The problem of the competitive market in Russia. The problem of competitive and non-competitive markets in Russia The functions of the market make it, in principle, a very effective system

In the course of economic reforms in Russia, the necessary prerequisites for the development of competition in the commodity markets have been created. As a result of objectively occurring economic processes and measures taken by the state to reduce the share of the public sector in the economy, reduce the scope of state regulation and administrative management of enterprises, de-monopolize the economy and develop competition within the framework of industry and regional programs, liberalize prices and foreign economic activity, certain conditions have appeared for the formation of competitive environment in commodity markets. The formation of many of them no longer requires constant and direct intervention of state bodies in the activities of economic entities.

At the same time, the state of the competitive environment in various regional and sectoral markets is extremely heterogeneous. In the most important structural sectors for the economy, the market is monopoly, oligopolistic or in a state of monopolistic competition. In many markets, significant structural and administrative barriers remain that protect dominant enterprises operating in them from the healthy forces of competition (horizontal dominance, vertical integration, regional segmentation, exclusive, including informal, relations between sellers and buyers, institutional and regulatory restrictions on the entry of new subjects).

Of course, such a market structure inevitably leads to monopolistic actions on the part of its individual participants in the form of both individual abuses of dominant position and anti-competitive agreements. For example, the markets for oil industry products have a different degree of development of competitive relations: from natural monopoly entities in the field of oil transportation to the crude oil market; which on a national (and even global) scale can be assessed as a market with developed competition. However, the largest share in the volume of the industry's activity is occupied by oil refining and the sale of petroleum products. If we consider this market as a national one, it can be considered an oligopolistic one, since the main subjects on it are vertically integrated oil companies.

The category of oligopolistic and monopoly markets also includes the markets for metals (especially non-ferrous), electricity, communication services, gas, and rail transportation. There is a kind of regional structural monopoly in the markets for communication services and electricity, since they are organized according to the principle “one subject of the Russian Federation - one operator”, and pricing is carried out with the participation of the authorities of the subjects of the Federation.

The strategic tasks of the state antimonopoly policy in the most systematized form were reflected in the medium-term program for the socio-economic development of the country, approved by Decree of the Government of the Russian Federation of March 31, 1997 No. 360. The program determined the specific tasks of the antimonopoly authorities of the Russian Federation:

improvement of the system of competition law, forms and methods of antimonopoly control and regulation:

counteracting the creation of new monopoly structures, strengthening control over sectoral economic concentration:

spreading the requirements of antimonopoly regulation and control to financial markets, including the markets of banking and insurance services, and the securities market:

strengthening of antimonopoly regulation in the field of natural monopolies:

development and implementation of the state policy of demonopolization:

overcoming the departmental-bureaucratic nature of monopoly:

application of protective measures in foreign trade and support for domestic producers:

protection of intellectual property objects and prevention of unfair competition in this area:

strengthening the integration of the activities of national and international antimonopoly authorities:

Many of these areas of antimonopoly policy have already been implemented to one degree or another, but this does not mean that a full-fledged competitive environment and a highly effective law enforcement system have been created in Russia. To further maintain the course towards the development of competition, it is necessary both to strengthen the actual antimonopoly policy and the system of antimonopoly authorities, and to implement general economic policy measures that help create conditions for the development of competition, facilitate the entry of new entities into the markets and eliminate structural dominance. First of all, we are talking about the further liberalization of economic life in general, whether it be the rules for access to real estate or land, legislation and licensing practices, the taxation system or the regime of foreign trade activities. The judicial system needs to be substantially improved to effectively protect private property rights and help resolve economic disputes. Proper state regulation of transport tariffs is required, since it helps to overcome the territorial disunity of economic entities and the regionalization of markets. A sign of a competitive economy is the completeness of information about the market, competitors, prices, available to an economic entity and necessary for him to make economic decisions, therefore, the creation (facilitation of the creation) of appropriate information systems becomes an important component of the state competition policy. Finally, the state must constantly work to eliminate administrative barriers to entrepreneurial activity, eradicate corruption, and protectionism” i.e. factors that significantly distort the market situation.

Ways to solve the problem:

Ability to use resources more efficiently;

Cause the need to respond flexibly and quickly adapt to changing production conditions;

Create conditions for the optimal use of scientific and technical achievements in the field of creating new types of goods, etc.;

Ensure freedom of choice and action for consumers and producers;

Aim manufacturers to meet the diverse needs of consumers and to improve the quality of goods and services.

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Functioning of a competitive market. The concept of a competitive market. Demand, law of demand, demand curve. Supply, law of supply, supply curve. Market balance. Profit maximization by a competitive firm. profit maximization rule.

Market- a set of economic relations based on regular exchange transactions between producers of goods (services) and consumers. The exchange usually takes place on a voluntary basis in the form of an equivalent exchange of goods for money (trade) or goods for goods (barter). With free access to the market, both producers and consumers, the exchange takes place in a competitive environment.

One of the main criteria of the market is the presence of competition. For the market to be competitive, there must be several independent buyers and sellers. Markets with a significant number of independent participants are considered competitive.

For existence perfect (pure, free) competition the following prerequisites must be met:

1) a large number of relatively small producers and buyers, their free entry into the market and the same exit from it;

2) perfect mobility of material, financial, labor and other factors of production in the long run;

3) full awareness of all participants in the competition about market conditions;

4) a high degree of homogeneity of goods produced by the industry (lack of substitute goods);

5) each of the participants in the competition is not able to influence the decisions made by other participants.

The market environment generated by the relations of perfect competition is only one of the market structures. Competition in which at least one of the criteria for perfect competition is not observed is called imperfect .

The market economy is primarily the interaction of supply and demand.

Demand (D)- the quantity of goods (Q) that consumers are willing and able to buy at each of the prices offered on the market (P).

Law of demand- this is the dependence of the quantity demanded on the price: the lower the price of a product, the greater its quantity will be bought, and vice versa. The action of the price factor leads to a change in the magnitude of demand, moving it to other points along a constant demand curve. Demand (as opposed to the magnitude of demand) is influenced by non-price factors (the number and tastes of consumers, their income, prices for related goods, consumer expectations). The action of non-price factors leads to a change in demand, and is expressed in a shift in the demand curve to the right (if it grows) and to the left (if it falls).

Offer (S)- the quantity of goods that sellers are willing to offer for sale at a given price at a given time.

Law of supply- a direct relationship between the price and the quantity of goods offered. A change in the quantity supplied means moving from one point to another on a constant supply curve under the influence of a change in price.

A change in supply means that the supply curve has shifted downward to the right if supply increases and upward to the left if it decreases. This happens under the influence of non-price factors (number of producers, their expectations, changes in resource prices, changes in technology, prices of other goods, taxes and subsidies).

The interaction of supply and demand, their coordination is carried out on the basis of the price mechanism and competition. This interaction leads to the formation equilibrium price, at which supply and demand are balanced. Equilibrium quantity (Q 0), where Qd=Qs.

If the market price is higher than the equilibrium price, then there is an excess of goods. The price will begin to decline, and producers will reduce production volumes.

If the market price is below the equilibrium price, then there is a shortage of goods. The price will begin to rise, and producers will increase production volumes.

This is the balancing function of prices.

When supply and demand change (separately or simultaneously), the equilibrium price and quantity of goods will change.

So, at the point of market equilibrium, the demand price is equal to the supply price. The amount of demand is equal to the amount of supply.

According to the traditional theory of the firm and the theory of markets, profit maximization is the main goal of the firm. Therefore, the firm must choose such a volume of supplied products in order to achieve maximum profit for each period of sales. PROFIT is the difference between gross (total) income (TR) and total (gross, total) production costs (TC) for the sales period: profit = TR - TC.

Gross income- this is the price (P) of the goods sold, multiplied by the volume of sales (Q).

Since the price is not affected by a competitive firm, it can affect its income only by changing the volume of sales. If the firm's gross income is greater than its total costs, then it makes a profit. If the total cost exceeds the gross income, then the firm incurs losses.

total costs is the cost of all factors of production used by the firm in the production of a given volume of output.

Maximum Profit is achieved in two cases: 1. when gross income (TR) exceeds total costs (TC) to the greatest extent; 2. when marginal revenue (MR) is equal to marginal cost (MC).

marginal revenue(MR) is the change in gross income received when an additional unit of output is sold. For a competitive firm, marginal revenue is always equal to the price of the product: MR = P.

Maximizing marginal profit is the difference between the marginal revenue from the sale of an additional unit of output and the marginal cost: marginal profit = MR - MC.

marginal cost- additional costs leading to an increase in output by one unit of the good. Marginal cost is entirely variable cost, because fixed costs do not change with output. For a competitive firm, marginal cost is equal to the market price of the good: MC = P.

The marginal condition for profit maximization is the level of output at which price equals marginal cost.

Having determined the profit maximization limit of the firm, it is necessary to establish an equilibrium output that maximizes profit.

The most profitable equilibrium- this is the position of the firm, in which the volume of goods offered is determined by the equality of the market price to marginal cost and marginal income: P = MC = MR.

The firm chooses the volume of output that allows it to extract the maximum profit. At the same time, it should be borne in mind that the output that provides the maximum profit does not mean at all that the largest profit is extracted per unit of this product. It follows that it is wrong to use unit profit as a measure of total profit.

In determining the volume of output, profit maximizing, it is necessary to compare market prices with average costs.

Average costs (AC) - costs per unit of output; equal to the total cost of producing a given quantity of output divided by the quantity of output produced. There are three types of average costs: average gross (total) costs (AC); average fixed costs (AFC); average variable costs (AVC).

The ratio of market price and average production costs can have several options:

The price is greater than the average cost of production, maximizing profit. In this case, the firm extracts economic profit, i.e., its income exceeds all its costs (Fig. 26.2);

The price is equal to the minimum average production costs, which provides the company with self-sufficiency, i.e., the company only covers its costs, which makes it possible for it to receive a normal profit (Fig. 26.3);

The price is below the minimum possible average cost, that is, the firm does not cover all its costs and incurs losses (Fig. 26.4);

The price falls below the minimum average cost, but exceeds the minimum average variable cost, i.e. the firm is able to minimize its losses (Fig. 26.5); the price is below the minimum of average variable costs, which means that production ceases, because the firm's losses exceed fixed costs.

2. Forms of direct expression of the will of the population at the local level.Referendum, municipal elections, citizens' meetings, citizens' conferences, citizens' gatherings, territorial public self-government, etc.

There are two groups of forms of direct participation of the population in local self-government:

forms of direct implementation by the population of local self-government through the adoption of binding decisions;

forms of participation of the population in the implementation of local self-government on the basis of their own initiatives.

The first group includes:

local referenda;

municipal elections

gatherings of citizens in small municipalities.

local referenda. The highest form of democracy at the municipal level.

A referendum is understood as a universal vote of citizens to resolve important issues affecting their interests. Citizens living in the territory of the municipality and having the right to vote take part. Participation in a local referendum is a voluntary, secret ballot.

The wording of the question submitted to the referendum must provide for an unambiguous answer such as “for” or “against”, “yes” or “no”. Decisions adopted at a local referendum do not need to be approved by any bodies and officials of state power or local self-government, are subject to mandatory execution on the territory of the municipality and can only be canceled by another referendum. However, if a decision taken at a referendum on issues of local importance contradicts the current legislation, it can be protested by the prosecutor's office and canceled in court.

The decision to hold a local referendum is made by the representative body of the municipality on its own initiative, the initiative of the population, electoral associations and the initiative of the head of the local administration.

The procedure for holding a local referendum is determined by federal law No. 7-FZ of June 12, 2002 “On Basic Guarantees of Electoral Rights and the Right to Participate in a Referendum of Citizens of the Russian Federation”. The results of the voting and the decision taken at the local referendum are subject to official publication (in small municipalities - to the public).

In the practice of municipalities, holding referendums is a rarity. The reason is the laboriousness and high cost of this event, the authoritarian traditions of self-government of the authorities and, above all, the highest official, the indifference to participation in managerial activities on the part of the population.

Municipal elections are held for the purpose of electing deputies and elected officials of local self-government on the basis of universal, equal and direct suffrage by secret ballot. Elections are appointed by the representative body of the municipality within the time limits stipulated by the charter of the municipality. In the absence of a decision of a representative body, elections may be called by a municipal election commission or a court. To organize and conduct municipal elections and other forms of voting in the municipality, an election commission is created.

The most famous and long-used in Russia - majoritarian electoral system in single-member constituencies. Its advantage is that the deputies elected under this system are closest to their voters, they know their constituencies and the interests of the inhabitants of these constituencies well. In turn, the voters of the district are familiar with their deputies, their personal and political qualities. The main drawback is that the representative body of local self-government formed on its basis does not have a single project for the development of the municipality, since each deputy seeks, first of all, to solve the problems of the voters of his district.

proportional electoral system, based on the choice of lists of electoral associations, weakens the personal ties and personal responsibility of deputies to their voters. But this system is most suitable for solving the main task of a representative body - expressing the general interest of voters, developing an integral project for the development of the municipality.

Currently applied mixed systems, in which part of the deputies is elected by the majority system, and the other part - by proportional.

Elections are, perhaps, the only explicit form of local self-government. Electoral activity during local elections is the highest, especially when it comes to elections of the head of the municipality. Significantly lower electoral activity during the elections of representative bodies.

The vote of the people. In accordance with No. 131-FZ, citizens can vote on issues of recalling a deputy, an elected official of local self-government, changing the boundaries of a municipality, and transforming a municipality. The procedure for appointing and organizing voting is similar to holding elections and referendums.

The basis for the recall of a deputy or an elected official of local self-government can only be his specific unlawful decisions or actions (inaction) established by the charter of the municipality and confirmed in court. The recall procedure should provide an opportunity for the accused to explain to the voters the circumstances put forward as grounds for the recall. A deputy or an elected official is considered recalled if at least half of all voters registered in the municipality (district) voted for the recall. Such a provision renders a deputy or an elected official practically irrevocable. Revocation conditions are not enforceable.

Voting on the issues of changing the boundaries or transforming the municipality is considered valid if more than half of the residents of the municipality (or part of it) who have the right to vote took part in it. A decision on these issues is considered adopted if more than half of the residents who took part in the voting voted for it. This kind of voting is very rare.

Gatherings of citizens. In small municipalities (numbering no more than 100), a representative body of local self-government may not be created, and its functions are performed by a gathering of citizens. The gathering is convened by the head of the municipality independently or at the initiative of at least 10 residents and is eligible with the participation of more than half of the residents of the settlement who have the right to vote

The decision of the meeting is considered adopted if more than half of the participants in the meeting voted for it. Decisions of the gathering are subject to mandatory publication (promulgation) and execution. Citizens' gatherings are the most viable form of participation of the population in solving local affairs, rooted in the distant past.

The second group includes:

participation of citizens in surveys on various problems of local life;

meetings and conferences (meetings of delegates):

public hearings;

law-making initiative of citizens;

appeals of citizens to local governments;

territorial public self-government.

Polls of the population. The survey is based on a representative sample, which should represent a micromodel of the adult population of the municipality. The results of the survey are advisory in nature.

Meetings (conferences) of citizens. Meetings of citizens are held to discuss issues of local importance, to inform the population about the activities of bodies and officials of local self-government. .

Public hearings. Public hearings are held by the representative body or the head of the municipality on their own initiative or on the initiative of the population to discuss draft municipal legal acts affecting the interests of the population.

Law-making initiative of citizens. Residents represented by an initiative group can submit a draft municipal legal act to local governments.

There are several types of appeals: proposals. statements, complaints.

Sentence- this is an appeal of a citizen or a group of citizens aimed at improving the organization and activities of municipal bodies and organizations, at improving the legal basis of local life, resolving issues of economic, political, socio-cultural and other areas of activity of the local community.

Statement- appeal of a citizen or a group of citizens regarding the realization of the rights, freedoms and legitimate interests belonging to them or other citizens.

A complaint- appeal of a citizen or a group of citizens about the violation of their rights or legally protected interests.

Local self-government bodies, in accordance with their powers, are obliged to consider the appeal of citizens within one month and give a written response to it.

Territorial public self-government (TPS)- self-organization of citizens at their place of residence on a part of the territory of a settlement or in a settlement that is not a municipality for independent and under their own responsibility to implement their own initiatives on issues of local importance. TOS does not have a fixed membership and is a territorial community of residents, created on the basis of their voluntary will.

In accordance with the Federal Law on the General Principles of Organization of Local Self-Government dated October 6, 2003 No. 131-FE, TOS can be carried out within the following territories:

Entrance of an apartment building:

multi-apartment residential building;

Groups of residential buildings;

Residential area:

Rural settlement, which is not a settlement;

Other territories of residence of citizens.

TPS bodies can be created through elections at meetings or conferences of residents of the relevant territory, their competence is determined by the citizens themselves. TOS is considered established from the moment of registration of its charter by the authorized body of local self-government. The charter of TOS establishes:

1) the territory in which it is carried out;

2) goals, objectives, main directions and forms of activity:

3) the procedure for the formation, termination of powers, rights and obligations, the term of office of the TPS bodies;

4) decision-making procedure:

5) the procedure for acquiring property, as well as the procedure for the use and disposal of the said property and financial resources;

6) the procedure for terminating the implementation of TOS.

Unlike local government. TOC:

It does not have power powers (public self-government), although it can be vested with separate administrative powers by decisions of municipal bodies;

It is not mandatory (it may be in some part of the territory of the settlement, but not in another);

It does not have a legally established list of issues to be resolved, this list is established by the residents themselves in relation to local conditions;

May or may not engage in economic activities and. respectively, to have or not to have the status of a legal entity.

Territorial public self-government, in accordance with its charter, may be a legal entity and is subject to state registration in the organizational and legal form of a non-profit organization. This organizational and legal form allows both to raise funds and open a bank account. This gives great opportunities for the initiative of the population.

The financial resources of the TPS may be the property transferred to the management of the TPS. voluntary contributions and donations of legal entities and individuals. local budget funds transferred to TOS for the implementation of certain municipal powers, income from their own economic activities. TOS may own cooperative funds of individuals and legal entities. other funds obtained from legal sources, structures built on these funds: playgrounds, sports grounds, residential, non-residential and newly created industrial premises, transport, equipment, inventory and other property

TOS bodies on their territory can participate in solving a wide range of issues of local life, they can play different roles and perform different functions.

How a public organization TOS can provide assistance to poor citizens, organize social events, etc.

As an intermediary between residents and local authorities, TOS represents and protects the interests of residents of its territory.

As an economic entity, TOS can participate in the maintenance and repair of the housing stock, landscaping and development of the territory, engage in trade and construction activities, participate in commercial organizations, lease land, non-residential premises, advertising spaces owned by TOS, etc.

A market is an ordered structure through which sellers and buyers of a commodity interact to determine its price and quantity.

Initially, the market existed as a special place where the purchase and sale of goods was carried out at a certain time. That is, the market in this period of its development had a spatial and temporal certainty.

Gradually, as commodity production became dominant, the number of goods increased, their assortment expanded, and the number of participants in purchase and sale acts also increased. Acts of exchange begin to be carried out at any time and in any place, they become an integral element of economic activity. The spatial and temporal certainty of the market disappears.

Everything becomes a commodity, and everyone becomes buyers and sellers. Acts of purchase and sale are connected by information flows. A market economy emerges.

The market economy is based on commodity production. Therefore, its existence is due to the social division of labor, specialization, the presence of free independent economic entities that are economically responsible for the decisions made.

An integral institution of a market economy is private property, which ensures freedom of enterprise and freedom of choice.

Freedom of entrepreneurship and choice means that each business entity decides for itself how to use the resources it has: to produce, sell, perform work or provide services; what, how and for whom to produce; he himself acquires the missing resources; he sells his products.

The consumer has the widest freedom. It is his desire to purchase a particular product that determines the ability of producers to organize the production of this product.

The market economy is an economy of individuals, where the main driving force is self-interest. It is he who determines what actions each business entity must take in order to ensure maximum income. The entrepreneur strives to produce the most profitable goods; the owner of the labor force - it is more expensive to rent it out; buyer - to buy more goods at a lower price, etc.

1.1. Market structure. Market types

The desire of each economic entity to maximize income inevitably leads to competition.

Competition is a special type of relationship, which is based on the desire to provide only oneself with the opportunity to achieve the best

results. Competition exists within each of the parties of market relations.

Competition between producers is a relationship regarding the establishment of prices and volumes of supply in the market.

Competition between consumers is the relationship regarding the formation of prices and volumes of demand in the market.

In a market economy, in the markets for various products, services and resources, there may be various types and varieties of competitive structures.

They differ from each other in the number of producers (sellers) and the number of consumers (buyers), the degree of comparability and substitutability of products, the degree of difficulty in entering and exiting the market, the mobility of production factors, the level of awareness of participants in purchase and sale acts about the price, quantity of the product. , costs and demand in the market, the possibility of influencing demand, supply and price.

Depending on the presence and nature of each of these conditions, one can speak of perfect, imperfect competition and pure monopoly.

Perfect competition exists in conditions of a large number of sellers and buyers who do not have the opportunity to influence the market price and the quantity of products produced. This is due to the fact that manufactured products are qualitatively homogeneous, all sellers and buyers have equal access to information about the state of the market and equal opportunities to enter and exit the market. In a real market, it is practically impossible to provide such a structure of interaction of all its elements and all participants. Therefore, perfect competition serves as a theoretical standard rather than a real factor. Features of other competitive structures can be derived from comparison with this benchmark.

Imperfect competition is represented by three varieties: monopolistic and oligopolistic competition among sellers and oligopsonic competition among buyers.

Monopolistic competition exists in a market where there are many sellers and buyers. But sellers are able to offer the buyer different options for the product (in terms of quality, properties, appearance, quantity and quality of related services). The seller, in order to raise the price, needs to stand out from other sellers.

Oligopolistic competition exists in a market where there are several sellers of the same product or several sellers of different models of the same kind of product. Each seller is very sensitive to price and sensitive to the actions of competitors. You can defeat a competitor either by lowering the price, or by offering a larger number or volume of services.

Oligopsonic competition exists when many sellers are opposed by several buyers.

A pure monopoly is a type of market structure where there is one seller of a homogeneous product that has no close substitutes.

Monopsony is a type of market structure where there is one buyer of a homogeneous product that has no close substitutes.

Pure monopoly and monopsony are not competitive structures.

Competition acts as an invisible regulator and controller of the economy. It stimulates interest in reducing costs, improving quality, expanding the range, moving from industry to industry.

Competition sets limits for the realization by buyers and sellers of their self-interest.

Competition is a regulatory mechanism. The coordinating and organizing force of the market economy is the system of markets and prices.

Prices serve as a reference point by which resource owners, entrepreneurs and consumers make free choice that ensures self-interest.

The system of markets and prices takes into account, summarizes and mutually balances the decisions freely chosen by economic entities. In a market economy, the entire set of manufactured products and services can be divided into three groups according to their functional purpose:

Final products and services;

Factors of production;

Accordingly, the system of markets includes the market for final products and services, the market for factors of production and the financial market.

In the market of final products and services, the purchase and sale of products and services that satisfy the personal and social needs of the population is carried out.

The buyers in this market are households (families) or the government. Sellers are business organizations.

The market for factors of production includes the labor market, the market for land and land use, and the market for capital (means of production).

A financial market is a market in which sellers and buyers interact for a specific commodity, money. In this market, money can be transferred temporarily in the form of loans and borrowings against obligations or forever - under shares. This market most accurately allows you to judge the state of the economy.

A market economy is an economy of transactions with equal partners, a developed system of horizontal connections based on market infrastructure (banks, stock exchanges, insurance companies, etc.), strong and respected by people legislation governing the relationship of business entities.

Theoretically, the market economy seeks to ensure the equality of all people in the realization of their opportunities. At the same time, it is an economy in which inequality of wealth and income is the norm. Wealth, according to P. Samuelson, is the available cash supply, and income is the increase in money over a certain period of time.

The reason for this inequality lies in differences in abilities, in professional heterogeneity, in the level of education, in the duration of work, in the inequality of initial wealth (inherited), etc.

Freedom of choice and competition, which enable and require the full and efficient use of all resources suitable for production, stimulate the creation of new products, the improvement of production technology, and a change in the structure of supplied resources. This suggests that the market economy has the ability to adapt to inevitable changes.

To do this, the market economy uses not only internal mechanisms of self-regulation, but external regulators in the hands of the state.

The ability to self-regulate characterizes the advantages of a market economy. The need for state intervention in the economy is due to its shortcomings.

Let's dwell on this in more detail.

Competition is the driving force behind the market economy.

Being a competition between commodity producers for the most profitable areas of capital investment, sales markets, sources of raw materials, it acts as an effective mechanism for regulating the proportions of social production.

Fair competition in Russia is poorly developed. The main reason for this situation is the dominance of monopolies in many industries and sectors of the economy. Currently, monopolies determine the pricing policy in the country and are the main threat to economic growth and socio-economic reforms. The creation of a competitive environment and competitive pricing is one of the most important signs of the formation of a market economy. This process in the Russian economy is too slow, with varying intensity in various industries and areas. In essence, we can only talk about the beginning of the creation of a competitive market in Russia. There are very few levers of control and state regulation of prices in Russia. Prices for oil products and coal are not regulated. There are no legislative restrictions on the rate of return of natural monopolies.

Due to the lack of sufficient economic freedom and the dominance of monopolists in the market, as well as the lack of fair competition, the prices for individual food products on the market are inflated many times: milk in large cities costs up to 3 times more, bread prices are up to 5 times higher, vegetables in Moscow - up to 7-10 times compared to competitive market prices.

The competitiveness of Russia's industry is of great concern. It is connected, first of all, with the obsolescence of production capacities. The average age of its main production facilities is over 20 years. Therefore, without serious measures capable of ensuring the renewal of the country's scientific and technical potential, it is impossible to ensure a quick recovery and accelerated development of industry and the production of competitive goods. Investments in mechanical engineering and metalworking in 2011 were four times less than in the mining industry. Namely, the manufacturing industries have recently been the engines of Russia's economic growth, their share was 36% of the increase in industrial production in the first half of 2011.

Today, outdated equipment should be replaced en masse with new, modern ones. This will make it possible to sharply raise labor productivity, improve the quality of products, and make many of our non-resource-based products competitive on the domestic and foreign markets.

It should be noted that the competitiveness of Russian products is gradually increasing in comparison with imported ones. Thus, the tender for the modernization of steam turbines at OAO Kostromskaya GRES was won by the Russian company Power Machines, whose offer was 2.5 times cheaper than that of the German concern Siemens.

There are 220 registered participants in the competitive energy market, which is steadily operating in the Center-Ural zone. As a result, the average price during 2011 was almost 16% lower than the one set by the state. Starting from 2010, the electricity market really exists, regional energy companies are being separated by types of activity, interregional distribution grid companies are being created, several wholesale and territorial generating companies have been formed, and it is planned to transform the wholesale energy market into a market of regulated long-term contracts. In the 1990s, there was a concentration of assets practically uncontrolled by the state. As a result, this has led to the fact that very often one or two or three groups of persons control more than 60-70% of the market in certain industries. Such dominance and coordinated actions in the market allows you to set any prices, which leads to price increases, inflation, and a decrease in the income level of the population. The current penalties for this are not commensurate with the amount of illegal income that monopolies and cartels receive as a result. The maximum fine for violating antitrust laws in Russia is $15,000-16,000, while offenders earn much more in just one day. In most regions of Russia, there are only a few companies on the gasoline market that maintain the price level they need.

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