COMPETION POLICY AND ECONOMIC DEVELOPMENT “The Case of Botswana”

COMPETION POLICY AND ECONOMIC DEVELOPMENT“The Case of Botswana” Monnane Monnane Research Fellow Botswana Institute for Development Policy Analysis (BIDPA)

INTRODUCTION • COMPETITION POLICY PASSED IN 2005. • NO COMPETION LAW • IMPLIES COMPETITION POLICY HAS NOT BEEN IMPLEMENTED • RECITE WHAT IS IN THE POLICY AND ATTEMPT TO LINK WITH DEVELOPMENT ISSUES

OUTLINE • OBJECTIVES OF COMPETITION POLICY • LINK WITH DEVELOPMENT ISSUES • CONSUMER WELFARE • ENTERPRISE DEVELOPMENT (EFFICIENCY) • FOREIGN DIRECT INVESTMENT • INTELECTUAL PROPERTY RIGHTS

OUTLINE (cont’d) • TRADE • PRIVATISATION. • IS BOTSWANA READY TO IMPLEMT COMPETION POLICY?

OBJECTIVES • COMPLEMENT OTHER GOVERNMENT POLICIES AND LAWS • ENHANCE ECONOMIC EFFICIENCY, PROMOTE CONSUMER WELFARE, AND SUPPORT DIVERSIFICATION OBJECTIVES • PREVENT AND REDRESS ANTI COMPETITIVE PRACTICES AND REMOVE CONSTRAINTS TO FREE PLAY COMPETITION

0BJECTIVES (cont’d) • PREVENT UNFAIR PRACTICES ADOPTED BY FIRMS AGAINST CONSUMERS • ENHANCE ATTRACTION OF FDI • AID DEREGULATION • SUPPORT CITIZEN ECONOMIC EMPOWERMENT WITHOUT STIFFLING COMPETITION

DEVELOPMENTAL ISSUES • CONSUMER WELFARE • COMPETITION POLICY WILL PROTECT CONSUMERS FROM ANY DECEPTIVE AND FRAUDULENT BEHAVIOUR BY SELLERS • THUS, COMPETITION ACT TO TAKE INTO ACCOUNT THE PROVISIONS OF THE CONSUMER PROTECTION ACT. • REPEAL ONE THE LAWS TO ELIMINATE ANY POSSIBLE AMBIGUITY?

ENTERPRISE DEVELOPMENT • SMALL AND MEDIUM SCALE ENTERPRISES • POLICY RECOGNISES IMPORTANCE OF SMMES (but they are under the ambit of the competition policy – it challenges them to think and act strategically) • SMME Policy – GOV’T LAWS AFFECT SMMEs. • ANOTHER LAW AFFECTING SMMEs? • EXEMPTIONS? HOW ABOUT EXCEPTIONS? OC – CONSTRUCTION. COMPLEMENTARITY?

FOREIGN DIRECT INVESTMENT • DOES ACKNOWLEDGE THE NEED TO ATTRACT FDI- KEY OBJECTIVE • EXEMPTIONS PUTS QUESTIONS • PROVISION OF INFRUSTRUCTRAL PUBLIC UTILITIES (land line telecoms, water, electricity). COMPLEMENTARITY? • PRIVATISATION POLICY? (PPPs) • DEVELOPMENT COMPROMISED?

INTELLECTUAL PROPERTY RIGHTS • RECOGNISES ROLE OF INTELLECTUAL PROPERTY RIGHTS. • NEED TO ENCOURAGE CREATIONS • NEED TO ENCOURAGE INNOVATIONS • VERY MUCH WELLCOME • PERHAPS SAME SHOULD HAVE BEEN DONE FOR SMMEs.

PRIVATISATION • COMPETITION POLICY DOES NOT COMPROMISE COMMITMENT TO RESTRUCTURING PEs. • REFORM TO CONTINUE ALONG SIDE REFORM SUCH AS PRIVATISATION • THE SEQUENCE IS NOT RIGHT. • PRIVATISATION IS ON, COMPETITION POLICY NOT IMPLEMENTED. NO LAW

PRIVATISATION (Cont’d) • WHAT ARE THE IMPLICATIONS? • STUBBORN PRIVATE MONOPOLIES (consumers?). • KEY CONCERN OF PRIVATISATION AGENCY IS SALE, NOT MARKET CONCENTRATION.(BTC, AIR BOTSWANA) • KEY CONCERN OF COMPETITION AUTHORITY IS CONCENTRATION AND MARKET POWER. • THUS, COMPETITION POLICY SHOULD BE FUNCTIONAL DURING PRIVATISATION.

TRADE • NOT VERY EXPLICT. EXCEPT FOR ARGUMENT ON COMPLENTARITY OF LAWS, TRADE POLICY INCLUDED. • THESE INCLUDE, GATS (businesses, professional, computer related, real estate, etc) OPENED UP FOR COMPETITION.

IS BOTSWANA READY TO IMPLEMT COMPETION POLICY? • NO! • NEED FOR COMPETITION LAW. • NEED FOR COMPETION AUTHORITY. • NOT EVEN READY PRIVATISATION

COMPETION POLICY AND ECONOMIC DEVELOPMENT “The Case of Botswana”