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Annual Report 2001-02

Annual Report Series

The Annual Report 2001-02 was released on 12 December 2002. The report forms part of the Commission's annual report series.

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  • Contents
  • Media release
  • Preliminaries

    Cover, Copyright, Contents, Abbreviations

  • Theme chapter

    1 Extending the reach of markets (PDF - 64 Kb)

    Markets in perspective
    Tapping the potential of market incentives
    Benefits in extending the use of markets
    Attention to detail is important
    Market mechanisms may need selective application
    Governments can make better use of markets
    In conclusion

  • 2 Commission activities

    Year in review
    Transparent and consultative processes
    Feedback on the Commission’s work
    Policy and wider impacts
    Associated reporting

  • Appendix A Resources and management

    Compliance index

  • Appendix B Program performance
  • Appendix C Commissioned projects
  • Appendix D Competitive neutrality complaints
  • Appendix E Supporting research and related activities
  • Appendix F Publications
  • Appendix G Financial statements
  • References
  • Index
  •  

In its annual report for 2001-02, released today, the Productivity Commission discusses lessons from recent government initiatives to extend markets into new areas.

‘Assessments across such diverse activities as helping the unemployed, managing the airwaves and conserving biodiversity are showing how well market mechanisms can achieve community objectives,’ said Gary Banks, Commission Chairman.

The Commission found that competition, choice, property rights and cost reflective pricing have proven more effective in delivering desired economic, social and environmental outcomes than where governments have allocated resources administratively or provided services themselves.

‘Market mechanisms can make a difference but they are not a magic wand,’ Mr Banks cautioned. ‘They need to be carefully designed and implemented, particularly when there are multiple objectives. Education and health care present particular challenges.’

The Commission identified a need for governments to remove unnecessary impediments to the development of markets, as well as to experiment with new approaches and monitor their effectiveness.

‘One size won’t fit all. Case-by-case assessment is needed. In some cases, markets may not have a place and in others they may play only a partial role. But recent initiatives are encouraging and need to be built on,’ Mr Banks said.


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