Page 113 - Azerbaijan State University of Economics

Nazim U. Hajiyev: Assessment stages of cyclical development of monopoly and
competition in terms of the reconstruction of Azerbaijan economy

different economical basis - on the basis of centralisation process of capital and

production. That is why restrictions to free competition in XIX century is quite

different from those to manufacture system. Capitalism monopoly grows and

develops not from regulations but from centralisation of production.

The state changes again in the last decade of XIX century. The strengthening

competition results with improvement of market mechanism. Even economical

liberalism doctrine begun to spread extensively which appreciated by Soviet

Union. Economical regulations should be reviewed in the context of global

tendency on competitive development and beginning of market relations in the

economy.

The monopoly level in Soviet economy was quite high in comparison with

high developed countries. At the same time monopoly in soviet economy was

different in characteristic. Monopolist unions in market economy are formulated

from “downward” on the basis of centralisation process of production and capital

during competition. At this time public authorities try to ban over-strengthening of

monopolist unions with the help of anti-monopoly regulations.

Monopoly structures are formed from “upward” in command-economic

system. Public authorities didn’t restrict monopolisation; on the contrary they

actively encouraged this process. Another important characteristic of Soviet

monopolism is its horizontal integration. Entities producing homogeneous products

112