Page 47 - Azerbaijan State University of Economics

THE ROLE OF COMPETITION ADVOCACY IN TRANSITION AND DEVELOPING ECONOMIES

with lower prices and hence costs, and makes them more competitive in

international markets.

Lessons from other countries

Competition law enforcement is both the foundation and the tool
for fostering sustainable competitive markets that result in healthy inter-

firm rivalry, opportunities for new entry, entrepreneurship, increased
economic efficiency, and consumer welfare. Competition advocacy can

augment these and other benefits of competition. Experience has shown

that several factors lead to successful competition advocacy:
- The competition agency must develop relationships with

government ministries, regulatory agencies, and other bodies that

formulate, enact, and administer policies affecting demand and supply
conditions in various markets. Such relationships, based on mutual

respect, recognition of professional expertise, and appreciation of the
respective responsibilities and policy mandates of different orga-

nizations, will facilitate communication and a search for alternatives that
are less harmful to competition and consumer welfare.

- Competition advocacy often entails formal appearances and

public statements to promote or defend positions in favor of competition.
However, competition advocacy need not be confrontational; public

opposition to other agencies is at times risky, difficult, and
counterproductive. A preferable strategy is to encourage debate and

provide accurate information in order to promote better and more
informed economic decision-making.

- The competition agency must have specific expertise (or must be

able to acquire it from outside experts) in the areas in which it seeks to

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