Bangladesh Country Advocacy Document Iftekar Ahmed Senior Research Fellow, BEI January 2, 2006 Bangladesh Enterprise Institute

Competition Law/Policy in Bangladesh No Competition Policy Monopolies and Restrictive Trade Practice (Control and Prevention) Ordinance, 1970 Has not been implemented but still valid Ordinance prohibits Undue concentration of individual economic power Unreasonable monopoly power Unreasonable restrictive trade practices Bangladesh Enterprise Institute

MRTP Ordinance 1970 Relevant phrases are not properly explained Provides for the creation of a Monopoly Control Authority to enforce the provisions of the Ordinance, but was never constituted Never been implemented If revived needs amendments Need for a new law Bangladesh Enterprise Institute

Most Prevalent Anti-Competitive Practices in Bangladesh Bangladesh Enterprise Institute

Challenges Challenges to instituting a competition regime are enormous No quick and simple remedy that will be immediately effective across the board Even if a law is drafted, past experience shows poor implementation with weak enforcement Bangladesh Enterprise Institute

Develop Constituency Targeted stakeholders for advocacy and capacity building Government sensitize and motivate Business demonstrate benefits of a competition regime Media galvanize wider public understanding and support Consumers empower to champion and act as pressure group Bangladesh Enterprise Institute

Three-Step Process Step 1: Create demand Step 2: Draft/Amend/Adopt Law Raise awareness of stakeholders Step 2: Draft/Amend/Adopt Law capacity building of policy makers wide consultation Step 3: Implementation and enforcement of law capacity building of the Competition Authority Bangladesh Enterprise Institute

Strategy 1: Target Sectors Identify priority sectors Selection Criteria: High visibility Wide impact Rapid implementation Demonstrable benefits Bangladesh Enterprise Institute

Strategy 2: Information Cell Create an Information Cell and Consumer Hotline Monitor abuses of market power Generate competition status reports Provide dialogue space for stakeholders Bangladesh Enterprise Institute

Strategy 3: Consumer Awareness Information dissemination Conduct training on competition issues Bangladesh Enterprise Institute

Strategies Step 1 Step 2 Step 3 Strategy 1: Strategy 2: Strategy 3: Create Demand Draft Law Implement Law Strategy 1: Target Sectors Strategy 2: Information Cell Strategy 3: Consumer Awareness Bangladesh Enterprise Institute

competition regime Competition Authority market government business consumer business market government Trade bodies information cell Media informed consumer civil society Bangladesh Enterprise Institute