COMPETITION POLICY WITHIN DEVELOPING COUNTRIES: A SHORT STORY ABOUT CORRUPTION AND HOW IT HURTS A NATION.

Since the mid 1990s competition policies within developing economies have become increasingly evident. Competition policies are hailed as the means of enabling a competitive environment and an improved welfare position. The extent to which this holds true for African economies is assessed using regression analysis. The results suggest that competition policy does indeed reduce inflationary impulses, however policy is ineffective in economies that have a poor record of governance. The comparatively high incidence of corruption within African economies makes competition policy an ineffective instrument. Public policy would therefore be better directed at bringing about improved governance prior to the implementation of any welfare-intending public policy