Is competition law essential to achieve competition policy objectives?

1. Is competition law essential to achieve competition policy objectives? The quiet revolution suggests YES.

2. Singapore and Hong Kong- contrary views? • Hong Kong – no generic competition law, but many pro-competition measures • Singapore – introducing competition law

3. What is competition policy? • Making markets work better • Efficiency • Fairness • Broad definition includes many public policies

4. Trade liberalisation and de-regulation not sufficient • Non-tradables • Non-liberalised sectors • Lack of import response

5. Advantages of competition law • Applies broadly – less distorting • Reduces scope for corruption • Problem of international cartels – countries without competition law targeted more • Provides a focus for pro-competition measures – privatisation – regulated sectors

6. Conclusions • Policy measures without competition law help create a competitive environment • But there will be gaps which competition law can fill • Effective competition policy requires a competition law

7. Advantages of competition law Applies broadly so less distorting Reduces scope for corruption Problem of international cartels