Regulatory reform and globalization

Economic regulation that aims to restrict competition should in principle be eliminated, says Akira Kawamoto, principal administrator in charge of the Regulatory Reform Project in the Trade Directorate of the OECD. Competition is the key to reform: there is increasing evidence that regulatory reform that opens domestic markets to vigorous international competition results in improved economic efficiency and greater productivity. However, implementing reform is not easy, and lasting political will, skillful management, and precise technical knowledge are required if the difficulties are to be overcome, Kawamoto says. This paper was given at the IIPS conference on “Challenges of globalization” that was held in December 1997.