Examining Philippine Competition Policy (1992-2015) through Punctuated Equilibrium Theory
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Abstract
For many democracies, competition in the free market is an essential pillar to ensure the continuous improvement of the standard of living of their citizens. In the Philippines, an anti-trust law was only institutionalized in July 2015 after former President Benigno Aquino III signed into law the Philippine Competition Act (PCA). Despite this major legislative landmark, critics argue that it should have been passed two decades ago. The study finds that the role of political institutions has been instrumental in effecting policy stasis as oligarchs and economic elites maintain close links with the legislators and government officials. Furthermore, the Philippine government has opted to focus on issue-neutral, non-controversial, and public works-centered projects to prevent debate among colleagues and to satisfy demands of constituencies. Interestingly, there was no triggering event to effect policy change. Instead, the passage of the PCA is due to two major reasons: domestic rationale; and global developments.
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