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WHAT regulated activity

What is a regulated activity

Among the activities, there are those who understand the value of not just - sometimes you have to find additional information, and once more to think about.

For example, activity at a controlled mean ... monopoly

But what kind of monopoly, and what does this term at all?

Monopolies and Regulated activity - what is the connection?

Communication between these two concepts is very strong: under controlled activities often involve the activities of public or natural monopoly. The activities of the state in relation to subjects such monopolies called "control" or "regulating": the state itself sets the prices and tariffs for services of natural and, of course, state-owned monopolies.
Why is this type of activity is taking place?
Natural monopolies are called natural because that formed without any artificial interference from the environment or as a result of collusion or neutralize competitors.
But how to distinguish natural from the state monopoly?
Under state monopoly meantcompanies and corporations, the general director of which can be a private person, 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 the market there is no competition in the provision of such services and goods and services provided by natural monopolies, are indispensable.

One of the biggest natural monopolies, which are at the same time regulated by the state, is a service of housing and communal services in Russia, whose activities are funded and controlled by the government.

Interaction of regulated entities and the state

Why all businesses can not be private? After all, we have a market economy!
Even in a market economy the state's participation is necessary. Nowhere is there not a pure market system, neither in Russia nor in the West or in the East, even more so.
Organizations that are controlled by the state,justify the existence of the fact that during the recession acting as a "buffer" which mitigates the loss of the national economy in general. Also, many of controlled or regulated organizations are nationally important.

The state may also pursueideological or strategic objectives in establishing monopolies. Thus, a possible monopoly on the production of alcohol, it is assumed, will reduce the level of alcohol consumed by the population.

For example, in Russia there is also a monopoly onweapons production, which, of course, has its own strategic sense: if there were a private company, this would imply the need for their control, licensing, extra time spent.
What would have happened if the owner of Aeroflot, housing orRailways began to artificially inflate the price? This would lead to social tensions. And in the case of full control over these organizations, the government has all the levers of influence on them and, consequently, prices for essential services (transport, hot water) controlled by the state, and not another capitalist, whose only desire is the desire to earn more money.

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