Of Airwaves, Incumbents and Good Governance - The Urgent Need for a Robust Competition Policy Framework

Abstract

Recent events in India such as audit reports on alleged economic irregularities across various sectors and the general atmosphere of under confidence in the Indian economy and quality of governance indicate that we urgently need to concentrate on regulatory reforms and strengthening of our governance capabilities. One area where policy and regulation can have a tremendous positive impact is the institution of a robust and comprehensive competition policy framework. The draft National Competition Policy (NCP) holds great promise to promote good governance leading us away from damaging effects of rent seeking behaviour and towards the benefits of accountability, transparency, equity and rapid and inclusive economic growth. This article highlights the key provisions of the NCP and strives to demonstrate how implementation of these stipulations, supported by National Competition Rules (NCR) can effectively transform the quality of our governance.

JEL Classification: competition policy, telecommunications, public sector, competitive neutrality