Globalisation and Consumer Protection in East Asia: Is it a Zero Sum Game?

12 Pages Posted: 5 Dec 2003

See all articles by David Round

David Round

University of South Australia - Division of Business and Enterprise - Centre for Applied Economics

Zeljka Sporer

University of South Australia - Division of Business and Enterprise - Centre for Applied Economics

Abstract

The provision of comprehensive consumer protection legislation is not high on the policy agenda in most developing economies, given what are seen to be more urgent economic and social goals such as encouraging economic growth and the eradication of poverty and illiteracy. Yet large welfare losses can occur as a result of market failure due to the significant information asymmetries that usually exist in developing economies, with buyers being at the mercy of much better informed sellers. It is time to overcome this problem through education, legislation and the creation of appropriate bureaucratic institutions. However, through globalisation the market itself may be able to achieve a greater degree of consumer protection, certainly in the short term, than would otherwise be achieved in the absence of such forces. While globalisation may create problems, it provides an opportunity to solve some consumer protection problems - a benefit from globalisation not previously highlighted. This article suggests that the nations of East Asia seek a regional consensus on developing a culture for consumer protection and on the implementation of consumer protection laws and enforcement procedures.

Suggested Citation

Round, David K. and Sporer, Zeljka, Globalisation and Consumer Protection in East Asia: Is it a Zero Sum Game?. Available at SSRN: https://ssrn.com/abstract=474071

David K. Round (Contact Author)

University of South Australia - Division of Business and Enterprise - Centre for Applied Economics ( email )

Australia
61-8-8302-0760 (Phone)
61-8-8302-0512 (Fax)

Zeljka Sporer

University of South Australia - Division of Business and Enterprise - Centre for Applied Economics ( email )

Australia

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