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IS MINISTER OF ECONOMY HELPLESS BEFORE MONOPOLIES?
Newly-appointed minister of economy Vahram Avanesyan admitted decline
of investments and the necessity to diversify them. He also said that
it is something usual if Armenian businessmen use "legal" methods to
hinder the entry of Carrefour to Armenia.
The minister of economy admitted that he does not know how to fight
monopolies. Is he recognizing his weakness or agreement that monopolies
are normal?
When Vahram Avanesyan was appointed minister of economy, he was
hailed for his global and advanced views, and "decisive" steps towards
liberalization of the Armenian economy were expected from him.
However, judging by the facts, such steps are not taken up yet.
As of now, the only step of the kind can be the government's decision
to shift to the open sky policy in Armenia. Actually, the monopoly
has been eliminated in the aviation, and this sphere could be the
example to see the advantages and disadvantages of the competition.
The checking of the construction of the North-South highway by the
Control Chamber is notable. The project is implemented by European
companies. The Asian Development Bank which funds the project has
stipulated that the Armenian government announce several tenders and
ensure that the contracts are awarded to European companies.
Actually, the Armenian oligarchs missed a big project which would have
"fed" a lot of people. Now, apparently, they are doing their best
to prove the work is done with shortcomings. Moreover, the European
organizations have serious claims to the government of Armenia.
The advantages of diversification and abolition of monopolies is also
observed in the sphere of telecommunications where the competition
of Syrian and French companies resulted in lower tariffs and better
service. The lack of foreign companies in other spheres does not
stand for the government's wish to protect domestic production but
their desire to keep monopolies intact.
It's too bad that the minister of economy does not know how to fight
monopolies.
Naira Hayrumyan 13:15 07/06/2013 Story from Lragir.am News:
http://www.lragir.am/index/eng/0/economy/view/30076
Newly-appointed minister of economy Vahram Avanesyan admitted decline
of investments and the necessity to diversify them. He also said that
it is something usual if Armenian businessmen use "legal" methods to
hinder the entry of Carrefour to Armenia.
The minister of economy admitted that he does not know how to fight
monopolies. Is he recognizing his weakness or agreement that monopolies
are normal?
When Vahram Avanesyan was appointed minister of economy, he was
hailed for his global and advanced views, and "decisive" steps towards
liberalization of the Armenian economy were expected from him.
However, judging by the facts, such steps are not taken up yet.
As of now, the only step of the kind can be the government's decision
to shift to the open sky policy in Armenia. Actually, the monopoly
has been eliminated in the aviation, and this sphere could be the
example to see the advantages and disadvantages of the competition.
The checking of the construction of the North-South highway by the
Control Chamber is notable. The project is implemented by European
companies. The Asian Development Bank which funds the project has
stipulated that the Armenian government announce several tenders and
ensure that the contracts are awarded to European companies.
Actually, the Armenian oligarchs missed a big project which would have
"fed" a lot of people. Now, apparently, they are doing their best
to prove the work is done with shortcomings. Moreover, the European
organizations have serious claims to the government of Armenia.
The advantages of diversification and abolition of monopolies is also
observed in the sphere of telecommunications where the competition
of Syrian and French companies resulted in lower tariffs and better
service. The lack of foreign companies in other spheres does not
stand for the government's wish to protect domestic production but
their desire to keep monopolies intact.
It's too bad that the minister of economy does not know how to fight
monopolies.
Naira Hayrumyan 13:15 07/06/2013 Story from Lragir.am News:
http://www.lragir.am/index/eng/0/economy/view/30076