Page 8 - Azerbaijan State University of Economics

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

Description of middle age welfare represents some characteristics of daily economic life

of Soviet society. Such level of similarity creates possible historical repetition thought on

development of monopoly structures forming in economical environments (economical

environments in the middle age cities and soviet society) which qualitatively different and

distant from each other. A question is rising in this situation: Are there any similarity in

development of competition relations between different historical periods which separated from

each other hundred years, too? In order to answer this question let’s follow the destruction of

manufacture monopoly and its transforming to free competition.

The monopoly power of manufactures over the local markets is based on the

unchangeable nature and static character of these markets. Only manufacture production could

cope with the payment of public needs problem under such conditions. Manufacture production

started to lose monopoly position since XVII century in which markets eventually began to grow

and structure of needs changed. Such extremely accelerated historical process with the help of

industrial revolution that allowed free competition to go on work.

This process allowed strengthening of competition, creation of national states and

the establishment of single national markets in Western Europe. Manufacture production

organized as conservative and monopoly hadn’t enough power to meet the growing needs of

national states and national markets. The states distributed the production of new sectors:

silk and cotton cloth, textile products, carpets, porcelain and etc. surely, these productions are not

in the area of influence of manufactures. Relatively big manufactures were established in

England, France and in some other countries with the assistance of state power. Manufacture

production was serious rival for workshop art.

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