Strengthening Competition in Zambia

Competition policy matters for emerging & developing countries. Industries dominated by a handful of large suppliers can lead to higher prices which reduces the welfare of consumers and damages competitiveness of businesses who use products such as sugar and cement as intermediate products. This World Bank short video looks at the application of competition policy in the Zambian economy.

Key takeaway point for student economists:

In many less developed countries, the absence of genuine market contestability leads to higher prices and therefore lower real incomes for consumers. Strengthening competition can be seen as an important microeconomic development policy.