Costed Action Plan for SADC Industrialization Strategy and Roadmap 6.6 Doing Business Policies These are a component of deeper regional integration designed to remove behind-theborder (non-trade) obstacles to industrialization. The necessary policies are monitored and analysed in detail in the annual Doing Business surveys published by the IFC and World Bank. The number of SADC Member States adopting such policies is growing. 6.7 Competition Policy Competition policy is a particularly important area for cooperation at both the domestic and regional level because it ensures that investment in upstream stages of the value chain results in competitive supply of intermediate goods to downstream manufacturers across the region. At early stages of the industrialization process predatory monopoly practices can inhibit growth, delaying or even preventing new entrants from developing upstream and downstream linkages. 6.8 Fiscal Policy Greater harmonization of fiscal policies – another example of deep integration – is desirable since material differences in tax rates and the treatment of profits and dividends distort investment decision-making within an RTA. Where governments apply low rates of tax – as in Mauritius – there is a danger of a risk of a race to the bottom should others seek to follow suit. As yet this has not happened in SADC but there must be a risk that at some future date it may. 6.9 Growth Policies Well-designed and efficiently implemented macroeconomic and structural policies must be part of the mix, which will be determined in part by the resource-endowment and competitive advantage characteristics of individual Member States. Although one-sizefits-all industrial policy is not an option in a region as diverse as SADC, strategic supply-side investments in infrastructure, skills development and health are priorities for all Member States. 6.10 Focus Areas for Value Chain Policymaking  Entering global/regional value chains  Expanding and strengthening cross-border value chain participation, and embedding value chains in the domestic economy so that they accelerate economic development (i) Entering Global and Regional Value Chains Two main options are suggested – GVC entry via foreign direct investment and domestic and regional initiatives to facilitate entry. The FDI option is particularly 49