In today's economists believe the monopoly impediment to development.According to them, it can not force the monopolist to modernize and improve production processes.
With this position we can not agree, but it is necessary to add that there are spheres of production, which can not be dispensed without a monopoly.And, if in specific sectors of the economy de-monopolize the market, it promises a sharp rise in price of the cost of services.
How to manage a monopoly?
If no monopoly can not be avoided, then there is the question of the appropriate methods and techniques of control of operations that are carried out in such a market.After all, without it may unnecessarily increase prices and product quality will decline.
In this case, the main instrument of control of such companies is state regulation of monopoly.With the help of the laws of the places certain conditions, beyond which the entity can not leave.
If we consider the state monopoly, it's not so simple.After all, who, if not the state, can by using its resources to produce goods mass assignment at bargain prices?Perhaps no commercial enterprise can not do so because they will lose their source of financing costs.The socially significant areas without state aid can not do.
concept of state monopoly
So, before you begin to analyze this issue, first is to understand the very concept.State monopoly - a kind of imperfect competition in which the monopoly is the state itself.
This may occur because of a large number of factors: the protection of the weak segments of the population, receive an additional source of replenishment, policies to control those sectors that are most interesting to the state.
In some areas there may be a similar condition?
mainly state-owned monopoly in most countries extended to the following goods and services:
- products of mass consumption;
- drugs;
- alcoholic beverages;
- tobacco products;
- selling certain goods abroad;
- minerals, etc.
In other words, the state monopoly - is the instrument by which the government can control the strategically important sectors of the economy for it.
Who is the subject of state monopoly?
this definition referred to a company or organization that provides the privilege of functioning in a monopoly market.
most often the subject of public monopolies - is a joint stock company, a majority-owned by the state.But it can be an organization in which the state share is not at all.Typically, such organizations must obtain certificates, licenses and other permits for activities that fall under the concept of monopoly.
What is the difference from the natural monopoly?
natural monopoly is formed by nature to reduce the level of costs and, consequently, reduce the price of manufactured goods or services rendered.To illustrate, imagine if each carrier would like to build its own railway station and the railway, it would have forced him to include in the price of each ticket those costs that would have led to a significant increase in the cost of travel.
A state monopoly is formed by creating relevant laws and regulatory framework, which defines such a market, the methods and mechanisms of conducting operations on it, and the methods of control.
Despite the fact that the market assumes that only one enterprise that produces the goods in question, and state natural monopolies have the distinction is in the manner of education, methods of control and regulation.
Absolutely all monopolies are subject to the attention of the specialized agencies, which check their behavior in the market value of the validity and quality of services and goods.
State regulation of natural monopolies is in the following paragraphs:
1. Identify those areas of activity in which there is a monopoly.
2. Check, comparison, analysis and approval of the prices for goods, services provided by monopoly enterprises.
3. In case of necessity - to change the rules of operation, trade or forced changes in product prices.
What is the difference from the natural monopoly?
If you compare the state regulation of natural monopolies with those cases where the state itself is a monopoly, it is often a problem with the availability of business information on the activities of the enterprise.
If in the case of a natural monopoly entity shall provide information and their income, expenses, earnings and other financial flows, the state monopoly in the opportunity to receive such information from the company almost none.
monopoly established by the state artificially considered closed because the outside at her, no one can affect.
What are the types of state monopoly?
It may be legal and justified, and may be artificially created for money-laundering, as evidenced by numerous cases of persecution of former officials in different countries.
Worldwide is excused monopoly on the distribution of medicinal products containing narcotic substances.For example, the state monopoly in Russia for distribution of such substances is the only sure way to protect the public from the potential harm of these funds.What would happen if access to such substances have everything?Who would have prevented anyone from the manufacture of narcotic drugs drugs?Given that even with a closed market in the country, there are shady supply chains and trade, access to a legal drug market would be accompanied by a massive increase in the number of drug addicts.
turns out that artificially narrowing the number of participants in this market, Russia manages to achieve a relatively low level of use of various drugs for illegal purposes.
state control in some markets - a condition of the security of the country
Such examples will state monopoly of foreign trade in arms and other military purpose devices.The world has enough of dangerous conflicts both between countries and within them.
in this situation will simply misplaced free trade in arms - it can undermine national security.
But not all states, creating a pure monopoly, are in good order.There are many examples where collusion officials created a cartel or syndicate in which held various financial machinations.
How does it look?For example, a group of deputies representing the interests of big business can write and pass legislation that will create psevdomonopolny market in favor of their patrons.So it has done more than once in the countries close to the Russian Federation.
Monopoly - is a necessary measure
course, in conditions of perfect competition, advances in production, improve workflow, increase in product quality due to lower manufacturing costs are much faster than in a monopoly, especially the state.
This state monopoly is often used as a tool to increase the loyalty of politicians.For example, applied unwarranted decline in the prices of goods or services.If the structure is strong, then it can transfer these measures for a certain period.
In fact, this understanding of the market is wrong, because it leads to loss-making enterprises.As a consequence, it will require new injections of the budget.
For example, consider companies that operate in the oil and gas sector.This sector is the main breadwinner of the Russian Federation.Oil, gas - is the resources that Russia supplies to foreign countries in large quantities.The volume is so great that if the supply stopped, it threatened to stop many businesses around the world that use oil and gas as a raw material.
whole seriousness of this source of income encourages the country to ensure that it is necessary to take full control of everything that happens in the market.A monitor is one of the state-owned enterprises or group that works on the agreed scheme, much lighter than the dozens of commercial organizations.Moreover, the presence of private companies in large numbers would not lead to an improvement in product quality.
From this we can conclude that the state monopoly in Russia is a necessary way to control the state in important sectors of the economy.
