Brief Overview of the CREW Project
Rijit Sengupta
CUTS International
CREW Project Inception Meeting
13-14 March 2013, Jaipur (India)
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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
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
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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 consumers
 Others
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
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
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VI. Programme Logic (Phase-I)
Background
Paper
Two Sectors
(& Four Countries)
1st NRG Meeting
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)
Distil
Commonalities
(each sector)
2nd NRG Meeting
Draft DRCs (4)
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
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VII. Benefits of competition reforms for
Consumers
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
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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 microlocations
 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