Third, those natural associations of the word "market", which occur in each of us in one way or another, are connected with the collective farm market, i.e. with market forms that existed in the Soviet economy. But these analogies are very far from real civilization of the modern market and, hence, give rise to a distorted view of true market economy.
The terms "market" and "market economy" in our country are usually treated only as an exchange of commodities and commodity-money relations, in other words, as trade, exchange, but such representation is primitive.
The market is a whole system of diverse economic relations between people, resulting in the production, distribution, exchange and consumption, based on certain principles, the main among which is freedom of economic activity.
The main property of market-oriented economy is to promote market relations in all economic spheres, their penetration into all sectors, and coverage of all regions of the country. This property can be called the universality of market relations.
3.2 Ownership in transition economies
Transformation of ownership - from monopoly to pluralism forms
Changes in property relations have become mainstays of economic reforms in the former Soviet republics. In the theoretical plan transformation of the property required to address: to what level the proportion of state ownership should decrease, at what pace and what way it goes lower, to whom public ownership should transit.
In Kazakhstan and other CIS countries embarked on the transition to a system, combining private (individual and group), public and mixed ownership of the means of production. This is logical interfaces with the course of the transition to the market. Since the market supposes freedom of industrial and commercial activities, competition between manufacturers, then domination of any one form of ownership must be overcome. It should be replaced by complementing each other various forms of ownership, each of which would be best adapted to the specific field of economy, to economic activity.
State property in the transition
The peculiarity of the relations between subjects and objects of ownership at the state level are due to the following circumstances:
• The results of the management of state property affect the fate of many people, determining their standard of living, social security, health, intellectual development, security and many other recognized human values;
• state property are distinguished by great variety of institutional and legal diversity, covers a wide range of national economy sectors and are intended for use in a variety of directions;
• The implementation of State's right to property objects is achieved through the system of state property management, which is a three-tier hierarchical structure. Public ownership is likely to retain its relevance and function of the foundation of the entire economic chain. Privatization process, leading to the expansion of individual and group ownership, does not mean that state ownership will be fully uninstalled. There are sectors of the economy, which are inappropriate for division on elements.
This applies primarily to large, the most important system operating in the interests of the entire state. Obviously, in Kazakhstan energy, transportation and some other industries should remain in state property. This should include the material resources of science, especially fundamental science.
The recommendations of various authors are that the share of state property should be 50-30% of fixed production assets.
Still for a long time ahead the public sector will have a significant position in the national economy and the sector requires adequate system of control over it. Apparently, all state enterprises can be divided into two categories: the first is under the direct control of the state, the second is on full commercial grounds.
An important issue in the development of state property is to overcome monopoly characteristic of the administrative-command system. By the end of 1990 in the engineering industry of the former Soviet Union the share of monopolized production reached 72%. With the transformation of the former republics into independent states monopoly was further complicated as many copying enterprises were on different sides of the new states boundaries.
It is clear that de-monopolization of production, based on state property is a long and complicated process. Partly overcoming of the monopoly can be done by downsizing, mechanical section on their part. For the construction of new copying enterprises, it would require too much money, which is currently not available for our country.
It can be assumed that breaking monopolies will go through diversification of production at existing plants, which are in power to use spare capacity (or expand existing) for the production of scarce goods.
In overcoming the monopoly, the use of Western countries experience can play a positive role. Many of them are antitrust laws. In particular, in the United States in 1890 Clayton Act, prohibiting horizontal merger of companies, if it could destroy the competition was adopted by the Sherman Act ("charter of economic freedom"), in 1914. -. Law Zeller-Kefovera (1950) extended this prohibition on a vertical merger. For violation of antitrust laws legal responsibility is provided (a fine of up to 100 thousand dollars from executive officers and imprisonment of up to 3 years). Court may make the monopoly compensate for damages in triple size the amount for a company that has suffered from monopoly.
In some Western countries there are administrative bans on a high degree of monopolization. In the U.S. monopoly reaching 90% of the market has a compulsory division of the company into parts, if reaching 60% and higher the monopoly is placed under state control. In Germany, one entrepreneur can own no more than 30% of the market of products, 2-3 firms can own no more than 50%, 4-5 can own no more than 70%. The upper bracket for a single firm in the UK is set at 20% of the market, and in Norway and India at 25%.
Nevertheless, one of the major theoretical and practical problems was the deregulation, the definition and use of the most efficient ways, models of privatization. Privatization is the transfer of state property into the hands of individual citizens, labor groups, entities, or the emergence of state-owned enterprises on the basis of various mixed forms of ownership. After the privatization the subjects of property become a private citizen, an employee of privatized enterprises, the labor collective, joint stock companies, holding companies, etc. The objects of privatization may be trade and services enterprise, housing, small, medium and large enterprises of industry and agriculture.
World practice has gained some experience in privatization. In countries where the process of nationalization took relatively large scale (the UK, France), privatization took place, for example, in the UK through: sales and free distribution of shares, contract for services, sale of public housing tenants; waiver from the state monopoly in order to promote competition. This process is lengthy. In Western Europe it lasted 10-15 years. Privatization was preceded by a lot of painstaking work. The basic directions: free transfer of property, the redemption of enterprises on preferential terms, the sale of shares, delivery companies in the rental, sale of small businesses at auctions, etc.
The objectives of privatization are associated with an increased efficiency of economic activities through market development and the formation of a layer of private owners, entrepreneurs, encouraging employers to increase the efficiency of enterprises, expansion of individual liberties and creating a competitive environment, attracting foreign investment, promotion of the economy’s democratization.
Privatization is aimed at social protection and development of social infrastructure by means of privatization.
The process of privatization in Kazakhstan started before the concept of privatization formed, and the concept of private property was recognized officially. As a result, there is a peculiar privatization of public financial resources. Change of ownership does not lead to effective management. In the economy the rule of natural monopolies firmly established, economic and financial crisis deepened. In this regard, the following actions are needed, which were previously used in other countries:
• a differentiated approach to privatization of large state facilities to establish an economic structure with a reasonable balance of small, medium and large enterprises, with a reasonable degree of competition between enterprises in different industries and with adequate participation of foreign investors;
• variety of ways to transfer public property into private hands, providing short-term loans with the guarantee of state enterprises whose activities are under qualified supervision, to finance the salaries and obligations to vendors, etc.
CONCLUSION
Property as an economic relationship began at the dawn of the human society. All the important forms of non-economic and economic compulsion to work hold on the monopolization of various property objects. Economic compulsion to work is based on the ownership of the conditions of production or ownership of capital. The social thought has always paid great attention to the issue of ownership. Special treatment to it can be found in history, philosophy and literature. Rich tradition and the material has been accumulated in the legal literature, in frames of which a number of directions in the study of property rights has established.
The property belongs to such concepts around which for centuries best minds of mankind have been crossed. In the socio-economic literature there is the widespread definition of property as the appropriation by an individual or group of production products within and through specific social form, or as a very social form itself through which the assignment takes place. Forms of property are different combinations of characteristics (powers). I have considered them, beginning from the simplest to the most complex.
As a result of my work, I have considered such an important issue as: privatization, exploring it in stages, and also used the experience of foreign countries. It can be concluded that privatization in Kazakhstan was carried out in a radical version of the character, scale, pace, timing and methods.
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