GAMBIA COMPETITION COMMISSION GAMBIA COMPETITION COMMISSION Levelling the Field for Development BY : EXECUTIVE SECRETARY 5 TH JUNE 2013

GAMBIA COMPETITION COMMISSION GAMBIA COMPETITION COMMISSION Levelling the Field for Development PRESENTATION OUTLINE Effective Competition Policy Role of Competition Agencies Competition Advocacy Investment Climate, Competition and Growth Constraints of Promoting Competition Conclusion (Food for Thought)

GAMBIA COMPETITION COMMISSION GAMBIA COMPETITION COMMISSION Levelling the Field for Development What constitutes effective Competition Policy? Policies that foster inter-firm rivalry and entry by Preventing anti-competitive practices and by Promoting competition This calls for specialized agencies and effective policy design, and implementation

GAMBIA COMPETITION COMMISSION GAMBIA COMPETITION COMMISSION Levelling the Field for Development What is the primary mandate of Competition Agencies? Primary mandate is to administer Competition Law to protect and promote Competition, to enhance economic growth, efficiency and consumer welfare Role of Competition Agencies

GAMBIA COMPETITION COMMISSION Role of Competition Agencies Competition Laws, with few exceptions should apply to all sectors, and contain provisions relating to : Cartels Monopolistic practices Horizontal and vertical restraints Mergers and acquisitions Unfair trade practices etc. GAMBIA COMPETITION COMMISSION Levelling the Field for Development

GAMBIA COMPETITION COMMISSION Competition Advocacy Agencies should strike a balance between enforcement and compliance through advocacy. Competition advocacy entails modifying and challenging public policies, government regulations, rules that unnecessarily suppress competition and entry. GAMBIA COMPETITION COMMISSION Levelling the Field for Development

GAMBIA COMPETITION COMMISSION Competition Advocacy This requires interface in areas such as : Anti-dumping Tariffs Standard setting Investment and ownership restrictions/ceilings Price controls Public procurement GAMBIA COMPETITION COMMISSION Levelling the Field for Development

GAMBIA COMPETITION COMMISSION GAMBIA COMPETITION COMMISSION Levelling the Field for Development Competition Advocacy This requires interface in areas such as : Sector specific regulations(energy, transportation, telecommunications etc) Improve business regulatory procedures, corporate governance, security laws etc Most importantly, limiting exemptions and exceptions from application of Competition Law and Policy.

GAMBIA COMPETITION COMMISSION GAMBIA COMPETITION COMMISSION Levelling the Field for Development Competition Advocacy In developing market economies (Gambia/Nigeria) Competition advocacy within government in the policy formulation process, and in the private sector through program of compliance Promoting better public understanding of the benefits of competitive markets, and building consumer and civil society support are immensely important. Work cooperatively with different government departments and private sector industry, as well as trade associations. Competition agency = focal point/voice for competition policies

GAMBIA COMPETITION COMMISSION GAMBIA COMPETITION COMMISSION Levelling the Field for Development Investment Climate, Competition & Growth Common Objectives of Government : Promote economic growth, employment, prosperity, and reduce poverty by fostering broad based sustainable development. To achieve these objectives it is necessary to increase investment and productivity, and this can be done through: Encouraging competitive markets and mobility of resources from lower to higher valued productive uses. Having an effective Competition Policy can facilitate this process

GAMBIA COMPETITION COMMISSION Investment Climate, Comeptition & Growth HOWEVER; The competition process is not automatic Competition can be distorted by restrictive business practices and public policies Public policies are at the risk of been manipulated by interest groups, including private sector. Misguided policies entrench anti-competitive business practices Discourage both domestic and foreign investment. GAMBIA COMPETITION COMMISSION Levelling the Field for Development

GAMBIA COMPETITION COMMISSION Constraints to promoting Competition Lack of political will / competitive culture High industry market and ownerships concentration in product and financial markets. Entrenched firms and other stakeholders, interest groups( lobbying, rent-seeking behaviour, corruption, bribery etc.) Weak legal framework?, contract enforcement, property rights etc. Institutional capacity, resources, skills, knowledge constraints, staff turnover etc. GAMBIA COMPETITION COMMISSION Levelling the Field for Development

GAMBIA COMPETITION COMMISSION GAMBIA COMPETITION COMMISSION Levelling the Field for Development Conclusion (Food for Thought) Competition Law/Policy cannot be effectively implemented without addressing the broader systemic policy based impediments to competition. Competition advocacy functions of competition agencies can yield broader pay-off than case specific enforcement. Strike a balance between compliance and enforcement

GAMBIA COMPETITION COMMISSION GAMBIA COMPETITION COMMISSION Levelling the Field for Development Conclusion (Food for Thought) An effective Competition Law / Policy has to be viewed as being integral to a Public Governance and Market Governance System. LAST BUT NOT THE LEAST Requires Country / Government commitment and greater bi / multilateral Cooperation and Coordination

GAMBIA COMPETITION COMMISSION GAMBIA COMPETITION COMMISSION Levelling the Field for Development THANK YOU