Call to enact competition policy
FE Report | Monday, 9 March 2009
Bangladesh needs an effective competition policy to ensure smooth supply of quality products at fair and lowest possible prices, said speakers at a press briefing on Sunday.
"It is proven that countries without a competition policy have lower per capita income and growth rate," said World Bank consultant Rughvir Shyam Khemani at the press briefing in the city organised by International Finance Corporation Bangladesh Investment Climate Fund (IFC BICF).
A modern competition policy comprises of laws and policies related to deregulation and liberalisation of trade and investment and other actions that prevent unnecessary reduction in competition.
He said about 110 countries, so far, enacted competition laws but many of them did not have competitive business environment.
Competition process could be hampered in two ways - over regulation and no regulation, he said.
"In some cases government imposes restriction on competition through rules and regulation. But in many cases, if there is no regulation, big market players in connivance with government put obstacles to competition for the small players and these cannot even take legal recourse in the absence of such laws," he explained.
The competition policy is not aimed at protecting any particular player but to ensure fair process in the competition.
"A company may incur profit or loss in the course of business but the policy looks after that it is not affected by any unethical practice of the big players," he said.
For an effective policy, consult all stakeholders before formulating the law and ensure general application of the laws, which should not be influenced by businesses and government, Mr Shyam suggested.
"The competition policy should be aimed at promoting public welfare and it must protect their interest," said economist Atiur Rahman.
Bangladesh has taken a number of measures to formulate the policy but it needs strong 'political will' to make it effective, he said.
Taneem Ahad, associate operations officer, and Kazem Adnan Khandkar, communication associate, of the IFC also spoke on the occasion.
"It is proven that countries without a competition policy have lower per capita income and growth rate," said World Bank consultant Rughvir Shyam Khemani at the press briefing in the city organised by International Finance Corporation Bangladesh Investment Climate Fund (IFC BICF).
A modern competition policy comprises of laws and policies related to deregulation and liberalisation of trade and investment and other actions that prevent unnecessary reduction in competition.
He said about 110 countries, so far, enacted competition laws but many of them did not have competitive business environment.
Competition process could be hampered in two ways - over regulation and no regulation, he said.
"In some cases government imposes restriction on competition through rules and regulation. But in many cases, if there is no regulation, big market players in connivance with government put obstacles to competition for the small players and these cannot even take legal recourse in the absence of such laws," he explained.
The competition policy is not aimed at protecting any particular player but to ensure fair process in the competition.
"A company may incur profit or loss in the course of business but the policy looks after that it is not affected by any unethical practice of the big players," he said.
For an effective policy, consult all stakeholders before formulating the law and ensure general application of the laws, which should not be influenced by businesses and government, Mr Shyam suggested.
"The competition policy should be aimed at promoting public welfare and it must protect their interest," said economist Atiur Rahman.
Bangladesh has taken a number of measures to formulate the policy but it needs strong 'political will' to make it effective, he said.
Taneem Ahad, associate operations officer, and Kazem Adnan Khandkar, communication associate, of the IFC also spoke on the occasion.