The CUTS International a non-governmental organisation pursuing social justice and economic equity, has urged the Finance Ministry to adopt the national competition policy claiming that it could ignite another wave of economic reforms. The issue and suggestion figured at pre-budget consultations held by Union Finance Minister P Chidambaram with social sector groups in New Delhi today that was attended by CUTS Secretary General Pradeep Mehta too.
“The National Competition Policy can become the second biggest wave of economic reforms, it needs to be adopted soon and implemented effectively to promote inclusive growth”, said Mr Mehta. He said competitive markets promote economic democracy, which in turn builds a healthy political democracy.
‘The poor suffer more when markets and governance do not function well’, Mr Mehta held. ‘In the medium term, competition reforms will also help curb inflation and promote good governance”, he elaborated. A National Competition Policy would help to address numerous policy-induced competition distortions which otherwise could not be checked under the Competition Act, because they were sanctioned under other public policies.
Among other suggestions, Mr Mehta stressed on adoption of a Financial Consumer Protection Act early enactment of the Public Procurement Bill; establishing an Investment Ombudsman and providing After Care Services to Investors; adopting a Foreign Trade Policy which should explore newer markets in view of the slump in the traditional western markets. UNI SS RKM AS2147 NNNN.