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Framework for Competition Reforms (FCR): Guiding Principles Rijit Sengupta CUTS International CREW International Conference 19 th Nov 2014, Bangkok.

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Presentation on theme: "Framework for Competition Reforms (FCR): Guiding Principles Rijit Sengupta CUTS International CREW International Conference 19 th Nov 2014, Bangkok."— Presentation transcript:

1 Framework for Competition Reforms (FCR): Guiding Principles Rijit Sengupta CUTS International CREW International Conference 19 th Nov 2014, Bangkok

2 What is it? Guidance for DC policymakers and practitioners about steps for promoting competition reforms in sectors Easy to comprehend for civil society actors too Rationale: DC policymakers are not able to give adequate priority to promoting competition in sectors Policies distort competition in markets – CAs can’t do much Based on experience, CUTS intends to strengthen DC constituencies for competition reforms: has to go beyond the CA Possible if: - benefits are well-demonstrated - process is well-defined and planned - implementation is not expensive - involves multiple SH engagement support 2

3 Framework for Competition Reforms (FCR) is envisaged as a step-wise reference for DC policymakers and practitioners to promote competition reforms in key sectors…………. COMPETITION REFORMS FOR ENHANCING SOCIAL AND ECONOMIC WELFARE IN DCs 3

4 Outline Identifying the sectors Fixing indicators: consumer & producer welfare Identifying & examining sectoral policies Short-listing ‘relevant’ policies & practices Assessing welfare implications Building evidence base and its application Ensuring local buy-in & ownership Initiating actions by local SHs Addressing challenges encountered 4

5 1. Identifying Sectors Based on certain criteria Sign of reforms Presence of a regulatory framework and institution Key sectors for ordinary consumers and small producers (impact) Nature of markets – dominant players, SoEs, monopolies Data availability Of interest to civil society actors CREW Project Background Paper 5

6 2. Fixing Indicators: Consumer & Producer Welfare 6

7 3. Identifying and Examining sectoral policies and practices Policy basket: sectoral policies, laws, sectoral programmes, statutory instruments, administrative orders Examining policies by applying existing tools (CAF, CAT, CIAT…..), stakeholder feedback & anecdotal evidence Nature of market: Porter’s 5 Forces, concentration measures Identifying possible anti-competitive practices – stakeholder feedback and existing information 7

8 4. Short-listing of Policies and Practices (pro/anti-competitive market outcomes) Short-listing of policies/practices that clearly make a case Pro/anti-competitive effects on the market Not too many, not too few (from each sector) Significance of implications especially on ordinary consumers and small producers Stakeholder agreement on the short-list 8

9 5. Assessing welfare implications of policies and practices – evidence from CREW countries Obtaining ‘secondary data’ from available sources Identification of various tools for the application Analysing secondary data using various tools/methods to assess impact of policies/practices on beneficiaries (using ‘welfare indicators’) Conduct primary perception surveys Analyse primary data to ascertain welfare impacts ((using ‘welfare indicators’) COUNTRY-SPECIFIC STORIES OF IMPLICATION OF PRO/ANTI- COMPETITIVE POLICIES ON CONSUMERS/PRODUCERS 9

10 6. Building the evidence and planning its application in countries/sectors Links pro/anti-competitive policies and welfare effects Helps ascertain impact of anti-competitive practices on beneficiaries Challenges of attribution Plan the application of the evidence - Further research/evidence - Identifying users of evidence - Plan for influencing policy - Stakeholder discussions (govt, business, CSOs) 10

11 7. Ensuring local buy-in and ownership Engagement of multi-stakeholder group right from the beginning of the process – National Reference Group/NRG Continuous interaction and exchanges (including one-to-one) with senior policymakers and decision-makers Convince stakeholders of usefulness of evidence Ensuring government support, buy-in and local ownership of findings Developing locally owned national advocacy agenda 11

12 8. Initiating actions led by local SHs Engaging a multi-stakeholder group to oversee actions (monitor) and assess results National advocacy agenda reviewed and agreement reached Initiate actions to for desirable changes (consolidate positive impacts and address negative impacts) Target ‘low-hanging’ outcomes/results Periodically monitor results Reporting mechanisms 12

13 9. Addressing challenges encountered ChallengesResolving Challenges Quantitative data-Data is present but not available easily in one place -Primary data could be obtained -Qualitative data can provide useful information Vested interests-Employing a multi-stakeholder process -Engaging with some of the high ‘influence’ SHs -Identify ‘Friends of Competition’ Technical component -Engage with experienced organisations -Refer existing tools/methods 13

14 Thank You 14


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