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Competition Law and Policy
The government of Cambodia has been engaged in efforts to adopt a competition law for some time; however, as of November 2007, this law had not been enacted. In June 2005, the Ministry of Commerce established a Working Group on Competition to oversee the drafting and adoption of the law. The overarching goal of adopting a competition law is to create a regulatory framework to maintain and improve efficiency in markets and enhance consumer welfare.
Achieving these goals will prove challenging, particularly because state intervention – though in many forms obscure and indirect – continues to play a paramount role in shaping the economic institutions of the country. Interviews with private sector and non-government organization (NGO) representatives suggest that a close relationship with the government is essential for succeeding as an entrepreneur. This feature of the Cambodian economy will make adoption and enforcement of an effective competition policy difficult, and necessitates caution in designing both the law and the implementing institution.
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