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IMPLEMENTATION OF COMPETITION LAW - Experiences from Botswana by Thula Kaira - CEO CUTS/IFC/BICF Seminar on Moving the Competition Law Agenda forward in Bangaladesh Dhaka, 2 - 3 July 2012. PRESENTATION OUTLINE. 1. INTRODUCTION. 1. INTRODUCTION cont’d. 1. INTRODUCTION cont’d.
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IMPLEMENTATION OF COMPETITION LAW - ExperiencesfromBotswana • by • ThulaKaira- CEO • CUTS/IFC/BICF Seminar on Moving the Competition Law Agenda forward in BangaladeshDhaka, 2 - 3 July 2012
3. EXPERIENCES FROM BOTSWANA • Botswana is a member of the international community of trading nations and its ability to access foreign markets requires that its firms are competitive. Competition precludes competitiveness (eg SACU FTA, SADC, EPAs…) • As Bangaladeshi embarks on a process of developing its law, there is need to identify and maintain a support base for a highly misunderstood, to include:
EXPERIENCES …cont’d • Identification of the ‘friends of competition’ shouldideallyfollowthisorder: • The Policy Makers (for fundingpurposes) • The technocrats (for regulationsto beprocessed) • The media (to begin to understand the concepts) • Ultimately, a small business and consumer base is the ultimate power base, but itdepends on theirproperunderstanding of the law (henceneed for sustainedadvocacy)
EXPERIENCES …cont’d • RecogniseGovtis the owner of the Competition Policy and Law – thusits agents entrustedwithimplementingthislaw must takeGovtpolicyintoacccount. • In Botswana, we have had to: • Master Govtdevelopmental vision • Play an impartial advisoryrole (advocacy) to Govtwheretheremaybeconflictswithpolicy • Takeintoaccount ‘overriding’ public interests
EXPERIENCES …cont’d • WHILE the lawmaybe in the abstract for most people, the effect of the decisions of a CA are usually self-evident (egwhere a mergerisprevented and loss of jobs occur) – theories dont sooth PAIN… • Developingcountries such as Botswana have thusinculcated certain public interestconsiderations to betakenintoaccountwhendealingwithcompetitionmatters, inter alia:
EXPERIENCES …cont’d • Maintainlowerprices, higherquality or greaterchoice for consumers • Promoteor maintain efficient production, distribution or provision of goods & services • Advancethe strategic or national interest of Botswana in relation to a particulareconomicactivity; • Providesocial-benefitswhichoutweigh the effects on competition;
EXPERIENCES …cont’d • Occurwithin the context of a citizenempowerment initiative of Government; • Furtherother national development programs • In thiscontext, we have approved or rejectedmergers for instance based on P.I issues • The Actalso has exemptions (except for cartels) based on P.I considerations
EXPERIENCES …cont’d • The State has limited the extent of application of the law to sectorswherethereis a statutorymonopoly (& this has to berespected by a CA): • Botswana Meat Corporation • Botswana Power Company • Air Botswana (untilrecently) • Botswana Telecomm. Company (on fixedlandline) • Botswana Rail
EXPERIENCES …cont’d • DONT take on everythingat once – priortiseeg: • Contractfarming arrangements in the agriculture sector • Role of middle-men in excessive or predatorypricing of agriculture goods • Industries dominated by the samefirms (long termview) • ProtectedSOEs
INDEPENDENCE…cont’d • There isneed to ensurethat the investigation isseparatedfrom the adjudication in effect and not just on paper • Structural autonomyis relevant wherethereis a low culture of the rule of law • Accountability on use of funds and reporting to Parliamentthrough an Annual Report are important • Need to have strict code of conduct • CHE GUEVARA: ‘He whoreceives gifts loseshisfreedom’…
5. CONCLUSIONS • Competition Policy shouldbecarefullyhandledbecauseiteasilyattractswellcoordinated, connected, resourceful and more powersenemies but weaker and fragmentedfriends • A competitionlawthatdoes not makesense to policymakers and generalcitizenrywillnot befunded • Ideal expertise must beattracted, motivated and retained to developadvocacy & enforcementskills • Avoidquotingtoomanytheories: