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Small and developing competition agencies – Philippine Competition Commission – December 2017 OECD discussion

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This presentation by the Philippine Competition Commission was made during Break-out Session 1: Advocacy in the framework of the discussion on “Overcoming adversity and attaining success: Small and developing competition agencies” held at the 16th meeting of the OECD Global Forum on Competition on 8 December 2017. More papers and presentations on the topic can be found out at oe.cd/sda.

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Small and developing competition agencies – Philippine Competition Commission – December 2017 OECD discussion

  1. 1. Competition Policy Advocacy Efforts Within the Government: THE PHILIPPINE CASE ARSENIO M. BALISACAN, PhD Chairman Philippine Competition Commission 16th Global Forum on Competition OECD Conference Centre Paris, France 8 December 2017
  2. 2. Sources: WB Development Indicators, WEF Global Competitiveness Report 2016-2017, and IFC Doing Business Report 2017 (published in 2016) Philippine policy challenge: Lagging competitiveness amid brisk economic growth Can the growth be sustained?
  3. 3. The Need for Policy Reform • Factors causing weak competitiveness (poor investment climate) include market inefficiencies, especially anti-competitive practices • Government policies & regulations, including administrative issuances & practices – Have shaped market incentives over time and across space – Roots of market inefficiencies • Government has a national game plan (development strategy) to address the constraints to investment and economic development
  4. 4. Competition Policy in the National Development Strategy • Competition policy as crucial component of the national development strategy • Effective competition enforcement & advocacy • Improved consumer welfare & market efficiency: elements needed to attain & sustain inclusive growth • Realizing the long-term vision: a prosperous, middle-class society where no one is poor
  5. 5. The Beginning Establishment of the ASEAN Economic Community Competition bill first filed in the Philippine Congress Organization of the Philippine Competition Commission Enactment of the Philippine Competition Act Launching of the Philippine Development Plan 2017-2022 • Fragmented laws • Antitrust law – relatively new in the Philippines • Low awareness, even within the government
  6. 6. Mainstreaming Competition Policy • PCC has a broad policy mandate that covers the public & private sectors in all industries of the economy • As a new institution, it needs the support of established line- agencies to champion competition policy • Not much can be accomplished unless competition policy is mainstreamed into government decision-making • Mainstreaming will first require an assessment of the competition landscape to better understand the constraints that bind different markets
  7. 7. First Order: Assessing the Competition Landscape National Competition Policy Review • Organized an independent Experts Review Team • Evidence-based identification of key competition issues & enforcement priorities: • Sectors with serious competition challenges • Roots of market inefficiencies • Political-economy considerations  Low- vs High-hanging fruits • Areas with potentially large impact on consumer welfare • Served as key document for drafting the National Competition Policy Chapter of the Philippine Development Plan (PDP) 2017- 2022
  8. 8. • A first in the country’s socio-economic planning history • Secured the support and commitment of the President & the leadership of line-agencies • Compass for the country’s development in the medium-term: determines priorities for resource allocation & policy direction of government agencies • Measurable outcome indicators by which government performance will be gauged PDP Chapter 16: Leveling the Playing Field through a National Competition Policy Priority Sectors for Competition Analysis and Enforcement
  9. 9. Coordinating Implementation • Coordinating with sector regulators & other government agencies to avoid jurisdictional and enforcement conflicts • Memoranda of Agreement (MOA) for policy coherence, streamlining of procedures & sharing of information & technical expertise
  10. 10. Building up Enforcement Capacity • Partnership with other government agencies for capacity building on competition law & policy • Tapping into the experience & expertise of development partners & other jurisdictions
  11. 11. Lessons from a Young Agency Competition policy advocacy within the government has high payoffs • Mainstreaming competition policy in government’s development strategy & decision-making is necessary to make a significant and sustainable impact. • Enforcement priorities have to be evidence-based to the extent possible. • Mobilizing champions of competition policy within the government is key to doing more with less. • Law enforcement & policy implementation require coordination and collaboration with, not isolation from, other government agencies & development partners.
  12. 12. Thank you.

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