Page 16 - Azerbaijan State University of Economics
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Adalat J. Muradov, Nazim O. Hajiyev: Competitive environment is the main factor for integration
into the world economy
hand regulating the economy spontaneously. In this historical background economical liberalism
conception formulates which advise government to minimise its market intervention.
XIX century becomes market economy operating on free competition basis. Becoming to
the ends of XIX century destroy of free competition happens on quite 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 subordinated to head-office and ministry completely restricted
intra-sector competition.
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