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Competition must not remain behind economy: Trend Capital commentator

Business Materials 18 May 2009 11:19 (UTC +04:00)
Competition must not remain behind economy: Trend Capital commentator

Azerbaijan, Baku, May 16 / Trend /

Trend analytical center expert Leyla Abdullayeva

Adoption of the code "Competition" could be serious impetus for growth of entrepreneurship in Azerbaijan and stimulus for special attention to issue of qualitative production.

Presently, it is reasonable to take measures to insure local producers by corresponding normative acts while Azerbaijan is on the threshold of entering the World Trade Organization and prepares to face rough competition of foreign producers (their production can be cheaper, more qualitative than production of local production).  

Designing of the code "Competition" is necessary to create attractive and clear terms for development of free competition on commodity markets, determination of strict mechanisms to reveal limitation of competition and deal between participants of the market, prevention of "hidden" monopolization of economic branches, strengthening of role and privileges of antimonopoly agency, increase of its activity effectiveness.

Necessity in regulation of competition in Azerbaijan is testified by situation. For example, competition was observed given growth of prices for grain in the country two years ago. There were statements about price deal and monopoly on the grain market that were testified because of futility in legislation.  

According to the international experience, antimonopoly regulation system must not remain behind development and reforms of economy. It is necessary to take into account globalization of world trade, openness of economic borders, as well as appearance of new business forms. New business forms appear as soon as economic situation changes. There are new requirements for protection of entrepreneurs' rights.

The law "Competition" exists in many countries. This law was changed and added many times. But the law differs in many countries.

There is antitrust legislation practically in all countries.   

For example, agreements on prices between entrepreneurs are forbidden by the law in Germany.

Competence of different enterprises merging is determined by federal department on cartel on the basis of independent commission's conclusion. This commission consists of scientists and economists because free competition must be on the basis of market relations. 

These measures include general support of small business enterprises.

There is tough antitrust legislation in the USA and Japan. 

Peculiarity of U.S antitrust legislation consists of ban for monopolies, i.e. to admit them illegal. But western European antimonopoly legislation is based on regulation of monopoly practice by removing its negative consequences. 

Adopted normative legal acts must promote strengthening of competition by opening new opportunities in business for entrepreneurs, improving of economic indices of the country by optimal distribution of economic resources, impacting on fixing low prices on goods and service of high quality. 

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