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The effects of anti-competitive business practices on developing countries and their development prospects

During the last decade, many developing countries haveadopted or are in the process of enacting competition laws. There isgrowing awareness among developing countries of the adverse effectsof anti-competitive practices on their economies as well as theirpopulations. The effects of such practices are not easily quantifiable andmay therefore not be obvious. Nevertheless, developing countries havecome to recognize the potential benefits that can be derived fromcompetition law enforcement. The drive to establish legal andinstitutional frameworks in order to fight anti-competitive practices hasintensified in recent decades.

In over three decades working with many developing countriesacross the globe, UNCTAD has accumulated a wealth of knowledge andexpertise in making competition law and policy work for development.The Accra Accord (paragraph 104) recognizes that "UNCTAD is thefocal point for the work on competition policy and related consumerwelfare within the United Nations system. It provides to its MemberStates a forum for intergovernmental policy dialogue and consensusbuilding in the area of competition laws and policies. … a forum todiscuss competition issues on the multilateral level, … . UNCTAD´s workin this area should promote competition law regimes that take intoaccount the prevailing conditions in the developing countries." Withinthis framework, the current publication brings together studies bypractitioners and academics focussed on identifying the effects of anticompetitivepractices on developing countries and their developmentprospects.

The various sections of this publication cover a wide range ofcross-cutting competition issues. The publication highlights thesynergies between competition and consumer laws and policies. Itemphasizes the role of competition law and policy as a complementarypolicy tool in poverty alleviation. It also draws attention to competitionconcerns in commodity markets, which are of crucial importance todeveloping and least developed countries. Moreover, it provides lessonsfrom a broad range of experiences from developed as well asdeveloping countries, including economies in transition. The contributionof competition enforcement can often be indistinguishable from that ofother economic policies in increasing efficiency and competition.Nonetheless, this publication upholds the view that competition law andpolicy are supportive of the overall process of economic development bycurbing anti-competitive practices that negatively impact consumers andincrease costs to business.

It is my hope that this publication, which is being launched atthe ninth session of the Intergovernmental Group of Experts onCompetition Law and Policy in Geneva, in July 2008, will contribute tothe enhanced understanding among government officials, private-sectorstakeholders, consumer organizations and civil society of the necessityof competition law and policy and raise awareness on the damagecaused by anti-competitive practices on the economies of developingcountries.

I would like to reiterate that UNCTAD will continue to supportdeveloping countries in their efforts in adopting competition andconsumer laws and establishing and strengthening the capacities oftheir competition authorities through technical assistance and capacitybuildingprogrammes.