Page 114 - Azerbaijan State University of Economics
P. 114
THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.70, # 1, 2013, pp. 97-117
subordinated to head-office and ministry completely restricted intra-sector
competition.
Command system causes over-centralisation of production in the level of
enterprises and unions. As it is known effectiveness of centralised management
systems based on administrative methods decreases relatively to number of
managerial chains. By limiting number of these managerial chains ministries and
administrations tries to combine some type of goods in a one or few enterprises,
and included manufacturers of similar products into cooperation.
As a result economy became too monopolised. Goods in 1800s were produced
only in a one enterprise or union, more than 1100 enterprise were absolute
monopolist in production of certain type of goods in the beginning of 90s. 9 of 19
major type of Iron-pressing machines were produced in one enterprise, 6 of them
in two enterprise and 4 of them in three enterprise. 80 % of fragile production
combined in four enterprise and freezing camera production in three enterprise.
75% of production of small-sized televisions focused on 3 enterprises [V.V.
Radaeva, AV Buzgalin. 1995., p 370].
Even centralisation level in the beginning of XX century wasn’t as high as in
the processing industry in developed countries. As mentioned above various
quality of machinery products banned formulating of monopolist joints from
113
