# Compulsory cartel

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A '''compulsory cartel''' or '''forced cartel''' is a [cartel](/source/cartel) that is established or maintained by an administrative order or by a legal directive. The interference of policies on these associations of entrepreneurs of the same trade varied. It ranged from a mere decision to establish a cartel or to maintain an existing one, to a strict state control.<ref>Holm A. Leonhardt: ''Kartelltheorie und Internationale Beziehungen. Theoriegeschichtliche Studien'', Hildesheim 2013, p. 144-145. </ref>

== Disagreement over the nature of compulsory cartels ==
The understanding of “compulsory cartels” as “cartels” has always been disputed.<ref>Holm A. Leonhardt: ''Kartelltheorie und Internationale Beziehungen. Theoriegeschichtliche Studien'', Hildesheim 2013, p. 146-155.</ref> While the older cartel experts before the 1930s usually insisted in the free entrepreneurial will that constituted a “cartel”, later authors were more tolerant and accepted forced cartels as an exception. In recent times (2007), the economic-historian Jeffrey R. Fear took this stance of the “exception to the rule” that would not contradict the general nature of these organizations.<ref>Jeffrey R. Fear: Cartels. In: Geoffrey Jones; Jonathan Zeitlin (ed.): The Oxford handbook of business history. Oxford: Univ. Press, 2007, p. 271.</ref> The cartel-historian [Holm Arno Leonhardt](/source/Holm_Arno_Leonhardt) has positioned himself more differentiated in 2013: Forced cartels that were embedded in a totalitarian [planning economy](/source/planned_economy) or were by other means unable to realize their own will, should be regarded as organs or appendages of another system.<ref>Holm A. Leonhardt: ''Kartelltheorie und Internationale Beziehungen. Theoriegeschichtliche Studien'', Hildesheim 2013, p. 164-165.</ref> Thus, “compulsory cartels” without a permanent political influence could indeed constitute real “cartels”, while others being under strict control acted mainly as servants of an alien will.

==Examples==
* German [potash syndicate](/source/potash_syndicate):<ref>[Liefmann, Robert](/source/Robert_Liefmann): ''Cartels, Concerns and Trusts'', Ontario 2001 [London 1932], p. 267.</ref> This was since 1919 a public-law body and was integrated into a control structure with its customers, laborers, traders and instances of administration.
* Japanese steel cartel of the 1930s.<ref>Hausleiter, Leo (1932): Revolution der Weltwirtschaft. München, p. 200.</ref>
* [Rhenish-Westphalian Coal Syndicate](/source/Rhenish-Westphalian_Coal_Syndicate), Northwest Germany:<ref>[Liefmann, Robert](/source/Robert_Liefmann): ''Cartels, Concerns and Trusts'', Ontario 2001 [London 1932], p. 268.</ref> This too was since 1919 a public body and integrated into a similar control structure as the German potash syndicate.
* Russian sugar syndicate of the 1890s.{{citation needed|date=October 2019}}

==See also==
*[Coercive monopoly](/source/Coercive_monopoly)
*[Government-granted monopoly](/source/Government-granted_monopoly)

==Bibliography==
* Fear, Jeffrey R.: ''Cartels''. In: Geoffrey Jones; Jonathan Zeitlin (ed.): The Oxford handbook of business history. Oxford: Univ. Press, 2007, p.&nbsp;268-293.
* [Leonhardt, Holm Arno](/source/Holm_Arno_Leonhardt): ''Kartelltheorie und Internationale Beziehungen. Theoriegeschichtliche Studien'', Hildesheim 2013.
* Korrell, Emil: ''Zwangskartelle als Mittel gegen ruinöse Konkurrenz''. Forchheim 1937.
* [Liefmann, Robert](/source/Robert_Liefmann): ''Cartels, Concerns and Trusts'', Ontario 2001 [London 1932]

== References ==
{{Reflist}}

{{Business organizations}}

{{Authority control}}

Category:Cartels

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Adapted from the Wikipedia article [Compulsory cartel](https://en.wikipedia.org/wiki/Compulsory_cartel) by Wikipedia contributors ([contributor history](https://en.wikipedia.org/wiki/Compulsory_cartel?action=history)). Available under [Creative Commons Attribution-ShareAlike 4.0 International](https://creativecommons.org/licenses/by-sa/4.0/). Changes may have been made.
