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Promoting Competition in Telecommunications

Listed author(s):
  • Stiglitz, Joseph

    (The World Bank)

There is a growing recognition of the importance of competition for the success of market economies, and of the need for government action both to maintain competition and to regulate industries where competition remains limited. In the area of telecommunications, upon which I shall focus today, we have seen examples where privatization has not delivered on its promises: in some cases access in certain vital areas has actually been reduced. Competition and regulatory policy are vital for a market economy. The fundamental theorems of welfare economics, assume that both private property and competitive markets exist in the economy. Until recently, however, emphasis was placed almost exclusively on creating private property, and privatization of public assets. A well designed privatization, where there is a good regulatory framework in place, can raise enormous revenues and at the same time increase services and lower prices.

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Paper provided by Instituto de Economía, Universidad Argentina de la Empresa in its series UADE Working Papers with number 2_1999.

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Length: 22 pages
Date of creation: 01 Mar 1999
Handle: RePEc:ris:uadewp:1999_002
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