In today's world, there are many market conditions. This indicates the imperfection of the system as a whole. The monopolistic component is considered as the cause of this situation. A system in which either the seller or the buyer relies on their ability to act on it is imperfect. Let us further consider what role monopolies played in the Russian economy.
General information
A monopoly in a market economy is considered a desirable state for a producer / entrepreneur. This is due to the fact that in this situation, the company can avoid many problems and prevent risks. Perfect competition and a monopoly in the economy cannot exist simultaneously.
The company, which sets prices solely, affecting sales, receives high profits. By these actions, it limits the competition of certain products. Other manufacturers cannot enter such a turnover. However, there are trading platforms in which competition is not only undesirable, but also impossible. This is due to the fact that the presence of other sellers would lead to an increase in costs.
Classification
The following types of monopolies in the economy are:
- Open is a situation when a new technology has arisen, but it is not yet mastered by everyone.
- State - formed by law. This means that there are legal norms that determine the boundaries of influence, the activities of such enterprises and so on.
- Natural - this is a situation in which the satisfaction of demand is more effective in the absence of competition due to the technological specifics of production. At the same time, goods manufactured by entities cannot be replaced by other products. Therefore, the demand for the products of natural monopolies to a lesser extent will depend on changes in the cost of it.
Consider the latter in more detail.
Natural monopolies in the Russian economy: pluses
Such enterprises are characterized by high returns at low production costs. At the same time, technology and product have no alternatives. In such circumstances, the presence of competition will be inappropriate, since demand is satisfied with the goods provided by the monopoly. The enterprise itself, of course, makes huge profits. As for the advantages of such enterprises, the following points can be noted:
- The ability to maximize the effect of production scale. This helps to reduce the cost of producing a unit of goods.
- The ability to mobilize a significant amount of financial resources. This allows you to maintain production facilities at the proper level.
- The ability to follow common standards developed for products and services.
- Availability of an alternative to a market organization. It can be replaced by an intra-company hierarchy, contractual relations. This helps reduce losses related to uncertainty and risk.
- The ability to implement the achievements of scientific and technical progress.
disadvantages
All types of monopolies in the economy have great potential. However, they are not always positive. For example, having the ability to formulate the level of the selling price, some enterprises shift a significant part of the costs to the end user. The latter, in turn, is not able to have a reverse effect on the manufacturer. The monopoly has the ability to slow down technological progress. As a sole producer, the company is able to reduce costs by lowering the quality of products and services. As for the alternative to the market mechanism of the organization, the monopoly has the ability to take the form of a dictate.
Solution
The monopolistic form is quite contradictory. It is extremely difficult to clearly determine what prevails - the pros or cons. However, society cannot constantly exist in such uncertain conditions, depending on monopolists. Negative factors of this condition 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 would be to regulate natural monopolies. It should be carried out at the power level.
Value
Natural monopolies provide consumers with the most important resources: gas, electricity, water, transport, etc. With the right and coordinated activities of these enterprises, favorable conditions for the life of the population will be formed. It should be noted the rational use of their limited resources. These enterprises contribute to lowering the cost of the country. However, despite their positive aspects, monopolies should be under state control. Such regulation prevents their dictatorship in pricing issues. By the level of development of monopolies, one can assess the economic condition of the state. With weak enterprises that are not able to provide the population with basic necessities, we can talk about the instability of the entire economic system of the country.
Areas of action
Areas of influence of monopolies are in constant motion. These areas can narrow or expand, they can be completely liquidated. Movement depends on various factors. Of primary importance is the state of resources. The demand for products is also important. In this regard, the process of studying and reforming monopolies is extremely relevant and necessary.
Domestic enterprises
In the Russian Federation, there are various enterprises acting as sole suppliers or manufacturers. The most famous include Gazprom, RAO UES and the Ministry of Railways. There are other monopolies in the Russian economy that are close to those indicated. For example, Transneft, Sberbank and others. RAO UES, Gazprom and the Ministry of Railways are an important component of the country's economy. All of them represent the types of state monopoly. Although among them, formally, Gazprom is considered a joint-stock company. The state owns 38% of the shares of the enterprise. 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, in the aggregate they account for 13.5% of GDP. Considering what role the monopolies played in the Russian economy, one cannot but note the volume of investments, which make up 20.6%, profit - 16.2%, and tax revenues - 18.6%. Of particular importance in the formation of these indicators is the activities of Gazprom. The company employs about 300 thousand employees. At the same time, doubles more taxes and profits from it than from the other two companies mentioned above. According to analysts, such a profit is obtained, among other things, due to natural rent, which is somewhat underestimated due to the reduced cost of gas within the country.
If the value of the enterprise increased by 3 times, the total value added of Gazprom would be approximately 1 trillion rubles in 2000. This is twice the reported figure. Profit would be about 300-350 billion rubles. with a rent of 70%. Now the latter is distributed using low prices to other industries. For example, electricity is funded. These investments help maintain affordable heat and energy prices for the population. Due to the turnover of Gazprom, the cost of utilities stably holds. At the same time, a reduced level of pensions and salaries of public sector employees is maintained, which enhances the differentiation of the population depending on income.
Speaking about the role monopolies played in the Russian economy, it should be noted their participation in investment programs aimed at supporting industrial enterprises, as well as vulnerable sections of the population.
Sustainability
Russian monopolies are stably operating enterprises. They are less affected than others by crisis. So, in 1990-1997. the decline in production in the electric power industry was 25%, with a general decline in industry by more than 50%. Domestic monopolies are not inferior in performance to world giants. Gazprom, for example, is in the lead in terms of profit. This company is the only one in the country that can compete in the international market with other giants.
Budget revenue
Monopolies receive a large amount of tax deductions. One Gazprom gives 25%. At the same time, the banking sector deducts 4% of the total. At the same time, as practice shows, monopolies in the absence of state regulation also become the main tax evaders. Given that their real indicators are slightly higher than that of other enterprises, the fact of non-payment of payments to the budget cannot be justified by the presence of consumer debt.
