The market as an economic phenomenon has undergone several stages of its development before it appeared before us in its modern form. The market emerged as a meeting place for sellers and buyers in the era of primitive society, when communities began to exchange their surplus products, a surplus product. In today's understanding, the market is an integral system of economic relations between buyers and sellers, formed in connection with the formation of free prices, fluctuating depending on the dynamics of supply and demand. Market relations are based on economic freedom, which means free choice for buyers and sellers. Sellers determine how, how much and for whom to produce and where, at what price to sell the manufactured products. Consumers also have sovereignty, with freedom of choice in the market for goods and services. Each of the market participants in their actions during the exchange satisfies a personal interest, which differs between sellers and buyers. The buyer seeks to get the maximum utility from the purchased product, the seller - the maximum monetary income. In the course of the exchange, these different interests come to a certain compromise: a price is set at which the seller agrees to sell the product, and the buyer pays for it. As a result, there is a kind of accounting and public assessment of the goods being sold. If the exchange is constant and massive, such estimates are fairly stable. In large markets, prices for each product tend to level out quickly. As a result, the market operates on the basis of the exchange of equivalents. Goods and money counter movement and change their owners.

Market ties exist only on condition of free purchase and sale of goods and services. If this requirement is violated in any form, market relations are oppressed by administrative interference in the economic sphere. This can happen with the administrative distribution of goods or production resources, territorial restrictions on trade, undermining the mechanism of competition.

In the process of trade exchange, the interaction of sellers and buyers takes place, on the basis of which the volumes and structures of production are then adjusted. These changes will entail a new proportionality in the distribution of income. And this, in turn, determines the newly formed volume and structure of effective demand and consumption dependent on it. as a result, a new interaction between sellers and buyers arises about the value of market prices acceptable to both parties and the volume of goods and services sold. The results of this process affect all other phases of the reproduction cycle: production, distribution and consumption. A product that does not find a buyer ceases to be produced, and one that is in short supply, at a higher market price, will be produced in a larger volume. This means that the economy, which changes its parameters depending on the results of commodity-money exchange, constantly adjusts its proportions, thereby realizing self-regulation.

Very often, a market is understood as a broader concept - a market economy or a market system. It is a self-regulating decentralized system of interconnection of economic processes, oriented in its development on the results of commodity exchange. In a market economy, output, prices and income levels are not set centrally, but on the basis of a voluntary agreement between buyers and sellers. Feedbacks emanating from consumers, depending on their choice of the goods they have purchased, become an indicator of socially necessary proportionality. It is the feedbacks with their new parameters in the market economy that cause the subsequent adaptation of production to social needs and determine the specifics of the new structure of production. The absence or weakening of the feedback mechanism becomes a signal of oppression of the market economy, its replacement by an administrative system, which is fraught with suppression of material interest among producers, the emergence and expansion of commodity shortages.

The market is not created for one day. This form of business organization has been formed over the centuries and has proven its effectiveness, therefore, it must exist and develop in the future. For this, it is necessary now to create conditions that will serve as the basis for the normal functioning and development of the market economy.

The transition to market relations is a difficult process that has taken place in many countries. Mankind has accumulated a certain experience, revealed the laws of the formation of the market, which must be used in our country. There are many conditions for the normal functioning of the market, but three of them can be distinguished. In order for the market to start functioning as an independent full-fledged system, it is necessary to have various forms of ownership, to have a reserve of factors of production and to create a market infrastructure.

The main conditions for the transition to the market are changes in property relations, the creation of a variety of forms of ownership. Any form of ownership that stimulates entrepreneurship, competition and further development of market relations should have a right to exist.

The practice of market relations has convincingly shown that in modern conditions the most effective is joint-stock form of ownership. This is due to the following factors.

  • 1. Joint-stock ownership through the sale of shares quickly mobilizes significant capital and contributes to maintaining the proportion between supply and demand. Remember the mechanism of the market: prices are its main driving force and main indicator. If demand outstrips supply, then the flails grow and it is necessary to expand production. The rise in prices and, accordingly, the increase in the rate of return attract additional capital to this industry. The issued shares immediately find their buyer, and additional capital is poured into production, which is used for expansion.
  • 2. Equity capital democratizes the economy. The problems that we have been trying to solve since 1986 - the problems of democratizing production and management - will receive new opportunities for their solution. By owning shares of his enterprise, any employee is interested in improving production efficiency and increasing profits. He will participate in the search for development reserves and in the optimization of management. In industrialized countries, the majority of workers in each enterprise own its shares and receive some part of the income in the form of dividends, and this part is constantly increasing.
  • 3. Share ownership stimulates the development of production diversification. Diversification - this is a form of cooperation that involves investing capital in any industry. For example, any large company can afford (and it does) invest the profits not only in its own production, but also in the construction of sports facilities, the purchase of hotels and restaurants, in the maintenance of gas stations, in the production of footwear and medical equipment, confectionery and metal cutting machines - in a word, where you can get additional profit. What does it do? A lot: for a firm - income stability (if things are going badly in one industry, profit in another will help correct the overall picture), for production - additional capital from other industries, for the market - an increase in its density (i.e. mass and assortment of goods) ...

The listed factors show that shareholding is the most rational for the development of the modern market. But in order to create a joint-stock company, shareholders are needed, i.e. people buying shares in private ownership. Therefore, private property serves as a prerequisite, as it were, the initial form of creating a joint-stock property. In our country, it was necessary to start with private property: to restore its right to exist, the right to have any factor of production for every person.

This problem is inextricably linked with another: denationalization of the economy, denationalization, privatization. These three concepts are often identified with each other in our periodicals. In reality, these are different phenomena, and you need to clearly understand the differences between them.

Denationalization means a reduction in the share of the public sector in the economy. This can be achieved not only by denationalization or privatization. Let us assume that the share of the public sector is 90%, and the rest is produced by cooperatives, collective farms and individual, private enterprises. If next year the share of cooperatives, collective farms and private entrepreneurs increases, then the public sector will account for 85%, then 80%, etc. That is, the process of denationalization begins. This process can be stimulated through the tax system, investment policy, improvement of business law.

Denationalization - sale of enterprises and their shares previously nationalized by the state to private companies, joint-stock companies, etc.

In order for denationalization to take place effectively, a number of conditions must be met.

  • 1. Clearly define subject of ownership. Untimely solution of this problem in our country has led to the fact that enterprises, real estate belonging to the people, for a pittance passed into the hands of former party apparatchiks and workers of executive committees of different levels. The organized State Property Fund somewhat defused the situation, although it did not solve the problem. The experience of countries with market economies (which in recent years have denationalized a lot of state property) shows that the most rational organization of this type are holdings, which are best created at the level of individual regions. They should, on the basis of expert assessments, determine the selling prices of enterprises, act as holders (custodians) of shares of each enterprise and sell them when a decision is made to sell them.
  • 2. Legally establish mechanism for distributing shares of denationalized enterprises. In all developed countries, in this case, a share is allocated, which is necessarily sold to a certain group of potential buyers: employees of a given enterprise (and at prices significantly below par), foreign firms, national firms, residents and financial institutions of the country. In this case, the process of democratization of production continues, foreign capital is attracted, and therefore technology, the process of diversification and attraction of free money capital is developing.

The result of denationalization is expressed in demonopolization of the economy, democratization of property relations, obtaining an anti-inflationary effect, and it arises in two directions:

  • o the burden on the budget is weakened, since the sold enterprises are removed from budget financing and subsidies;
  • o free cash is withdrawn from circulation through the sale of shares.

The corporatization process in our country has shown the shortcomings that need to be worked on in order to obtain the maximum socio-economic effect. The mechanism for distributing funds received from corporatization was not fully thought out (they mainly go to state funds for solving social problems). Of course, this is important, especially in the conditions in which the country was in the 1990s, and it is clear that the state did not have enough funds to provide social assistance to the population and pay pensions.

At the same time, we must not forget about the other side of the problem. The fact is that corporatized industrial enterprises require radical reconstruction. They will not be able to profitably work on the worn-out, obsolete equipment available, and even more so, they will not be able to re-equip production for the production of products required by the market. This means that they are doomed to bankruptcy. The consequences of this should also be clear: the cessation of production, a new group of unemployed who need to be supported and employed, not to mention the fact that there will be no budget receipts from such an enterprise.

Another problem is related to the subjects of joint-stock ownership. During the corporatization, it was assumed that labor collectives would become the main owners of the enterprises. But in accordance with the rules of corporatization, only the collectives of those enterprises that were corporatized according to the second option could become the real owners of production. In this case, the collective would receive 51% of the shares. However, under this option, the collective does not receive any benefits, on the contrary, the conditions for corporatization are very strict. In order to buy out such a package, each member of the team was required to pay a significant amount (this was especially true for large enterprises).

Considering the conditions in which the people lived, when the savings accumulated over many years, stored in the Savings Bank, practically disappeared, prices were constantly growing and all the wages received practically went to current consumption, it was very difficult to do this. The workers simply did not have the money needed to buy out the shares. As a result, the shares not redeemed by the collective were transferred to the disposal of the State Property Fund and were put up for auction, where they could be bought by representatives of that small segment of the population who were able, using their official position and state property, to put together private capital. As a result, the collectives ceased to be the masters of their production.

Thus, the process of corporatization gave rise to new socio-economic problems that had to be urgently addressed.

Under privatization as one of the forms of denationalization is understood the purchase of state property by individual individuals. As practice has shown, such privatization is possible in our country mainly in the sphere of trade and services.

The second condition for the formation of the market is creation of reserves of factors of production. It is possible to develop and realize the advantages of the market mechanism only when society has reserves of means of production and labor, since in order to restore the equilibrium of supply and demand in conditions of rising prices, not only additional capital is needed for investments in production, but also additional factors of production that can be buy with invested capital.

The question of the means of production is easier to solve: in practice, there are three ways to solve the problem:

  • 1) buy additional means of production;
  • 2) increase the capacity of the production base through the introduction of new technologies;
  • 3) create a reserve of means of production at enterprises.

The first way is associated with additional costs of time, since the equipment needs to be ordered, purchased, installed, sometimes it is necessary to build new premises, and most importantly, the equipment is bought that is currently in the markets and, as a rule, is the same as the existing one. and this reproduces the old structure of production. Therefore, it is more efficient to carry out various combinations of the last two ways: the modernization of technological processes and the use of reserve capacities. Usually such reserves in the form of installed, but temporarily inoperative equipment are available at every enterprise.

The problem of the labor force reserve is being solved much more difficult. Here we are talking not only about people additionally involved in production, but also about unemployment. Everyone admits that unemployment is a negative phenomenon in a market economy, but it is also an objective necessity. It must be borne in mind that in modern conditions unemployment is not the one that Marx wrote about a century and a half ago. A new factor of unemployment appears - increased labor force mobility: people are looking for a more profitable place of work, change their specialty, undergo retraining, etc. This is the so-called transitional, or frictional, form of unemployment associated with the demographic situation, with the location of productive forces, with a person's search for opportunities for self-expression and solutions to their economic problems. There is also structural unemployment in developed countries. It arises with major structural changes in the national economy. Since a change in the structure of our economy is objectively necessary, we will also have this form of unemployment.

In any case, all forms of unemployment are an additional source of labor for functioning enterprises in the expansion of production. And it must be borne in mind that a market economy cannot provide 100% employment, and this is not necessary. A constant reserve of labor is needed in the form of unemployment. However, this does not mean that everyone will have a place in the reserve army of labor. As a rule, only certain categories of employed people are at risk of becoming unemployed. First of all, these are unscrupulous, unskilled workers, workers of outdated professions without experience, etc. At the same time, if a conscientious qualified worker finds himself out of work, then it is for a very short time. As a rule, he will always be able to find a job for himself, but he will choose the terms of employment. All these moments relate to a normally functioning market economy, but during the period of its formation, the problem of unemployment is sharply exacerbated, since the transition to a new type of economy is always accompanied by a decline in production.

The third condition for the creation of a market and its normal functioning is the presence of a market infrastructure. We have only separate elements of this area that also need reconstruction. In fact, the infrastructure in Russia needs to be rebuilt.

For the market of goods and services, we have only retail trade, but the chain of stores is clearly insufficient, their structure, quantity, specialization and quality of service are far from ideal. Even the emerging network of private stores does not solve the problem, because the goals of their creation and functioning are one-sided, and the working conditions do not stimulate competition. The structure of the wholesale trade is in its infancy, it is mainly conducted by the former structures of the Gossnab, modified into commercial firms, partly by the manufacturers themselves and small private firms. Trade is conducted directly from factories or bases; wholesale stores are still missing.

For the normal functioning of a market economy, a system is very important commodity exchanges. Their main task is to streamline the market for raw materials and other goods. Exchange trading provides the possibility that at the current prices there will be no deficit or overstocking, i.e. it serves as a regulating link between the producer and the consumer.

In Russia, a certain amount of work has been done to create commodity exchanges - specialized, regional, universal. They practically all began to function, but unlike commodity exchanges in a developed market economy, they sold only the goods that they had in stock.

Actually modern commodity exchange - this is a market for contracts for the supply of products in the future period with relatively small volumes of real sales. The economic role of the exchange is that it contributes to the stabilization of prices, the instruments of which are the mechanism of functioning of the exchange and the well-established rules of exchange trading. One of the basic rules is the transparency of the deal. Sellers announce the quantity of offered goods for delivery, terms of delivery and prices. After an agreement has been reached with the buyer, the main provisions of the concluded contract are recorded on stands specially installed in the halls.

On each exchange, prices are publicly set at the beginning and end of the day, and there are certain rules that limit price fluctuations within one day. The exchange constantly collects and processes information about possible suppliers of goods, about the needs of consumers for them, makes forecasts about future needs and prices. In addition to the fact that the exchange monitors the quality of the sold lots of goods and, at the same time with the manufacturer-supplier, is responsible for violation of the terms of the contract, it develops standards for goods, registers the trademarks of firms admitted to participate in exchange trading. Domestic exchanges practically did not perform these functions and, in fact, were wholesale stores selling certain types of raw materials. That is why most of them did not last long.

The market cannot exist without determining future needs, demand for certain types of goods, since in modern conditions this would lead to significant losses and even raise the question of the legitimacy of the existence of individual firms. Such work is carried out by specialized organizations and divisions within firms that perform marketing functions.

The most general definition marketing, found in the economic literature, characterizes it as foresight, the management of demand for goods, services, labor, territories and ideas through exchange. From the standpoint of a firm or enterprise, marketing can be defined as a complex system of organization and management of production, commercial and sales activities, focused on the satisfaction of specific consumers and certain groups of buyers. It reflects one of the main principles of marketing - the targeting of production, i.e. production of products for a specific consumer, defined in advance.

The supreme goal of modern marketing is not just satisfaction of the specific needs of the buyer, but a comprehensive solution to his problems based on the analysis of sufficiently accurate information about the most significant aspects of the consumer's activities, his goals, achievements and intentions. We are talking not only about products, but also about a system of interrelated products and services, the production of which the manufacturer focuses on.

The creation of market relations in the country requires the development of its own marketing concepts. For industrial enterprises, this has been necessary for a long time. So far, enterprises have been working almost blindly, only thanks to the previously established economic ties. But even these ties were gradually destroyed due to the prices for their products monopolistically inflated by suppliers, their conversion to the production of goods that are more profitable at the moment. Obviously, this practice could not lead to an increase in production and sales.

The state, in our opinion, should take upon itself the strategic management of the industrial complex and in no case should it withdraw itself from this under the pretext of corporatisation of enterprises. It would be more correct to fight monopolization by creating favorable economic conditions for the development of private business and for long-term foreign investment. In this case, strong, capable competitors will appear on the Russian market.

Labor market presupposes the existence of a labor exchange, which should keep records of vacant jobs, the number and structure of the unemployed, help them in finding work, pay benefits, provide retraining of personnel in accordance with the demand for labor, and organize public works.

Capital market requires the creation of stock and currency exchanges. In fact, work in this direction in our country is just beginning.

In addition to private infrastructure appropriate for a specific type of market, it is necessary to create general purpose infrastructure. We are talking about the creation of credit, banking, monetary systems capable of ensuring the normal functioning of the market. Without this, not a single market will be able to work, and, in addition, this infrastructure, while not being a product of the market itself, at the same time ensures its unity, integrity on a national scale and in relations with other countries. The functions of creating such an infrastructure and maintaining it can only be performed by the state.

Simultaneously with the creation of the conditions for the functioning of the market, which we spoke about above, it is necessary to consider a whole range of problems, without the solution of which the market cannot exist.

One of the main problems is demonopolization of the economy. Monopoly comes in various forms. A typical type of monopoly is a manufacturer's monopoly. From the first years of Soviet power, giant enterprises began to be built in our country, which initially became the only manufacturers of a certain type of product, i.e. created monopolies. The consequences of this are known: rising prices, lowering product quality, curbing scientific and technological progress. In addition, failures in the work of such monopoly enterprises inevitably lead to failures in related industries and to disruptions in the functioning of the national economy as a whole.

In addition to this form, our economy was characterized by the presence of peculiar monopolies: the monopoly of state property and the monopoly of distribution. When starting the fight against monopolies, one rule must be kept in mind: a monopolized economy can only be controlled by administrative methods. Therefore, if you destroy the administrative system completely before eradicating monopolies, then this can make the economy unmanageable. We are witnessing separate facts of such a phenomenon now. Therefore, the fight against monopolies, i.e. demonopolization should be carried out through the creation of effective, consistent laws on competition, entrepreneurship, etc. Such documents should put monopoly outside the law. They should reflect that if enterprises are caught, for example, in price collusion or division of spheres of influence, if monopoly tendencies appear in the market (your products make up 90% of the market, prices do not change, quality does not improve, etc.), then you can be brought to trial.

It is not enough just to create laws, you need to have organizations and institutions that implement them and are responsible for their implementation. We are only adopting laws on economics, but their implementation is often left to take its course. In developed countries, the functions of implementing legislative acts are assigned to line ministries.

All of the above measures should be carried out within the framework of the developed antimonopoly policy. First of all, it is necessary to highlight the object of demonopolization. In any economy, there can be so-called natural monopolies (for example, a unified railway network, gas pipelines, a unified energy system, etc.). This is a field of activity, the transfer of which to market relations, due to a number of technical and economic properties of production, can lead to a decrease in the efficiency of its functioning.

During the transition to the market, it is necessary to fight against the mafia and corruption, with new forms of existence of the shadow economy, which is based on the concealment of income from taxation and on falsification of the trade mark.

It is possible to develop a market economy only on condition of developed contacts with the world market, with other countries. The ways of development of foreign economic relations can be different: foreign trade; creation of joint ventures and free economic zones; attracting foreign capital; development of currency relations. But all these processes are limited to the problems that need to be solved: this is the convertibility of the ruble and state guarantees, compliance with the norms of international economic law.

Since the market does not deal with the problems of ensuring the socio-economic rights of the population, the state during the transition to the market must create a system of social guarantees for the population. It should act not only during the transition to a market, but also in a developed market economy.

Considering the problem of the formation and development of the market, one must constantly keep in mind that the market itself is a form of organization of production and its connections. It can be used for a variety of social purposes. Depending on the choice of goals, the mechanism of a market economy, and, consequently, the type of market may be different.

There are elements in the mechanism of functioning of a market economy that make it possible to realize any social goals. The point is that the market is not yet a market economy. Under market economy the market is understood in unity with the economic functions of the state, with state regulation of the economy. The state can intervene in the processes of income redistribution and consumption. Its interference in such processes in all countries is increasing, which is associated with the strengthening of the social orientation of national economies. This must be foreseen in advance in the economic mechanism that is being created in Russia in order to be able to realize the social goals of the country's development.

Personalized property, when a commodity producer is the owner of the means of production and freely disposes of the results of his labor

Freedom of production and commercial activity of all participants in social production

The ability of manufacturers and managers to integrate into market relations in an organized and psychologically correct way

Well-established system of credit and financial relations

Rice. 54 Conditions for the normal functioning of the market

The presence of independent producers, freedom of entrepreneurial activity and guarantees of property rights of various economic entities

Free market prices balancing supply and demand

Competition of commodity producers

Free flow of capital between industries and regions

Formation of the financial market, including the credit market, the securities market and the foreign exchange market

Availability of a labor market, hired labor with a developed system of its training, retraining, intersectoral and interregional overflow

Openness of the economy to global integration processes, the possibility of migration of labor, goods and capital

Rice. 55 General laws of the formation of a market economy

7. Transitional economy: essence, features, development trends. The role of the state in a transitional economy

Types of indirect government intervention in the economy

Rice. 56 Indirect government intervention in the economy

Microeconomics

1. The theory of supply and demand

Rice. 57 Individual demand curve

The curve of individual demand is presented in the form of a descending DD curve, since there is an inverse relationship between the price and the amount of demand.

Changes in demand

Rice. 58 Changes in demand

A change in one or more determinants of demand causes a change in demand. An increase in demand shifts the demand curve to the right, for example from D I to D 2. A decrease in demand shifts the demand curve to the left, for example from D 1 to D 3. A change in the amount of demand leads to a movement caused by a change in the price of a given product, from one point to another on a constant demand curve, in our graph - from a to b.

Amount of supply

Rice. 59 Custom offer curve

The direct relationship between the value of the supply and the price of a product can be depicted graphically: this is expressed in the upward direction of the supply curve.

On the graph, the individual supply curve is represented as an ascending SS curve, since there is a direct relationship between the amount of supply and the price: according to the law of supply, manufacturers produce more product if the price for it rises.

Changes to the offer

Rice. 60 Changes to the offer

Increasing supply shifts the supply curve to the right, from S 1 to S 2. Decreasing the supply shifts the supply curve to the left, from S 1 to S 3. Moving from a to b means a change in the amount of supply.

Changes in supply and demand

Rice. 61 Changes in supply and demand and their impact on the price and quantity of a product: a - an increase in demand; b - decrease in demand; c - an increase in supply; d - decrease in supply

Factors influencing supply and demand

The main factor influencing the demand is the price

The main factor influencing the offer is the price

Resource prices

Changes in technology and technology

Taxes and subsidies

Number of manufacturers

Expectations of price changes

R

Prices for related products

is. 62 Factors Affecting Supply and Demand

Non-price supply factors

Resource prices

Improvement of engineering and technology

Taxation level

Prices for related products

Manufacturers' expectation of price changes in the market

Rice. 63 Non-price supply factors

Factors affecting demand

Consumer income

Consumer preferences and tastes

Prices for related products

Number of consumers

Consumer expectations

Rice. 64 Non-price factors of demand

Equilibrium price and quantity of the product

Rice. 65 The equilibrium price and quantity of a product are determined by market supply and demand.

Ceiling prices

Rice. 66 Price ceilings lead to persistent shortages

The state can set a price ceiling (upper) and a lower price level. The price cap is the statutory maximum price that a seller is allowed to charge for their product or service.

Low price level

Rice. 67 Setting a lower price level results in a sustained oversupply

The existence of a lower price level, for example Pf, leads to the formation of a stable surplus of production, the value of which is measured by the segment OdOs. The government must either buy this surplus or take action to eliminate it by limiting supply or increasing demand for the product.