This study report outlines anti-competitive activities in its various forms and highlights major causes and institutional weaknesses that have led to such behavior in Nepali markets. While the regulatory burden from government has curbed competition in hydropower, public transportation sector of Nepal is filled with cartels formed by private companies. There are both kinds of anti-competitive behavior in education, tourism and agriculture. A new approach that this paper has taken is to include anti-competitive behavior of the government while analyzing such behavior from private players. This paper concludes with several broader recommendations to improve the environment of competition and several sector specific recommendations to improve competition within each of the sectors.
“One of the most prominent forms of anti-competitive practices in the current Nepalese market is prevailing syndicate in the road transportation sector. This includes syndicate in public buses, taxis and other modes of public transportation and goods carriers. The syndicate operates in the form of transport associations where transport entrepreneurs are members. These associations serve a number of functions which include cooperative functions among transport entrepreneurs as well as those which inhibit competition.” – An excerpt