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Monday, March 19, 2018

Monopoly on the flight

I’ll start with one of recent history: just in time for the successful landing of the rocket Elon musk, the government rejected a bill on my private space. Musk, remember, is a businessman, on their own developing space program. He did what nobody has managed not only to introduce electric cars, what caused the shock to the world oil market, but also created competition in the market of space launches.

In fact, he showed that the state in the long run will always lose to private initiatives. Can be used once to pull their socks up, drive to the sharashka scientists, incredible exertion to go into space, but then the industry will cease to be effective: how many years of Russia develops and lays, and lays, is developing a new rocket “Angara”?

An inefficient entrepreneur can not be. He or bankrupt, or will succeed, and with it — all of us, because the prices for services will be lower. Actually, that’s why I proposed to allow in Russia, about the same, which makes the Musk in the United States. Designing satellites, to provide “space” of communications services and navigation: the market is large, but is monopolized by the state.

It turned out — impossible. Because if suddenly the private company will become effective (that is, create competition for our floppy Hostmonster with all its research institutes, bribery, nonpayment of salaries for the construction of the spaceport, and so on) — so, if a private company becomes effective, then, according to the government, the government will lose money. Contracts will go not to him but to the owner. And what a private owner will move the industry forward, it will be a stimulus to moving the state and that he finally will have to pay taxes — that our government has not taken into account. Let the Americans learn the space, but we all keep under state control.

Actually, this story is a reason to talk about the global state of the Russian approach to business as a monopoly.

Let’s see how many monopolies around us: those areas where we cannot choose an alternative service provider. Take, for Railways — a monopoly, arbitrarily designating and canceling trains, inexplicable establishing the price of admission and explaining that the reserved seats will remain forever, because it asked the passengers. So as the Railways tried to, but can not put them in a compartment — strange people the mysterious Russian soul! But there would be competition and coupe, maybe, have fallen in price to the reserved seat.

Don’t be in Russia only one firm — a rail carrier, there would not be these problems. Upon the competition of the Railways would be removed from the train, and some zhdr urgently would use the resulting “window” and put his. And Vice versa: for CFR would increase the price of the tickets, and the Railways maintained at the same level — because I would like to fight for the client (the same, of course, applies to freight transport that affect the prices in the stores). But on our Railways sits a monopoly, and no one can explain why he’s needed.

The answer, of course, there is still the same, what with the space. If you let in transportation over to a private business, then how will it be with this food officials, why do they then need? The country is sick of the bureaucracy, and she did not give her to heal.

But once power, to turn — and business flourishes, why well become first of all citizens: to take at least the cellular companies, which the government at the time, just flip-flopped, not understanding, what are the prospects open. And here we have some of the lowest tariffs on connection in the world, the developed network, the ease of use. Of course, global players in this market are not many, enough fingers of one hand, but they are forced to compete, to cut prices, introduce new services. If one introduces 4G network, the other the blood from his nose, and tries to do the same: I think the examples you’ll find without me.

And it is the struggle of monopolies with competition — because the story not only of today. In the Russian Empire of any state monopolies on Railways out of the question, and these roads were built much faster than in the USSR. Try the train journey from Moscow to Ivanovo Vologda or you will go on private railway, which appeared more than a hundred years ago. Came quickly, with the money merchants for whom it was profitable. And that’s the key word: for the state no good things — because it will last and so, by itself, creaking and groaned, until you reach very much to a pitiful state when either reform or collapse.

The business can not, it “lifetime” is much less. Not out, not guessed — ran out of money, disappeared. Therefore, business is always more efficient and survive as Darwin, the strongest. To our General satisfaction: more choice, lower prices.

Examples of Russian monopolies can be multiplied and multiplied. Here is the same oil. Technically, it would seem that oil companies in the country a lot, all they would have to compete with each other — but it is somehow not very noticeable. Easy to understand: their main income they receive on foreign markets. And there for a long time all oil was sold via a single trader — the strange firm Gunvor. That is, roughly speaking, the oil flowed to “bottle neck” on the border, where no competition was no more. So while in the US have developed the technology of shale fuel, we prefer to rest on our laurels and laugh at these “unscientific science fiction”. And now, when the coveted barrel does not reach $ 50, it becomes not funny — but it’s too late.

But some very specific people have benefited from an artificially created monopoly.

However, do not think that the example of Russia is unique: we are not the first, not we last, who comes on the same rake monopolies — and more precisely, of state monopolies. A classic example here: Spain early XVII century, on the decline of his such still, it would seem, durable power. But the historic race she has already lost England. It develops private business (albeit with a pirate tone), and in Spain — all under the control of the absolute monarch, who thinks of his heavy stone of the Escorial he can control the whole world. Wrong, as wrong all the rulers, do not trust the business and putting everything under control.

Don’t want to think that Russia will suffer the same fate, but so far we have not been too successful to deny the laws of history. Those areas which have a monopoly — whether, for example, energy or transport — rapidly fall apart.

Conversely, if the state, at least temporarily loosens his grip, then the industry grow as it happened with the Internet: from Yandex to Vkontakte. If only the authorities did not seek to make up once missed to regulate everything and put under control. In any case, before the state began to try to “manage” the Internet, it has evolved in Russia is much more effective.

Yes, however, what far to go: the article you read in a private newspaper and the state can be hard to pick up. The same can be said about other media: under the control of the state they are rapidly degraded. Why compete with each other to become better, if money is not obtained from the viewer and from the official? According to this principle, lives not only TV, but any state monopoly, which has no purpose to attract clients. As mentioned Zhvanetsky, if my apartment has one window, it will have the highest rating.

And here is the last thing to say. A state monopoly exists not only in the economy. First of all, monopolized politics. Illusory four parties in the Duma — actually, one. Illusory three branches of government, too, has grown together — knotted, but the Executive. And when your rights are violated, when squeeze the business, demolish the house, build the street, fired from their jobs or give birth to it — to go for protection. Monopoly power does not exist for the citizens and for the government itself. She’s actually still one, the other is not, so what’s the point of trying to be effective?

To a large extent why the state with such fury destroys non-profit organizations, polls declaring them “foreign agents”. View at leisure the list of the Ministry of justice — anybody out there. From “Women of Eurasia” to the ecologists of the Altai Argali”.

No one needs to help the citizens, but the state: they’ll know that the government is inefficient. And so — thank her for each SOP, and if it will not — well, the choice is still there.

That is the message we are told — and that we should not believe.

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