Cartels as 'fraud'? Insights from collusion in southern and East Africa in the fertiliser and cement industries. Issue 161 (3rd July 2019)

• Record Type: Journal Article
• Authors: Vilakazi, Thando; Roberts, Simon
• Is Part Of: Review of African political economy. Volume 46:Issue 161(2019)
• Page Start: 369
• Page End: 386
• Publication Date: 2019-07-03
• Subjects: Fraud -- collusion -- cement -- fertiliser -- southern and Eastern Africa -- political economy; fraude -- collusion -- ciment -- engrais -- Afrique australe et orientale -- économie politique; Africa -- Economic conditions -- Periodicals; Africa -- Social conditions -- Periodicals; 330.96
• DOI: 10.1080/03056244.2018.1536974
• Languages: English
• ISSNs: 0305-6244

Abstract

ABSTRACT: Anti-competitive conduct involves firms misrepresenting their behaviour and manipulating markets. In sector case studies of cement and fertiliser, the authors find that collusion in southern and East Africa operated through industry associations exchanging information, secret agreements and lobbying government to distort notionally developmental policies for private benefit. This has occurred in the context of liberalisation and deregulation. Transnational corporations have leveraged control of infrastructure and inputs, and favourable regulations to sustain market power, while presenting themselves as 'development partners'. Competition law is portrayed as the 'governance fix' for these issues but this ignores political economy issues which underpin many collusive arrangements.