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Monopolies And Unequal Competition Are Main Obstacles To Development

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  • Monopolies And Unequal Competition Are Main Obstacles To Development

    MONOPOLIES AND UNEQUAL COMPETITION ARE MAIN OBSTACLES TO DEVELOPMENT OF LIBERALIZED ECONOMY IN ARMENIA, PARTICIPANTS IN DISCUSSION ORGANIZED BY NPC SAY

    Noyan Tapan
    http://www.nt.am?shownews=1009985
    Nov 24, 2008

    YEREVAN, NOVEMBER 24, NOYAN TAPAN. The absence of a liberalized
    economy and the existence of a monopolized economy in Armenia bear
    evidence of the fact that, for example, the prices of imported goods
    in the country do not decline at the same rate as in international
    market. The owners of monopolies are either those in power or people
    sponsored by those in power.

    The member of the Armenian National Congress (ANC) Vahagn Khachatrian
    expressed this opinion at the November 21 dicsussion "The Preconditions
    and Obstacles to the Establishment and Development of a Liberalized
    Economy in Armenia" orgaized by the National Press Club (NPC).

    He substantiated his opinion by a report of the World Bank, by which
    monopolies have become an obstacle to development of the Armenian
    economy.

    V. Khachatrian considered monopolies as a cause of a decline in
    economic competitiveness, which is expressed in the fact that by the
    respective international reportes Armenia had yielded its positions
    to Azerbaijan and Georgia. It was mentioned that in order to develop
    the economy, a political decision about separation of politics from
    business should be taken in Armenia.

    According to the member of the National Assembly "ARF" faction Ara
    Nranian, "today we we have a syndrome that can be called "lieral
    Bolshevism", which resembles the practice of forcible building of
    communism by Bolsheviks.

    Besides, the liberal ideology is not perceived correctly in Armenia,
    there are liberal dogmata instead." He said that in European countries
    the state intervenes in economic processes in case of necessity,
    whereas in Armenia it avoids doing so. A. Nranian characterized the
    "superliberalization" of the country by the circumstance that Armenia
    is going to introduce a cumulative pension system, while the countries
    considered as really liberal have rejected its use, and attempts to
    introduce such a system in Argentina and Chile have failed.

    The former deputy of the National Assembly, Ph.D. Tatul Manaserian
    expressed his support for the social-market economy. He said that a
    draft state budget called "social" should not be presented at the RA
    National Assembly when the pensions envisaged by this draft are not
    based on the values of the living subsistence basket, then by the
    consumer basket values.

    Presenting the unequal conditions of economic competition in Armenia,
    the member of "Heritage" party Movses Aristakesian said that the
    office of the Republican Party of Armenia transfers the same amount of
    cimpulsory social payments to the state budget as the enterprises of
    the deputies - members of that party. He informed those present that
    Multi Gas making part the group of companies owned by the chairman of
    "Prosperous Armenia" party Gagik Tsarukian pays the same amount of
    taxes as the Yerevan subway operating by state subsidies and less
    than the Goris boarding school of children with weak eyesight.

    In the opinion of the head of "Political Economy" Center Andranik
    Tevanian, the state should intervene in economic processes in
    countries with successful market institutions. He said that in case
    of Armenia, the liberalization of the economy cannot be viewed by
    the ratio of state budget to GDP, which characterizes the degree
    of distribution of resources by the state, because the state
    government system of the country is corrupted, and it should not
    be given the opportunity to distribute more sums. According to him,
    the shift to a liberalized economy in Armenia should be done by the
    following scenario: the getting of real power by the right forces -
    formation of a competitive economy - development of the labor market
    - development of an efficient system of trade unions - the coming of
    social-democratic forces to power - a constant rotation of these and
    right forces in the power system.
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