How could Competition policy undo the wrongs of the past and make South Africa a better place.
Answers
Competition policy is part of the new international orthodoxy in economic policy and, at the same time, was viewed in South Africa as a crucial element of economic transformation. This article reviews the role of competition policy in economic development and the experiences of developing countries such as Brazil and South Korea. It then assesses the effects of competition policy in South Africa after 1994, with the main focus being on the performance of the new competition institutions established in 1999. The case of the steel industry is used to assess the approach and impact of the institutions in a concentrated sector that has simultaneously undergone processes of liberalisation and domestic consolidation.
The opening-up of the economy through trade liberalisation has also seen increased concentration in many sectors. This is a result of consolidation, with inefficient firms closing down or being taken over, and of closer focus by companies on their core activities. Economies-of-scale arguments have also been used in several sectors to support mergers and acquisitions.
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The competition policy and the wrongs of the past and make South Africa a better place due to the following reasons:
- Part of the new international orthodoxy in economic policy is the competition policy and at the same time was viewed in South Africa as a crucial element of economic transformation.
- This article reviews the experiences of developing countries such as Brazil South Korea and the role of competition policy in the economic development.
- After 1994 in South Africa it then assesses the effect of competition policy the main focus Bheem on the performance of new competition institution which was established in
1994.
- To assess the approach and impact of the institution in the concentrated sector the case of the Steel industry is used that head simultaneously undergoes processes of liberalisation and domestic consolidation.
- Through trade liberalization the opening up of the economy also seen increased concentration in many sectors
- With inefficient firms, closing down or being taking over land of closer focus by companies is the result of consolidation on their core activities.
- To support mergers and acquistions Economics -of- scale arguments have also been used in several sectors.