Institutional Foundations for Competition Policy Institutions

1
Institutional Foundations for Competition Policy
Institutions

• William E. Kovacic
• U.S. Federal Trade Commission
• May 16, 2002
• wkovacic_at_ftc.gov

2
Organization

• Institutional Prerequisites
• Emphasis on Supporting Institutions
• Priorities for New Competition Bodies
• Implications for Technical Assistance

3
Law Drafting

• Intensive Study of Initial Conditions
• Collaboration Between Host Country Experts and
  Foreign Advisors
• Accounting for Implementation

4
Institutional Prerequisites

• Capital Physical, Human, Political
• Access to Information
• Research Capability
• Civic Associations
• Administrative Legitimacy
• Courts

5
Institutional Capital

• Capital
• Physical Facilities (e.g., computers)
• Political
• Human
• Universities At home and abroad
• Internal/External Training E.g., KFTC cases
• Institutional Memory The Turnover Problem
• Think Tanks E.g., CIEM and LPEM

6
Information Resources

• Access to Information
• Business Operators
• Foreign cooperation Regional and Global
• OECD, UNCTAD, WTO
• ASEAN, APEC, ACCC Regional Center
• Bilateral Agreements
• Electronic Information Networks
• Government Ministries E.g., Morocco/Benin

7
Research Capability

• Industrial Organization Analysis
• Methods Perform Internally/Contract Out
• Foundation for
• Competition Advocacy
• Case Development
• Self-Assessment

8
Civic Associations

• Building an Infrastructure to Facilitate
  Education and Publicity
• Legal societies
• Trade associations
• Consumer groups
• Media Organizations

9
Administrative Legitimacy

• Major Ingredients
• Anti-corruption safeguards
• Transparency mechanisms such as
• The INDECOPI Academic Audit
• Peer Review
• Notice and Comment Regimes
• Performance Standards and Measures

10
Courts

• Increasing Capability
• Importance to enforcement public and private
• Physical resources
• Training
• Renovation
• New Courts
• New Chambers
• Rehabilitation of Existing Structure

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An Early Agenda for New Systems

• First Five Years
• Institution building
• Small number of very good people
• Education and Publicity
• Modest enforcement agenda
• Quality over numbers
• Publicize good results

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Implications for Technical Assistance

• Long-Term Orientation
• Institutional Memory
• Resources
• Comparative Assessment and Refinements
• Institutional innovation
• Process improvements