Chapter 16: Promoting Competition
Competition makes markets perform better and promotes inclusive economic growth. It induces producers to reduce costs, innovate, and widen the range of goods and services available to consumers. It allows a level playing field where small entrepreneurs and firms, apart from larger players, may operate and grow. Competition raises productivity, expands economic opportunities, increases people’s real incomes, and improves overall welfare. It especially benefits the poor through job creation and lower prices made possible by the entry, growth, and expansion of efficient firms; and through greater variety and higher quality of goods and services. The Philippine Development Plan (PDP) 2017-2022 reinforces the Philippine Competition Act (PCA) through strategies that aim to foster an environment that penalizes anti-competitive practices, facilitates entry of players, supports regulatory reforms, and improves trade policies to stimulate investments and innovation and boost competitiveness. As the country reels from the economic consequences of the COVID-19 pandemic, there is a need to refocus the government’s strategies and interventions towards a healthy and resilient Philippines. Hence, this chapter outlines strategies and interventions that stimulate economic recovery and restore market efficiency to ensure a more resilient, inclusive, and competitive market.