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Overview of the CREW Project Competition Reforms in Key Markets for Enhancing Social &

Economic Welfare in Developing Countries

Raksha ShardaCUTS International

1st National Reference Group (NRG) Meeting, India24th July, 2013

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Introduction

Project Progress & Planned Activities

Role of National Reference Group Members

Outline

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I. Introduction

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GoalTo better demonstrate measurable benefits from effective competition reforms in DCs, for ensuring long-term support for competition

Objectives Enhance understanding of benefits from competition reforms in

DCs (consumers & producers)

Develop & test a methodology to assess efficacy of competition reforms in benefitting consumers and producers in specific markets

Advocate to key actors (National & International) for greater support to competition reforms in key markets

Sustain momentum on competition reforms and take it forward

1. Goal & Objectives

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Outputs Documented evidence of benefits from competition reforms in key

markets

Dialogues involving multiple stakeholders on benefits of competition reforms in DCs

Strategy for capacity building of DC competition agencies and sector regulators

Framework (Tool) for monitoring and evaluating the process of competition reforms in DCs

Demand from elsewhere (other sectors and/or countries) for similar exercise

Outcome Greater attention and impetus for competition reforms in key DC markets resulting in consumer and producer benefits

2. Outputs & Outcome

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Phase I (Diagnostic Phase): Assess implications of competition reforms in specific markets; identify benefits and causes of existing consumer & producer concerns – RESEARCH & CONSULTATIONS

Phase II (Design Phase): Design a composite methodology to quantify (actual & potential) benefits of competition reforms– DESIGN & CONSULTATIONS

Phase III (Validation Phase): Test the veracity of this methodology in micro-locations in project countries; and use results for advocacy – ADVOCACY & PUBLIC EDUCATION

3. Phases of the Project

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Access: Have the reach of goods and services to consumers in areas where they were not available earlier (distributive efficiency)?

Quality/Price: Are better quality goods and services available for consumers? Have prices increased appreciably of such good/services?

Choice: Are new products available to consumers? Are new firms entering the market offering more variety?

Price: Have prices changed, either increased or decreased?

Time savings: Do offered goods and services help save time for consumers?

4. Indicators of Consumer Welfare

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Access to essential services: Are firms able to easily access public service and infrastructure networks (e.g. electricity, water, etc.)?

Free movement of goods and services: Is mobility affected by policies, practices (inputs & outputs), or infrastructure constraints?

Predictability of regulatory actions: Are legislations enforced by autonomous yet accountable institutions?

Cost savings: Have new innovation, such as improved ICT tools, lead to reduction in costs?

5. Indicators of Producer Welfare

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Fair market processes: Are new firms able to enter the market easily, and existing firms able to close business effectively?

Level-playing field: Is the principle of ‘competitive neutrality’ observed between private/public enterprises?

Transparency in market: Do market regulators have well laid out policies and predictable implementation processes?

5. Indicators of Producer Welfare (contd.)

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STAPLE FOOD PASSENGER TRANSPORT

CONSUMER WELFARE

- Availability of good quality staple food.- Change in prices of staple food for ordinary consumers

- Availability of good quality transport services to ordinary consumers within city (intra-city) to get to workplace, markets, college/university on a daily basis & also on busy inter-city routes- Change in prices

PRODUCER WELFARE

- Participation of private entities in procurement, storage and distribution of staple food- Change in prices of inputs and outputs

- Access to road networks for a new player (operator) in a specific geographic market for providing such services- Change in bus fares

6. Definition of Consumer & Producer Welfare (Sector-Specific)

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Program Level at the Head Quarters Implementation Team Project Advisory Committee (PAC)

Country Level Country Partner Organisation National Reference Group (NRG) National Entities: Competition/Sector Regulator,

Business Associations, Research Organisation/CSO, Media

7. Project Actors

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II. Project Progress & Planned Activities

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Inception Meeting: Countries & Sector selection Review of literature & Fact Finding in project countries Opening Meeting in project countries: April to May, 2013

Outline of Diagnostic Country Report (DCR) DCR Research Methodology Review of DCR Methodology by PAC members

1. Project Progress

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Finalise the DCR Methodology (In countries) Identify reforms undertaken in markets Identify relevant stakeholders/respondents Identify benefits of reforms on consumers and

producers Identify existing concerns, reform possibilities and

estimated benefits from them

2. Planned Activities

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Conduct in-depth interview, perception surveys of relevant stakeholders/respondents

Data Analysis & Collation Preparation of the draft DCR Presentation of the draft DCR in NRG-2 meeting

to get feedback

2. Planned Activities (contd.)

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III. Role of NRG Members

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Multi-stakeholder group of experts and practitioners

Composed of competition scholars, practitioners and sectoral stakeholders

The group would comprise about 15 members in each country

Meet periodically to discuss project progress and issues

1. National Reference Group

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Guidance & support in project implementation Inputs in designing components of research Review important project documents - Diagnostic

Country Report, Framework for Competition Promotion (FCP), etc.

Access to country-specific network of institutions for data (literature, statistics, market environment, etc.) and project application tools

Participate in project meetings CREW findings would help them in their own work

agenda

2. Role of NRG Members

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Phases

NRG Tentative

Timeline

Purpose

I NRG –I July, 2013

•Provide project orientation & update• Discuss Conceptual Framework (Phase-I)• Inputs on DCR Methodology (country-specific)

I NRG-II October, 2013

•Discuss Draft DCR•Discussion on DCR findings and refinements

II NRG-III January, 2014

• Orientation on common findings of the final DCR• Discussion on development of Framework for Competition Promotion

3. NRG Meetings & Timelines

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Phases NRG Tentative Timeline

Purpose

II NRG-IV July, 2014 •Presentation of the sector specific FCPs• Discussion on the FCP for fine tuning and refinement

III NRG-V Nov, 2014 •Presentation of the final FCP•Planning of country-specific implementation of FCPs

III NRG-VI May, 2015 •Discussion on the findings of the FCP after implementation (Impact Analysis)

3. NRG Meetings & Timelines (contd.)

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www.cuts-ccier.org/CREW

Thank You!