Bread, civil society, bank charges, and Competition Authorities: what do these have in common? The surprising answer is that these elements help explain how South Africa’s Competition Authorities have become a standout success in the country’s economic policy making. Nowadays, competition policy forms a central pillar of South Africa's development strategy, and the South African Competition Authorities command substantial respect and widespread support. A crucial ingredient to this success has been the Competition Authorities’ strategic use of convening power to rally stakeholders, focus public discussion, and deliver tangible results.
It is a matter of debate whether governments should play an active role in stimulating industrial upgrading. But it strikes me as highly unlikely that an activist role for government has much benefit for products low on the value chain. A new policy note from ODI on four product markets in five developing countries seems to bear this out.
Editor's Note: Khrystyna Kushnir is a consultant on micro, small and medium-sized enterprises with the Enterprise Analysis Unit of the World Bank Group.