Boosting Business Competitiveness with Effective Competition Policies
Enhance business efficiency, foster innovation, and promote economic growth by leveraging competition policies. Lower prices, better quality, more choices, and increased innovation are some of the benefits. Competition drives businesses to innovate, improve governance, and offer consumers greater value, leading to shared economic development.
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Presentation Transcript
Benefits of Competition Policy and Law for Businesses
Entrepreneurial push Innovation Lessons that Myanmar can derive from cross- country experiences
Competition is a situation in the market in which firms or sellers independently strive for the buyers patronage in order to achieve a particular business objective for example, profit, sales or market share (World Bank, 1999)
Business efficient and offers wider choice for consumers at lower prices. Ensures optimum utilization resources. Enhances consumer welfare sinceconsumercan buy more of better quality products at lower prices. Beneficial for the consumers, producers/sellers and finally for the whole society since it induces economicgrowth. rivalry makes enterprises more of available
Static Efficiency: Lower prices Better quality More choice Dynamic Efficiency: Efficient allocation of resources Management, processing and technological improvements Product innovation
Better corporate, market and public governance. Promote greater accountability and transparency in business behavior, and government business relations. Reduce opportunities for bribery, corruption and rent- seeking behavior. Result in entrepreneurship, risk-taking, entry of new and expansion of existing businesses, increased employment, productivity, competitiveness, broad-based and shared economic development
Low Prices for all- In a competitive market, the simplest way for an enterprise to gain business- is offering lower prices-goods more affordable to people-encourages business to boost production. Better quality-Since substitutable products are available in the market-Improvement in the quality of goods supplied and services provided- only means to expand market share-Translates into better quality of goods produced and better after-sales services
More choice-Businesses have to differentiate products- to make it more attractable to consumers and stay abreast of competition- Results in more choice for consumers. Innovation-Businesses need to constantly innovate to drive down production costs and generate profits-better product concepts, design, production techniques, services etc
Better competitors in global markets-Robust competition in the domestic market makes businesses to perform better against competitors in the global markets.
Competition essentially drives productivity Productivity drives national differences in GDP per capita Competition best way simultaneously to drive growth and reduce income inequality Especially when pro competition reform reduces entrenched market power
1. Extend competition to all sectors 2. Strengthen and widen the reach of competition regulation
Ten lessons- Myanmar can learn 1.Prepare the ground well before proceeding with reform 6. Provide generous financial assistance and/or incentives 2. Pursue reform on a board front 7. Get industry structures right 3. Formulate a well structured agenda that is not cluttered 8. Avoid seeking national champions 4. Bring high level political drive and constant attention 9. Privatise for competition and efficiency, not for maximum sale proceeds 5. Set a considered, not a frenetic pace 10.Remember that deregulation does not mean no regulation
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