Institutional foundations for competition policy institutions
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Institutional Foundations for Competition Policy Institutions. William E. Kovacic U.S. Federal Trade Commission May 16, 2002 [email protected] Organization. Institutional Prerequisites Emphasis on Supporting Institutions Priorities for New Competition Bodies

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Institutional foundations for competition policy institutions

Institutional Foundations for Competition Policy Institutions

William E. Kovacic

U.S. Federal Trade Commission

May 16, 2002

[email protected]


Organization

Organization

  • Institutional Prerequisites

    • Emphasis on Supporting Institutions

  • Priorities for New Competition Bodies

  • Implications for Technical Assistance


Law drafting

Law Drafting

  • Intensive Study of Initial Conditions

  • Collaboration Between Host Country Experts and Foreign Advisors

  • Accounting for Implementation


Institutional prerequisites

Institutional Prerequisites

  • Capital: Physical, Human, Political

  • Access to Information

  • Research Capability

  • Civic Associations

  • Administrative Legitimacy

  • Courts


Institutional capital

Institutional Capital

  • Capital

    • Physical: Facilities (e.g., computers)

    • Political

    • Human

      • Universities: At home and abroad

      • Internal/External Training: E.g., KFTC cases

      • Institutional Memory: The Turnover Problem

      • Think Tanks: E.g., CIEM and LPEM


Information resources

Information Resources

  • Access to Information

    • Business Operators

    • Foreign cooperation: Regional and Global

      • OECD, UNCTAD, WTO

      • ASEAN, APEC, ACCC Regional Center

      • Bilateral Agreements

    • Electronic Information Networks

    • Government Ministries: E.g., Morocco/Benin


Research capability

Research Capability

  • Industrial Organization Analysis

  • Methods: Perform Internally/Contract Out

  • Foundation for:

    • Competition Advocacy

    • Case Development

    • Self-Assessment


Civic associations

Civic Associations

  • Building an Infrastructure to Facilitate Education and Publicity

    • Legal societies

    • Trade associations

    • Consumer groups

    • Media Organizations


Administrative legitimacy

Administrative Legitimacy

  • Major Ingredients

    • Anti-corruption safeguards

    • Transparency mechanisms such as:

      • The INDECOPI “Academic Audit”

      • Peer Review

    • Notice and Comment Regimes

    • Performance Standards and Measures


Courts

Courts

  • Increasing Capability

    • Importance to enforcement: public and private

    • Physical resources

    • Training

    • Renovation

      • New Courts

      • New Chambers

      • Rehabilitation of Existing Structure


An early agenda for new systems

An Early Agenda for New Systems

  • First Five Years

    • Institution building

      • Small number of very good people

    • Education and Publicity

    • Modest enforcement agenda

      • Quality over numbers

      • Publicize good results


Implications for technical assistance

Implications for Technical Assistance

  • Long-Term Orientation

  • Institutional Memory

  • Resources

  • Comparative Assessment and Refinements

    • Institutional innovation

    • Process improvements


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