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 Holdings
[JSE:MSM].
The study would be conducted by three experts, one each
representing the government, SA 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 Prof Joseph
Stiglitz," the department said in a statement.
Stiglitz is 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 president Bill Clinton.
"The ministers believe that Prof 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 about R1.4m have 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.