Page 19 - Azerbaijan State University of Economics
P. 19
THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.71, # 2, 2014, pp. 5-20
THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.71, # 2, 2014, pp. 5-20
Understanding the periodic nature of the development of competitive relations allows an
appraisal compliance with global historical tendency given to the structure of economy of
Azerbaijan and makes it available to understand the role of competition in development in
economy more deeply in our days. And this, in it’s turn, makes opportunity to understand well
the competition policy in the role of reconstruction strategy of economy.
The competition in Adam Smith opinion – is ―invisible hand‖ which is make people
obtain total benefit, even each of these people try to obtain benefits from its own. That’s why,
market economy based on operating general benefit of society and socially-oriented is not
possible without sufficiently high level of development of competition.
Conclusion
Monopoly – is the source of difference between personal interest and total benefit. In
terms of competition is removed the personal interest of entrepreneur is contradict with interest
of society. This type of market economy was characteristic for the beginning of the XX century
and was little more effective than soviet command system. Non-effective proof of this type of
market economy was ―Great Depression‖. Though there was a big difference, the crisis of
Azerbaijan economy in 90th certainly had general similarity with ―Great Depression‖. This
general basis – is monopolistic organization of production. That’s why, formation of an effective
competitive environment, reducing the private share of monopoly sector – is the main factor for
stable and dynamic development of Azerbaijan's economy in the XXI century and it’s
successful integration into the world economy.
References
[1] Ali M.El-Agraa.The European Union Economics and Politics. Eighth edition. Printed in the
United Kingdom at University Press 2007. Cambridge.
19
