La Competencia, La Competividad y Reduccin de La Pobreza

1
La Competencia, La Competividad y Reducci?n de La
Pobreza

• Simon J. Evenett, www.evenett.com

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Overview of presentation

• The importance of competitiveness and poverty
  reduction for development.
• The relationship between competition and
  competitiveness (export performance).
• The relationship between competition and reducing
  poverty.
• Policy recommendations.

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The importance of competitiveness and poverty
reduction

• Competitiveness is important because
• Export demand leads to growth.
• Enhances attractiveness to FDI.
• Poverty reduction is central to attaining the
  Millenium Development Goals (MDGs).
• Price, quality, and access to goods are essential
  for the poor, not just incomes.

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Competition ? ? Competitiveness ? (export
performance)

• Porters hypothesis greater domestic rivalry ?
  higher exports and quality upgrading
• Importance of improving ports, airports, roads,
  and telecommunications.
• Reduce delays (time is money), costs, and
  improve capacity.
• Relationship to concessions.
• External competition-related threats to
  competitiveness.

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Competition ? ? Poverty ?

• Poverty has many elements to it.
• Effects on wages and employment.
• Caveat firm shake-out and adjustment.
• Effects on prices of essential goods.
• Effects on access to goods and services.
• Relationship to MDGs targets, especially those
  concerning income (1), hunger (2), and access to
  new technologies (18).

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Competition ? ? Poverty ?

• Poverty has many elements to it.
• Effects on wages and employment.
• Caveat firm shake-out and adjustment.
• Effects on prices of essential goods.
• Effects on access to goods and services.
• Relationship to MDGs targets, especially those
  concerning income (1), hunger (2), and access to
  new technologies (18).

7
Policy recommendations

• Concerns about poverty or competitiveness should
  not prevent the adoption of a comprehensive
  competition policy
• Including adopting a competition law.
• Lower barriers to entry.
• Special attention should be given to bottlenecks
  in the distribution of goods.