promoting competition, protecting human rights – jean-pierre chauffour – world bank group –...
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OECD GLOBAL FORUM ON COMPETITION
Promoting Competition—Protecting Human Rights:
A Helicopter View
Jean-Pierre Chauffour, World Bank Group
December 1, 2016
Domestic vs foreign competition • Domestic competition
• Extent of market dominance, Effectiveness of anti-monopoly policy
• Competition in professional services, Competition in public services
• Cost required to start a business, Time required to start a business
• Bankruptcy proceedings costs, Strength of insolvency framework
• Total tax rate, Distortive effect of taxes and subsidies
• Foreign competition • Prevalence of non-tariff barriers (import bans, import quotas, etc.)
• Trade tariffs
• Complexity of tariffs schedules
• Burden of customs and border-related procedures
Source: World Economic Forum (WEF)
Domestic vs foreign competition
Source: WEF, all available countries
R² = 0.5704
2.5
3
3.5
4
4.5
5
5.5
6
6.5
2.5 3 3.5 4 4.5 5 5.5 6
Fo
reig
n C
om
pet
itio
n
Domestic competition
High-income countries
Upper-middle-income economies
Lower-middle-income economies
Low-income economies
Negative vs positive rights
• Three generations of rights: • Liberté: negative rights (freedoms from, covenant on CPRs)
• Egalité: Positive rights (rights to, covenant on ESCRs)
• Fraternité: collective rights (e.g., Right to development)
• Is it as clear cut? • Negative rights but positive (expensive) duties
• Essence of negative rights: no claims or entitlement, end-independent
• (Negative) right not to starve (e.g. freedom from hunger)
• Right to development: (negative) right not to collaborate in an unjust international economic order
• Negative rights are orthogonal (unlike positive rights)
Negative vs positive rights
Source: Cato institute and IMF
R² = 0.0387
4.5
5
5.5
6
6.5
7
7.5
8
8.5
9
10 20 30 40 50 60
Eco
no
mic
fre
edom
in
dex
Government expenditure (in percent of GDP)
Civil and political rights vs competition
Source: Freedom house and WEF
R² = 0.2297
10
20
30
40
50
60
70
80
90
100
2 2.5 3 3.5 4 4.5 5 5.5 6 6.5
Civ
il a
nd
po
liti
cal
righ
ts
Foreign competition
Personal freedom vs competition
Source: Cato institute and WEF
R² = 0.3322
3.5
4.5
5.5
6.5
7.5
8.5
9.5
2 2.5 3 3.5 4 4.5 5 5.5 6
Per
son
al
free
dom
Foreign competition
GDP per capita vs competition
Source: World Bank and WEF
R² = 0.4623
2
2.5
3
3.5
4
4.5
5
3 3.5 4 4.5 5 5.5 6
Lo
g G
DP
per
cap
ita
Competition
Human development vs competition
Source: UNDP and WEF
R² = 0.3149
0.35
0.45
0.55
0.65
0.75
0.85
0.95
2.5 3 3.5 4 4.5 5 5.5 6
Hu
ma
n d
evel
op
men
t in
dex
Competition
Gender inequality vs competition
Source: UNDP and WEF
R² = 0.3034
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
2.5 3 3.5 4 4.5 5 5.5 6
Gen
der
In
equ
ali
ty I
nd
ex
Competition
Child labor vs competition
Source: UNICEF and WEF
R² = 0.0014
0
5
10
15
20
25
30
35
40
45
50
2.5 3 3.5 4 4.5 5 5.5
Ch
ild
lab
or
Competition
Workers’ protection vs competition
Source: ILO and WEF
R² = 0.006
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
2.5 3 3.5 4 4.5 5 5.5 6
Wo
rker
pro
tect
ion
Competition
Minimum wage vs competition
Source: World Bank (Doing Business) and WEF
R² = 0.1735
0
0.5
1
1.5
2
2.5
3
3.5
4
2.5 3 3.5 4 4.5 5 5.5 6
Lo
g m
inim
um
wag
e
Competition
Minimum wage (OECD) vs competition
Source: OECD and WEF
R² = 0.3641
0
5000
10000
15000
20000
25000
4 4.5 5 5.5 6
An
nu
al
min
imu
m w
ag
e (P
PP
)
Competition
Country inequality vs competition
Source: World Bank, WEF
R² = 0.0008 -45
-35
-25
-15
-5
5
15
-15 -10 -5 0 5 10 15 20 25 30
Gin
i in
dex
va
riati
on
(in
%)
(19
95
-2015)
Competition (change in % 1995-2015)
Higher inequality
Higher competition
Lower inequality
Lower competition
Higher inequality
Lower competition
Lower inequality
Higher competition
Global inequality: Change in real income by percentiles 1988-2008
Source: Milanovic, Branco (2012). Global Inequality by the Numbers, PRWP#6259, World Bank
-10
0
10
20
30
40
50
60
70
80
90
5 15 25 35 45 55 65 75 85 95
Rea
l in
crea
se i
n i
nco
me
Percentile of global income distribution
Elephant chart
-10
0
10
20
30
40
50
60
70
80
90
5 15 25 35 45 55 65 75 85 95
Rea
l in
crea
se i
n i
nco
me
Percentile of global income distribution
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