A Dual Language in Modern Competition Law? Efficiency Approach versus Development Approach and Implications for Developing Countries

Abstract

Every cultural mode of thought has its own concept of market, competition, economy in general, property, collectivity goods, trust and decency. Unless we understand, and respect, those modes of thought, we are not entitled to superimpose our concept of market and competition, and our understanding of economy, belonging and efficient behavior upon other, non-Western, cultures. Doing so leads to cross cultural misuses, confusion, and strife. This article discusses the parallel development and diverging trends on modern competition law. On the one hand, we seem to be heading to a soft convergence in the theory and practice (with efficiency as a core principle) of competition law. On the other hand, developing countries advocate a different competition law language: the language of development that goes beyond a mere focus on efficiency. This is true when we look at the goals of competition law in developing countries, which often encompass non-economic objectives, such as public interest, fairness, competitiveness of Small and Medium Sized Enterprises (SMEs), and preservation of employment. A growing scholarship has also started do discuss a different paradigm of competition law in developing countries that takes into account their development concerns. This paper argues that although efficiency is very relevant in the context of developing countries, it should be applied in a broader context, taking into account non-economic goals such as redistribution and inclusiveness in order to achieve an 'efficient development.' The impact of a dual language on a potential international framework on competition law is also discussed.