Theory and practice of regulation in small economies: the Fijian experience

Abstract

Small island countries are attempting to deregulate their economies in order to provide flexibility to firms operating in an ever changing and challenging global market. During this process, regulators and policymakers have found themselves under immense pressure from the private sector over the nature and degree of regulation of commercial activities. Some argue that an economy left to the market will reduce the burden on the State, improve efficiency and growth, and thus contribute to the country's developmental objectives. There are others, however, who argue otherwise. They believe that competition law and policy can play important roles in the advancement of developing countries. We argue that competition policy and law are essential. What might vary between countries, however, is the mix between ex ante and ex post regulation. While regulatory frameworks are being developed in small countries, the State or the regulatory institution might have difficulty in undertaking ex post regulation for several reasons. This article demonstrates how unfair trading practices and anti-competitive behaviour were curbed in Fiji's telecommunications sector.