La Necesidad de las Politicas de Competencia

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La Necesidad de las Politicas de Competencia

• Simon J. Evenett, www.evenett.com

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Every nation has a competition policy

• All state measures that influence the entry,
  exit, and rivalry (or its absence) between firms
  are part of a nations competition policy.
• Competition policy includes, therefore, trade and
  investment policies, regulation and competition
  law.
• State decisions not to do something are policy
  decisions because they can still affect entry,
  exit, and rivalry between firms.
• The question is not whether to have a competition
  policy, but what form it should take.

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A warning on rhetoric and competition policy

• Some opponents of competition policy, and its
  elements, equate competition and markets and try
  to scare policymakers.
• Just remember that competition policy has
  different names around the world, including
• Anti-Monopoly Policy
• Fair Competition Policy
• Fair Trade Policy
• Choose the name you likewhat really matters is
  the content of the competition policy.

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Myths about competition policy

• Competition policy is supported by market
  fundamentalists.
• Competition policy only benefits large firms.
• Competition policy cannot respond to Bolivias
  new priorities.
• Everything competition policy can do, regulations
  can do better.
• Competition policy is expensive to implement.
• Competition policy has not worked in the past and
  wont work in the future.

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Suggestions for a sensible discussion on
competition policy in Bolivia.

• Be clear about the objectives of competition
  policy.
• Given the resources available, ask which state
  measures best attain each objective.
• Remember the more objectives you give competition
  policy, the more awkward trade-offs you will face
  when you implement the policy.
• Think about the scope of the lawstate firms can
  hurt the poor and customers too.
• Take a hard look at firms and sectors seeking
  exemptionswhat do they fear?