1. Rijit Sengupta CUTS International FIRST PAC MEETING CREW PROJECT 14 th March 2013 Jaipur, India Project Implementation Process (CREW Project)

2. Outline 2 Introduction About the Project Project Phases Management & Programmatic issues

3. 3 I. INTRODUCTION

4. 1. Genesis of CREW Project 4 Competition can promote consumer and producer/business welfare – not much doubt Competition not an end in itself, but a means for achieving developmental goals Presence of competition law not adequate, a comprehensive approach necessary - competition reforms DCs suffer from implementation challenges: - Government support often meager - Limited stakeholder understanding & support - Development partners’ priorities - Etc.

5. 2. Competition Reform Defined 5 Competition reforms = A + B + C A: Enabling government policies that promote competition in markets B: Appropriate regulatory framework, institutions and actions for promoting competition in sectors C: Well defined competition legislation and effective enforcement mechanisms

6. 3. Motivation for CREW 6 Some research had been done to establish the link between competition and productivity, growth and consumer welfare Experience of competition and regulatory agencies accentuated the link between well-functioning markets and resulting welfare Why was CUTS Interested? - Is it possible to better demonstrate positive effects of competition reforms on producers and consumers in DCs? - Is there a way to isolate the such positive effects of competition reforms, given the problem of attribution?

7. 7 II. ABOUT THE PROJEC T

8. 1. Goal & Objectives 8 Goal To better demonstrate measurable benefits from effective competition reforms in DCs, for ensuring long-term support for competition Objectives Enhance understanding of benefits from competition reforms in DCs Develop & Test a Methodology to assess efficacy of competition reforms in benefitting consumers and producers Advocate to key actors (National & International) for greater support to competition reforms in DCs Sustain momentum on competition reforms and take it forward

9. 2. Outputs & Outcome 9 Outputs Documented evidence of benefits from competition reforms in key markets Dialogues involving multiple stakeholders on benefits of competition reforms in DCs Strategy for capacity building of DC competition agencies and sector regulators Framework (Tool) guiding process of competition reforms in DCs Demand from elsewhere for similar exercise Outcome Greater attention and impetus for competition reforms in key DC markets resulting in consumer and producer benefits

10. 3. Implementation Plan 10 4 Countries & 2 Sectors Phase I: Identify the degree and nature of competition in the two sectors – main competition concerns (Diagnostic Report) – RESEARCH & OUTREACH/CONSULTATIONS Phase II: Develop methodology for assessing benefits of competition reforms in two sectors (Framework + Methods + Tools) – DESIGN THE FRAMEWORK (with METHODS/TOOLS) & CONSULTATIONS Phase III: Apply sectoral FCPs in micro-locations in 4 project countries – MICRO-LEVEL TESTING, ADVOCACY & PUBLIC EDUCATION

11. 4. CREW Project Actors 11 Program Level CREW Implementation Team: CUTS+Advisers+Nathan PAC Country Level Country Partner Organisation National Reference Group (NRG) National Entities: Competition/Sectora Regulator, Business Associations, Research Organisation/CSO, Media

12. 5. Coordination Mechanism - Actors 12 Project Team (CUTS + External Advisers) Country Partner-1 Organisation A Organisation B Organisation C Organisation D Country Partner-2 Organisation A Organisation B Organisation C Organisation D Country Partner-3 Organisation A Organisation B Organisation C Organisation D Country Partner- 4 Organisation A Organisation B Organisation C Organisation D NRG-2

13. 6. CREW Actors: Information & data flow 13

14. 14 III. PROJECT PHASES

15. 1. PREPARATORY ACTIVITIES: Selection of Project Countries 15 Presence/absence of a national competition law, agency Local (research and advocacy) institutions with orientation on competition and consumer protection issues 2 countries each from the regions: Africa and Asia One country in each region of DFID’s interest One member state each of SADC and ASEAN CUTS experience of having implemented an earlier competition project CUTS confidence of implementing the activities

16. 1. PREPARATORY ACTIVITIES Selection of Sectors 16 High impact on the poor Availability of data Essential goods and services Nature of sector regulatory framework

17. 2. PHASE I Activities Diagnostic Phase (RESEARCH & OUTREACH/CONSULTATIONS) 17 Gather information about prevailing state of competition (including competition concerns) in two sectors of four project countries Collect evidence of benefits/losses accruing to consumers and producers in the two sectors Identify ‘enabling’ and ‘opposing’ factors for countries to derive these benefits Collate experience from four countries for each sector - inputs for the design phase (Phase-II)

18. 3. Programme Logic (Phase-I) 18

19. 4. Phase II Design Phase [DESIGN THE FRAMEWORK (with METHODS/TOOLS) & CONSULTATIONS] 19 Draw Inputs from the Diagnostic Phase (for preparing 2 sectoral FCPs) in terms of: (a) Indicators of benefits of competition reforms for consumers and producers (b) Evolve a common methodological framework (c) Selection of applicable Methods and Tools

20. 5. Benefits of competition reforms for Consumers (Possible Indicators) 20 Access: Goods and services reach consumers in areas where they were not available earlier Quality: Quality of goods and services enhanced by firms to attract customers Choice: New firms/products enter otherwise ‘concentrated’ markets Price: Prices are reduced in a ‘contestable market’ Time savings by consumers

21. 5. Benefits of competition reforms for Producers (Possible Indicators) 21  Access to essential services: Firms can easily access infrastructure networks, etc.  Free movement of goods & services: Mobility not affected by policies, practices (inputs & outputs)  Predictability of regulatory actions: Legislations enforced by autonomous yet accountable institutions

22. 5. Benefits of competition reforms for Producers (Indicators) 22  Cost savings: Effective implementation of strategies to reduce costs, e.g. improved application of ICT tools  Fair market processes: Easy entry and exit in markets; considerable ‘ease of doing business’  Level-playing field: principle of ‘competitive neutrality’ is observed  Transparency in market: Well laid out policies and predictable implementation processes (market regulators)

23. 6. How to measure benefits? 23 INDICATOR-1 Method - A Method - B INDICATOR-2 Method - C Method - D INDICATOR-3 Method - E Method - F BENEFITS Methods = Qualitative + Quantitative

24. 7. Phase III: Validation Phase (MICRO-LEVEL TESTING, ADVOCACY & PUBLIC EDUCATION) 24 Research: (a) competition distorting policies & (b) impact of ACPs on producers, consumers Parliamentary outreach and discussions Government-Business Forum Media (information) campaign Training Workshop for CAs and Sector Regulators - Enhance enforcement capacity (based on market studies) - Highlight need for coordination of actions (CA + SR) National Orientation Workshop (other sectors) - Expanding support for competition reforms - Better buy-in (other sectors)

25. 25 IV. MANAGEMENT & PROGRAMMATIC ISSUES

26. 1. Technical oversight 26 Advisers Two Advisers (R Shyam Khemani & Fred Jenny) Point out relevant techniques, methods Guide in developing ToRs of reports, etc. Advise on sources of useful information Secure useful reports, data Help draft and re-draft parts of reports Play an active role in outreach Get involved in capacity building activities Associate Organisation (Nathan Associates) Performs Core Research function Draft the background paper Prepare sectoral FCPs

27. 2. Development partners 27 Role Propose PAC members Guide project implementation process Participate in ‘internal review’ Involve closely with ‘external evaluation’ Stock-take project progress, periodically Act in coordination Engage country-offices in project countries/region Involve other donors & IGOs Other donors to join in supporting CREW subsequently

28. 2. Development partners 28 Reporting & Management Donor Coordination Reporting arrangements GAANT Chart Operational Strategy Note (OSN)

29. 3. Project Advisory Committee (PAC) 29 Role Point sources of useful information (techniques, methods, data ) at country/sector levels Quality control of project reports, briefs, etc. Strategic advise (advocacy & outreach) Finalisation of project countries (4) Advise for choosing sectors (2) Address challenges in implementation Get involved in capacity building

30. 3. PAC: Confirmed Members 30 Fred Jenny, OECD Competition Committee (Chair) Pradeep S Mehta, CUTS DFID Representative (Miguel Laric) GIZ Representative (Eiko Kauffmann) Martha Licetti, Competition Team, World Bank Eberhed Feess, Frankfurt School of F&M, Germany Natalie Timan, OFT, UK Rafaelita Aldaba, PIDS, Philippines Deunden Nikomborirak, TDRI, Thailand David Ong’olo, Kenya George Lipimile, COMESA Competition Commission Yannis Katsoulacos, AUEB, Greece

31. 3. PAC: Meetings & Engagement 31 Physical meetings once a year (CREW meetings) Special Invitees Meetings on sidelines of international conferences (OECD GCF, UNCTAD IGE, ACF, etc.) SKYPE meetings (bi-annual) Quarterly reports and feedback Any other possibilities

32. 4. Update about Preparatory Phase 32 Planning Meeting (8-9 Nobember 2012, Bonn) Drafting the Operational Strategy Note (OSN) Identification of PAC members ToR of Project Adviser(s) Identification of Project Associate Organisation (PAO) Drafting of background paper by PAO, ‘Measuring impacts of competition reforms : suggested approaches & methods’ Inception Meeting in March 2013 (Jaipur, India) - Identification of project countries - Identification of sectors - Partners orientation

33. 33 Thank You CUTS Team Beginnings are always exciting!