Advancing consumer welfare where it is most needed
The concept
After 20 years of consultancy, research and advocacy, The Foundation for Effective Markets and Governance (FEMAG) is launching a new five-year project, FairerFuture.au to enhance welfare and civic governance through better policies, institutions, and empowered consumers. Our past work points to areas of need in which we think we can make an enduring contribution.
Fairer Future Project
For more than 20 years The Foundation for Effective Markets and Governance (FEMAG) has been active in the provision of policy advice, advocacy, and consulting services to improve consumer welfare (femag.org.au).
For the past 7 years, FEMAG has concentrated on those imbalances in bargaining power and regulatory failures which have prevented many consumers from equitable access to goods and services in the neoliberal marketplace. The focus of work during this period has been on consumer protection and competition law and policy in the ASEAN and Asia-Pacific region, but also in Australia
More recently and with the savage impact of the coronavirus pandemic on global markets and healthcare systems, together with the failure of some governments and regulators to care for the interests of consumers, FEMAG focused its efforts on working for a Fairer Future.
Concerns, Aspirations and Objectives
Much about the world today is not fair.
Much about the future looks even less fair.
Governance and markets nationally and globally could work effectively and sustainably to meet the needs and wants of all people fairly and fairly across generations.
But concentration of wealth and power in fewer hands will continue the deficit of governance and failure of markets, giving them even greater wealth and power. And future generations will inherit an unfair world and a sick earth.
FF wants a change in direction, and we know what’s needed to build better responsive governance and markets in which strong competition between businesses and well-informed and protected consumers contribute to the welfare of all. We must counter those with an interest in keeping things as they are by blocking progressive measures.
We want to see the UN Guidelines for Consumer Protection comprehensively implemented in all nations.
We want to see people empowered and markets regulated globally consistent with the UN Sustainable Development Goals so that production and consumption of goods and services are environmentally sustainable.
The mutuality of interest between all nations is self-evident so we want better-off nations support those in need to help make these things happen.
Our key objectives are:
- Assessment and monitoring of all public policy and regulation and data on production and consumption against the UN Sustainable Development Goals
- Regulation of markets with better laws by independent well-resourced agencies. General consumer and competition agencies need powers to ensure the same high consumer protection standards are enforced by agencies in all industries and professions
- Empowerment of, and advocacy for, all groupings of consumers across the nations
- Research on how markets can work as fairly and sustainably as possible, especially with new technologies
- Integrity institutions – a strong independent fourth arm of government – that have the capacity to ensure accountability of governments
Developing A Toolkit
The Preface to the United Nations Guidelines for Consumer Protection (UNGCP) describes them as:
“a valuable set of principles that set out the main characteristics of effective consumer protection legislation, enforcement institutions and redress systems.”
It goes on to provide a statement of purpose:
“The Guidelines assist interested Member States in formulating and enforcing domestic and regional laws, rules and regulations that are suitable to their economic, social and environmental circumstances; they also help promote international enforcement cooperation among Member States and encourage the sharing of experiences in consumer protection.”
Since their adoption in 1985, expansion in 1999 and revision in 2015, the UNGCP have assisted numerous UN Member States in promoting consumer welfare through the development of fair, informed and competitive markets.
Though in place for 37 years, the last seven, in which annual inter- governmental expert (IGE) meetings and UNCTAD supported peer reviews, have added a powerful dynamic to implementation and assessment of the UNGCP.
Member states which have historically had comprehensive consumer protection regimes plus those who have drawn on the UNGCPS in implementing effective consumer protection legislation, enforcement institutions and redress systems have benefited greatly. Sadly, many others have failed to gain the dividends of sound economic development spurred by vigorous competition in fair and informed markets.
A missing link — consumer protection toolkit
The lack of national or regional policies, shortage of resources for implementation and barriers to accessing assistance are holding back many developing countries from realising welfare gains for their citizens as consumers.
There is a need for the development of a Toolkit for the translation of the UNGCP’s into delivered consumer protection for the millions who have missed out.
The need is not for novel policies, institutional arrangements, schemes for cooperation or methods of law enforcement. Suitable ones can be found in abundance amongst member states. What is needed is the aggregation of models and case studies of successfully implemented measures by member states From the principles, guidelines and measures the international cooperation contained in the UNCGP.