Page 7 - Azerbaijan State University of Economics
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THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.71, # 2, 2014, pp. 5-20
The periodic development analysis of monopoly and competition is important not only
due to academic view, but also justification of competitive policy’s role in general reconstruction
strategy of Azerbaijan economy. Understanding and consideration of this problem will enable
the increase of influence of government policy which directed to adaptation of Azerbaijan
economy to today’s dominating global tendencies.
The manufacture system in the middle ages had market structure with zero competition
opportunities. Recruiting new workers was extremely difficult and organizational production was
prohibited outside manufactures. Strong (tough) regulation of the product range, amount, quality and
price of goods produced by every master, salary, quality of labour instruments and means of pupils
and skilled assistants – all these are directed to elimination of competition among workshop members
[Kulisher I.I., 1986. p.73]. Regulation in order to eliminate competition led to empowering of
manufactures. Absence of competition caused smaller regulations for maintenance of quality.
However such measures had only little effect. It should be noted that wide spread ideas
about the high quality products made by middle age craftsmen is confronting with historical
facts. The monopoly of these craftsmen made great opportunity to decrease quality of goods,
even deceive and falsification without any punishment. For example, London baker theft dough
on the table with secret hole and help of a man sitting under the table in front of the eyes of
customers. Blacksmiths produced goods with low-quality iron which melt in the fire. Sheets
were tightened and then folded with certain ways to hide defects. Low quality leather tanned in
such way, that eternally it looked like high quality leather [ Rauscher. V. 1999. p.48 ]. From the
other side, suppression of competition as M.I.Tuqan Baranovski said, ―It caused not availability
of very rich craftsmen and extremely poor craftsmen‖ [Tugan-Baranovsky, M.I. 1994. p.68].
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