Table of Contents

The Economic Characteristics of Developing Jurisdictions

The Economic Characteristics of Developing Jurisdictions

Their Implications for Competition Law

Edited by Michal S. Gal, Mor Bakhoum, Josef Drexl, Eleanor M. Fox and David J. Gerber

There is ongoing debate as to what competition law and policy is most suitable for developing jurisdictions. This book argues that the unique characteristics of developing jurisdictions matter when crafting and enforcing competition law and these should be placed at the heart of analysis when considering which competition laws are judicious. Through examining different factors that influence the adoption and implementation of competition laws in developing countries, this book illustrates the goals of such laws, the content of the legal rules, and the necessary institutional, political, ideological and legal conditions that must complement such rules. The book integrates development economics with competition law to provide an alternative vision of competition law, concluding that ‘one competition law and policy size’ does not fit ‘all socio-economic contexts'.

Chapter 9: Generating instead of protecting competition

Oliver Budzinski and Maryam H.A. Beigi

Subjects: economics and finance, development economics, law - academic, competition and antitrust law, law and development


Recent decades have witnessed a trend of privatization, deregulation and liberalization – and not only in industrialized countries but also in many countries that used to be called developing and that have more actively pursued the path of market-economy-based industrialization. There is a dominant consensus among economists that market economies require an effective competition policy regime in order to protect competition against its self-eroding tendencies: next to being successful by a welfare-increasing competition on the merits, companies may experience incentives to secure rents by engaging in anti-competitive strategies and arrangements. Consequently, the number of (more or less) active competition policy regimes has significantly increased, in particular throughout the 2000s. While the predominantly beneficial character of this development is hardly in doubt, the question ‘what kind of competition policy is adequate for industrializing countries’ is much more controversial. On the one hand, transplanting institutions and agendas from successful competition policy regimes like the United States or the European Union represents a strategy that is both advocated and also what many industrializing countries have actually attempted to do. However, it implicitly assumes that there is a ‘one size fits all’ competition policy, i.e. one ‘right’ competition policy that is optimal irrespective of a country’s economic and social characteristics. In this chapter, we argue from an economics perspective that this is not the case.

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