EL PROCESO DE MADURACION DE LAS AGENCIAS AL COMPAS DE LA EVOLUCION DEL DERECHO DE LA COMPETENCIA

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EL PROCESO DE MADURACION DE LAS AGENCIAS AL
COMPAS DE LA EVOLUCION DEL DERECHO DE LA
COMPETENCIA

• William E. Kovacic
• U.S. Federal Trade Commission
• Cartegena
• 19 November 2009

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Why Do We Celebrate Anniversaries?

• Ley de Competencia 1959-2009
• Federal Trade Commission Act 1914-2009
• Polish Antimonopoly Act 1990-2010
• UK Competition Commission 1948-2008

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Positive Trend More Emphasis on Institutional
Design Implementation

• Recognition that Institutional Arrangements
  Deeply Influence Substantive Policy Results
• Fundamental Importance of Capability
• Impossible to ask what an agency should do
  without considering how it will do it?

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Overview

• FTC at 50
• Lessons for Evolution and Maturation of a
  Competition System
• Institutional Features that Facilitate
  Improvement Over Time
• Caveat Personal Views

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FTC at 50 Failing Agency

• Inadequate Powers
• Weak System for Setting Strategy
• Poor Human Capital Leadership and Staff
• Too Little Political Independence
• Poorly Reasoned Decisions
• Judicial Hostility
• ABA Report 1969 One Last Chance

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What Happened 1969-2009?

• Major Statutory Upgrades
• Improved Human Capital
• Better Strategic Planning
• Stronger Evaluation
• Greater Understanding of Role of Politics
• More Investments in Future Capability
• Theme Continuous Improvement

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Lessons Evolution and Maturation of a
Competition Agency

• Strategy Setting Goals, Priorities, Programs
• Organization
• Operating and Management Processes
• Human Resources
• Relations with Government Institutions
• Relations with Relevant Publics
• Performance Standards and Evaluation

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Strategy

• Clear Definition of Objectives
• Internal deliberations and external consultations
• Conscious Process to Choose Priorities
• Which outlays will yield the best returns?
• Diversified portfolio
• Selecting Programs that Mirror Priorities
• Match commitments to capabilities
• Problem-solving orientation Enforcement,
  advocacy, research, education

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Organization

• Aim Support Attainment of Agency Goals
• Does organization correspond to strategy?
• Secretariat
• Legal Services
• Economists
• Operating Units

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Operating and Management Processes

• Quality Control
• Investments in Information Technology
• Budgeting Process Link Outlays to Priorities
• Internal Communication
• Ethics
• Safeguards for Sensitive Information

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Human Resources

• Recruitment
• Links to academic community and alumni
• Professional Development and Training
• Investments in Building Knowledge RD
• Information Management
• Electronic data sets
• Capital budget Investments in technology

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Relations with Other Government Institutions

• Legislature
• Sectoral Regulators
• Significant Other Ministries
• Political Subdivisions
• Means
• Formal (MOUs) and Informal networks
• Routine consultation e.g., working groups

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Relations with External Publics

• Communications Strategy
• New and old media
• Public Consultations
• Special Interest Groups
• Major Decision Who Speaks for the Agency?

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Performance Standards and Evaluation

• Defining Performance Standards
• Evaluating Programs According to Standards
• Measuring program outcomes
• Assessing operational efficiency

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International Resources

• Extensive Accumulated Experience
• Increasing Attention to Implementation
• Important Refinements of Means for Capacity
  Building

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Role of International Cooperation in Building
Capacity

• Setting Strategy
• Dealing with Political and Social Environment
• Conceptual Framework
• Practical Knowhow
• Developing Physical Infrastructure
• Proving Access to Knowledge
• Assistance on Projects of Mutual Interest

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Model of Engagement Three Levels

• Agency Leaders and Managers
• Case Handlers
• Non-Government Bodies

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International Cooperation Means

• Large Multilateral Networks E.g., ICN, OECD
• Regional Networks
• Bilateral Agreements
• Non-Government Networks
• Ad Hoc Events E.g., Fordham Workshop
• Secondments e.g., FTC Safeweb Program

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Characteristics that Predict Success

• Mix of Views from Older and Newer Agencies
• Careful Attention to Initial Conditions
• Long-Term Engagement

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Toward a Custom of Periodic Assessment

• Cumulative Nature of Policy Development
• Advantage of Superior Regulatory Design
• Need for upgrades in statutes, organization?
• Respond to New Learning, Industry Trends
• Maintaining and Disclosing Data Sets on
• Program activities e.g., cases
• Operational effectiveness

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Colombia at 50

• Continuous Improvement
• Regular Upgrades
• Incremental Domestic Growth
• Role in International Leadership
• The Competition Worth Having