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Bangladesh Country Advocacy Document. Iftekar Ahmed Senior Research Fellow, BEI January 2, 2006. Competition Law/Policy in Bangladesh. No Competition Policy Monopolies and Restrictive Trade Practice (Control and Prevention) Ordinance, 1970 Has not been implemented but still valid

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Bangladesh Country Advocacy Document

Iftekar Ahmed

Senior Research Fellow, BEI

January 2, 2006

Bangladesh Enterprise Institute


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Competition Law/Policy in Bangladesh

  • No Competition Policy

  • Monopolies and Restrictive Trade Practice (Control and Prevention) Ordinance, 1970

  • Has not been implemented but still valid

  • Ordinance prohibits

    • Undue concentration of individual economic power

    • Unreasonable monopoly power

    • Unreasonable restrictive trade practices

Bangladesh Enterprise Institute


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MRTP Ordinance 1970

  • Relevant phrases are not properly explained

  • Provides for the creation of a Monopoly Control Authority to enforce the provisions of the Ordinance, but was never constituted

  • Never been implemented

  • If revived needs amendments

  • Need for a new law

Bangladesh Enterprise Institute



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Challenges

  • Challenges to instituting a competition regime are enormous

  • No quick and simple remedy that will be immediately effective across the board

  • Even if a law is drafted, past experience shows poor implementation with weak enforcement

Bangladesh Enterprise Institute


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Develop Constituency

  • Targeted stakeholders for advocacy and capacity building

    • Government

      • sensitize and motivate

    • Business

      • demonstrate benefits of a competition regime

    • Media

      • galvanize wider public understanding and support

    • Consumers

      • empower to champion and act as pressure group

Bangladesh Enterprise Institute


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Three-Step Process

Step 1: Create demand

  • Raise awareness of stakeholders

    Step 2: Draft/Amend/Adopt Law

  • capacity building of policy makers

  • wide consultation

    Step 3: Implementation and enforcement of law

  • capacity building of the Competition Authority

Bangladesh Enterprise Institute


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Strategy 1: Target Sectors

  • Identify priority sectors

  • Selection Criteria:

    • High visibility

    • Wide impact

    • Rapid implementation

    • Demonstrable benefits

Bangladesh Enterprise Institute


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Strategy 2: Information Cell

  • Create an Information Cell and Consumer Hotline

  • Monitor abuses of market power

  • Generate competition status reports

  • Provide dialogue space for stakeholders

Bangladesh Enterprise Institute


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Strategy 3: Consumer Awareness

  • Information dissemination

  • Conduct training on competition issues

Bangladesh Enterprise Institute


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Strategies

Step 1

Step 2

Step 3

Create Demand

Draft Law

Implement Law

Strategy 1:

Target Sectors

Strategy 2:

Information Cell

Strategy 3:

Consumer Awareness

Bangladesh Enterprise Institute


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market

business

consumer

competition regime

Competition

Authority

government

Trade

bodies

information

cell

Media

informed

consumer

civil society

Bangladesh Enterprise Institute


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