COMPETITION REFORMS IN KEY MARKETS FOR ENHANCING SOCIAL
& ECONOMIC WELFARE IN DEVELOPING COUNTRIES
(CREW PROJECT)
CONSUMER UNITY & TRUST SOCIETY (CUTS)
CONVINCING POLICYMAKERS &
GARNERING GREATER SUPPORT
FOR COMPETITION REFORMS
Rafaelita M. Aldaba
PHILIPPINE INSTITUTE FOR
DEVELOPMENT STUDIES
13 MARCH 2013, JAIPUR, INDIA
Legal Framework -- background
• No comprehensive & developed anti-trust law implemented by
a central government body
• Laws dealing with monopolies, combinations in restraint of
trade, price control measures & consumer protection
• Constitution, Revised Penal Code, Civil Code, special legislations,
regulatory agencies
• Senate & House Competition Bills since the late 1980s
• EO 45 in June 2011: OFC under the Department of Justice as
competition office
• investigate all cases violating competition laws & prosecute violators
• enforce competition law & policy; supervise competition
• call on other government agencies for studies & assistance
• Comprehensive legal framework: on-going deliberations at the
House and Senate
• Constraints: lack of culture of competition, weak consumer
groups, inadequacies of the courts, political apathy/opposition
Philippine Institute for Development Studies
evidence-based research, information dissemination, advocacy
• Independent, non-profit, government think tank engaged in
long term socio-economic policy research
• Toward A National Competition Policy for the Philippines
(2000): examined state of competition, government policies &
interface with competition policy, existing competition laws
– Industry focus: manufacturing, cement, oil, telecommunications,
banking, air transport, power, ports, shipping
– Regulatory & competition interface, Philippine Antitrust
framework
• Regional seminars: Luzon, Visayas, & Mindanao
• Competition forums in cooperation with other institutions:
Manila
• Competition watch: Policy Notes and Discussion Papers on
cement, telecommunications, ports; micro studies linking
competition, innovation, productivity studies (manufacturing)
http://publication.pids.gov.ph/details.php?pid=4385 ( assessment of competition, Aldaba)
http://publication.pids.gov.ph/details.php?pid=4944 (PLDT-Sun merger, Aldaba)
http://publication.pids.gov.ph/details.php?pid=4779 ( why cement prices remain high despite zero tariffs, Aldaba)
http://publication.pids.gov.ph/details.php?pid=3021 (ports Llanto, Basilio & Basilio)
http://publication.pids.gov.ph/details.php?pid=2061 (Medalla et al)
Communicating with policymakers
• Evidence-based research: solid analytical framework
– Flexibility in approaches used, qualitative & quantitative, use competition
framework available in empirical literature (data availability)
– SCP, efficiency measures, game theory, conjectural variations
– Micro data studies: competition, innovation, productivity links
• Theories, empirical models: presented in layman’s terms
• Timing of release of competition studies: position papers
• Vigilance, continued monitoring of industries; engagement of
media is important
– Price data, newspaper reports of suspected anticompetitive acts,
mergers
• Relationship between PIDS & Policymakers/Lawmakers
– MOA between OFC-DOJ & PIDS: research support, policy advise
– PIDS: chairs OFC-DOJ’s Working Group on Planning
– Senate & House: comment on competition bills & act as resource persons
• Support by the government & political leadership at the highest
level is crucial
– Aquino: competition one of his priority legislations; Arroyo:not a priority
Lessons from Philippine Experience
In communicating with policymakers
• evidence-based research is crucial
• constant communication & dialogues with policymakers,
briefings, involvement as Project Steering Committee members
• regular discussion forums through seminars, brown bags, press
briefings and the like where all stakeholders are invited,
policymakers given a role, provide reactions & make
presentations, engage in public discussions
• information dissemination through PIDS Policy Notes : nontechnical simplified version of discussion papers
Limitations
• Limited financial & human resources
– PIDS a very small organization with a small subsidy from the government,
resources compete for many other research projects
– Expertise in infrastructure: water, telecommunications, government
procurement
• Data availability: government regulators, National Statistics
Office, Securities & Exchange Commission, UN COMTRADE data
– Firm level data is difficult to obtain, no time series data (Census every 5
years, firm identification is prohibited by law, broad sector classification)
– Cooperation among research & government agencies especially in data
exchange
THANK YOU!