What role did monopolies play in the Russian economy? The natural and state monopoly

In the modern world, there are many market conditions. This indicates the imperfection of the system as a whole. Monopolistic component is considered as the reason for this situation. A system in which either the seller or the buyer are counting on their ability to influence it is imperfect. Let us further consider what role the monopolies played in the Russian economy.

General information

Monopoly in a market economy is considered desirable for the producer / entrepreneur. This is due to the fact that in such a situation the enterprise can avoid many problems and prevent risks. Perfect competition and monopoly in the economy can not exist simultaneously.

An enterprise that single-handedly establishes prices that affects the volume of sales receives a high profit. By these actions, it restricts competition to certain products. In such a turnover, other producers can not enter. However, there are trading platforms in which competition is not just undesirable, but also impossible. This is due to the fact that the presence of other sellers would lead to an increase in costs.

Classification

There are the following types of monopolies in the economy:

1. Open is a situation when a new technology arose, but not all of them have been mastered yet.
2. State - formed by law. This means that there are legal norms that define the boundaries of influence, the activities of such enterprises and so on.
3. The natural is a situation in which the satisfaction of demand is more effective in the absence of competition due to the technological specificity of production. At the same time, the goods produced by the subjects can not be replaced by other products. Therefore, the demand for products of natural monopolies to a lesser extent will depend on the change in the value of it.

Let's consider the latter in more detail

Natural monopolies in the Russian economy: advantages

Such enterprises are highly productive at low production costs. In this case, technology and product do not have alternatives. In such conditions, the presence of competition will be inappropriate, since demand is satisfied with the goods that the monopoly has granted. The enterprise itself, of course, receives a huge profit. As for the advantages of such enterprises, we can note the following points:

1. The ability to maximize the effect of production scale. This helps reduce the cost of producing a unit of goods.
2. The ability to mobilize a significant amount of financial resources. This allows you to maintain production facilities at the proper level.
3. The ability to follow uniform standards developed for the products and services provided.
4. Presence of an alternative to a market organization. It can be replaced by intra-company hierarchy, contractual relations. This reduces losses related to uncertainty and risk.
5. The possibility of implementing the achievements of scientific and technical progress.

disadvantages

All kinds of monopoly in the economy have ample opportunities. However, they are not always positive. For example, having the opportunity to form a level of the realizable price, some enterprises shift a significant part of the costs to the end user. The latter, in turn, is not capable of having a reverse effect on the producer. Monopoly has the ability to slow down technological progress. As a sole producer, the company can reduce costs by reducing the quality of products and services. As for the alternative to the market mechanism of the organization, the monopoly has the opportunity to take the form of dictate.

Solution

Monopolistic form is quite contradictory. It is extremely difficult to determine unequivocally what prevails - pluses or minuses. Nevertheless, society can not always exist in such uncertain conditions, depending on the monopolists. Negative factors of this state are not eliminated by existing mechanisms. In this case, the market method of resource allocation will not work. In such a situation, the most effective way out is the regulation of natural monopolies. It must be carried out at the imperious level.

Value

Natural monopolies provide consumers with the most important resources: gas, electricity, water, transport, etc. With the right and coordinated activity of these enterprises, favorable conditions for the life of the population will be formed. One can not fail to note the rational use of limited resources. These enterprises contribute to reducing the costs of the country. However, despite their positive aspects, the monopolies must be under state control. Such regulation prevents their dictatorship in matters of price formation. By the level of development of monopolies, one can assess the economic state of the state. With weak enterprises that are unable to provide the population with means of basic necessity, one can speak of the instability of the entire economic system of the country.

Spheres of action

The areas of influence of monopolies are in constant motion. These spheres can narrow or expand, they can be completely eliminated. Movement depends on various factors. The state of resources is of prime importance. Demand for products is also important. In this regard, the process of studying and reforming the monopolies is extremely urgent and necessary.

Domestic enterprises

In the Russian Federation, there are various enterprises acting as sole suppliers or manufacturers. The most well-known are Gazprom, RAO UES and the Ministry of Railways. There are other monopolies in the Russian economy that are close to those mentioned. For example, the company "Transneft", "Sberbank" and others. RAO UES, Gazprom and the Ministry of Railways are an important component of the country's economy. All of them personify the types of state monopoly. Although among them, formally, Gazprom is considered a joint stock company. The state owns 38% of the company's shares. However, in fact, this enterprise acts as an integral element of the public sector.

What role did monopolies play in the Russian economy?

First of all, they contribute to the country's GDP. If we talk about three enterprises - Gazprom, RAO UES and the Ministry of Railways, they together give 13.5% of GDP. Considering the role played by monopolies in the Russian economy, one can not but note the volume of investments, which is 20.6%, profits - 16.2%, and tax revenues - 18.6%. Particular importance in the formation of these indicators is the activities of Gazprom. The enterprise employs about 300 thousand employees. At the same time taxes and profits from it comes twice as much as from the other two companies mentioned above. According to analysts, this yield is obtained, among other things, through natural rent, to some extent undervalued due to the reduced cost of gas inside the country.

In the event of an increase in the value of the enterprise, the cumulative added value of Gazprom would have been approximately 1 trillion rubles in 2000. This is twice the reported figure. The profit would be about 300-350 billion rubles. With a rent of 70%. Now the latter is distributed through lower prices in other industries. For example, the electric power industry is financed. These investments allow maintaining affordable prices for the population for heat and energy. Due to the turnover of Gazprom, the cost of utilities is stable. At the same time, a reduced level of pensions and salaries of public sector employees is maintained, which increases the differentiation of the population depending on income.

Speaking about the role of monopolies in the Russian economy, one should note their participation in investment programs aimed at supporting industrial enterprises, as well as unprotected strata of the population.

Stability of functioning

Russian monopolies are stable enterprises. They are less vulnerable to crisis phenomena than others. So, in 1990-1997 years. The fall in production in the electric power industry amounted to 25% with a total decline in industry by more than 50%. Domestic monopolies are not inferior in performance to global giants. Gazprom, for example, is in the lead in terms of profit. This company is the only company in the country that can compete on the international market with other giants.

Income to the budget

A large amount of tax deductions comes from monopolies. One "Gazprom" gives 25%. At the same time, the banking sector deducts 4% of the total. Along with this, as practice shows, monopolies in the absence of state regulation become the main non-payers of taxes. If we take into account that their real indicators are slightly higher than those of other enterprises, the fact of non-recurrence to the budget of payments can not be justified by the existence of consumer debt.

Price level

Natural monopolies are considered to be cost-producing enterprises. In this connection, the level of tariffs and prices for the services and products produced by them affects the overall performance. Inflation in the country is characterized by a predominantly "costly" nature. To a large extent, it is caused by a rise in the cost of expenses. About 15-20% of inflation was triggered by the growth of the money supply. Cost increases affect it more indirectly. Increase in costs leads to a shortage of income, which is necessary for reproduction. To compensate for the deficit, prices are rising. Anticipating their growth, on the one hand, provokes an increase in the problem of non-payments. However, on the other hand, monopolies fulfill the most important social functions. They supply heat, gas, electricity.