Competition tack should evolve
Philippine Competition Commission chairperson Arsenio Balisacan told counterparts that the policy choices that governments make during the crisis can either aid or constrain the economy
Various stakeholders in the country and those among member nations of the Association of Southeast Asian Nations (ASEAN) believe that to have a resilient supply chain, parties should craft a dynamic competition policy in the post-pandemic era.
During the 2021 Forum on Competition in Developing Countries, luminaries in the government and private sectors shared how the Covid-19 pandemic has exposed the weaknesses and fragility of regional supply chains, as nations resorted to containment measures and sudden trade controls.
They said the pandemic-induced disruptions in the supply chains necessitated an accelerated shift to digital platforms and new technologies for businesses to stay afloat and for consumers to maintain access to commodities.
Philippine Competition Commission (PCC) chairperson Arsenio Balisacan told counterparts that policy choices that governments make during the crisis can either aid or constrain the economy’s ability to grow in the medium and long-term.
Critical lever
“Competition policy remains a critical complementary and strategic lever for recovering economies. Hence, it must not be set aside as countries choose and debate policy responses to current recovery challenges,” Balisacan said during the forum.
For his part, Asian Development Bank Dean and chief executive officer Tetsushi Sonobe said “to build more competitive supply chains for the region, monopoly power of platforms and creeping protectionism should be addressed.”
Economics professor of the Australian National University Prema-Chandra Athukorala, aired that supply chain disruptions caused by the Covid-19 pandemic naturally provide ammunition for the protectionist lobby.
“However, trade protection (inward-oriented industrialization) is a knee-jerk response that runs counter to the long-term growth/development priorities of the country,” Athukorala said.
Develop digital infra
While according to Banpu (Thailand) Plc. Trustee of the International Rice Research Institute, Suthad Setboonsarng, the need remains for a coherent program to address recovery, stating that competition policy will play an important role in the process.
“Because now we have a lot of small players. MSME (micro, small and medium enterprises) are now coming into the market in a massive way,” Setboonsarng added.
Supply chain disruptions caused by the Covid-19 pandemic naturally provide ammunition for the protectionist lobby.
Indonesia Competition Commission chairperson Kodrat Wibowo shared that in adopting to the pandemic, MSME plans are evolving in terms of marketing and production as “enterprises will lean to cost-effective marketing efforts and have a plan for varying production method changes.”
On the side of the government, Trade Undersecretary Rafaelita Aldaba noted the country’s industrial strategy focuses and embraces new technologies.
“But for this to happen, we need to build the digital infrastructure and to address the regulatory constraints that limit competition in telecommunications and logistics, along with skills development and digital training to upgrade our workforce,” Aldaba said.
Several months into the pandemic, member states have reaffirmed their commitment to the ASEAN’s economic and regional objectives.
The Hanoi Plan of Action in Response to the Covid-19 Pandemic aims to restore supply chains and ensure its resiliency for the long haul, especially for economies that are vulnerable to the impacts of climate change such as the Philippines.