Page 18 - Azerbaijan State University of Economics

Adalat J. Muradov, Nazim O. Hajiyev: Competitive environment is the main factor for integration
into the world economy

Investigating impact of experience repeating western technology on soviet electronic

industry M.Castels gives a questions: why repeating American electronic technology boosted

Japanese economic development while it had quite negative effect on soviet economy. The

answer is very simple: Japanese companies operated in free competition and Soviet companies

operated in monopoly condition. the complex non-development reasons of the soviet military

industry also is explained in the same way. Relative openness for other American companies and

Japanese electronic instrument and device producers prevent American electronic defence

system sector from early decaying process. But, soviet enterprises operating in closed economic

conditions and not stimulated for export operation and only appropriate to not very ultramodern

specifications of Ministry of Defence and aimed to produce goods are involved in technological

trajectory retiring from public needs as time passes and innovation processes in the

remaining part of the world [Castells M. 2000.p.457].

Administrative-command system couldn’t stand for a long time under conditions

beginning formation of market relations and a new periodical strengthening of competition

beginning in the last ten years of XX century. This system destroyed with the ―global wave‖. The

monopolization created by Administrative-command system was the big factor which prevented

transforming Azerbaijan to market relations and it’s integration into the global economy. This

non-compliance in this structure determined the depth of the crisis which is implemented by

Azerbaijan economy in 90s and currently stifling its development. Creation of conditions

for stable economic development in the XXI century implies gradually ―clearing‖ of economy

from artificial monopoly elements and neutralization of monopoly elements which are

impossible to remove objectively.

18