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Submitted by Kuben on
Thanks for this piece. It is both interesting and correct in its analysis. The problem is that it doesn’t deal with how to unlock product markets. How do we encourage greater competition in product markets? This is not simple or straight-forward. In many areas where there are high profits and high concentration, there are no explicit policy barriers to entry for newcomers. We have pretty good competition law and pretty credible anti-trust authorities, but this is only a small part of the problem. Why has tariff liberalisation not resulted in more competition? Does our distance from global markets impose an inbuilt rent that is hard to break? What exactly should we do to promote competition? I am sure that a different answer is required in each sector, steel is different from banking, which is difference from producing bread. What are we missing as policy makers in finding solutions to this problem of concentrated product markets? Kuben National Planning Commission