...Privatization, Regulation and Competition in South Asia T. N. Srinivasan* 1. Introduction It is a great honor to be invited to deliver the Mahbub Ul Haq Memorial Lecture. Mahbub finished his graduate studies in economics and left Yale in 1956, a year before I began my own graduate studies there. He had set an exemplary record that those of us from South Asia who followed him at Yale, such as Bashir Karamali, Parvez Hasan, Syed Nawab Hyder Naqvi, Syed Naseem, and myself included, could only envy. In the late seventies, I interacted with Mahbub at the World Bank, where I spent three years at the Development Research Center. I still recall our discussions at the Bank about the Basic Needs Approach to economic development. As the Special Adviser to the UNDP Administrator, he pioneered the concept of Human Development and developed the Human Development Index (HDI). We resumed our discussions, this time on the conceptual and measurement issues related to HDI. Our debates were always friendly, and even though we strongly differed on development strategies, we were united in our belief that eradication of abject poverty and enabling each individual to achieve a fuller and richer life according to his or her own lights have to be the overarching objectives of any development strategy. The world of economics, and we in South Asia, lost a beacon of light, and a source of fresh ideas and innovations, when he was snatched away from us. Let me take this opportunity to pay tribute to his wife...
Words: 12975 - Pages: 52
...Better Regulation for Growth Regulatory Quality and Competition Policy Investment Climate Advisory Services of the World Bank Group With funding from FIAS, the multi-donor investment climate advisory service in partnership with BETTER REGULATION FOR GROWTH GOVERNANCE FRAMEWORKS AND TOOLS FOR EFFECTIVE REGULATORY REFORM REGULATORY QUALITY AND COMPETITION POLICY INVESTMENT CLIMATE ADVISORY SERVICES WORLD BANK GROUP ©2010 The World Bank Group 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org All rights reserved Rights and Permissions The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center Inc., 222 Rosewood Drive, Danvers, MA 01923, USA; telephone: 978-750-8400; fax: 978-750-4470; Internet: www.copyright.com. All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2422; e-mail: pubrights@worldbank.org. About the Investment Climate Advisory Services of the World Bank Group The Investment Climate...
Words: 13479 - Pages: 54
...and Global Business Applications Introduction: The study of government regulation and the competitive environment for business is relevant to all those who study business. All business candidates need to understand how the competitive environment will impact their employers and businesses. Task: Write an essay (suggested length of 2–3 pages) that describes the relationship between regulation and market structures and how regulation affects the market. A. Define industrial (i.e., economic) regulation. Industrial Regulation happens when government commissions regulate the rates or prices of natural monopolies. 1. Explain why industrial regulation exists. In a market structure of perfect competition industrial regulation is not required because there is a lot of competition and this encourages competing industries to make good use of resources, also the price of their goods are determined by the price the market will bear and consumers benefit. Whereas in a monopolistic competition there exists a market structure that could allow competitive monopolies, duopolies, oligopolies, and monopolies to charge higher than competitive prices or the use inefficient use of resources and limited supplies, creating an environment that is not conducive to the benefit of the consumer. . (McConnell, Brue & Flynn, 2012) 2. Explain how industrial regulation affects the market. Industrial regulation affects the market by keeping prices for natural monopolies such as public...
Words: 1497 - Pages: 6
...COMPETITION LAW ASSIGNMENT: Critically examine and analyze the provisions relating to competition law enforcement authorities under the completion act 2010. Look at the weaknesses strengths of the competition law enforcement authorities and make suggestions. HISTORY Before the introduction of the new Competition Act, the Kenyan investment market was unfavorable for competition, as new investors needed financial and political muscle to gain commercial mileage hence companies had to align themselves with political strong men or merge with them, against perceived competitors inorder to carve themselves a niche. This was especially the case for new businesses wishing to operate in sectors with large consumer bases such as telecommunications, information systems, financial services and energy. The objective of the Act is to modernize competition regulation inorder to support the local market economy and consequently deepen consumers’ benefits. The Competition Authority is mandated to promote and safeguard competition in the national economy and to protect consumers from unfair market conduct. The Act applies to all persons including the Government, State Corporation and devolved government in so far as they engage in trade. The mandate is comprehensive and clear as Section 9 defines the tasks as follows: To promote and enforce compliance with the Act; To receive and investigate complaints from legal or natural persons and consumer bodies; To promote public knowledge, awareness...
Words: 2032 - Pages: 9
...Perspectives on EU Competition Policy Table of Contents Introduction 1 The 1989 Merger Regulation, Neofunctionalism and Spillover 2 M&As at the National and EC level 1983-1990 5 The Need for an Additional Approach: Regulation 1/2003 and New Institutionalism 6 Conclusion 9 Bibliography 10 Introduction Competition policy is a major policy area within the European Union (EU), and it has been a core executive function for the European Commission since 1962. Being an area of exclusive competence of the EU and with the Directorate-General of Competition (DG Competition) firmly in power, it constitutes an interesting case for understanding the European integration process and the contemporary consequences for business. Two major policy changes, in 1989 and in 2003, make it possible to investigate how to accurately explain the development in the area. I argue that until 2003, neofunctionalism offers the best analytical tools for understanding the process, as it accurately explains and predicts the expansion of the policy competences of the DG Competition through a variety of spillover-effects, mainly from the Single Market. But while neofunctionalism is analytically advantageous at the macro-level, it is applicable only to a point, as it cannot explain the apparent decentralization of executive power taking place with the introduction of Regulation 1/2003. Here more power was delegated to the national competition authorities (NCAs) at the surface, but at the same time...
Words: 4498 - Pages: 18
...Student Name Instructor Course 7th October 2015 Net Neutrality The purpose of this research paper is to discuss how net-neutrality regulations will hinder competition and innovative growth. The research paper starts with an introduction of net neutrality then proceeds to the main argument of the topic. The paper will examine how net neutrality regulations have posed threats to internet use while reviewing some the work done different scholars. At the end of this part, an argument will be presented to show how threat to internet use will hinder competition and innovation growth. To strengthen the argument and stand of this paper, the paper will also examine the importance of net neutrality in businesses and communities which are core for development and show how this regulations will hinder innovation and competition to businesses and communities due to lack of information. The paper shall close with a conclusion part that will sum up the ideas discussed in the paper and bring to light how net neutrality will hinder competition and innovation. A research done by Bauer, Johannes, and Woohyun on "Regulation and innovation in Telecommunications" revealed that more than any other innovation or invention of our time, the Internet has opened potential outcomes we could barely imagine of a generation ago (Bauer 9). The research provided major reasons we have seen such extraordinary development and advancement as most Internet providers have treated Internet traffic in an equal manner...
Words: 2041 - Pages: 9
...SUBDOMAIN: 309.1 -‐ ECONOMICS Competency 309.1.3: Competition The graduate analyzes a firm’s competitive environment to determine whether the market exhibits characteristics of perfect competition, monopoly, oligopoly, and monopolistic competition. Objective 309.1.3-‐06: Describe how the need for governmental price regulation differs for firms in different competitive environments. Date: February 9, 2015 A) The Anti-‐Trust Laws Sherman Act (1890) The Sherman Act came about due to a growing public resentment of trusts. The antitrust legislation is broken down into two parts: • Section 1 “Every contract, combination in the form of a trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations is declared to be illegal.” Section 2 “Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any person or persons, to monopolize any part of the trade or commerce among the several states, or with foreign nations, shall be deemed guilty of a felony” (Brue, Flynn, & McConnell, 2012) ...
Words: 1764 - Pages: 8
...Sherman Act needed to be more direct, therefor the Clayton Act was passed into law to further bolster it. It outlawed price discrimination when it reduced competition. It also prohibited tying contracts that required buyers to purchase multiple products from a company when it wasn’t desired. Companies could no longer purchase stocks from competing corporations when the outcome would be less competition, and it prohibited interlocking directorates which would allow individuals to be directors or board members to have interest in multiple companies that would lead to reduced competition. Federal Trade Commission Act of 1914: This act created the Federal Trade Commission which works with the Justice Department to enforce antitrust laws. This enables the FTC to investigate unfair competitive practices, hold hearings on complaints, and issue cease-and-desist orders when it finds potentially illegal activities. Celler-Kefauver Act of 1950: There was a loophole in the Clayton Act in Section 7 that allowed firms to acquire physical assets from another firm, effectively reducing competition. The Celler-Kefauver Act closed this loophole. B. Discuss the intended purpose of industrial (i.e., economic) regulation as it applies to the following market structures: 1. Oligopoly Oligopolies can be regulated by price regulation. This helps to reduce the market power of...
Words: 640 - Pages: 3
...The four Internet giants: Competition and antitrust regulation Maastricht University | | | | School of Business & Economics | | | | Place & date: | 18-01-13, Maastricht | | | | Name, initials: | Hiddema, M. | | For assessor only | | ID number: | I6019815 | | 1. Content | | Study: | Fiscal Economics | | 2. Language structure | | Course code: | EBC1011 | | 3. Language accuracy | | Group number: | 5 | | 4. Language: Format & citing/referencing | | Writing tutor name: | Martin Millband | | Overall: | Fail | Writing assignment: | Micro-participation Course Assignment | | Advisory grade | | | | | Assessor’s initials | BW | Your UM email address: m.hiddema@maastrichtuniversity.nl Table of contents 1. Introduction 3 2. The competitive model in the Internet market 4 3. Google 5 4. Facebook 7 5. Amazon 8 6. Apple 9 7. Conclusion 10 References 12 The four Internet giants: competition and antitrust regulations 1. Introduction The Economist (2012) reported that rivalry between the four Internet giants, which included Google, Facebook, Amazon, and Apple, is increasing. All four giants have well-developed, powerful business models. Google has tied its search engine to the advertisement business while Facebook is connecting advertisements to the interests of people revealed on their Facebook page. Amazon started selling books at premium...
Words: 2954 - Pages: 12
...Rubric =========================================================== CONTENT 70% Address the following topics: (1) New companies entering the market, mergers, and globalization, on pricing and the sustainability of profits: Identify the type of merger activity in your industry or one with which you are familiarhorizontal, vertical, or conglomerateand explain why you made that choice.: Content Grade / Comments: Good, meets expectations. Good amount of detail about auto industry globalization and competition. (2) Current and expected government policies and regulations, including taxes and regulations in place to address issues related to externalities Content Grade / Comments: Mostly good. You could have gone into more detail about the incentives created and the (unintended) consequences of regulations and how this impacts decisions made by the firm. (3) Global competition on the decisions made by management with regards to change in labor demand, supply, relations, unions, and rules and regulations in your chosen industry Content Grade / Comments: Good, but this section seems more hypothetical and less applied. You should have given more details related to banking, but overall good points. (4) Recommend how the industry you chose may respond to each of the previous points. Content Grade / Comments: Meets expectations. (5) Paper is 1400-1750 words. Content Grade / Comments: Meets expectations. CONTENT POINTS: 66/70 =========================================================== READABILITY...
Words: 1857 - Pages: 8
...Competency 309.1.3: Competition 1 Competency 309.1.3: Competition Western Governors University Competency 309.1.3: Competition Competency 309.1.3: Competition 2 A. In the years following the civil war, large trusts formed among key industries. These large monopolies were able to set prices, restrict output, and pressure resource suppliers. At the end of the nineteenth century the government began to intervene with the introduction of antitrust legislation (McConnell, 2011, p. 375). The first of the major antitrust laws was the Sherman Act of 1890. The Sherman Act served two purposes. First it outlawed restraints on trade. This made it illegal for trusts to work together setting prices or dividing markets. The goal was to end collusion that would cause economic gain for the parties involved and harm the consumer. The second part of the law outlawed monopolization. The act gave the courts the power to financially penalize and potentially imprison offenders, as well as the ability to break up the monopolies (McConnell, 2011, p. 375). The Sherman act was a good start, but was too ambiguous and didn’t achieve the goals it was intended for. The Clayton Act of 1914 expanded upon its framework. Where the Sherman Act was aimed at eliminating current monopolies, the Clayton Act served to prevent new monopolies from organizing. It had several sections that made illegal the acts of price discrimination and the tying of contracts. It also mad it unlawful...
Words: 1375 - Pages: 6
...Started over one hundred years ago in Germany and France the automotive industry has become a major source of industrial and economic stability worldwide. In this report we will describe how the auto industry is affected by new companies entering the market, mergers, and globalization, on pricing and the sustainability of profits. We will explore mergers and merger activity within the industry as well as current and expected government policies and regulations in place to address issues related to externalities. We will also take a look at the effects of global competition on the decisions made by management with regards to change in labor demand, supply, relations, unions, and rules and regulations in the auto industry. Considering the aforementioned topic on the auto industry’s competitive strategies and Government policies you will say that this report aims to explain how these two areas have impacted the auto industry and will affect it going forward. Globalization Increasing globalization in the automotive industry is changing the way of traditional partnerships. Ten years ago, it was questionable to pursue business in markets such as India and China because political and business conditions were not conducive to direct foreign investment (Emerging Markets, Emerging Opportunities , 2012).As a result, many automotive companies such as General Motors, Toyota, Honda and Ford viewed strategic partnerships as a way to dip their toes into the water and expand into different...
Words: 1813 - Pages: 8
...The regulation of Monopolies & the Microsoft Trial Research Paper Macroeconomics By: Ashleigh Magliano Introduction: Larger companies can become big threats to other smaller companies that are in a given market due to their power and innovation. Sometimes this can become more than a threat, and it turns to no competition at all between the markets due to the monopolization of a company. A company becomes a monopoly when it gains the control of the industry and has obtained the ability to change the output prices in that specific industry. With such power this opposes a threat to other businesses. The government has set up specific regulations for monopolies to control what they sell, how they sell it, and what services are allowed for consumers. The importance of regulating monopolies is to keep the market alive, to allow freedom for other smaller businesses. This keeps up competition in the market, and also keeps the monopolies from doing anything unreasonable. This has led to numerous trials on major companies, one of the biggest cases would be the trial against Microsoft INC. Acts for Regulating Monopolies: In 1890 the Sherman Antitrust act was put into effect, named after the Senator of Ohio, John Sherman and was the first component for congress to prohibit trust.(General Records of the United States Government, Record number 11) The Sherman Act intended by congress to help keep up competition in markets. Unfortunately the act was written to vague there were...
Words: 2220 - Pages: 9
... Solution 1: A general slowdown in economic activity, a downturn in the business cycle, a reduction in the amount of goods and services produced and sold—these are all characteristics of a recession. The recent Great Recession which officially lasted from December 2007 to June 2009 has many factors of which the main root problem is the bursting of a huge trillion dollars housing bubbles and loss of confidence by investors and the public in the strength of key financial institutions and markets. One example of this is the housing crisis morphed into a financial crisis since banks held mortgage backed securities and other assets. Irrespective of such seasonal situations, the market should be free for competition and regulate itself only based on the fair and free competition, which sets the best price for the goods and services a buyer pays for depending only on the market supply and demand. Free market system is the best and realistic, which can give the efficient and optimal resource allocation and utilization for both buyers and sellers. The main outcomes of such free market system are: 1. Allocate the supply of goods to the buyers who value them most highly, as measured by their willingness to pay; 2. Allocate the demand for goods and services the sellers who can produce them at least cost; 3. Produce the quantity of goods that maximizes the sum of consumers...
Words: 2777 - Pages: 12
...cost option in which the company’s only requirements for drivers are to be over the age of 21, have a valid driver’s license, personal auto insurance, and a four door automobile which has had a vehicle inspection within the first 30 days of partnership with Uber (Elliott, J., 2014). The drivers also need to have a police background check done, and that’s it. These bare bone prerequisites have lead UberX to be scrutinized by the provincial and municipal governments, as well as the taxi industry. The scrutiny comes from Uber refusing to abide by the rules and regulations set out by the Passenger Transportation Board and the Insurance Corporation of British Columbia (ICBC), as they say the Passenger Transportation Act is archaic, and does not adhere to the ride sharing industry. The taxi industry feels Uber is an illegal taxi service, putting the safety of the passengers and drivers at risk, and creating unfair competition by not being legally licensed under the PTB (Ahsan, S. and Hensley, L., 2015). As the commercial ride sharing industry continues to expand, the B.C. government needs to address public policy issues such as...
Words: 2462 - Pages: 10
