ORDER OF THE CABINET OF MINISTERS OF UKRAINE

of September 19, 2012 No. 690-r

About approval of the Concept of the Nation-wide development program of the competition for 2014-2024

1. Approve the Concept of the Nation-wide development program of the competition for 2014-2024 which is attached.

Determine the Antimonopoly Committee the state customer of the Program.

2. To the Antimonopoly Committee together with another interested central and local executive bodies to develop also tax till July 10, 2013. To the Cabinet of Ministers of Ukraine the draft of the Nation-wide development program of the competition for 2014-2024.

Approved by the Order of the Cabinet of Ministers of Ukraine of September 19, 2012 No. 690-r

The concept of the Nation-wide development program of the competition for 2014-2024

Determination of problem to which solution the Program is directed

Ensuring development of the competition in the goods markets is important factor of increase in efficiency of functioning of such markets and economies in general. Availability of workable competition provides price fixation at the level which is brought closer to marginal expenses, the most complete use of resources promotes creation of new types of products, works and services, development of new methods of their production and distribution.

The level of development of the competition in the goods markets remains low that negatively influences efficiency of their functioning. Signs of the insufficient level of development of the competition are:

increase in prices which cannot be explained with influence of other factors;

increase in level of concentration of the goods markets and their considerable monopolization;

low labor productivity level and innovative orientation of national economy.

On survey results, the competition is considered essential factor of influence on economic activity only by from 25 to 49 percent of heads of the companies of the industry, constructions, retail trade, transport and 12 percent of heads of agricultural enterprises.

About the low level of development of the competition witness also this scientific research according to which in recent years more than 50 percent of amount of products are sold in the goods markets with limited opportunities for development of the competition, including in completely monopolized markets - more than 7 percent, in the markets with domination of one company - almost 28, in the markets with domination of several companies - more than 15 percent.

Analysis of origins of problem and reasons for need of its decision by program method

Are basic reasons of the low level of development of the competition:

structure of many nation-wide and regional goods markets, adverse for workable competition;

lack of sufficient opportunities and incentives for increase in number of participants of the markets because of high barriers of the introduction on such markets and exit from them;

the insufficient level of development of market infrastructure which provides access for subjects of managing to the parcels of land, floor spaces, financial resources, information on market conditions, to means of advertizing;

insufficient coordination between anti-monopoly and competitive and industrial, innovative, investment, agrarian, external economic, price policy and policy of consumer protection;

low performance of state regulation in the field of natural monopolies and other monopolized markets that leads to non-compliance with balance of consumer interests and societies, on the one hand, and subjects to such regulation, on the other hand, in particular in part:

- price regulation (rates) with use of account methods;

- ensuring access to goods (services) of subjects of natural monopolies;

absence, as a rule, among priorities and in plans of activities central and local executive bodies, state bodies which perform regulation in separate fields of activity, local government bodies of specific tasks concerning competition development;

not formation of traditions of participation of institutes of civil society in ensuring development of the competition;

lack of regulation at the legislative level of questions relatively:

- reforming of system of government assistance to subjects of managing;

- approximations of the legislation on protection of the economic competition to the European Union law.

The problem resolution of development of the competition is within the competence central and local executive bodies, state bodies performing regulation in separate fields of activity of local government bodies and requires integrated approach, the coordinated activities of such bodies and can be provided by development and accomplishment of the Nation-wide program of the competition for 2014-2024 (further - the Program).

Program purpose

The purpose of the Program is development of the competition in the goods markets as means of ensuring of permanent economic growth, improvement of conditions for their effective functioning, enhancement of the state regulation machinery of such markets.

Determination of optimal variant of the problem resolution on the basis of comparative analysis of possible options

Three ways of solving the problem are possible.

The first option provides carrying out the structural demonopolization in particular connected with change of the relations of property.

However today, when part of the companies of private pattern of ownership constitutes about 90 percent, possibilities of use of the mechanism of structural demonopolization by implementation of actions of preprivatization preparation of the companies are limited. At the same time further crushing of the companies can lead to decrease in their competitiveness in the foreign market.

The second option provides carrying out further liberalization of access for foreign subjects of managing to the domestic market.

At the same time in recent years the total cost of import constituted about 25 percent of cost of national production of goods and services that testifies to the high level of openness of the Ukrainian market. At the same time since 2006 the negative balance of the foreign trade balance of the country takes place.

Realization of the specified option in the conditions of lack of necessary resources for essential and bystry increasing production of competitive domestic production will lead to negative effects for domestic economy, the social sphere and homeland security.

The third, optimal variant of the problem resolution of development of the competition provides accomplishment central and local executive bodies, state bodies which perform regulation in separate fields of activity, and local government bodies of complex of the actions aimed at the competition development, its protection and restriction of monopolism. The specified actions are the integral components of antimonopolnokonkurentny policy therefore goal achievement of the Program is possible only on condition of their complex implementation.

Ways and methods of the problem resolution, term of accomplishment of the Program

The problem is provided to be solved in the way:

creations of premises for competition development, including:

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