Monopoly in the economy is ... Monopoly and competition in the Russian economy. The role of monopoly in the Russian economy

The influence of monopoly on the economy of the country at all times of its existence was enormous. In this case, the impact could be either positive or negative. Given the imperfection of certain provisions of the law relating to the sphere of management, the study of monopolies is always very relevant.

Definition

Monopolies in the economy are large companies that control the production and sale of one or more types of goods. Their presence excludes the opportunity to compete. The conditions of a monopoly in the economy shut down access to other enterprises.

Causes

Why does a monopoly appear? In the spheres of the economy there are various factors that cause the emergence of such enterprises. The main reasons include:

1. The opportunity to receive more income due to the lack of a consumer's choice.
2. Concentration of production and capital.
3. Absence of competitors.
4. The centralization of capital is the "absorption" of a number of small enterprises.
5. Possibility to implement large foreign economic programs.

Classification

There are several forms in which there can be a monopoly in the economy. It:

• State enterprise. Such companies are created legally. Normative acts formulate the limits, the order of their activities.
• Natural monopoly. In a market economy, there is a state of the system in which satisfaction of consumer demand will be more effective in the absence of competition. This is mainly due to the peculiarities of production technology. At the same time, products that are produced at the enterprise can not be replaced by other goods. In this regard, the demand for products produced by the company, to a lesser extent, will depend on the change in their value than is characteristic of other products.
• An open monopoly in the economy is the situation when a new technology arose, but it has not been sufficiently developed yet. Therefore, its implementation is carried out at the initial stages, as a rule, one large enterprise.

The role of monopoly in the Russian economy

Enterprises of this type perform the most important functions in the Russian Federation. The role of monopoly in the Russian economy is manifested in the fact that the country's competitiveness in the international arena largely depends on the state of the company. In addition, domestic supply of the state with manufactured goods is of no small importance. The latter is due to the fact that the products produced are consumed by the whole society. Large monopoly enterprises provide energy, gas, water, transport services, including railways, air services, provide communication systems, communications. All these products consume the population. One of the main features that distinguishes any monopoly in the economy is the establishment of a high entry barrier to the specialization industry. In the presence of a single producer, the effect of production volume is huge, the size of capital is formed, which will make other enterprises competitive. In society, as a rule, there are no opportunities to withstand more than one such company.

FZ No. 147

In this Law there is a list of industries, in each of which one monopoly enterprise can operate. They include:

1. Transportation of gas, oil and its products through pipelines.
2. Provision of services for the transmission of heat and electricity.
3. Railway transportation.
4. Services of terminals (transport, airports).
5. Provision of operational and dispatching management in the electric power industry.
6. Services for the operation of the infrastructure of waterways.

On this list, the huge role of the monopoly in the economy becomes clear. These industries affect the most important aspects of life support for the population. The essence of the monopoly in the economy is the continuous supply of essential products, keeping prices at an optimal level. Among the most famous companies operating in the Russian Federation in this direction, it is necessary to note such JSCs as:

1. "Gazprom".
2. "RUSSIAN RAILWAYS".
3. Transneft.
4. "FGC UES".

Specificity

Monopoly in the economy is a company in which:

1. Activity in the greater degree assumes the provision of services, designed for a wide range of users (consumers).
2. In the financing involved large sums of money.

Undoubtedly, the activities of such enterprises should be regulated by the state. First of all, at the legislative level, certain limits are set for the formation of prices for services. Tariffication should be carried out in such a way that the produced product is available to all consumers. In addition, for such enterprises, as well as for the rest, an obligation is established to implement tax deductions to the budget.

pros

An enterprise-monopolist gets the opportunity:

• The fullest use of the effect of the scale of its own production. This helps to reduce the cost of producing a unit of output.
• Mobilize significant financial resources to maintain the production line at the optimum level.
• Use the achievements of scientific and technical progress.
• Follow the same standards for the services provided and products.
• Replace the market mechanism with an internal hierarchical structure, a system of contractual relations. This contributes to a significant reduction in losses associated with uncertainty and risk.

Minuses

Negative aspects of the activity of monopolists are manifested in the availability of their opportunities:

• Set the level of the selling price. This forms the temptation to shift a significant share of costs to the consumer. At the same time, the latter can not exert any adverse effect on the enterprise.
• Block technical improvement of production.
• To save at the expense of deterioration of the quality of services and products.
• Take the form of "administrative diktat", thereby replacing the existing mechanism of competition.

conclusions

As can be seen from the above lists, the dignity of monopoly enterprises can become shortcomings, as well as vice versa. This allows us to conclude that this form of management is very controversial. It is extremely problematic to determine unambiguously what is outweighed, minuses or pluses. Meanwhile, the population can not long live in uncertainty and dependence on monopoly. The current system is not able to weaken, let alone overcome the negative role of the monopoly in the economy. Despite this, such enterprises today act as the main generators of investments.

State regulation

It can be carried out in different ways. In particular, there is price regulation, which includes methods:

1. Average costs.
2. Setting the price limit. When using this method, users who are subject to mandatory maintenance are identified. For them, a minimum level of security is established in case it is impossible to satisfy the needs in full.
3. Subsidies. This method is called the method of price discrimination. He suggests that one consumer is provided with products at reduced prices at the expense of other users.

Non-price state regulation also operates. It:

1. Preliminary control. It involves mandatory submission of an application for consent to enter into any transaction or other information at the request of authorized bodies.
2. Follow-up control. It is a mandatory notification to the regulatory body about the actions being taken.

Freeze tariffs

Such a measure was adopted at the governmental level in 2013. At the same time, in the first year of the decree, tariffs were not raised, and in the next 2 years indexation was carried out according to the inflation rate of the previous period. Meanwhile, the monopolists said that they will have to cut investment programs. This, in turn, will negatively affect the state of a number of industries. In addition, at the beginning of the introduction of such a measure, enterprises pointed to the likelihood of structural rearrangements. So, it was about the reduction of staff (in the management apparatus), the refusal to index salaries (except for production employees). According to Gazprom estimates, in 2013, when the tariffs are frozen for the next 3 years, the company may lose 510 billion rubles in revenue. At the same time, the investment program is projected to decrease by 407 billion rubles.