Adoption and reform of competition laws and their enforcement: a cross-country perspective
Countries often grapple with the question of whether the competition institutions and enforcement mechanisms based on the European or the US models are relevant for their developing markets. As we note later in this chapter, these comparisons raise complex issues. For example, on matters related to the conceptual framework and methods used to assess market power, efficiencies and damages, these advanced jurisdictions, which have practised competition law enforcement for many decades, have much to offer to emerging economies. Other dimensions of the challenge of such enforcement – such as raising resources for the effective functioning of competition agencies in a situation characterised by constraints; the efficiency of legal systems; development of human capital in the relevant law and economic areas; and instilling a competition culture among government and citizens – pose very different challenges and would require emerging economies to evolve home-grown responses. Such evolution, which requires the development of institutions and laws, and capacity for implementation and law enforcement, may take a long time to mature. The above-mentioned responses need to have a home-grown component because of the different histories preceding the setting up of modern competition regimes.