Syndicate examples of businesses. Modern syndicates in Russia. Difference from other forms of monopoly unions

05.03.2020

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Russia and USSR

In the RSFSR, the USSR, and other union republics, syndicates were created in the 1920s, during the New Economic Policy period, for the cooperative association of state trusts. Syndicates were engaged in the supply, marketing finished products, lending, foreign trade operations.

By the end of 1922, 80% of the trusted industry was syndicated, and by the beginning of 1928 there were 23 syndicates in the USSR, which operated in almost all industries, concentrating the bulk of wholesale trade. The board of syndicates was elected at a meeting of representatives of the trusts. The trusts had the freedom to determine the share of their supply and sales transferred to the syndicate. At the turn of 1920-1930, the leadership of the USSR headed for the liquidation of trusts in connection with the transition to a centralized public administration economy. As a result, the syndicates lost their significance and were abolished.

International syndicates

A classic example of an international syndicate of the 20th century was the group of companies "

The cartel is one of the methods of creating monopolistic structures on common features, such as: sphere of influence, pricing, use of a patent, method of production, terms of sale of products, the procedure for hiring workers or otherwise.

When asked what a cartel is, the definition given by Professor Igor Vladimirovich Lipsits in a textbook on economics gives the most clear explanation:

“A cartel is a method in which an agreement is concluded between manufacturers of a homogeneous product on the division of the market between them and the coordination of sales volumes by each of the participants in the agreement. In a cartel agreement, price levels and terms of sales to consumers that are the same for all its participants can be agreed upon. This method of monopoly overpricing is now widespread among trade enterprises».

At the same time, each of the parties to the agreement retains production and financial independence from the others.

Economic nature

A cartel agreement or collusion extends its effect, as a rule, within a certain industry. It is created with the aim of dominating the market and maximizing profits.

And although almost all over the world, cartel agreements are prohibited under antitrust laws, in some countries they are encouraged: they are considered to help restructure the industry, limit competition between small firms, and promote the standardization of materials and components.

However, in the encyclopedic dictionary of 1953 there is a statement that international cartels have a leading role in unleashing, as well as preparing the 2nd World War, during which they made huge profits.

It is noteworthy that the Austrian economist Friedrich August von Hayek is of the opinion that the problems of cartels and monopolies in modern economy does not exist. And thanks to inflated cartel prices, other market players create improved products and / or services in this industry. Vivid examples of this phenomenon: the development of online publications, mobile communications, road freight transport .

Difference from other forms of monopoly unions

Cartel - the most simple form monopoly entities. Its difference from more stable structures, see table 1

A bit of history: Tin conspiracy

A fact in history: the existence in the period from 1931 to 1946. Tin Cartel - an international monopoly association that controlled most of the tin mining of the capitalist countries.

A very interesting move was made in 1931 by members of the Tin Cartel in order to obtain super profits. It was based on a method called a corner and was invented by German merchants in the 16th century. And it consists in a secret agreement on the temporary withdrawal or purchase of a particular product in order to create a stir and cause price increases. The members of the aforementioned group played on this. They bought up huge amounts of tin, which caused shortages and price spikes. A year later, they sold their stock at a fabulous price. high prices, which allowed them to make superprofits.

This historical fact is very reminiscent of the recent boom in Russia with salt, a little later with buckwheat, when the prices for these products suddenly soared several times. Did the “buckwheat” and “salt” cartels organize the corner, or was there really a shortage of the above products? It remains only to guess.

Currently, the Pacific Cartel - Sinaloa - the largest Mexican drug cartel and other similar groups have become widely known.

Prohibition of agreements restricting competition

In Russia, the operation of cartels is subject to an unconditional ban, despite this, such groups exist. According to the Federal Antimonopoly Service (FAS), from 2010 to 2013, 1,057 agreements violating this prohibition were identified in Russia (see Fig. 1).

Cartel is an independent agreement between legal and commercial enterprises that agree among themselves on pricing policy and market division. Firms entering into such a legal agreement must be engaged in a similar type of activity and be sufficiently large in the market. Such an agreement does not deprive each enterprise of independence, but only requires the implementation of the norms and provisions stipulated in the agreement. All participants at the time of the transaction are in equal rights. This agreement, in most cases, is contractual in nature, due to antitrust policy. about various associations.

Examples of business associations in a cartel:
1) OPEC - the world Organization of Petroleum Exporting Countries;
2) The New Seven Sisters cartel, which includes leading oil companies, including Russian ones.

Syndicate is an association similar to a cartel, but the main difference is that this agreement limits the independence of the legal enterprises that joined, which before joining were free and sold their products to the market without asking anyone.

Examples of syndicate associations:"Provoloka" - the largest Russian association; De Beers (De Beers) - international corporation, which is engaged in the extraction, processing and sale of natural diamonds, as well as the production of synthetic diamonds for industrial purposes.

Pool- an association of legal entities, which is of a temporary nature. For example: participants agree among themselves that they will accumulate sales of products in order to create a shortage of products on the market, and, consequently, a subsequent increase in prices for manufactured products. As for the profit, it can go to the general account, and then be distributed in equal shares. Participants have complete freedom of action. Most often, such an association is temporary in order to achieve the goal.

Pool types:

1. Exchange pool;
2. Investment pool;
3. Patent pool;
4. Trading pool;
5. Insurance pool;
6. Reinsurance pool.

Pooling examples:"Absolut-Holding", "Flowers of Stavropol", Exchange Union.

Trust- association of various small or large enterprises, which previously belonged to their owners, merge into a single entity and form a single enterprise, losing their independence and autonomy. Such an association is beneficial to those enterprises that are connected with each other and produce auxiliary products.

Examples of combining trust: General Motors, Ford and other large companies.

Concern- this is the unification of companies into a single whole with the preservation of their legal entity. This is the main difference between a concern and a trust. Such an association has a general management, which is carried out by the parent company. Most often, these are industrial associations, which include enterprises of various industries, for the sale of any product.

Group examples: Gazprom; Daimler AG (Daimler), (formerly Daimler-Benz AG) is a German automotive concern. Germany's largest company in terms of turnover in 2006.

Holding associations (holding) is an association of organizations that includes a management company and subsidiaries. Management Company owns the main block of shares and shares of subsidiaries, it also controls subsidiaries.

Holding examples: JPMORGAN CHASE & CO is a bank holding company.strong

Syndicate – organizational form associations, distinctive feature which is the conclusion of an agreement between enterprises of the same industry to control the sale of products and the purchase of raw materials in order to obtain monopoly profits. The enterprises included in the syndicate retain their production and legal independence, but at the same time lose their commercial independence. Sales of products by all participants of the syndicate is carried out through a single body - the sales office. This achieves the sale of all homogeneous products at monopolistically high prices. The sales office accepts the products of enterprises at prices set in advance by the syndicate.

The functions of the sales office may also include the concentration of all orders with their subsequent distribution among the parties to the agreement in strict accordance with the established quotas. In addition, the syndicate may purchase raw materials for its members under a monopoly low prices. Thus, the concentration of trading operations allows syndicate participants to directly benefit from the purchase of raw materials at low prices and the sale of products at overpriced prices, as well as to dictate prices on the market, carry out commodity dumping, etc.

Syndicates are usually formed in the form joint-stock companies. Along with individual enterprises, individual trusts and concerns may be participants in the syndicate. The latter began to play a dominant role in syndicates in the later stages of their development, which was caused by the need to strengthen control over small and medium-sized enterprises in the domestic market, as well as to expand into foreign market. Syndicates enter into competition with firms producing similar products, with outsider enterprises. The relationship between the parties to the agreement is also competitive in nature, manifested, in particular, in the struggle for orders and quotas, which ultimately leads to the weakening of the syndicate and often to its collapse.

Syndicates were most widespread in Russia, Germany, France at the beginning of the 20th century. One of the first monopolistic associations in Russia was the sugar factory syndicate, formed in 1887. In the period 1900–1903. a number of major syndicates in heavy industry arose. In the USSR, during the NEP period, the syndicate was viewed as a voluntary union of state industrial trusts, based on an agreement between them.

In modern conditions, the syndicate as a form of monopolistic association of a single-industry profile is losing its significance, giving way to more complex and flexible forms - conglomerates, corporations, concerns.

TrustIt is generally accepted to consider the association of ownership and management of enterprises of one or several industries that completely lose their industrial and commercial independence. Trusts are usually formed in the form of a joint stock company. Entrepreneurs - owners of enterprises, joining the trust, become its shareholders, while their enterprises are subject to a single management.

The trust is headed by a board that manages the production, marketing of products, financial operations of all enterprises included in the association. Each member of the trust receives a certain block of shares in accordance with his share of the capital. Accordingly, he receives the right to participate in the affairs of the trust and to a certain share of the profits. A higher concentration of capital than in a cartel and a syndicate provides the trust with an increase in the level of competitiveness, and its participants with higher profits. However, the incompleteness of the process of centralization of capital in the trust is expressed in the distribution of the total profit in accordance with the equity participation of each member of the agreement, which prevents the creation of a single investment fund.

Trusts have varieties. According to the level of merger, trusts can be divided into associations of completely merged enterprises and into associations, the participants of which retain formal independence while actually subordinating to the head financial center - the holding company. Control over the enterprises included in the trust ensures the possession of a controlling stake or a special trust certificate. In addition, trusts can be formed from enterprises of one or different industries related to each other (vertical trust), representing a kind of combines. Combines have advantages over other types of associations. Firstly, the incomes of combines are more stable due to the combination of enterprises of various industries and the possibility of varying material, financial and other resources. Secondly, the possibility of creating technological chains for the production of finished products and reducing costs as a result of this leads to an increase in the profit of the association.

In the past, trusts in Russia became widespread in the sugar, metallurgical and some other branches of industry, and in construction. International trusts were also created. To restrict certain types of activities of trusts in the industrialized countries of the West, antitrust laws were introduced. Under the influence of antitrust legislation, the forms of monopolies have changed. Trusts were replaced by concerns, conglomerates and other, more advanced forms of associations. Under modern conditions, trusts have lost their significance as an organizational form of industrial management.