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The role of unstable political structures on the effects of deregulation on competition - Essay Example

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The role of unstable political structures on the effects of deregulation on competition

This literature looks in detail the effects of political instability in the region in attracting foreign investment in the region. The telecommunication industry in UAE has shown incredible progress, this has been propelled by the government's effort intended at the deregulation of telecommunication market and bringing in competition. This has been an initiative of Telecommunication regulatory authority (TRA) which aims at enhancing competition in UAE telecommunication market. The literature looks in depth the flourishing telecom sector in UAE and gives an insight of market trends dominating telecommunication market (Jones; 46; 2006).
Political willpower in UAE has also been criticized due to its failure to create conducive environment for economic players to venture in its market. Corruption in Middle East has also been a major hindrance in creating a fair play environment for investors. The literature focuses specifically on UAE liberalization of its telecommunication industry. It looks in detail effects of deregulation in UAE telecommunication market in bringing competition (Ritchie; 123; 1994).
United Arab Emirates (UAE) is a federation made up of seven self-governing states. UAE was declared independent in 1971 from Britain. In November 2004 president Sheikh Zavid Ibn Sultan Al Nuhayyan died ending 33 years of power since independence. His son Sheikh Khalifa ibn Zayid Al Nuhayyan who had been prince of Abu Dhabi succeeded his father in a smooth transition. UAE has enjoyed political stability through combination of a unique political system, which is made up of a mixture of traditional and modern administrative structures. There are no democratically chosen political parties as well as institutions. The UAE government has been under criticism by human rights group for restricting freedom of speech and that of press. The Media does not criticize its government directly also freedom of speech and religion has also been curtailed in the Islamic run country. The government has put in place a law that allows ministry of information to approve the selected editors and to license all publications. The law also controls press content and press is expected to practice self censorship (WTO; 2009).
Those who comment negatively against Islam, ruling families and the government risk life imprisonment. All imported materials are reviewed by ministry of information and culture before it is distributed. Membership in the professional body of journalists (Association of journalists) is restricted to those who only work for the government run media companies. UAE telecom is one of the most developed markets with highly technological advanced infrastructure in Middle East. However until 2007 UAE's telecommunication industry had been dominated by one company, Emirates Telecommunication Corporation (Etisalat).Another company by name Emirates Integrated Telecommunication company (EITC) running by brand "du" was installed to manage telecom services in UAE (Frauke; 139; 2004).

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Summary

Trends to globalization and improved technology demands have precipitated swift privatization and deregulation in the world. There is always a high demand for investment opportunities in growing economy. United Arab Emirates (UAE) economy has been on increase for the past years…
Author : candicejacobi
The role of unstable political structures on the effects of deregulation on competition essay example
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