Role of Government in Promoting Sustainable Economic Growth through Competition Reforms: Exploring Tanzanian Competition

1. ….. 4th CUTS-CIRC Biennial Competition, Regulation & Development Conference & CREW Project Final Conference Relevance of Competition & Regulatory Reforms in Pursuing Sustainable Development Goals (SDGs) in Developing Countries -Nairobi, 12-13 December 2015 . __________________ “Role of Government in Promoting Sustainable Economic Growth through Competition Reforms: Exploring the Tanzanian Competition Regime Focusing on Policy, Institutional and Implementation Challenges” Dr. Frederick S. Ringo, Fair Competition Commission (Tanzania)

2. … KEY OUTLINES • The Socio-economic transformations’ trajectory (1961- Mid -1980s) • Regulatory Reforms as a Baseline for Sustainable Growth • Government’s Role in Moulding Competition Reforms • Policy, Institutional, and Implementation Challenges • Conclusion & Way Forward

3. 1.The Trajectory (1961-1980s & 1990s onwards) • 1961-1966- TZ capitalist oriented –policies private sector played a major role • 1967- Mid 1980s- Socialism & Self Reliance • 1985- 1990- IMF-WB -(SAP) & (ERPs) • 1990- 2000- Economic Liberalization & Privatisation policy • 2000 onwards- Market led economy- with competition as its epicenter

4. … 2.Regulatory Reforms -for Sustainable Growth • Sustainable economic growth -reforms which include ‘regulatory reforms’ : • relinquishing State’s economic monopoly • Creating suitable enabling environment for private sector participation in economy including attracting more Foreign Direct Investments (FDIs) • Creation of institutions, laws & regulatory procedures that are consistent and compatible with the market-led economy.

5. 3. Government’s Role -Competition Reforms • Competition Policy – government role: market player to facilitator. • Its main role providing the necessary services and frameworks needed for a market economy. • Two approaches were adopted: • Establishing specific regulatory agencies in certain sectors to engage in ‘economic regulation’ (e.g. EWURA, TCRA, SUMATRA, TCAA) (but do also regulate competition). • Establishing specific agency for ‘Competition Regulation’ ( FCC, FCT) for unregulated sectors.

6. … 4. Policy, Institutional, and Implementation Challenges. • Policy-Legal related Challenges - The two regulatory approaches creates confusions when it comes to competition issues in the regulated sectors. • Challenges Arising from the Current Institutional Set-up whichcombines investigatory, prosecutorial, and adjudicative functions. • Lack of Sufficient Financial and Human Resource.

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8. … • Challenge Resulting from the Risks of Regulatory Capture (as politicians tend to use their political influence to interfere with the exercise of regulatory mandate vested on the competition authority). • Challenges Resulting from Lack of Sufficiently Entrenched Competition Culture • The Challenge Emerging from the Lack of Functioning East African Competition Authority (EACA

9. … 5. In Conclusion we note that: Despite the good reform more steps need to be taken by the government which include: • Strong political commitment that seeks to promote and sustain on-going regulatory reforms. Successes or failures of competition reform, or any regulatory reform, depend on there being political will. • strong and consistent financial support to the competition authority since lack of sufficient funding has the potential to weakening the position of the competition agency and reduces its visibility, relevance, and voice within the nation.

10. … • For sustained contribution to growth and relevance, there is also a need to ensure : • participationof key competition stakeholders in the reform process, including those who are beneficiaries of the reforms. • removal of all artificial or statutory barriers to allowcontinued free movements of goods and services as well as effective enforcement of the competition law by the respective machineries • building or strengthening existing synergies between regulatory institutions, relevant government agencies, stakeholders or players in the business circles • . “ASANTE SANA”/ THANK YOU !!!