Competition Advocacy: Challenges for Developing Countries

• Published in: Economy transdisciplinarity cognition journal 2019-07, Vol.22 (2), p.185-188
• Main Author: Caraganciu, Anatolie
• Format: Article
• Language: English
• Subjects: Advocacy; Competition; Developing countries; Domestic markets; Education; LDCs; Liberalization; Market economies; Monopolies; Objectives; Vertical integration
• ISSN: 1454-5675; 2068-7389

The involvement of the competition authority in advocacy activities is of particular importance for developing countries. The lack of knowledge of the legal provisions and expansive behaviour in the pursuit of development leads to serious violations and the creation of impediments in the harmonious development of the loyal competitive environment among the market actors. The dissemination of information is the most important thing in the activity ofpromoting fair competition among the market actors. Developing countries are characterized by the presence on the market of monopolies and state-regulated structures. At the stage of market economy development, state-regulated structures, such as infrastructure, telecommunications, electricity, oil, etc., tend to be privatized, and liberalized. Therefore, at this critical stage it is a priority to apply sound policies of fair competition, through which the competition authority contributes to the development and maintenance of a competitive environment in the market. In small domestic markets, the need for advocacy is much higher than in large developed markets. The competitive constraints present in these markets are due to the structural features. The duality of the situation in which the natural tendency of market development demands the liberalization and exemption of the import duties, and on the other hand the tendency to support the domestic producers, usually weak, and the imposition of barriers, requires a special analysis and has a high level of education. of the competitive culture. Through advocacy, the competition authority can achieve the desired results without harming the economic efficiency of market actors and therefore without impact on the final consumer. This method assures the support of market actors, while achieving the objectives of ensuring a competitive environment in the market.