Development and Competition Law

This Article is an attempt to examine the concepts of "competition law and policy" and the impact which they may have on the economic development of the developing countries. To this end, the study adopted a very general approach, by focusing on two schools of thought: those who represented the static competition and those whoadvocated the dynamic one. Upon examination the study came to the conclusion that a realistic approach would be the application of both principles. That is, in cases where merger, monopoly or implementation of certain business restrictive practices would promote a given industry, then such practices ought to be permitted. However, in situations where such behaviour or power becomes a means of abuse for monopolization, division of market and as a whole, harming competition then they must be prevented. The administration of such a dynamic policy might engender two optimal outcomes: allocative and productive efficiencies. Furthermore, in circumstances, where innovation and technological advancement necessitate it, more lenient measures toward restrictive practices could be adopted.The approach and its application may also have relevance to the industrial and economic enhancement of the developing world, but only when its features and peculiarities are taken into consideration. These are nothing but theindustrial and technological laggardness of this world, which would justify a deeper involvement of governments in adopting and applying both preventing and encouraging legal and administrative measures: a successful policy which was applied by not only such countries as Japan and South Korea but also such advanced states as the USA.