Protecting domestic enterprises from global competition prevents them from becoming globally competitive, improving productivity, and obstructs them from taking part in global value chains. Similarly, opening up domestic enterprises to foreign competition sans domestic reforms may result in uneven playing field between foreign and domestic players. Competition policy can play an important role in this regard. Competition policy can not only guide competition authorities in identifying and disincentivizing anti-competitive practices, but can also correct distortions to competition induced by other policies. Adoption of a comprehensive sector-neutral competition policy can be the first step in this regard.

Source: Mint April 08, 2018 17:03 UTC