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Assessing impacts of competition – experience from ODI research. Karen Ellis Head of Private Sector & Markets Programme, ODI. Project assessing economic impact of competition and related policy. Policy context & market environment. Degree of competition. Market outcomes. Countries:

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assessing impacts of competition experience from odi research

Assessing impacts of competition – experience from ODI research

Karen Ellis

Head of Private Sector & Markets Programme, ODI

project assessing economic impact of competition and related policy
Project assessing economic impact of competition and related policy

Policy context &

market

environment

Degree of

competition

Market

outcomes

countries and markets analysed
Countries:

Bangladesh

Vietnam

Ghana

Kenya

Zambia

Markets:

Sugar

Cement

Mobile phones

Beer

Countries and markets analysed
comparing efficiency average sugar production tonnes produced per hectare of sugar grown
Comparing efficiencyAverage sugar production (tonnes produced per hectare of sugar grown)
zambia s international gateway problem
Zambia´s International Gateway Problem
  • Only one international gateway exchange operated by monopoly
  • State charged v. high price for international gateway licence
  • $18 million, compared to $214,000 in Kenya & $50,000 in Uganda
  • Drove up prices and distorted whole mobiles market, increasing the costs of doing business in the country.
director for mergers and monopolies at the zambian competition commission
Director for Mergers and Monopolies at the Zambian Competition Commission:

‘Many times it becomes very difficult to actually show the benefits. Of course, a report like this makes it much easier to advocate to the government. With our persistence, we kept going to the government and highlighting the benefits of competition, showing them the statistics as such a report has done. And eventually we have gotten through to the government. And the fee for the international gateway has fallen ...’

the impact
The Impact
  • June 2010, Govt reduced license fee to $350,000
  • Licences awarded to the 2 private operators
  • Within 1 month, both private operators reduced international tariffs by 40-80%
  • “I think it’s a huge benefit to the Zambian consumers and also to the business community.” (Director of Regulation, ZICTA)
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