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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

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
Income convergence must rely on a stronger service sector
  • The Czech private service sector is among the smallest
advantages of a stronger service sector
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
competition is inhibited by
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
competition friendly measures
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
reinforce competition law enforcement
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
slide12
High pre-tax industry electricity prices compensate households (unlike DNK and NLD) and are compensated by the public purse
more competition in network sectors
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
slide14

Thankyou

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