Nature of Competition in Ghana
Interest in promoting competition in developing countries has increased over the past decade.
Despite differences, developing countries are generally characterised by lower degrees of market competition than their industrialised country counterparts.
The interest has particularly resulted from the failures of economic reforms in the 1980s, that overly relied on trade liberalisation to promote domestic market competition.
One general conclusion was that trade liberalisation did not do the whole job – it did not guarantee by itself a desirable level of competition in an economy, and correspondingly did not achieve all it was expected to in terms of increasing productive efficiency and competitiveness in international markets.
The idea that trade liberalisation would improve domestic competition has led to a reassessment that indicates that success in trade and liberalisation is itself dependent on establishing a competitive domestic market environment.