Publications

	Table of Contents
p. 37 of 62 BACK | NEXT Purpose and Structure of the Toolkit Overview of Practices Controlled by Competition Law Countries with Competition Law Systems Benefits of Competition Policy Practices Controlled by Competition Law Key Concepts and Tools Competition, Privatization, and Regulation Emerging Economies Does Everyone Benefit From Competitive Markets? All Economies Suffer from Anti-Competitive Practices Competition Policy, Competitiveness and Productivity Competition Advocacy: Effective Tool Against Special Pleading Need for Merger Control Importance of Granting Resources to Competition Authorities Consumers' Empowerment Education Regional Solutions UN Conference, November 2005 Enforcement Mechanisms ADB Resources and Projects Other Resources Glossary and List of Abbreviations

Competition Law Toolkit : Emerging Economies

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C. Competition Policy, Competitiveness and Productivity

The emphasis in the previous subtopics in this section was on the direct adverse impact on citizens caused by cartels and abusive market behavior, who have to pay higher prices for goods and services and as a result, are deprived of choice. However, it is important to emphasize another point, which is that competition law can be a tool that helps break down artificial barriers to entry to the market. Examples are the national cartels that take defensive action to prevent imports that might be harmful to the economic interests of its members but are highly beneficial to citizens. Another example would be a former state-owned incumbent utility company that is able to impede the emergence of new competition through abusive conduct. By facilitating entry, competition law may lead to a more competitive market in which entrepreneurs are able to bring in new products and processes, and a more efficient allocation of resources.

A further benefit of competition law is that, by providing clear and understandable rules as to what behavior is and is not acceptable, investors may be mode willing to invest in a particular country.

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