Framework for
Competition
Reforms (FCR):
Guiding Principles
Rijit Sengupta
CUTS International
CREW International Conference
19th Nov 2014, Bangkok
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
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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
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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
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1. Identifying Sectors
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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
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2. Fixing Indicators: Consumer & Producer Welfare
Consumer Welfare
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Access
Choice
Price
Quality/Price
Time Saving
Producer Welfare
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Access to inputs
Easy of entry
Growth
Investments
Cost savings
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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
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4. Short-listing of Policies and Practices
(pro/anti-competitive market outcomes)
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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
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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/ANTICOMPETITIVE POLICIES ON CONSUMERS/PRODUCERS
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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)
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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
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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
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9. Addressing challenges encountered
Challenges
Resolving Challenges
Quantitative data
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Data is present but not available easily in one place
Primary data could be obtained
Qualitative data can provide useful information
Vested interests
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Employing a multi-stakeholder process
Engaging with some of the high ‘influence’ SHs
Identify ‘Friends of Competition’
Technical
component
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Engage with experienced organisations
Refer existing tools/methods
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Thank You
www.cuts-ccier.org/CREW
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