REGIONAL CONFERENCE OF CUTS 7Up3 PROJECT 27-28 March Addis Ababa

  2. Achieved peace and macro-stability Growth as averaged almost 9% since 1996 PARPA envisages poverty reduction of 50-70% PARPA goals require average growth of about 8% for decade 2000-2010 INTRODUTION

  3. THE HISTORICAL AND ECONOMIC SETING • Following its emergence from colonialism in 1974, the Mozambican economy was a virtually closed economy. • Since the end of the 1980´s, Mozambique Government sistematically directed its efforts towards an increased liberalization of its economy and a broader roll for the private sector.

  4. THE HiSTORICAL AND ECONOMIC SETING • Mozambique’s active steps towards a successful stabilization measures such as fiscal adjustment, monetary restrains and are devaluation of the exchange rate. • The objectives of the Mozambican reform were to propel the nation towards increased competitiveness, growth and improved leaving standards

  5. THE STORICAL AND ECONOMIC SETING • Price liberalization has been vigorous and comprehensive in 1986, products with fixed prices accounted for about 70% of GDP.

  6. INSTITUTIONAL AND ECONOMIC CONSIDERATIONS • Thus, determination on the type of policy best suited for Mozambique it is important to identify its salient problems, such as: - Tariff and non-tariff barriers: the emergence and persistence of pressure groups

  7. INSTITUTIONAL AND ECONOMIC CONSIDERATIONS -Small markets and minimum efficient scale economies-unavailability of firm level data -the weakness and limitations of a judicial system -Limited human capital and resources -leak of a market culture

  8. OPTIMAL COMPETITION POLICY FOR MOZAMBIQUE • Mozambique competition policy should: • Contains advocacy tools to challenge anticompetitive behavior by the government. • Contains consumer protection elements that dovetail with its overall goal of speaking for consumers.

  9. OPTIMAL COMPETITION POLICY FOR MOZAMBIQUE 3. Represents a voice for market forces often at odds with the government, often at odds with the private sector The main focus of a Mozambican competition policy should to: -Remove blockages to increased trade and to move the Mozambican economy along a part towards integration in to world economic

  10. OPTIMAL COMPETITION POLICY FOR MOZAMBIQUE • Prohibition on price fixing would represent the core antitrust policy • Begin developing a competition policy • Examine alternatives to competition law enforcement • Plan for a competition agency

  11. CONCLUSION Having a competition law extends this benefit, because of the increased transparence that is provided for examining competition problems.

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