COMPETITION POLICY FOR DEVELOPING COUNTRIES: A LONG-RUN, ENTRY-BASED APPROACH

This paper describes key aspects of a long-run, entry-based approach to the design of competition policy for developing countries. A competition policy with the sole purpose of mitigating governmental, natural, and artificial barriers to entry best serves the goals of promoting the competitive process and fostering democracy. Freedom of entry is the sine qua non of the competitive process. Freedom of entry promotes the development of efficient, innovative firms capable of competing in international markets and ensures that market reforms will enhance social welfare.