overview of the crew project competition reforms in key markets for enhancing social & economic...
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OVERVIEW OF THE CREW PROJECT Competition Reforms In Key Markets For Enhancing Social & Economic Welfare In Developing Countries
Rijit Sengupta
CUTS International
NRG-1 Meeting
Accra (Ghana), 6th August, 2013
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Outline
• Introduction & Background
• Project Progress & Planned Activities
• Role of National Reference Group Members
• Overview of Research Methodology
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I. Introduction & Background
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1. Goal & Objectives
Goal
To 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
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2. Outputs & OutcomeOutputs• 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
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3. Phases of the Project
• 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
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4. Indicators of Consumer Welfare
• 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?
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5. Indicators of Producer Welfare
• 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?
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5. Indicators of Producer Welfare (contd.)
• 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?
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6. COUNTRIES & SECTORS
Countries: Ghana, India, The Philippines & Zambia
Sectors: Staple Food & Passenger Transport
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7. Definition of Consumer & Producer Welfare (Sector-Specific)
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
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8. Project Actors
Program Level (CUTS)• Implementation Team• Project Advisory Committee (PAC)
Country Level• Country Partner Organisation• Sector Experts • National Reference Group (NRG)• National Entities: Competition/Sector Regulator, Business
Associations, Research Organisation/CSO, Media
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II. Project Progress & Planned Activities
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1. Project Progress (Nov ‘12 to July ‘13)
• Commencement and Planning Meeting: Nov 2012
• Inception Meeting (Mar ‘13): Countries & Sector selection
• Review of literature & Fact Finding 4 Countries
• Opening Meeting in project countries: Apr-May ‘13
• Outline of Diagnostic Country Report (DCR)
• DCR Research Methodology July 2013
• Review of DCR Methodology (by PAC) July –Aug ‘13
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2. Planned Activities (Aug 13 to Jan 14)
• Finalise the DCR Methodology (country-specific)• Initiate the secondary research and analysis• Develop and execute the primary data collection and
anlysis• Draft Country-Specific DCR (a section each on selected
sector) – mid-Nov ‘13• Partners’ Meeting + PAC Meeting (Nov 2013)• NRG to review DCR findings and discuss (NRG-2)
meeting – early Dec ‘13• DCR to be finalised: mid-Jan 2014
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III. Role of NRG Members
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1. National Reference Group
• 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
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2. Role of NRG Members
• Guidance and support in project implementation• Inputs in designing components of research• Review important project documents - Diagnostic Country
Report (DCR), Framework for Competition Promotion (FCP), etc.
• Access to country-specific institutions for data (literature, statistics, market environment, etc.) and contacts for advocacy and outreach
• Participate in project meetings• CREW findings would help them in their own work agenda
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3. NRG Meetings & Timelines
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
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3. NRG Meetings & Timelines (contd.)
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)
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IV. Overview of the Research Methodology
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1. Project Phases
Diagnostic
Design
Validation
The project would be implemented over three phases as described earlier and presented below:(i) Diagnostic Phase: RESEARCH &
CONSULTATIONS(ii) Design Phase: DESIGN & CONSULTATIONS(iii) Validation Phase: OUTREACH & PUBLIC
EDUCATION
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2. Conceptual framework: Phase I
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3. Steps to Undertaking Diagnostic Research
Two components: SECONDARY LIT. & INFO + PRIMARY DATA
I. Scanning and identification of reforms impacting the two markets – staple food (maize) and passenger transport (bus)
II. Documenting the evolving state of competition in these markets (understanding prominent changes over time)
III. Implications of competition or market reforms on consumers and producers (benefits or damages – using indicators)
IV. Evidence of existing consumer and producer concerns
V. Gathering feedback/input about remedies, and estimating possible benefits therefrom
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Step-1: Scanning and identification of competition (market) reforms
• Identify reforms undertaken in each of the two markets over time (using an appropriate reference point)
• Reforms could comprise:
(i) Government policy
(ii) Legislation
(iii) Statutory Instrument
(iv) Sectoral programmes
(v) Administratove practices
• Establish the basket of relevant reforms to be considered
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Step-2: Assess state of Competition in Markets
Look at the following elements (Porter’s Five Forces Analysis)
• Structure of market and nature of competition in the industry
• Potential of new entrants into industry
• Power of suppliers
• Power of customers
• Threat of substitute products
Some additional elements (Competition Assessment Framework, DFID)
Identifying government policies, institutions limiting competition
Look for anti-competitive conduct
Consider vested interests and the principal beneficiaries
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Step-3: Implications of reforms on consumers and producers
• Gather both secondary and primary information• Review of relevant secondary literature (reports, etc.) and
information (govt. data sources) to assess benefits/damages of key government reform actions
• Gather primary data (perception) based on survey, interview and FGDs from consumers and producers
• Employ QUALITATIVE (case study) and QUANTITATIVE methodologies (ex-post approach) to assess implications
• Analyse both secondary and primary data to answer research questions, and document in report
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Step-4: Evidence of consumers and producers concern & Remedy
Addressing concerns• Review secondary information to identify existing
consumer and producer concerns in the two sector• Gather primary data (perception) based on survey,
interview and FGDs from consumers and producers• Isolate common (bottom-up) suggestions for addressing
concerns
Estimating benefits• Employ QUALITATIVE (case study) and QUANTITATIVE
methodologies (ex-ante approach) to assess benefits of suggested measures
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4. Stakeholder mapping and feedback collection
Staple Food (Maize)
Identify stakeholders across supply chain, covering
(i) Production – Farmers, Input suppliers
(ii) Procurement – procurement agency
(iii) Storage – storage service provider
(iv) Processing – millers
(v) Marketing - traders
(vi) Distribution - consumers
Transport• Intra-city & Inter-city: (i) passengers, (ii) operators, (iii)
government officials, (iv) regulators