Financial and industrial groups: the Russian experience

Financial-industrial group - a number of companies, united by a common management structure and source of credit, a role which is usually a bank.Companies included in the financial-industrial groups do not necessarily represent the interests of a particular industry.They can perform various functions on the market, letting dissimilar products.However, all investments made from a single source.In addition, PPG - corporations, sometimes a group of corporations, most of the shares which belong to one individual, determines the strategy of the development of all enterprises association.

apparent autonomy and structure

Formally, from a legal point of view, these companies operate independently from each other.At the same time, having an external management and financing, they form what we call "financial-industrial groups."Tellingly, despite the apparent autonomy of the company are focused on the implementation of specific tasks which can not be directly related to the requirements of economic growth in revenues.Financial capitalization often occurs due to the concentration of completely different resources.

Financial-industrial groups integrate the efforts of legal, insurance and financial companies, a number of alternative media resources and, of course, technology industries.What can unite them, except banal desire to earn the owner a little bit?Obviously, politics.Just at a certain business development requires not so much judicial and legal, as political and instrumental guarantees preserve the integrity of accumulated capital.And this is possible only in case of transformation of the industrial, financial, banking and other types of capital in the political capital, that is power.In fact, the decision of this problem and directed the activities of any of FIGs.

forms of financial-industrial groups

  • Industrial PPG - an industry association, operates on the principle concern.Rare case when a member of such groups include the benefits of a single enterprise sectors.
  • classic financial-industrial groups - associations established on a contractual basis, and as the base unit creates a management company.All the structural units of PPG retain their previous legal status.

Financial and industrial groups in Russia

In principle, the PPG - a purely Russian phenomenon, which appeared due to the corresponding decree of the President of Russia in the second half of 1993.Initially, it was assumed that by creating similar groups state can quickly get rid of a succession of uncontrollable and largely unprofitable post-Soviet enterprises, and somehow regulate unhealthy, wild by nature competition.However, the mechanism of creation of PPG did not expect the formation mechanisms of "friendly integration", which triggered superplayer, occupy a dominant position in various market niches.Thus, instead of a controlled competitive environment have been created total monopoly controlling entire industries and sectors of the economy.And this, in turn, has led to at least a strong dependence of companies on the activity of state structures.It is thanks to the creation of their own political projects, they began to create the "necessary" lobbying political and administrative decisions.Thus was born the monopolistic economy.