The following are excerpt from the speech of Syed Yousuf Raza Gilani Prime Minister of Pakistan on "Competition Enforcement: Challenges and Consumer Welfare in Developing Countries": The phenomenon of globalisation has brought the world together with shared stakes. It is an era of interdependence.
We can exchange goods and services with a greater number of countries as the phenomenal growth of information technology has reduced distance to mere seconds. The emergence of integrated markets has spurred competition. Competition is the name of the game in every walk of life and it is all around. I am told that the number of countries having competition laws and competition agencies have increased from a handful in 1990 to more than 120 today.
Nobel Prize winning economist, Joseph Stiglitz, once said, "A strong competition policy is not just a luxury to be enjoyed by rich countries." I believe, competition laws must reflect national priorities and take national peculiarities into consideration. Obviously, our main national priority is economic development of the country, the ability to provide goods and services to our people at affordable prices, and to create better opportunities for their livelihood.
People's expectations from the democratic government are understandable and justified. However, for two years in a row, floods, energy and security situation have slowed down our economic growth. Nonetheless, due to timely interventions of the government, the country has been able to build strong economic fundamentals.
As a nation, we have shown a remarkable resilience in the face of these challenges. Our exports are all time high. Pakistan has become a wheat exporting than a wheat importing country. Our foreign exchange reserves are at a comfortable level. Foreign remittances are more than 11 billion dollars. The country is on the trajectory making a turn around. In 2011, the government released the New Growth Framework after taking the relevant stakeholders into confidence.
I believe that markets must be allowed to determine optimal allocation of resources Incentives need to be given for innovation and entrepreneurship because the government should not be the sole driver of economic growth or job provider. The Competition Commission has been quite active since its inception in addressing manipulation of market.
And like most countries, it has also faced opposition as it has challenged powerful vested interests. Nevertheless, the Commission enjoys continued support and acknowledgement of the government. Our recognition of the importance of competition law and the Competition Commission can be judged from the fact that the Competition Ordinance of 2007 was re-promulgated twice to ensure continuity of the Commission's important work. Because of our efforts and resolve to institute competition as the law of the land, the Ordinance was given approval as an Act of the Parliament in October 2010.
International recognition and evaluation is a valuable barometer for judging the performance of an entity. I am pleased to learn that the Commission was chosen and given a fair rating this year by the Global Competition Review. This international recognition and feedback, I am sure, would help the Competition Commission in transcending to global standards of excellence. The emergence of a competitive market is an evolutionary process. Mere deregulation will not achieve this goal.
Building the culture of competition and an effective competition regime is a long-term endeavour. Competition must be 'mainstreamed' in all sectors. Advocacy is needed for a new competition regime to succeed. People need to understand why competition is good for the economy, and how to apply competitive principles to business decisions, both in public and private sectors.
Promotion of competition culture needs a strong and independent institution capable enough to point out when and where competition is being compromised or vested interests are working against economic growth. This independence, in my view, means both political and financial independence. People should perceive the competition law as a tool for realising the full potential of the economy for their benefit. In the end, I am aware that due to the critical matter of funding the Commission's operations remain unresolved.
Let me take this opportunity to assure you that in the same manner the democratic government supported the passage of the law through the Parliament, it will focus attention on providing the Commission a secure source of funding to carry on its important work.-PR