infonet-economy

One recurring concern in the debate over the efficacy of enacting competition laws in developing countries is that its enforcement may compromise important industrial policy goals. This concern has been raised in regional fora and in multilateral organizations such as the World Trade Organization, where officials have considered the pros and cons of including competition provisions in international trade agreements. However, the concern is broader and often national debates over the merits of adopting a competition law touch on the implications for the operation of national industrial policies. In fact, as the chapters in this book on China, Malaysia, and Vietnam attest the apparent primacy given to industrial policy has substantially colored recent debates over whether to adopt a competition law. Given the recent upturn in interest in industrial policy in Europe and in Latin America, and the considerable dissatisfaction with the Washington Consensus elsewhere in the developing world, the discussion in this chapter will also be of interest to scholars and policymakers outside of East Asia. In Europe, none other than the European Commissioner for Industry was reported in January 2005 as calling for the re-evaluation of the way in which prospective mergers and acquisitions are reviewed (a form of competition law enforcement) so as to bolster international competitiveness, which is a traditional industrial policy goal.