Brief Overview of the CREW Project Rijit Sengupta CUTS International CREW Project Inception Meeting...
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Transcript of Brief Overview of the CREW Project Rijit Sengupta CUTS International CREW Project Inception Meeting...
Brief Overview of the CREW Project
Rijit Sengupta
CUTS InternationalCREW Project Inception Meeting
13-14 March 2013, Jaipur (India)
Outline of Presentation
I. Background and Introduction- Genesis- Competition reforms- Why CUTS interest?- Making competition regimes effective
II. About the CREW project - Goal & Objectives- Outputs & Outcome- Implementation- Caveats
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A story from Kenya: Cane farmers laud increased competition in sugar sector
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I. Genesis – a felt need
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.
Implementation key to linking competition with developmental gains
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II. Competition reforms – conceptual clarity
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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
III. Why did CUTS get interested?
•How to better demonstrate positive impacts of competition reforms on DC consumer & producers? •Is there a way to isolate such benefits of competition? •Is there an way to communicate with key decision makers?
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IV. Existing evidence & experience
Studies/Evidence
Japan (2001) - positive effects of competition on industrial growth
S. Korea (2003) - competition reforms a remarkable turning point
Tanzania (2004) - competition increased firm-level productivity
Jordan (2005) – impact of concentration & barriers on productivity
Egypt (2005) – liberalisation of market leading to productivity gains
Australia (2005) - AU$ 20 billion gain in real GDP from NCP
Mexico (2008) – liberalisation (basic goods) benefit consumersOthers
Enforcement experience
Regulatory enforcement (including competition enforcement) benefits producers/suppliers and protects consumers – Many cases
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VI. CREW Project – Goal & Objectives
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 effective competition reforms in specific DC markets
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 in DCs
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VI. CREW project – Outputs & Outcome
Outputs
Document evidence of benefits in key markets
Dialogue involving multiple stakeholders on benefits
Strategy for capacity building of competition agencies
Framework that guides competition reforms in DCs
Demand from other countries for similar exercise
Outcome: Greater attention and impetus for competition reforms in key DC markets resulting in consumer and producer benefits
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VI. CREW Project - Implementation
4 Countries: 2 Asian & 2 African
2 Sectors: High impact on the poor
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Phase I: Identify ‘indicators’ and ‘enablers’ of an effective competition regime (Diagnostic report)
Phase II: Develop Framework for Competition Promotion (FCP) for the 2 sectors
Phase III: Apply sectoral FCPs in micro-locations in 4 project countries
VI. Programme Logic (Phase-I)
Background Paper
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Two Sectors (& Four Countries)
1st NRG Meeting
Outline of DCRs(a)Degree and nature of competition (markets): CHECK-LIST OF COMPETITION CONCERNS(b)Identification of Consumer & Producer benefits/losses: PROBLEM IDENTIFICATION(c)Enabling and/or Opposing factors: STRATEGIC FINE-TUNING
Draft DRCs (4)
2nd NRG Meeting
Distil Commonalities (each sector)
Discussion Paper
(a) INDICATORS of benefits of competition reforms for consumers and for producers;(b) Evolving a common methodological framework(c) Selection of Methods and Tools (country/sector specific)
VII. Benefits of competition reforms for Consumers
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Price: Prices are reduced in a ‘contestable market’
Access: Goods and services reach consumers in areas where they were not available earlier
Quality-Price ratio: High quality goods and services available for low prices for consumers (value for money)
Choice: New products enter otherwise ‘concentrated’ markets
Time Savings: Amount of time saved by the consumer in availing a service/good
VII. Benefits of competition reforms for Producers Ease of entry:
- No entry barriers for firms to enter new markets
Productivity gains
- Easy access to ‘inputs’ market
- No impediments to access infrastructure
- Considerable ease of doing business
Revenue gains or cost savings
Ability to access markets
- Free movement of goods, services
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VIII. CREW Project – Caveats
It is not a project only about competition enforcement, it is much more comprehensive/broad in scope
It will not measure the full-range of impacts of competition on producers and consumers in the countries
Evolve and validate a methodology for doing so in micro-locations
Activities will be restricted to 4 countries and 2 sectors
Uptake of the exercise in other countries would depend on interest of beneficiaries
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Thank You
www.cuts-ccier.org/CREW
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