Bangladesh Country Advocacy Document Iftekar Ahmed Senior Research Fellow, BEI September 27, 2005

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

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

Most Prevalent Anti-Competitive Practices in Bangladesh

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 experiece shows poor implementation with weak enforcement

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

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

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

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

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

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

competition regime Competition Authority consumer business market government Business Assoc. information cell Media informed consumer civil society