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Institutional Foundations for Competition Policy Institutions

Institutional Foundations for Competition Policy Institutions. William E. Kovacic U.S. Federal Trade Commission May 16, 2002 wkovacic@ftc.gov. Organization. Institutional Prerequisites Emphasis on Supporting Institutions Priorities for New Competition Bodies

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Institutional Foundations for Competition Policy Institutions

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  1. Institutional Foundations for Competition Policy Institutions William E. Kovacic U.S. Federal Trade Commission May 16, 2002 wkovacic@ftc.gov

  2. Organization • Institutional Prerequisites • Emphasis on Supporting Institutions • Priorities for New Competition Bodies • Implications for Technical Assistance

  3. Law Drafting • Intensive Study of Initial Conditions • Collaboration Between Host Country Experts and Foreign Advisors • Accounting for Implementation

  4. Institutional Prerequisites • Capital: Physical, Human, Political • Access to Information • Research Capability • Civic Associations • Administrative Legitimacy • Courts

  5. Institutional Capital • Capital • Physical: Facilities (e.g., computers) • Political • Human • Universities: At home and abroad • Internal/External Training: E.g., KFTC cases • Institutional Memory: The Turnover Problem • Think Tanks: E.g., CIEM and LPEM

  6. Information Resources • Access to Information • Business Operators • Foreign cooperation: Regional and Global • OECD, UNCTAD, WTO • ASEAN, APEC, ACCC Regional Center • Bilateral Agreements • Electronic Information Networks • Government Ministries: E.g., Morocco/Benin

  7. Research Capability • Industrial Organization Analysis • Methods: Perform Internally/Contract Out • Foundation for: • Competition Advocacy • Case Development • Self-Assessment

  8. Civic Associations • Building an Infrastructure to Facilitate Education and Publicity • Legal societies • Trade associations • Consumer groups • Media Organizations

  9. Administrative Legitimacy • Major Ingredients • Anti-corruption safeguards • Transparency mechanisms such as: • The INDECOPI “Academic Audit” • Peer Review • Notice and Comment Regimes • Performance Standards and Measures

  10. Courts • Increasing Capability • Importance to enforcement: public and private • Physical resources • Training • Renovation • New Courts • New Chambers • Rehabilitation of Existing Structure

  11. An Early Agenda for New Systems • First Five Years • Institution building • Small number of very good people • Education and Publicity • Modest enforcement agenda • Quality over numbers • Publicize good results

  12. Implications for Technical Assistance • Long-Term Orientation • Institutional Memory • Resources • Comparative Assessment and Refinements • Institutional innovation • Process improvements

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