Transcript Benefits of competition for low-income groups: The

Ermal Nazifi
Albanian Competition Authority (ACA)
Vandana Shiva
“As usual, in
Human Rights activist
every scheme
that worsens
the position of
the poor, it is the
poor who are
invoked as
beneficiaries.” -
This is not the case of
competition Policy!
Of course !
Competition Policy is to make
sure that:
 ALL consumers have a vast
choice
 BEST products
 BEST prices.
 Low
income consumers –
Lower possibilities to choose.
 Free competition can help
increase their options.
 Especially in vital products for
everyday usage
“Anticompetitive practices …in the
consumer goods sector clearly impose a large
cost on consumers, and in particular the
poorest consumers, by artificially increasing
the price of basic necessities (such as
chicken, bread, milk, beer, cement, bus
transportation) and therefore reducing the
real income of poorer consumers”.
*Frederic Jenny, Cartels and Collusion in Developing Countries: Lessons from Empirical
Evidence,
World Competition 29(1): 109±137, 2006.
Albania is lower middle
income level country
Poverty headcount ratio at national poverty line (% of
population)
12.4 %
2008
18.5%
2005
25.4%
2002
“An anticompetitive
practice is not merely
an administrative
violation, but a denial
of an opportunity for
consumers of getting
products at lower
prices, better quality,
more choice, and,
thus, higher
wellbeing”.
Lindita Milo
Chair of ACA
1. Vodafone /
AMC – Unfair
prices in Mobile
Telephony
Market
(largest fine to date
and recommendations
that led to the
opening of the
market)
2. Ready mixed Concrete
Price - fixing agreement
3. Wheat import and flour production
Exchange of information and concerted practice
4. “Armo” D2 Diesel wholesale
Discriminatory pricing
5. Bread Production
Price fixing agreement
6. Bid Rigging
saving public funds for purchasing more good and
services.
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Empirical studies (JENNY) have shown that
international anti-competitive practices are
often aimed at preventing the emergence of
local industries in developing countries
Hurt developing countries which are
crucially dependent on imports
Large sums of money generated from low
income countries is passed at the
undertakings taking part in international
anti – competitive practices
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Being successful in the national cases is not
enough
International cooperation is a must
Especially cooperation between less
developed countries/regional cooperation is
needed.
Cooperation should focus not only on joint
seminars, trainings and events but also on
concrete enforcement measures against
international anticompetitive practices.
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Competition policy is a “pro poor” policy
ACA has prioritized investigations on
“everyday”, consumer goods.
Cooperation between state institutions is
needed.
Dialogue with judges, business community,
legal community and ACADEMICS is a must.
International cooperation should include
concrete enforcement measures on crossborder/international anticompetitive
practices.
Thank you!
Faleminderit!
Blagodaria!
Contact:
[email protected]
[email protected]
www.caa.gov.al