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WHAT is a regulated activity

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What is a regulated type of activity</a>

Among the activities there are some that you do not understand right away - sometimes you have to find additional information and think again.

So, for example, a regulated activity implies a monopoly ...

But what exactly is the monopoly, and what does this term mean in principle?

Monopoly and regulated type of activity - what is the connection?

The connection between these two concepts is very strong: Under controlled activity most often imply the activities of state or natural monopolies. The state's activities with respect to the subjects of such monopolies are called "controlling" or "regulating": the state itself establishes prices and tariffs for the services of subjects of natural and, of course, state monopolies.
Why does this activity take place?
Natural monopolies are therefore called natural, which are formed without any artificial interference from the external environment or as a result of collusion or neutralization of competitors.
But how to distinguish the state monopoly from the natural one?
The state monopoly meansCompanies and corporations, whose general director may be an individual, but 51% of the shares will belong to the state. In Russia, among these companies: Russian Railways, Rosneft, Gazprom and others.
Natural monopolies are formed as a result ofThe fact that there is no competition in the market in the provision of such services, and the services and goods provided by natural monopoly entities are irreplaceable.

One of the largest natural monopolies, which are at the same time regulated by the state, is the service of housing and communal services in Russia, whose activities are financed and controlled by the government of the Russian Federation.

Interaction between regulated organizations and the state

Why can not all enterprises be private? After all, we have a market economy!
Even in a market economy, the state's participation is simply necessary. Nowhere is there a purely market system, neither in Russia, nor in Western countries, nor in the East, much less.
Organizations that are controlled by the state,Justify their existence by the fact that during the economic downturn they act as a "buffer", which softens the losses of the national economy in principle. Also, many of the controlled or regulated organizations are nationally important.

The state can also pursueIdeological or strategic goals in the establishment of monopolies. Thus, a possible monopoly on the production of alcohol is expected to reduce the level of alcohol consumed by the population.

Thus, in Russia there is also a monopoly onProduction of weapons, which, of course, has its strategic meaning: if there were private companies, this would imply the need for their control, licensing, extra time.
What would happen if the owners of Aeroflot, housing and communal services orRZD began to artificially inflate prices? This would lead to social tension. And in case of complete control over these organizations, the state has all levers of influence on them and, accordingly, prices for essential services (transport, hot water) are controlled by the state, and not by another capitalist whose only desire is to earn more.

WHAT is a regulated activity Was last modified: June 20th, 2017 By Tiyhyozw
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