A Nobel Prize in Economics already agrees, we are doing well

The Swedish Academy of Sciences awarded the Nobel Prize in Economics to French professor and researcher Jean Tirole, for his work on the power of the market and regulation, noted as one of the most influential economists of our time.

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Although the French economy is in a difficult economic stage (25% of young people are unemployed), it is the second Nobel Prize it has received in this period.

Said academic since the mid-1980s, has made contributions in research on this type of market failure, has been of great influence on how governments deal with mergers or economic cartels and how they should regulate monopolies. He has presented general frameworks for the design of policies applied to various industries, ranging from telecommunications to banking. For today’s nobel economy, the best regulation or competition policy must be carefully adapted to the specific conditions of each sector, in the current competition between companies the conditions play a determining role, the Internet, the speed of information, where even advertising itself can affect the right to competition.

And the issue comes up in a country like ours, because not many months ago we went through a series of necessary modifications, among which I highlight the matter of Economic Competition, a subject that I am certain the current Nobel Prize in economics would applaud for timely and necessary.

On the subject of Economic Competition, he bet on economic development, productivity and competitiveness, areas that had been held back by the presence of restrictions on free competition and distortions to economic competition. A Report of the World Economic Forum on Global Competitiveness, the same that when evaluating the “Effectiveness of Economic Competition Policy”, places Mexico in 96th place out of 148 countries.

For the OECD, Mexican consumers pay a premium of 40% in markets where there is no or low competition, a percentage that increases as the population receives less income.

Therefore, the matter of Economic Competition will result in a more competitive, more open and fairer environment that allows increasing the well-being of Mexicans, as well as generating greater innovation and economic growth in all sectors of the economy. Three strategic axes are established:

A new institutional design that allows a more efficient and effective application of the public policy of economic competition.

Expansion of the catalog of possible anticompetitive conducts that are carried out in the markets and that must be inhibited, and where appropriate, sanctioned.

An instrument with better legislative technique that allows its correct implementation and application.

The statement is a recognition of how necessary it was to make improvements in various sectors, it was a claim on the part of the participants in various markets, in particular consumers, therefore, the Nobel Prize awarded, only endorses that our country is in the The correct path in terms of economic reforms and as we have made clear in various spaces, its results will not be immediate but imminent.

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A Nobel Prize in Economics already agrees, we are doing well

Hank Gilbert