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The Role Of Government In Ensuring A Level Playing Field: The Case Of South Africa'S Competition Commission And The Maize Milling Industry

In: INNOVATIVE INSTITUTIONS, PUBLIC POLICIES AND PRIVATE STRATEGIES FOR AGRO-ENTERPRISE DEVELOPMENT

Author

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  • Lulama Ndibongo Traub

Abstract

In general, sustained agricultural productivity, growth and poverty reduction require an enabling policy environment that encourages private sector investments in input, output and financial markets. Using South Africa's maize milling industry as a case study, this chapter analyzes the impact of the Competition Commission's anti-trust ruling on the performance dimension of the maize sector; in particular on pricing efficiency. Using the Industrial-Organization Framework, the chapter explains the behavior of groups of firms within the context of the basic conditions (policy environment, demand characteristics, technology, etc.) and the market structure within which the firms exist. South Africa's utilization of an institution, such as the Competition Commission, demonstrates the ability of governments to create an enabling environment that stimulates private sector investment and minimizes market distortions within a staple food market.

Suggested Citation

  • Lulama Ndibongo Traub, 2014. "The Role Of Government In Ensuring A Level Playing Field: The Case Of South Africa'S Competition Commission And The Maize Milling Industry," World Scientific Book Chapters, in: Ralph D Christy & Carlos A da Silva & Nomathemba Mhlanga & Edward Mabaya & Krisztina Tihanyi (ed.), INNOVATIVE INSTITUTIONS, PUBLIC POLICIES AND PRIVATE STRATEGIES FOR AGRO-ENTERPRISE DEVELOPMENT, chapter 11, pages 277-312, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789814596619_0011
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