Hard and Soft International Rules on Competition Law and Policy

1
Hard and Soft International Rules on Competition
Law and Policy

• Dr. Simon J. Evenett
• simon.evenett_at_sbs.ox.ac.uk
• World Bank Regional Conference, Sri Lanka, May
  2004

2
Objectives of this presentation

• To characterise the different types of
  international rules on competition law and
  policy.
• To highlight the proliferation of international
  rules on competition policy.
• To start a discussion on the relative merits of
  hard and soft international rules.

3
Types of international rules
4
Proliferation of rules and norms since 1990
5
Why has the proliferation occurred?

• With apologies to John Donne in competition
  enforcement matters, no man is an island, entire
  of itself.
• Major changes in the organisation of production
  and commercial activities.
• Experience shows there are tangible knock-on
  effects from
• Non-enforcement.
• Inadequate enforcement.
• Effective enforcement.

6
Hard and soft rules National criteria for
evaluating rules

• Clarity and flexibility (expectation formation).
• Impact on
• Efficiency on state enforcement.
• Incentives for states to cooperate.
• Private sector incentives.
• Feasibility (implementation requirements and
  domestic support).
• Likelihood of compliance.

7
Hard and soft rules Systemic considerations

• Formation of rules and norms
• Motivations and objectives.
• Participation.
• Legacy effects.
• Immutability.
• Inconsistency of rules or norms.
• Many permutations.
• Effects on private sector expectations.
• Relationship to prevailing international
  initiatives and goals (eg. Millennium Development
  Goals.)

8
Closing remarks

• Competition-related norms and rules are
  proliferatingand there are good reasons for
  this.
• More attention should be given to assessing the
• National consequences of soft rules.
• Systemic implications of proliferating rules.