Economic Regulation in Emerging Countries - Models, Regional Integration and the case of Portuguese Speaking Countries

Emerging economies often face significant challenges when it comes to the establishment and implementation of regulatory frameworks. Despite these challenges, recent years have witnessed notable progress, particularly in the full integration of regulatory bodies such as those overseeing competition and sector-specific regulations. The development of these frameworks has become increasingly important for fostering stable economic growth, attracting foreign investment, and ensuring market fairness. However, the process of regulatory implementation is complex, especially when regional economic organisations push for further advancements in regulatory systems, adding another layer of complexity.

One example of this growing regulatory push can be seen within the Common Market for Eastern and Southern Africa (COMESA), which is in the process of establishing a suspensive merger control regime. This initiative has the potential to be a transformative development, as it would regulate mergers and acquisitions before they are fully implemented, allowing for a more structured approach to business consolidations in the region. Furthermore, the African Continental Free Trade Area (AfCFTA) is also working towards the establishment of regulatory bodies to harmonise and streamline regulations across the continent. These efforts highlight the growing importance of regulatory frameworks not only within individual countries but also at the regional level.

This research project aims to evaluate the current state of regulatory frameworks in emerging markets, with a particular focus on those that are still in the early stages of development. The project will assess the progress made thus far, identify key challenges and shortcomings, and explore potential solutions to overcome these hurdles. One of the primary concerns for emerging economies is how to create regulations that are both effective and adaptable in markets that are still maturing. These markets often face the dual challenge of ensuring that their regulations attract investment while also promoting local business growth and protecting consumers.

The project will also explore how regional economic organisations like COMESA and the AfCFTA influence regulatory progress and what impact these influences have on national economies. The coordination between these organisations and national regulators can be both a source of support and a challenge, as it requires balancing international standards with local needs. The research will examine case studies from various regions to identify best practices and potential pitfalls in regulatory design and implementation.

Another key aspect of the project is the identification of appropriate regulatory solutions for emerging economies that seek to balance the need for investment with the development of robust, sustainable market structures. This will involve analysing the capacity of regulatory bodies to enforce regulations effectively and exploring the role of technology, capacity building, and regional cooperation in overcoming regulatory gaps.

In conclusion, this project aims to provide a comprehensive analysis of regulatory development in emerging economies, offering insights into how countries can improve their regulatory frameworks to foster growth, attract investment, and navigate the challenges of an increasingly complex global economy.

Research Team:

Prof. Dr. Tânia Faria

Diana Andrade | CIDEEFF

Gabriel Umabano | CIDEEFF

Tomás Gerra | FDUL

Duration: 2024-2028

Project status: Ongoing