Competition

Achieving competitive neutrality

 

Competitive neutrality means that state-owned and private businesses compete on a level playing field. This is essential for the effective use of resources within the economy and thus the achievement of growth and development. Therefore the principle of competitive neutrality is gaining wide support around the world. But how to obtain it in practice, is a much more difficult question.

 

The OECD is engaged in multiple projects to assist policymakers in designing, adopting, and implementing appropriate policies. This page provides access to work completed to date.

 

State-Owned Enterprises - Trade Effects and Policy Implications, April 2013
With growing integration via trade and investment, state-owned enterprises (SOEs) that have traditionally been oriented towards domestic markets increasingly compete with private firms in the global market place. This paper discusses the extent of state ownership in the global economy, the advantages and disadvantages that SOEs can face, and how potential SOE advantages can generate cross-border effects.

 

Competitive Neutrality: Maintaining a level playing field between public and private business, May 2012
Guidance to policy makers who want to make sure that the presence of state- owned enterprises in the market place does not thwart private entrepreneurs, skew competition or lead to other inefficiencies.

 

National Practices concerning competitive neutrality, April 2012
This report summarises the responses from 30 OECD countries and the EU to a comprehensive questionnaire concerning national approaches to competitive neutrality.

 

A Compendium of OECD Recommendations, Guidelines and best practices bearing on competitive neutrality. April 2012
This report provides a full picture of existing OECD instruments, and related good practices and guidance, which may have implications for competitive neutrality.

 

Competitive neutrality and state-owned enterprises in Australia, August 2011
A comprehensive overview of the competitive neutrality framework in Australia following a period of profound competition reforms in the 1990s.

 

State-owned enterprises and the principle of competitive neutrality, 2009
This document compiles proceedings from 2 Competition Policy Roundtables: Application of Antitrust Law to State-Owned Enterprises; and, Corporate Governance and the Principle of Competitive Neutrality.

 

Competitive neutrality and state-owned enterprises, May 2011
This paper examines sources of competitive advantages and incentives for SOE managers, boards and government owners to use them and national approaches to countering these practices. It outlines options available to competition agencies to counter anti-competitive practices by SOEs and to help enhance competitive neutrality.

 

Accountability and Transparency: a Guide for State Ownership, 2010
This Guide facilitates the practical implementation of the OECD Guidelines on Corporate Governance of State-Owned Enterprises in the areas of transparency and accountability.  It shows, using specific examples, that improvement is politically feasible, taking into account the complex challenges that governments have to face.

 

Competitive Neutrality 2012 cover 150 pixels wide

 

...whether they are owned by shareholders or states, all companies should operate on a level playing field consistent with the principles of competitive neutrality.

Hillary Rodham Clinton
US Secretary of State
Full transcript of remarks

 

     

 

 

 

 

 

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