Benefits from Competition - Competition Law - Lecture Slides, Slides of Competition Law and Policy

Download Benefits from Competition - Competition Law - Lecture Slides and more Slides Competition Law and Policy in PDF only on Docsity! Benefits from Competition Docsity.com LPG PARADIGM PRE-REFORMS POST-REFORMS • LICENSING • PLANNING • GOVERNMENT • LIBERALISATION • PRIVATISATION • GLOBALISATION Docsity.com NEED FOR COMPETITION REGIME COMPETITION POLICY AND COMPETITION LAW ARE REQUIRED EFFECTIVE COMPETITION POLICY PROMOTES A COMPETITIVE BUSINESS ENVIRONMENT AND IMPROVES STATIC AND DYNAMIC EFFICIENCIES COMPETITION LAW PREVENTS ABUSE OF MARKET POWER AND CURBS ANTI- COMPETITIVE PRACTICES Docsity.com RUBRIC OF COMPETITION LAW FOUR COMPARTMENTS ARE GENERALLY THE CORE OF COMPETITION LAW:  ANTI-COMPETITION AGREEMENTS  ABUSE OF DOMINANCE  MERGERS, AMALGAMATIONS, ACQUISITIONS AND TAKE-OVERS  FOSTERING COMPETITION Docsity.com BENEFITS OF COMPETITION – AN ILLUSTRATION • IN THE EUROPEAN UNION IMPLEMENTATION OF COMPETITION POLICY RESULTED IN REMOVAL OF BARRIERS TO TRADE • INCOME INCREASED BY 1 TO 1.5 % • THIS CREATED 30 – 90 THOUSAND JOBS • INFLATION DECREASED BY 1 TO 1.5 % Docsity.com SMALL SECTOR PROTECTION • POLICY - ENCOURAGE AND PROMOTE SMALL, COTTAGE AND HANDLOOM SECTORS • RESERVATIONS FOR THE SMALL SCALE SECTOR • THEY SUFFER FROM OLD TECHNOLOGY, LACK OF RESOURCES AND MANAGEMENT, HIGH COST OF PRODUCTION AND SALE • GLOBAL COMPETITION CAN EXTINGUISH THE SMALL SCALE AND COTTAGE SECTORS • COMPETITION LAW COULD EXEMPT SMALL SECTOR FOR A SPECIFIC PERIOD OF TIME TO ENABLE IT TO BRACE ITSELF TO MEET THE CHALLENGE OF COMPETITION Docsity.com CAN COMPETITION LAW BE PRO-POOR? NOT EXPLICITLY IN THE WORDING OF COMPETITION LAW BUT PRO-POOR CONCERNS ARE ARTICULATED AS BELOW : “POVERTY REDUCTION HAS NORMALLY BEEN SEEN AS A SPECIFIC MEASURE AND ALWAYS REMAINED AT THE SIDELINES OF ECONOMIC POLICY MAKING BUT COMPETITION POLICY IS AN ELEMENT THAT CAN MAINSTREAM DEVELOPMENT AND POVERTY REDUCTION AND PUT THEM AT THE CENTRE OF ECONOMIC POLICY REGIMES” – RUBENS RICUPERO, SECRETARY GENERAL, UNCTAD “MARKETS WORK FOR THE POOR, BECAUSE POOR PEOPLE RELY ON FORMAL AND INFORMAL MARKETS TO SELL THEIR LABOUR AND PRODUCTS, TO FINANCE INVESTMENT AND TO INSURE AGAINST RISKS. WELL-FUNCTIONING MARKETS ARE IMPORTANT IN GENERATING GROWTH AND EXPANDING OPPORTUNITIES FOR POOR PEOPLE” – WORLD INVESTMENT REPORT, 2001 IT IS FOR THE COMPETITION AUTHORITY TO PRO-ACTIVELY GIVE A SHAPE TO THE SPIRIT BEHIND PRO-POOR CONCERNS Docsity.com PRO-POOR: BATA CASE • BATA HAS DOMINANT PRESENCE IN FOOTWEAR MARKET • IT ENTERED INTO AGREEMENT WITH SMALL SCALE MANUFACTURERS (COBBLERS AND POOR LEATHER WORKMEN) FOR PURCHASE OF FOOTWEAR • AGREEMENT STRIPULATED THAT THE SMALL MANUFACTURERS SHOULD USE ONLY MOULDS SUPPLIED BY BATA • MRTP COMMISSION HELD THIS AS A RESTRICTIVE PRACTICE AND PREJUDICIAL TO PUBLIC INTEREST • BUT MRTP COMMISSION RECKONED THE INTERESTS OF SMALL POOR MANUFACTURERS AND ALLOWED THE RESTRICTION TO CONTINUE Docsity.com ONE WOULD LIKE TO AVOID THE DANGER OF HOLLOW PURISM THAT HAS MADE SO MUCH OF MODERN ECONOMICS UNFIT FOR ACTUAL USE AMARTYA SEN INDIAN NOBEL LAUREATE Docsity.com WHAT “ISM” DO WE WANT? DO WE WANT ECONOMIC NATIONALISM PROTECTIONISM NATIONAL CHAMPIONISM OR CONSUMERISM ? ANSWER IN THE NEXT SLIDE. (PARDON MY ENGLISH ON THIS SLIDE) Docsity.com WHAT IS NEEDED IS NOT ANY “ISM” BUT “PRAGMATISM” OR POORAGMATISM Docsity.com