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Completing the transition to a competitive domestic economy

Completing the transition to a competitive domestic economy . OECD Economic Survey of the Czech Republic 2014. Income convergence must rely on a stronger service sector . The Czech private service sector is among the smallest. Advantages of a stronger service sector.

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Completing the transition to a competitive domestic economy

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  1. Completing the transition to a competitive domestic economy OECD Economic Survey of the Czech Republic 2014

  2. Income convergence must rely on a stronger service sector • The Czech private service sector is among the smallest

  3. Advantages of a stronger service sector • Lower prices of service inputs • Boost competitiveness • More innovative services • Boost job creation and wages • Exploit domestic resources of growth • Requires human capital accumulation

  4. Competition is inhibited by : • Red tape • Gold plating and entry barriers for professional services • Public ownership • Uneven application of competition policy • Little success in uncovering hard-core cartels • Weak regulation of network sectors

  5. Despite progress, there are still barriers to entrepreneurship

  6. Czech Republic has the highest number of regulated professions in the EU

  7. Corruption is another entry barrier

  8. Competition friendly measures • Reduce legal delays for contract enforcement • Lower barriers to entry in (professional) services • Improve regulatory impact assessments • Control SOEs within a single authority with professional corporate governance • Privatise and divest business-related state-owned enterprises and activities

  9. The competition authority initiates relatively few cases and often in public tender bid rigging

  10. Reinforce competition law enforcement • Secure a well-functioning leniency programme • Improve the scope for private litigation • Increase sanctions for bid-rigging in public procurement • Use sector inquiries • Remove the food retailing regulation from the competition policy framework

  11. Network prices are relatively high: in the mobile phone area as well as in….

  12. High pre-tax industry electricity prices compensate households (unlike DNK and NLD) and are compensated by the public purse

  13. More competition in network sectors • Better co-ordination between the competition authority and sector regulators • Effective independence of all network regulators • Effective ownership unbundling or holding structures with financial separation of all activities • Secure cost-based access for MVNOs, and remove barriers for becoming Full MVNOs

  14. Thankyou • Děkuji

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