The main objective of this study is to explore Ethiopian public enterprises in light of competition neutrality framework with particular emphasis to the banking sector.
Establishing SOEs is one of the modes of government intervention in the economy. Such direct role of the government in the economy will have both positive and adverse effects in the commercial environment. It has positive contributions since public enterprises tried to achieve different social objectives as their primary roles. In contrast, as a result of being owned by the government, they are preferential treated in different manners that impede business activity of private undertaking in the same market. Such preferential advantages are not based on better performance, superior efficiency, better technology or superior management skills but are merely government-created. To overcome such adverse effects the OECD come up with a competition neutrality framework that connotes a similar set of rules to public enterprises and private undertaking. It further demonstrates major set of rules from different countries experiences. These are the similar rules in taxation regime, procurement rules, bankruptcy rules and proceeding, the general applicability of the competition law and its enforcement, and the prohibitions of subsidies including exclusive market advantages.
Currently the Ethiopian government own public enterprises in different sectors of the economy that needs critical assessment from competition neutrality points of view. The Ethiopian banking sector in general and one of the state owned bank called CBE conducts are criticized as competition distorting. This triggers the study to explore the status of SOEs in light of the areas of competition neutrality framework particular emphasis to the banking sectors. The research was conducted based on qualitative research approach by analyzing laws, documents and data collected through interview. This research is particularly studied by exploring the legal and practical treatment of private and public banks from Ethiopian taxation regime, public procurement ,competition law and enforcement, bankruptcy laws and de facto/de jure exclusive markets. Moreover, it tried to pin point adverse effects of such anti competition neutrality rules on private banks.
Inhaltsverzeichnis (Table of Contents)
- Chapter One: Introduction
- Background of the study
- Statement of the Problem
- Objective of the study
- Research Question
- Significance of the Study
- Review of Literature
- Research Methodology
- Scope and Limitation of the study
- Organization of Chapters
- Chapter Two: General Overview of State Owned Enterprises and Banking Business in Ethiopia
- Introduction
- Meaning of State Owned Enterprises
- The Raison d'être for the Establishment of State Owned Enterprises
- Major Distinctions of Public and Private Enterprises
- The Current Legal and Policy Environment of Banking Business in Ethiopia
- Chapter Three: Competition Neutrality Framework in General
- The Concept of Competitive Neutrality Framework (“CNF”)
- The Major Priority Areas of Competitive Neutrality Framework
- Corporate Governance of SOEs and Competitive Neutrality Framework
- Chapter Four: Ethiopian Public Enterprises in Light of Competition Neutrality; The Case in Banking Sector
- The Current Roles of Ethiopian Government in the Business
- Competitive Neutrality Framework in Ethiopia
- Ethiopian Public Procurement From Competition Neutrality Viewpoint
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This study aims to analyze the application of competition neutrality principles within the Ethiopian banking sector, specifically focusing on state-owned enterprises (SOEs). It investigates the extent to which government policies and regulations ensure fair competition between SOEs and private entities.
- Competition neutrality framework in Ethiopia
- Role of SOEs in the Ethiopian banking sector
- Impact of government policies on competition
- Analysis of relevant legal and regulatory frameworks
- Assessment of the competitive landscape in the Ethiopian banking sector
Zusammenfassung der Kapitel (Chapter Summaries)
Chapter One: Introduction: This chapter sets the stage for the research, introducing the background of the study focusing on Ethiopian public enterprises and the banking sector's competitive landscape. It clearly defines the problem, stating the need to assess the application of competition neutrality principles. The chapter outlines the study's objectives, research questions, significance, and methodology. It also details the scope and limitations of the research, including the chosen data collection and analysis methods. The structure of the following chapters is presented, ensuring a clear roadmap for the reader.
Chapter Two: General Overview of State Owned Enterprises and Banking Business in Ethiopia: This chapter provides a comprehensive overview of state-owned enterprises (SOEs) in Ethiopia and their role within the country's banking system. It defines SOEs, explores the rationale behind their establishment, and highlights the key distinctions between public and private enterprises, particularly regarding objectives, government proximity, legal frameworks, and accountability. The current legal and policy environment governing banking in Ethiopia is examined, laying the groundwork for understanding the context within which competition neutrality is assessed.
Chapter Three: Competition Neutrality Framework in General: This chapter delves into the theoretical framework of competition neutrality. It defines the concept of a Competitive Neutrality Framework (CNF) and identifies its key priority areas. These include the treatment of SOEs under taxation laws, the scope and enforcement of competition laws on SOEs, the application of procurement rules, bankruptcy laws, monopoly powers, subsidies, and corporate governance. The chapter establishes a general understanding of CNF principles before applying this framework to the Ethiopian context in subsequent chapters.
Chapter Four: Ethiopian Public Enterprises in Light of Competition Neutrality; The Case in Banking Sector: This chapter forms the core of the study, applying the theoretical framework of competition neutrality to the Ethiopian banking sector. It examines the government's role in the business, analyzing the country's CNF and its implementation within the banking sector. Specific areas examined include taxation neutrality (business tax, VAT, excise tax, and customs), bankruptcy laws concerning SOEs, exclusive advantages and subsidies given to public enterprises, and the implementation and challenges of competition laws in the banking sector. The chapter also assesses the role of public procurement in promoting or hindering competition.
Schlüsselwörter (Keywords)
Ethiopian banking sector, state-owned enterprises (SOEs), competition neutrality, competitive neutrality framework (CNF), government policy, taxation, subsidies, competition law, procurement, bankruptcy, corporate governance, economic development.
Frequently Asked Questions: Analysis of Competition Neutrality in the Ethiopian Banking Sector
What is the main focus of this study?
This study analyzes the application of competition neutrality principles within the Ethiopian banking sector, specifically focusing on state-owned enterprises (SOEs). It investigates how well government policies and regulations ensure fair competition between SOEs and private entities.
What are the key themes explored in this research?
The key themes include the competition neutrality framework in Ethiopia, the role of SOEs in the Ethiopian banking sector, the impact of government policies on competition, analysis of relevant legal and regulatory frameworks, and an assessment of the competitive landscape within the Ethiopian banking sector.
What is covered in Chapter One?
Chapter One provides an introduction, outlining the background of the study, the problem statement, objectives, research questions, significance, methodology, scope, limitations, and chapter organization. It sets the stage for the entire research.
What does Chapter Two discuss?
Chapter Two offers a general overview of state-owned enterprises (SOEs) and the banking business in Ethiopia. It defines SOEs, explores the reasons for their establishment, differentiates between public and private enterprises, and examines the current legal and policy environment of the Ethiopian banking sector.
What is the subject of Chapter Three?
Chapter Three delves into the theoretical framework of competition neutrality. It defines the concept of a Competitive Neutrality Framework (CNF), identifies its key priority areas (including taxation, competition laws, procurement, bankruptcy, and corporate governance), and establishes a general understanding of CNF principles.
What is the main content of Chapter Four?
Chapter Four applies the theoretical framework of competition neutrality to the Ethiopian banking sector. It examines the government's role, analyzes Ethiopia's CNF and its implementation within the banking sector, and assesses areas such as taxation neutrality, bankruptcy laws concerning SOEs, subsidies, and the implementation of competition laws. The role of public procurement is also examined.
What are the key objectives of this research?
The study aims to analyze the application of competition neutrality principles in the Ethiopian banking sector, focusing on SOEs. It seeks to determine the extent to which government policies and regulations ensure fair competition between SOEs and private entities.
What keywords are associated with this research?
Key words include Ethiopian banking sector, state-owned enterprises (SOEs), competition neutrality, competitive neutrality framework (CNF), government policy, taxation, subsidies, competition law, procurement, bankruptcy, corporate governance, and economic development.
What is the overall structure of the document?
The document provides a comprehensive preview, including the title, table of contents, objectives and key themes, chapter summaries, and keywords. It is designed to give a structured and professional overview of the research.
- Quote paper
- Saleamlak Yemane (Author), 2019, Ethiopian Public Enterprises in Light of Competition Neutrality. The Case in Banking Sector, Munich, GRIN Verlag, https://www.grin.com/document/595668
