By Susan Joekes; Phil Evans
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Extra resources for Competition and Development: The Power of Competitive Markets (In Focus)
Largely outside bureaucratic purview because they are not registered and perhaps not paying income, sales, or property taxes). The large size of the informal sector is usually attributed to the existence of onerous regulations or anticompetitive behaviours that create barriers to entry to formal markets. Informal enterprises account for the vast majority of businesses, the majority of non-agricultural employment, and an important share of national output in developing countries. According to Oliveira (2006), the informal sector accounts for 60% of economic activity in Peru, 50% in Uruguay, and approximately 42% in Nigeria.
Western Union and Travelex had established dominance by signing a number of exclusivity deals with remittance agencies, leading to high charges. ca/in_focus_competition On the web In some countries economic wealth and market power are highly skewed in favour of a small number of private companies. These are often family controlled, with tight social interconnections among them and in many cases they have strong connections at the political level and with high-ranking public officials. Competition law can be used to combat the imbalance.
Ca/in_focus_competition Exceptions and exemptions On the web An IDRC study showed that, in Thailand, state-owned enterprises are exempt from the competition law and have engaged in anticompetitive practices (Nkikomborirak 2004). Instead, the exemption could have been made temporary and linked to capacity building. Such an approach is called progressivity and is now broadly accepted in the international trade field. Morocco allows for discretionary exemptions to improve the management of small- to medium-sized enterprises and the marketing of produce by farmers, providing such practices produce a “net public benefit” for which the burden of proof falls on firms (Achy and Sekkat 2005).