SA names Stiglitz for Walmart study

SA names Stiglitz for Walmart study

RETAILER NEWS

IOL Business - Apr 11th 2012, 07:50

Johannesburg - Economist and Nobel laureate Joseph Stiglitz has been appointed as the government's expert on the Walmart study, the Economic Development Department said on Tuesday.
 

This followed the Competition Appeal Court's judgment on March 9, ordering that a study be commissioned to determine the most appropriate means, together with the mechanism, by which South African suppliers could respond to the merger between Walmart and Massmart.

The study would be conducted by three experts, one each representing the government, South African Commercial, Catering and Allied Workers' Union and Walmart. Walmart would carry the costs of the study.

“Government notified the Competition Appeal Court today (Tuesday) that its appointed representative to the expert panel is Professor Joseph Stiglitz,” the department said in a statement.

Stiglitz was recognised internationally as a leading economist, with vast experience in dealing with the effects of globalisation.

“His work has shown the value of smart government action to promote social equity, growth and economic development.”

Stiglitz has previously served as chief economist for the World Bank and as adviser to former US president Bill Clinton.

“The ministers believe that Professor Stiglitz will add depth and global know-how to the work of the panel and can assist the parties to identify an appropriate and constructive remedy to the potential negative public interest effects identified by the Competition Appeal Court arising from the merger,” the department said.

The departments of trade and industry, economic development and agriculture, forestry and fisheries were party to proceedings involving the Walmart-Massmart merger at the Competition Appeal Court. These had involved both a review of the Competition Tribunal's decision, as well as an appeal against it.

Costs of approximately R1.4-million had been incurred for the account of each of the three departments for the review and appeal at the Competition Appeal Court to date. The parties to the merger applied to the Competition Commission for approval of the proposed transaction during late 2010. - Sapa