Slide 1 - CCIER by yurtgc548

VIEWS: 1 PAGES: 16

									June 27, 2006

                Cambodia at the Doorstep of
                International Integration and
                     Economic Reform:
                  Is Competition Policy and Law
                                  Needed?


                             By Nuth Monyrath
                                Researcher
                Is competition law and policy needed in Cambodia?   1
                Cambodia and its integration
June 27, 2006

                Cambodia has opened its markets to the
                world and region:
                 – A member of ASEAN in 1999
                 – A member of WTO in 2003
                E.g. Status of trade liberalization: ranking
                35 out of 170 countries (US Heritage
                Foundation).


                  Is competition law and policy needed in Cambodia?   2
                  Benefits of Liberalization
June 27, 2006



                Better availability of
                products and services
                Better price
                Better quality
                Better choice




                  Is competition law and policy needed in Cambodia?   3
Is liberalizing and opening the market
                enough?




        Is competition policy and law needed in Cambodia?
                 What happen in this liberalized
                           market?
June 27, 2006

                The market is plagued by barriers to
                market entry:
                – Complicated business registration
                – Lack of transparency and accountability
                  (procurement and licensing)
                – Weak institution and governance (IPs,
                  counterfeit goods, taxes)



                 Is competition law and policy needed in Cambodia?   5
                 What happen in this liberalized
                           market?
June 27, 2006

                The market is plagued by unfair practices:
                – Conspiracy to limit access to
                  markets/suppliers
                – Unfair provisions of subsidies
                – Violation of IPRs
                – Avoiding labor taxes/regulations




                 Is competition law and policy needed in Cambodia?   6
                 What happen in this liberalized
                           market?
June 27, 2006

                The market is plagued by unfair trade practices
                (UTPs): a perspective of businessmen,
                policymakers and consumers
                – Prevalence of UTPs
                – Most common UTPs: Raising barriers to entry
                  and collective price-fixing, price discrimination,
                  collusive tendering, and tied selling
                – UTPs are in important sectors: petroleum,
                  telecommunication, public utility,
                  pharmaceutical products, food and beverage

                  Is competition law and policy needed in Cambodia?    7
                 What happen in this liberalized
                           market?
June 27, 2006

                Explicit examples of UTPs:
                – Price-Fixing amongst boaters to Siem Riep
                – Refusal to deal in the telecom market
                – Anticompetitive acquisitions in the education
                  Sector
                – Price fixing at provincial level business
                – Abuse of dominance in the mobile phone
                  service market


                 Is competition law and policy needed in Cambodia?   8
                Why all these problems happen?
June 27, 2006

                Absence of clear competition policy: lack
                of transparency and accountability of
                public institutions (licensing and
                procurement)
                Absence of competition legislation
                No independent and autonomous body
                to control UTPs
                Lack of human and financial resources

                  Is competition law and policy needed in Cambodia?   9
                   What are other concerns?
June 27, 2006

                Economic concerns: efficient and fair markets
                 consumers’ concerns: best choice of products
                and services available at decent prices and
                quality
                Economic growth of about 10 % (2005) and
                fair allocation of resources
                Poverty reduction: poverty rate at 35% of the
                total population remains a challenging issue.


                  Is competition law and policy needed in Cambodia?   10
Do we need competition policy and
             law?




       Is competition policy and law needed in Cambodia?
                  Competition law and policy?
June 27, 2006

                – There should be clear competition policy and law
                – Competition law should make exception to SMEs and
                  export oriented enterprises and SOEs
                – Exception of competition law: technological
                  advancement, protection of SMEs, disadvantaged groups




                     Is competition law and policy needed in Cambodia?   12
                Motivations for competition
June 27, 2006
                      policy and law
                1993 Constitution: state intervention
                to protect markets and consumers
                Rectangular strategy: promotion of
                competition
                WTO commitment



                 Is competition law and policy needed in Cambodia?   13
What do we need to do?




 Is competition policy and law needed in Cambodia?
                          The way forward
June 27, 2006

                Policy and Law: appropriate competition policy and
                legislation
                Actions: proper sectoral policies, competent
                competition authority, effective and efficient and
                independent judiciary
                Capacity buildings: policymakers, judges,
                prosecutors, lawyers, businessmen, consumers, civil
                society, academia/media, etc.
                Reforms: good governance, transparency and
                accountable institutions contribute a lot to fair
                competition in the markets
                Voice of consumers: “Consumer protection
                organization” to protect Cambodian consumers and
                raise awareness
                 Is competition law and policy needed in Cambodia?    15
        Thank You!




Is competition policy and law needed in Cambodia?

								
To top