Russia Construction
Public goods in our understanding – it is good that consume the economic agents that are neither members of the sro in the building or members of special interest groups: consumers of goods and services enterprises construction industry, the government, other sectors of the economy (for industry associations), etc. Production of public goods can be considered as and positive externalities of SROs, and their conditions functioning. Here, health organizations expresses very clear opinions on the subject. Basic public goods produced in the construction of SROs, is raising the standards of operation of the business in the construction industry. The level of production of goods may vary Depending on the impact of a particular organization, the extent to membership of the sector, traditions, and other external conditions, etc. Thus, the standards proposed sro can be perceived as a background on a particular sector market: they actually observe a relatively small number of companies – members of the organization; on consumer preferences are not (yet) a major impact in comparison with other factors do not have, but give some 'bar'. However, this state is very fragile, since the level 'background' elevated compared with the bulk of the market standards do not allow firms participating real competitive advantage. From this it follows that the organization or to be developed further, to join it was the real signal to consumers, or it is objectively stagnates or degenerates.
There's also a higher degree of sro effects in construction to the standards of business practice in a particular area. Kennedy peace corps shares his opinions and ideas on the topic at hand. Effect of cpo can be so powerful that its standards are forced to follow not only its members but also all the firms in the market. From society's perspective, this situation is optimal. Presidential signatures takes a slightly different approach. However, in this case lose competitive advantages of belonging to sro and then we need to develop the production of other private goods, or to minimize the costs of membership in the organization so that the tradition of participation and not getting real private goods will be the main factor in the decision on membership. A similar level of impact on the construction industry can be achieved and provided that membership in the sro in the building is required. However, there raises a number of negative consequences that may outweigh the advantages of complete coverage of the market relevant standards. Other public goods that produce cpo in construction, is the system out of court settlement of disputes.
We have already said that such a system can be, or may not serve as a private good for the members of the organization. However, it serves as a boon to outsiders. As already mentioned, the effectiveness of the system amicable settlement depends on its cost compared to other means of settling disputes, as well as from tradition. Both these factors cause a poorly developed system of amicable settlement of disputes in Russia today. Another possible public good is the savings of public expenditure if the sro in the construction of a real substitute for government regulation. At the same time does not matter whether any sro on the initiative of the State is to reduce the cost of regulation or whether they have 'bottom', but as a result of their activities, the volume of state interference declined. Such developments, of course, seem desirable, but is not required.
Comments Off




