Problems in Capacity Building of Competition Authorities in Developing Countries

1. Problems in Capacity Building of Competition Authorities in Developing Countries Dr. Pierre ARHEL Counsellor, Intellectual Property Division WTO Secretariat Geneva, 29 January 2004

2. Doha Ministerial Declaration • 23. Recognizing the case for a multilateral framework to enhance the contribution of competition policy to international trade and development, and the need for enhanced technical assistance and capacity-building in this area as referred to in paragraph 24, we agree that negotiations will take place after the Fifth Session of the Ministerial Conference on the basis of a decision to be taken, by explicit consensus, at that Session on modalities of negotiations.

3. Doha Ministerial Declaration • 25. In the period until the Fifth Session, further work in the Working Group on the Interaction between Trade and Competition Policy will focus on the clarification of: core principles, including transparency, non-discrimination and procedural fairness, and provisions on hardcore cartels; modalities for voluntary cooperation; and support for progressive reinforcement of competition institutions in developing countries through capacity building (…)

4. Points to be covered • The need for capacity building • Strategies for building effective competition policies and agencies • Importance of capacity building as an element of a possible multilateral framework

5. The need for capacity building • Globalisation and the increasing prevalence of international anti-competitive practices • Complexity of the area of competition policy • Need to ensure broad political support for competition policy

6. Strategies for building effective competition policies and agencies • The process of establishing effective competition agencies • Specific capacity building needs relevant to the strengthening of competition institutions

7. Importance of capacity building as an element of a possible multilateral framework • Proposal • A MFC is vital • Benefits of a MFC • A MFC could enhance the priority attached to capacity building • A MFC could improve coordination

8. Importance of capacity building (cont’d) • Other views • the WTO has limited human resources • the WTO is not a technical assistance agency. • there are possible inefficiencies associated with the establishment and operation of a centrally-planned system.

9. Importance of capacity building (cont’d) • Response • what the proponents have in mind is not "central planning" • the Secretariat would work in collaboration with other organizations • the WTO's rule-making and technical cooperation activities are complementary. • an urgent need has been expressed