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Important stakeholders for
promoting competition and
consumer protection
reforms
Ahmed Qadir, Office of InternationalAffairs
Competition Commission of Pakistan
Competition
and
Consumer
Protection
Consultations
10-14 August
2015, Istanbul
Competition
Agency
 The institution, established by the competition law,
tasked with enforcement
 The decisive factor in establishment of competition culture
 Expected roles
 Effective enforcement of competition law;
 communication with consumers/other stakeholders
 Activities aimed at promoting competition culture and
awareness
 undertake competition advocacy
 Essentials for success
 Subject knowledge and skills,
 human and financial resources
 functional autonomy
 Good interface with complementary institutions
‘Key
stakeholders’
for
competition
and consumer
protection
reforms
POLICYMAKERS,
CONSUMER PROTECTION AUTHORITY
CIVIL SOCIETY,
ACADEMIA,
SECTOR REGULATORS,
MEDIA
BUSINESS ASSOCIATIONS,
LEGAL FRATERNITY, JUDICIARY, ETC.
Policymakers
Policies generally made at cabinet level and
endorsed by parliament
 Policy makers- government officials (ministers)
who make policies together with the MPs
Expected Roles
 Lay out conducive policy and legal frameworks
 Release resources for functioning of institutions
 Monitoring and accountability
Essentials for success
 Appreciation of benefits from competition and
consumer protection reforms
 Capacity to implement policies
Getting the
government
and
politicians
involved
Why government?
They make important decisions so
necessary to ensure that CA’s views are
duly considered
CA has a very important role to counter
“vested interests” lobbying for their
benefits
Why politicians?
They make important decisions about CA
resources
Engaging
with
government
bodies
A CA must be able to show that
competition provides significant
benefits through greater choice, lower
prices, better quality of goods and
services.
Competition provides the incentive for
firms to be more efficient and
innovative (raise productivity across the
economy)
Engaging
with
government
bodies
CA must be able to show it is not a
threat…
…it is on the same side…
…that’s its advice is based on sound
analysis, clearly presented, with the
focus on the consumer
Diplomacy, inter-personal skills, EQ, and
persuasion help immensely
What’s the
message to
government
bodies?
Some competitive effects to consider…
 Does the (proposed) intervention affect the
possibility of entry and exit in a market? e.g.,
granting exclusive rights to supply, limiting the
number of suppliers, or significantly raising the
costs for new firms entering the market
 Does it affect the nature of competition between
firms, either through direct restrictions or by
reducing the incentives to compete?
 Does it affect consumers? Can they exercise
choice?
Monitoring
developments
in
government
policies
The Government Gazette
Media
Consumers
Contacts in government bodies
Engaging
with
Parliament
Parliamentary committees need to be
treated with utmost care. Do not
appear superior or condescending!
Not all committee members will share
your views
Don’t make promises that are difficult
to keep
Don’t make any statement people will
remember forever!
Consumer
Protection
Authority
Institution with legal backing for consumer welfare
interest
Expected Roles
 Effective enforcement of consumer law;
 Establish linkages with other consumer movements
 Promotion general awareness about consumer issues
 Advocacy with relevant Ministries
Essentials for success
 Subject knowledge and skills,
 human and financial resources
 functional autonomy
 Good interface with complementary institutions
CivilSociety-
Consumer
Organisations
 Refers to voluntary social organisations and institutions
that advocate for rights of consumers
 Expected Roles
 Watchdogs (eyes and ears) for competition and consumer
authorities
 Awareness generation on competition and consumer issues
 Mobilising consumers voice on need for protection
 Advocacy and pressure on competition and consumer
protection reforms
 Essentials for success
 understanding on competition and consumer issues;
 Structures and capacity for interaction with various
stakeholders
 Support from development partners
 Recognition by the relevant authorities
Academia
University and other research institutions
Expected Roles
Policy research on competition and consumer
policy issues
Training courses on competition and
consumer issues for human resource
improvement
Capacity building programmes for officials
Essentials for success
Acceptance of competition and consumer
issues into the curriculum
Knowledge of competition and consumer
issues by researchers
Sector
regulators
Regulatory authorities established by other
sector specific legislation
Expected Roles
 Tell their respective sectors what to do
 Work with CA to promote competition in their
respective sectors
 Make decisions that have a bearing on competition
 Protect consumer interests in their sectors
Conditions Precedent
 Resources to carry the tasks
 Good legal framework
 Good interface with competition and consumer
authority
Sector
regulators
There could, eventually, be quite a few
of these in existence.
The important ones: banking &
securities, telecom, energy, services
such as hospitals and waste
management.
What works well are regular meetings
for liaison purposes and memoranda of
agreement.
Business
Regulated entity hence has big role to play
Expected Roles
 Competing fairly and avoid consumer violations
 Being sources of information for competition and
consumer authority
 Business associations promoting understanding on
competition among members (firms)
 Associations are not conduits for anti-competitive
behaviour
Conditions precedent
 No regulatory capture
 Competitive neutrality
 Acceptance of competition reforms by (big)
businesses
Media
All avenues of communication with general public
(print, electronic, social etc.)
Expected Roles
 Promote greater public awareness of issues
 Awareness on institutions and legal framework
 Hint on possible anticompetitive areas and consumer
violations
 Constructive criticism
Conditions precedent
 Availability of trained reporters
 Capacity building courses for media
 Willing contributors (articles, reports, etc.)
 Good interaction with institutions (press releases etc.)
Legal
Fraternity
Legal practitioners (for business and competition
agency) also carry a heavy burden
Expected Roles
 educate clients on compliance mechanisms
 Help judiciary establish case laws
 Ensure careful enforcement of laws by guarding
against carelessness
 Help identify loopholes in the administration system
Conditions precedent
 proper understanding of the provisions of the law, and
its overall goal
 Training programmes for the lawyers
 Quick justice delivery system
Judiciary
The buck stops at the judiciary, hence
determines efficiency of system
Speed of judicial review, however, is a
matter of concern in many countries
Expected roles
Efficient disposal of related trials/cases
Establish case laws
Essentials for success
knowledge on the subjects
Conducive platform for presiding cases (e.g.
different from common criminal cases)
Conclusions
– what the
CA can do
Stakeholders need to understand and adequately
perform their specific roles.
Stakeholder needs training.
Programmes on awareness of competition and
consumer issues and their benefits critical for
success.
Stakeholders need to complement each other
rather than step on each other’s toes.
Resource constraints major challenge; hence
development partners are necessary.
Advocacy key to buy-in; important to establish a
cadre of advocates through training programmes
Confidence,
credibility,
resources
The more the CA inspires the
confidence of Ministers, MPs,
government bodies, parliamentary
committees, etc., the more credibility it
creates.
Credibility can be leveraged for more
resources to carry on with its important
work.
Final
Thoughts
An authority will ultimately be judged
on its perceived VALUE to the
economy
Important to demonstrate this value
quickly
 keeping focused on the ’main game’, i.e., key
priority issues and avoiding easy but low[er]
priority issues is essential.
 Communicating about what one does is also
important  helps get support
Thank you very
much

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Day 2 Presentation 2 Role of stakeholders in promoting competition and consumer protection reforms

  • 1. Important stakeholders for promoting competition and consumer protection reforms Ahmed Qadir, Office of InternationalAffairs Competition Commission of Pakistan Competition and Consumer Protection Consultations 10-14 August 2015, Istanbul
  • 2. Competition Agency  The institution, established by the competition law, tasked with enforcement  The decisive factor in establishment of competition culture  Expected roles  Effective enforcement of competition law;  communication with consumers/other stakeholders  Activities aimed at promoting competition culture and awareness  undertake competition advocacy  Essentials for success  Subject knowledge and skills,  human and financial resources  functional autonomy  Good interface with complementary institutions
  • 3. ‘Key stakeholders’ for competition and consumer protection reforms POLICYMAKERS, CONSUMER PROTECTION AUTHORITY CIVIL SOCIETY, ACADEMIA, SECTOR REGULATORS, MEDIA BUSINESS ASSOCIATIONS, LEGAL FRATERNITY, JUDICIARY, ETC.
  • 4. Policymakers Policies generally made at cabinet level and endorsed by parliament  Policy makers- government officials (ministers) who make policies together with the MPs Expected Roles  Lay out conducive policy and legal frameworks  Release resources for functioning of institutions  Monitoring and accountability Essentials for success  Appreciation of benefits from competition and consumer protection reforms  Capacity to implement policies
  • 5. Getting the government and politicians involved Why government? They make important decisions so necessary to ensure that CA’s views are duly considered CA has a very important role to counter “vested interests” lobbying for their benefits Why politicians? They make important decisions about CA resources
  • 6. Engaging with government bodies A CA must be able to show that competition provides significant benefits through greater choice, lower prices, better quality of goods and services. Competition provides the incentive for firms to be more efficient and innovative (raise productivity across the economy)
  • 7. Engaging with government bodies CA must be able to show it is not a threat… …it is on the same side… …that’s its advice is based on sound analysis, clearly presented, with the focus on the consumer Diplomacy, inter-personal skills, EQ, and persuasion help immensely
  • 8.
  • 9. What’s the message to government bodies? Some competitive effects to consider…  Does the (proposed) intervention affect the possibility of entry and exit in a market? e.g., granting exclusive rights to supply, limiting the number of suppliers, or significantly raising the costs for new firms entering the market  Does it affect the nature of competition between firms, either through direct restrictions or by reducing the incentives to compete?  Does it affect consumers? Can they exercise choice?
  • 11. Engaging with Parliament Parliamentary committees need to be treated with utmost care. Do not appear superior or condescending! Not all committee members will share your views Don’t make promises that are difficult to keep Don’t make any statement people will remember forever!
  • 12. Consumer Protection Authority Institution with legal backing for consumer welfare interest Expected Roles  Effective enforcement of consumer law;  Establish linkages with other consumer movements  Promotion general awareness about consumer issues  Advocacy with relevant Ministries Essentials for success  Subject knowledge and skills,  human and financial resources  functional autonomy  Good interface with complementary institutions
  • 13. CivilSociety- Consumer Organisations  Refers to voluntary social organisations and institutions that advocate for rights of consumers  Expected Roles  Watchdogs (eyes and ears) for competition and consumer authorities  Awareness generation on competition and consumer issues  Mobilising consumers voice on need for protection  Advocacy and pressure on competition and consumer protection reforms  Essentials for success  understanding on competition and consumer issues;  Structures and capacity for interaction with various stakeholders  Support from development partners  Recognition by the relevant authorities
  • 14. Academia University and other research institutions Expected Roles Policy research on competition and consumer policy issues Training courses on competition and consumer issues for human resource improvement Capacity building programmes for officials Essentials for success Acceptance of competition and consumer issues into the curriculum Knowledge of competition and consumer issues by researchers
  • 15. Sector regulators Regulatory authorities established by other sector specific legislation Expected Roles  Tell their respective sectors what to do  Work with CA to promote competition in their respective sectors  Make decisions that have a bearing on competition  Protect consumer interests in their sectors Conditions Precedent  Resources to carry the tasks  Good legal framework  Good interface with competition and consumer authority
  • 16. Sector regulators There could, eventually, be quite a few of these in existence. The important ones: banking & securities, telecom, energy, services such as hospitals and waste management. What works well are regular meetings for liaison purposes and memoranda of agreement.
  • 17. Business Regulated entity hence has big role to play Expected Roles  Competing fairly and avoid consumer violations  Being sources of information for competition and consumer authority  Business associations promoting understanding on competition among members (firms)  Associations are not conduits for anti-competitive behaviour Conditions precedent  No regulatory capture  Competitive neutrality  Acceptance of competition reforms by (big) businesses
  • 18. Media All avenues of communication with general public (print, electronic, social etc.) Expected Roles  Promote greater public awareness of issues  Awareness on institutions and legal framework  Hint on possible anticompetitive areas and consumer violations  Constructive criticism Conditions precedent  Availability of trained reporters  Capacity building courses for media  Willing contributors (articles, reports, etc.)  Good interaction with institutions (press releases etc.)
  • 19. Legal Fraternity Legal practitioners (for business and competition agency) also carry a heavy burden Expected Roles  educate clients on compliance mechanisms  Help judiciary establish case laws  Ensure careful enforcement of laws by guarding against carelessness  Help identify loopholes in the administration system Conditions precedent  proper understanding of the provisions of the law, and its overall goal  Training programmes for the lawyers  Quick justice delivery system
  • 20. Judiciary The buck stops at the judiciary, hence determines efficiency of system Speed of judicial review, however, is a matter of concern in many countries Expected roles Efficient disposal of related trials/cases Establish case laws Essentials for success knowledge on the subjects Conducive platform for presiding cases (e.g. different from common criminal cases)
  • 21. Conclusions – what the CA can do Stakeholders need to understand and adequately perform their specific roles. Stakeholder needs training. Programmes on awareness of competition and consumer issues and their benefits critical for success. Stakeholders need to complement each other rather than step on each other’s toes. Resource constraints major challenge; hence development partners are necessary. Advocacy key to buy-in; important to establish a cadre of advocates through training programmes
  • 22. Confidence, credibility, resources The more the CA inspires the confidence of Ministers, MPs, government bodies, parliamentary committees, etc., the more credibility it creates. Credibility can be leveraged for more resources to carry on with its important work.
  • 23. Final Thoughts An authority will ultimately be judged on its perceived VALUE to the economy Important to demonstrate this value quickly  keeping focused on the ’main game’, i.e., key priority issues and avoiding easy but low[er] priority issues is essential.  Communicating about what one does is also important  helps get support