The 7Up1 Project, or formally, ‘Comparative Study of Competition Regimes in Select Developing Countries of the Commonwealth’, involved the following seven developing countries – South Africa, Kenya, Zambia and Tanzania in Africa, and Pakistan, Sri Lanka and India in South Asia. The two year long study was supported by the Department for International Development (DFID), UK
The purpose of this project was to evaluate how these countries enacted and implemented a competition law, and how effective they have been. It was evident that the project countries differed significantly in terms of population size, size of the economy, per capita incomes, industrial structure and exposure to the world economy.
They all undertook significant trade liberalisation, including conversion of non-tariff barriers into tariffs and reduction of existing tariff rates. However, the exposure to world markets through exports and imports differed considerably. As the scope of competition law and its framework of implementation also varied significantly, it was an interesting exercise to chart their relative progress.
The project, popularly known as the 7-Up Project, was a two-year research and advocacy programme undertaken by the CUTS and its largest research project completed so far. The report published is titled: Pulling Up Our Socks.
This pioneering study on competition policy and law in the developing world has been quite successful in achieving its objectives of identifying the problems of competition authorities in the target countries. Several research reports; briefing papers and handbooks were produced during the project to spread awareness.
The report compares the institutional framework in the project countries and analyses important issues like legal provisions, autonomy of the institutions, financial and human resources, etc. It concludes with suggestions and recommendations for strengthening the competition regimes in these countries.
pp 68, #0303, INR Rs.250/US$15 ISBN: 81-87222-74-3
- Possibly the first attempt to analyse the state of competition regimes in developing countries. Provides valuable insight into the current situation.
- Conducts an evaluation of the country’s existing competition legislation and its implementation with regard to features like budget, composition and structure of the competition authority.
– The Role of Competition Policy & Law
Since the beginning of the 1990s, competition policy has been increasingly recognised as a key component in the ongoing reforms of most developing countries. For Kenya, an important dimension of current changes in competition policy involves the introduction of competition to areas from which it was previously absent, in particular telecommunications and related public infrastructure services. Another important dimension of competition policy in Kenya concerns mergers and takeovers. The Monopolies and Prices Commission (MPC) has responsibility for lowering monopolistic tendencies in the economy.
This report examines the scope and context of competition policy and competition law in Kenya, the socio-economic development of the country, an assessment of Kenya’s competition law, administrative aspects of the law and capacity and needs of the MPC.
pp 54, #0208, Kenyan Shilling (KSH) 100/ INR Rs.100/US$10
– A Tool for Development in Tanzania
The report makes a critical assessment and review of the competition regime in Tanzania based on the Fair Trade Practices Act of 1994 and the subsequently created institutions. In this report, economic and law based researchers carefully explore the competition regime in Tanzania, bringing to fore the different facets of competition policy in the country, including the socio-economic and public policy context. These sections explain concentration issues, direct investment, trade orientation, financial sector reforms and various policies important for competition law and policy to work.
pp 49, #0207, Tanzanian Shilling (TSH) 1000SH/ INR Rs.100/US$10
This is the Sri Lanka country report, which will feed into the first phase of the Comparative Study of the Competition Law Regimes of select developing countries of the Commonwealth also known as ‘the 7-Up Project’, undertaken by CUTS, supported by the Department for International Development (DFID), U.K. The research project aims to identify measures that would assist developing countries in strengthening their competition laws and introducing such laws where they are absent.
Sri Lanka is in the process of formulating and adopting a new competition law in the year 2002, twenty-five years after market liberalisation. The issue for Sri Lanka may very well be whether the Sri Lankan economy is sufficiently mature to sustain an effective competition policy regime to reap the many benefits that such a policy has to offer.
pp 51, #0206, Lankan Rupee (LKR) Rs. 150/Indian Rupees (INR) Rs.100/US$10
The paper examines the adequacy of the Competition and Fair Trading Act of 1995 as applied in Zambia. An attempt has been made to relate competition law to economic development policy in general and, more specifically, to market liberalisation policies, policies on FDI, consumer protection and other sector-specific regulations.
Since competition law in Zambia seeks to protect consumers by encouraging competition and fair-trading, this project also addresses the effectiveness of the regulatory authorities in prohibiting/regulating the monopolies that operate in the economy. While assessing the effectiveness of the Zambia Competition Commission (ZCC), procedural issues regarding its powers and responsibilities, its functions, coverage, constraints and prospects are also examined.
pp 54, #0211, Zambian Kwacha (ZK) 5000/INR Rs.100/US$10
– Waiting for a Shake-Up
The report introduces the existing competition legislation and competition policy issues in Pakistan and gives recommendations on how to improve upon the existing legislation and the capacity of the competition authority. It discusses the economic performance of the country, the nature of markets and competition in Pakistan, provides a brief overview of the available literature on industrial concentration, establishing a case for a well-defined competition policy and law. It also deals with the social and economic policies of the Government that affect competition.
pp 41, #0210, Pakistani Rupees (PKR) Rs. 100/INR Rs.100/US$10
The Report reviews the existing Competition Law, the Monopolies and Restrictive Trade Practices Act (MRTP) and the proposed new law, focusing on the implementation of the MRTP Act. A number of important issues, such as the division of overlapping jurisdictions between the Central Competition Authority and Sectoral Regulators, the composition of the new Competition Authority proposed under the new law and most importantly, the extent of discretionary powers to be vested with the new Competition Authority, still elude broad consensus in the country.
However, by pulling together the diverse elements of the competition regime in India and focusing on the gaps between the laws and their implementation, it is hoped this Report will lead to improved awareness of this critical area of policy reform in the economy.
pp 47, #0212, INR Rs.100/US$10
– A Key Component in New Economic Governance
The report assesses the competition framework in South Africa, with a view to the effectiveness in promoting economic efficiency and consumer welfare as part of economic development. The report is an input into the ‘Comparative Study of Competition Regimes in Select Developing Countries’, co-ordinated by CUTS.
The report locates the rationale for competition policy in a South African context. It then outlines the changing competition regime with the enactment of the Competition Act of 1998 and the establishment of the Competition Commission, Competition Tribunal and Competition Appeals Court in 1999.
pp 45, #0209, Rands (RN) 10/ INR Rs.100/US$10
- Based on the country reports and other information collected from various sources
- Addresses the issues of competition law enforcement in the wider context of the political economy of economic development
- Offers the possibility of establishing benchmarks relevant for developing countries
- Argues that appropriate institutional design is of great importance to allow the competition authority to have the level of independence necessary for it to be considered a credible and impartial enforcer of the law
Friends of Competition: How to build an effective competition regime in developing and transition countries
This monograph is prepared under the competition policy project (7-Up), of CUTS, intends to build awareness in policymakers and negotiators and stimulate debate on competition policy in the national and international contexts. It also assesses the need for capacity building in developing and transition countries so as to strengthen the competition culture and outlines an ideal capacity building programme for promoting an effective and healthy competition regime/culture.
pp 68, #0304, Rs.50/US$5
Towards a Healthy Competition Culture
This monograph is prepared under the competition policy project (7Up2) of CUTS, aims to outline an ideal capacity building programme for promoting an effective and healthy competition regime in the targeted countries. It outlines certain issues, which need to be considered while drafting a competition policy, because of the high probability of even a desirable competition law and policy being implemented ineffectively by the competition agency due to various factors such as lack of political will.
pp 40, #0301, Rs.100/US$10
A Quarterly Newsletter of the CUTS Centre for Competition, Investment & Economic Regulation covering developments relating to competition policy and economic regulations.
This is a quarterly, newsletter published by the CUTS C-CIER, under the 7Up Project. The objective behind this flagship publication is to create awareness among the stakeholders, particularly the civil society organisations, who in turn lobby at national, regional and international level, on the issues related to the competition and consumer welfare. It focuses on news, views and policies related to corporate restructuring, regulations of utilities and finances, corporate governance etc. of different countries in particular, the developing nations. Special dedicated sections showcase issues and cases thwarting competition in countries across the globe providing readers an insight into the competition scenario therein. It also updates the reader on the progress of various 7Up Projects.
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CUTS Centre for Competition, Investment & Economic Regulation
D-217, Bhaskar Marg, Bani Park, Jaipur 302 016 India
Ph: 91-141-2282821, Fax: +91-141-202968/2207486
Web: www.cuts-international.org, www.cuts-ccier.org
Materials from this communiqué may be freely cited, subject to proper attribution
This is bi-monthly e-newsletter, the primary objective of which is disseminating information about the “7Up Project”, and also issues related to competition policy and law. The 7Up Project aims at doing a comparative study of competition regimes in the seven developing countries.