The Consequences of Weak Competition: Quantitative Evaluation and Policy Implications (Think Tank Report)

Competition — the most important source of economic development and, consequently, eco - nomic growth. In turn, economic growth — a key source of growth for the public welfare, means of solving many social problems. The low level of competition leads to the fact that the economy does not reach the results that could be achieved if the possibility of competition were used more fully. The consequences of lack of development of competition in the markets have an important political dimension in the long term — the instability of the political system, problems with the legitimacy of power. In turn, legitimacy and stability of the political system — the inherent properties of a favorable institutional framework for doing business. Thus, competition — an important element of a positive feedback mechanism in the relationship between business and government. Restriction of competition manifest themselves in specific markets in certain sec - tors and areas. That’s why the important markets and different types and areas were selected. Among them — the natural gas industry, construction and housing, pharmaceuticals, transport of goods by rail. For each of the areas quantitative estimates of the effects of underdevelopment competition were obtained based on a number of assumptions.