Competition policy: economic necessity vs. budgetary constraint

Prof. Flavien TCHAPGA (Versailles)
Prof. Flavien TCHAPGA (Versailles)

Competition policy: economic necessity vs. budgetary constraint

Professor Flavien TCHAPGA (Economics, University of Versailles, France) published an intriguing paper on developing effective competition policies in Africa and on the inherent tension this effort faces: their economic necessity on one hand vs. the realpolitik of budgetary constraints on the other hand.  His analysis — available in full PDF to our valued [francophone] readers here — focuses on the member countries of CEMAC and WAEMU.

Abstract:

Because of the promises of efficient markets (protection of consumer interests, reduction of poverty, innovation and economic dynamism), competition policy is an attractive issue for Central African Economic and Monetary Community (CEMAC) and West African Economic and Monetary Union (WAEMU) countries. However, appropriate financial resources are essential for its effectiveness. This paper assesses the competition policy implementation in these two regions. In particular, it focuses on the balance between the issues at stake and dedicated financial resources since this could signal governments’ commitment to ensure effective implementation of competition legislation for better market outcomes.

NOTE: This article was originally published in HORIZONS / Concurrences Law Journal (vol. 01-2013) Institute of Competition Law, re-published here under author’s licence.  Original title (in French): “La politique de la concurrence dans la CEMAC et l’UEMOA  : Entre urgences économiques et contraintes budgétaires

Ph.D. student elevated to Chief Economist position

south_africa

High-level appointments made by acting Competition Commissioner

According to statements made by the interim South African Competition Commissioner, Tembinkosi Bonakele, and based on several news reports (here and here, for instance), the SACC has filled several of its recently (or not-so-recently) emptied ranks:

  1. Chief Economist and Manager of the Policy and Research division: Liberty Mncube
  2. Divisional Manager of Enforcement and Exemptions: Junior Khumalo
  3. Chief Financial Officer: Thomas Kgokolo

The appointments were made effective as of the first of the year.  The SACC had been criticised for lack of stability in its leadership and overall staff, given a fairly high turnover rate among its employees and officers.  Perhaps to counter this impression, Mr. Bonakele said in the official SACC statement that the “new appointees will provide the necessary leadership to their very important divisions. It is important that we have a very strong and stable senior management team and I have full confidence that this team will take the Commission to higher levels. We are privileged as an institution that we are able to find most candidates internally and thereby ensure continuity.”  (Emphasis added).

Focusing on the first new appointment to the Chief Economist role – a position that has sat empty for over a year, according to our recollection – it not only provides for a catchy title but is indeed a noteworthy fact that Mr. Mncube is a graduate student at the moment We do not know of any other competition enforcement agency that has filled the job of chief economist with someone who is currently pursuing a degree in economics.  This comment is not to diminish Mr. Mncube’s accomplishments, nor to take away from his potential to fill the role adequately.  It simply states a fact.  His past professional biography includes the following, according to a 2011 ICN The Hague conference web site:

[Note: information as of 2011] “Liberty Mncube is a Senior Analyst in the Policy and Research Division of the Competition Commission of South Africa. At the Commission, his responsibilities include managing and coordinating research and policy development; managing and coordinating case analysis; contributing in building capacity for research and knowledge of competition policy; and undertaking analysis related to competition matters with regard to policy and regulation. Prior to joining the Commission, he was a Researcher at the Development Policy Research Unit at the University of Cape Town. Liberty holds an MSc in Economics from the University of York.”

Mr. Mncube’s own LinkedIn profile is updated to reflect his current position:

I am the Chief Economist at the Competition Commission South Africa. I hold a MSc in Economics from the University of York and am currently completing a PhD in Economics at the University of KwaZulu-Natal. I have been a visiting PhD graduate student at the Barcelona Graduate School of Economics.

For the economists among our readership, here are a few selected publications by Mr. Mncube (note that his LinkedIn profile lists several additional articles and book chapters): “On merger simulation and its potential role in South African merger control“; “Strategic Entry Deterrence: Pioneer Foods And The Bread Cartel“; and “Designing Appropriate Remedies For Competition Law Enforcement: The Pioneer Foods Settlement Agreement

Public Interest Factors in African Competition Policy

Author and economist Patrick Smith recently publishedPublic Interest Factors in African Competition Policy in The African and Middle Eastern Antitrust Review 2014.  The consideration of public interest factors in competition law inquiries has generated much debate over the past few years. Several high profile cases have illustrated the potential for competition decisions,
and in particular merger inquiries, to be significantly affected by non-competition public interest issues.

Our readers have free access to the full PDF.

The Review is published by Global Competition Review and is available online at: http://globalcompetitionreview.com/reviews/59/the-african-middle-eastern-antitrust-review-2014

This year’s issue of the Review also features two other AfricanAntitrust.com writers: contributing author, Chabo Peo, whose piece on competition law in Botswana is available at the GCR web site, as well as editor John Oxenham‘s piece on cartels in South Africa, available here.

A full list of contributors to our site can be found at: https://africanantitrust.com/about/

Competition economist joins panel of AfricanAntitrust.com blog authors

Patrick Smith is a partner at RBB Economics.  Previously a chemical engineer, Patrick applies economics, econometrics and industrial expertise to competition policy, litigation and arbitration.

He has testified and consulted to parties, agencies and interveners in high-profile, complex and multi-jurisdictional proceedings over the past decade.  These include leading roles in cases such as:

Syniverse/MACH, Bread, Universal/EMI, Gold Circle/Kenilworth Racing, Thaba Chueu/SamQuarz, First Quantum v DRC, Pioneer/Pannar, Sun Capital/DSP, Dow/Rohm & Haas, InBev/Anheuser Busch, ABF/GBI, Polymers and Inco/Falconbridge.

Patrick is a regular speaker on antitrust economics at conferences and seminars around the world.

We look forward — as do you, we expect — to reading Patrick’s insightful takes on competition law & economics!

Patrick Smith, RBB, author
Patrick Smith, RBB, author (South Africa)

A full list of contributors to our site is available here: https://africanantitrust.com/about/