Integrating anti-corruption measures in Georgia’s newly established competition agency

Query

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Purpose

Our agency is preparing to support the Agency which has a positive interest in anti-corruption measures.

Content

1. Anti-corruption and competition agencies
2. The new Agency for Free Trade and Competition in Georgia
3. References

Caveat

This query is a follow up of the U4 answer published in March 2010 on integrating anti-corruption measures in the design of public law enforcement / regulatory agencies.

Summary

There is a broad consensus that promoting competition may have a positive impact on limiting factors fuelling business related corruption and can contribute to foster a corruption free business environment. Establishing strong, independent and accountable competition authorities with adequate investigative, enforcement and regulatory powers is important to achieve this goal. The literature shows that effective competition authorities share a set of common features including a clear vision of the agency’s purpose and strategic priorities, an appropriate structure and transparent processes, sound case and project management systems and human resources practices as well as an effective monitoring and evaluation mechanism. The independence and accountability of the institution also needs to be ensured. Anti-corruption measures can be built up in the institution by promoting transparency and access to information on the agency’s operations and decisions, introducing the right set of staff incentives and rules, establishing effective internal and external oversight mechanisms as well as encouraging safe whistleblowing.

In Georgia, the legal and institutional framework for promoting free trade and competition needs to be strengthened as part of the negotiations on Deep and Comprehensive Free Trade Agreement (DCFTA) between Georgia and the EU. A new Agency for Free Trade and Competition has been established in spring 2010, whose independence and competences need to be strengthened through a wide range of possible interventions, including institutional and technical capacity building activities as well as independent monitoring of the implementation of the competition regulations.

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