Competition policy
Competition and regulatory institutional structures in micro-states: the case of the Caribbean
Innovations in institutional arrangements for regulation and competition in small and micro-states: Caribbean
Authors:
; CUTS Institute for Regulation and Competition (CIRC)
Publisher:
CUTS Institute for Regulation and Competition (CIRC), 2005
Regulatory institutions of the Caribbean states have historically been modelled after the UK and US approaches. This paper questions whether such frameworks are suitable for small developing countries where problems of economies of scale hamper the financing and sustainability of regulatory agencies. It examines several innovative solutions to the institutional problems of small countries. Authors identify a typology of two institutional arrangements:
- multifunctional: combines the functions of competition and utility regulation
- multinational: involves the use of a single regulator by several sovereign states
Authors conclude that a multinational approach, as found in the Eastern Caribbean Telecommunications Authority (ECTEL), provided the basis for an independent, transparent and unified regulatory structure.
A multifunctional approach provides the opportunity to take advantage of synergies between competition matters and economic regulation, as well as to take advantage of synergies between both functions and access regulation.
