‘Sound competition policy vital to economic growth’

MANILA, Philippines — A well-crafted competition policy can open new pathways for economic opportunities and help sustain economic growth, according to the National Economic and Development Authority (NEDA).

This was underscored by NEDA Secretary Arsenio Balisacan during the launch of the book titled “Designing Competition Policy for Economic Development in Asia and the Pacific” at the Asian Development Bank Institute in Tokyo, Japan.

Balisacan is co-editor of the book, which analyzes the critical role of competition policy in Asia-Pacific.

He said a sound competition policy could help achieve broader development objectives by boosting productivity and promoting innovation among market incumbents, ultimately benefiting consumers.

“Competition policy for economic development entails the application of disruptive competitive pressure on rent-rich incumbents to break their grip on captive markets and thereby enable greater consumer choice,” Balisacan said.

He said this leads to more affordable prices, higher product quality, faster adoption of new processes, and the creation of new products as market players are forced to compete.

“From a political economy perspective, a credible competition authority wielding its various enforcement and advocacy tools can function as a countervailing force acting on behalf of consumers, tipping the balance of market power and improving overall economic welfare,” Balisacan said.

He said it is important for competition authorities of developing economies, which often grapple with markets that do not function well, to find ways to integrate their tools and perspectives in development policy.

In the Philippines, competition policy was integrated into the overall development blueprint, the Philippine Development Plan 2023 to 2028.

However, Balisacan said mainstreaming competition policy still comes with implementation and coordination challenges.

Meanwhile, Development Academy of the Philippines president and CEO Majah-Leah Ravago, also co-editor of the book, said there is a need to align competition laws with development priorities in Asia.

Prior to his appointment as NEDA Secretary for the second time, Balisacan was the founding chairperson of the Philippine Competition Commission (PCC).

Established in 2016, the PCC is mandated to promote market competition and curb anti-competitive behavior to protect consumers.