RESOLUTION OF THE STATE COMMITTEE OF THE REPUBLIC OF KAZAKHSTAN ON THE PRICE AND ANTIMONOPOLY POLICY

of February 12, 1996 No. 2/49

About approval of Methodical recommendations about monitoring of the competitive markets and to development of the competitive sphere of economy

The state committee of the Republic of Kazakhstan on the price and antimonopoly policy DECIDES:

1. Approve Methodical recommendations about monitoring of the competitive markets and development of the competitive sphere of economy.

2. To department of the State registry and analysis in the competitive markets (Koshlyakova L. V.) till February 20, 1996 to bring recommendations and the plan of carrying out monitoring of the goods markets for 1996 to territorial committees.

Methodical recommendations about monitoring of the competitive goods markets and development of the competitive sphere of economy

General provisions

1. To the competitive sphere of economy, it agrees to the criteria accepted in world practice, can be carried: industries, agro-industrial complex, trade, household services, construction, transport (except for railway), objects of market infrastructure (exchanges, banks, insurance companies), etc.

2. The purpose which is carried out now in the republic of antimonopoly and price policy is assistance to transition to the formed free market in competitive, by means of the solution of the following main objectives:

- creating favorable conditions for voluntary demonopolization of the companies dominating in the markets and to development of small and medium business;

- suppression of possibility of education of the managing subjects monopolists;

- prevention, restriction and suppression of monopolistic activities:

- enhancement of the regulatory and methodological base providing effective development of the competition;

- decrease in barriers to entrance on the market.

3. Recommendations are developed for the purpose of determination of procedure for carrying out the analysis of the competitive goods market and preparation of offers on development of the competitive sphere of economy.

4. Methodical recommendations consist of 3 Sections:

Section 1. Monitoring of the competitive goods market;

Section 2. The analysis of behavior of the business entities dominating in the competitive goods market;

Section 3. Development of offers on development of the competitive sphere of economy.

5. Recommendations are intended for employees of antimonopoly authorities of the republic.

Section 1. Monitoring of the competitive goods market

1. Monitoring (the analysis, assessment and the forecast of development) of commodity market (services) is necessary for the successful solution of tasks on development of the competitive sphere of economy.

On the basis of the analysis of the markets subjects of anti-monopoly and price regulation, degree and methods of the state participation in providing competitive conditions of activities and consumer protection are determined.

2. The most important characteristics of the market are:

goods and commodity group,

geographical boundaries of the market,

subjects of the goods market,

process of bringing goods to the consumer,

market shares of business entities,

concentration of the market, barriers of entry into the market.

According to these characteristics differentiate the following kinds of the markets:

Absolutely competitive market - the market with great number of the suppliers selling homogeneous products in the conditions of free entry into the market and free leaving from it.

Exclusively competitive market - close to the aforesaid except that assumes variety of products, i.e. different suppliers offer products similar, but not completely interchangeable.

Oligopolistic - the market with serious barriers to contact to him and with small amount of suppliers; the last act in the conditions of acknowledged competitive interdependence (sales and profits of one of them depends both on him and on reaction of other few suppliers).

Monopolistic - the market with one supplier protected from the competition by high barriers to entry into the market.

1. Creation of the list of the priority competitive goods markets.

In case of large number of the goods markets and limited labor, temporary and financial resources of antimonopoly authorities, the research problem of all list of the markets becomes almost impracticable. Therefore, for the purpose of determination of commodity priorities of demonopolization, after creation of the list of the markets of the region, their ranging on importance is reasonable.

As criteria at the same time can be applied:

goods belonging in commodity group to life support products;

social importance;

possibility of use for import substitution;

competitiveness (including potential) on internal and world the markets;

belonging of commodity group to priorities of structural policy of the government.

In connection therewith, the following markets can be recommended for research:

рынки в сфере                   - сельскохозяйственной продукции,

обеспечения населения             сырья и полуфабрикатов (оптовые

продовольствием:                  и розничные);

                                - услуг по переработке;

                                - услуг по хранению;

рынки продукции                 - гражданской авиационной техники;

консервируемых                  - ресурсосберегающих технологий;

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