Competition Policy and Development

Abstract

As globalization proceeds, developing Asia is progressively becoming more market-oriented and open. But opening markets is not enough by itself for countries to reap the full benefits of competition. Firms will still find incentives to engage in anticompetitive practices, so policies to promote and protect competition are now prominent on the domestic and trade policy agenda in Asia. These competition policies are important both in public sector management where, for example, public utilities may have characteristics of natural monopolies, and in private sector development. They ensure that the benefits of competition help promote the international competitiveness of a country's firms as they encounter the discipline of connecting to the global economy.