Promoting Competition in Local Markets in Mexico : A Subnational Application of the World Bank Group's Markets and Competition Policy Assessment Tool

Stagnant productivity growth and high disparities in productivity levels across Mexican states have been holding back economic growth. In general, Mexico’s federal government has a solid competition policy framework in place. Subnational regulations in transport, agriculture, tourism, retail, and ot...

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Main Author: World Bank
Format: Report
Language:English
Published: World Bank, Washington, DC 2018
Subjects:
Online Access:http://documents.worldbank.org/curated/en/750671539354775059/Promoting-Competition-in-Local-Markets-in-Mexico-A-Subnational-Application-of-the-World-Bank-Groups-Markets-and-Competition-Policy-Assessment-Tool
http://hdl.handle.net/10986/30587
id okr-10986-30587
recordtype oai_dc
spelling okr-10986-305872021-05-25T09:19:03Z Promoting Competition in Local Markets in Mexico : A Subnational Application of the World Bank Group's Markets and Competition Policy Assessment Tool World Bank COMPETITION POLICY MARKET ACCESS BUSINESS ENVIRONMENT REGULATION LOCAL GOVERNANCE SUBNATIONAL GOVERNMENT TRUCKING REGULATORY REFORM Stagnant productivity growth and high disparities in productivity levels across Mexican states have been holding back economic growth. In general, Mexico’s federal government has a solid competition policy framework in place. Subnational regulations in transport, agriculture, tourism, retail, and other sectors are holding back the potential of local economies to grow and provide consumers with affordable goods. Anticompetitive regulations for professionals such as notaries also increase the cost of doing business. The World Bank Group (WBG) was requested to address a critical gap and to pilot a reform-oriented engagement on competition policy at the subnational level. WBG engaged to motivate an actionable reform plan that can unlock competition in key markets at the local level. This note discusses the main findings of the WBG’s markets and competition policy assessment tool (MCPAT) application to various subnational governments in Mexico and the initial reform experience. It draws on the results of multiple pieces of analysis and implementation support projects since 2012 to assess, identify, prioritize, and modify regulations that restrict competition at the subnational level in key markets. This note is structured as follows: section 1 gives an introduction, section 2 discusses the international experience on the role of competition at the local level for development. Section 3 provides a brief presentation of the methodological steps of the MCPAT subnational application. Section 4 discusses incidences of anti-competitive regulation (some of which have been removed) to exemplify their harmful effect. Section 5 provides several examples of how to prioritize and design reforms based on how government interventions at the subnational level interact with particular features of subnational Mexican markets, as well as based on their feasibility and their potential effects. 2018-10-22T21:44:20Z 2018-10-22T21:44:20Z 2018-06-01 Report http://documents.worldbank.org/curated/en/750671539354775059/Promoting-Competition-in-Local-Markets-in-Mexico-A-Subnational-Application-of-the-World-Bank-Groups-Markets-and-Competition-Policy-Assessment-Tool http://hdl.handle.net/10986/30587 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work :: Other Public Sector Study Economic & Sector Work Latin America & Caribbean Mexico
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic COMPETITION POLICY
MARKET ACCESS
BUSINESS ENVIRONMENT
REGULATION
LOCAL GOVERNANCE
SUBNATIONAL GOVERNMENT
TRUCKING
REGULATORY REFORM
spellingShingle COMPETITION POLICY
MARKET ACCESS
BUSINESS ENVIRONMENT
REGULATION
LOCAL GOVERNANCE
SUBNATIONAL GOVERNMENT
TRUCKING
REGULATORY REFORM
World Bank
Promoting Competition in Local Markets in Mexico : A Subnational Application of the World Bank Group's Markets and Competition Policy Assessment Tool
geographic_facet Latin America & Caribbean
Mexico
description Stagnant productivity growth and high disparities in productivity levels across Mexican states have been holding back economic growth. In general, Mexico’s federal government has a solid competition policy framework in place. Subnational regulations in transport, agriculture, tourism, retail, and other sectors are holding back the potential of local economies to grow and provide consumers with affordable goods. Anticompetitive regulations for professionals such as notaries also increase the cost of doing business. The World Bank Group (WBG) was requested to address a critical gap and to pilot a reform-oriented engagement on competition policy at the subnational level. WBG engaged to motivate an actionable reform plan that can unlock competition in key markets at the local level. This note discusses the main findings of the WBG’s markets and competition policy assessment tool (MCPAT) application to various subnational governments in Mexico and the initial reform experience. It draws on the results of multiple pieces of analysis and implementation support projects since 2012 to assess, identify, prioritize, and modify regulations that restrict competition at the subnational level in key markets. This note is structured as follows: section 1 gives an introduction, section 2 discusses the international experience on the role of competition at the local level for development. Section 3 provides a brief presentation of the methodological steps of the MCPAT subnational application. Section 4 discusses incidences of anti-competitive regulation (some of which have been removed) to exemplify their harmful effect. Section 5 provides several examples of how to prioritize and design reforms based on how government interventions at the subnational level interact with particular features of subnational Mexican markets, as well as based on their feasibility and their potential effects.
format Report
author World Bank
author_facet World Bank
author_sort World Bank
title Promoting Competition in Local Markets in Mexico : A Subnational Application of the World Bank Group's Markets and Competition Policy Assessment Tool
title_short Promoting Competition in Local Markets in Mexico : A Subnational Application of the World Bank Group's Markets and Competition Policy Assessment Tool
title_full Promoting Competition in Local Markets in Mexico : A Subnational Application of the World Bank Group's Markets and Competition Policy Assessment Tool
title_fullStr Promoting Competition in Local Markets in Mexico : A Subnational Application of the World Bank Group's Markets and Competition Policy Assessment Tool
title_full_unstemmed Promoting Competition in Local Markets in Mexico : A Subnational Application of the World Bank Group's Markets and Competition Policy Assessment Tool
title_sort promoting competition in local markets in mexico : a subnational application of the world bank group's markets and competition policy assessment tool
publisher World Bank, Washington, DC
publishDate 2018
url http://documents.worldbank.org/curated/en/750671539354775059/Promoting-Competition-in-Local-Markets-in-Mexico-A-Subnational-Application-of-the-World-Bank-Groups-Markets-and-Competition-Policy-Assessment-Tool
http://hdl.handle.net/10986/30587
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