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Bread And Circuses: Syunik's Controversial Governor Orders Discount

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  • Bread And Circuses: Syunik's Controversial Governor Orders Discount

    BREAD AND CIRCUSES: SYUNIK'S CONTROVERSIAL GOVERNOR ORDERS DISCOUNT PRICES ON SOME STAPLE GOODS AFTER RETURNING TO OFFICE

    SOCIETY | 17.10.14 | 14:36
    http://armenianow.com/society/57719/armenia_syunik_province_governor_surik_khachatryan

    NAZIK ARMENAKYAN
    ArmeniaNow

    By SARA KHOJOYAN
    ArmeniaNow reporter

    For the second week already people in Armenia's southernmost Syunik
    province can purchase less expensive and, at the same time, heavier
    loaves of bread upon the order of the newly re-appointed governor,
    Surik Khachatryan. And while the province's folks are content,
    representatives of political forces and political analysts see this
    move as a publicity stunt and violation of free market laws.

    Taking into consideration the instructions received at the
    consultation with Surik Khachatryan on October 7 - by preserving
    economic calculations providing the people with affordable bread and
    medicine - starting from October 8 in all towns and villages of the
    region of Syunik a loaf of bread weighs 600 grams instead of 500, and
    in Goris the price went down from 240 to 200 AMD (from $0.6 to $0.5).

    At the same time all pharmacies provide emergency medicines with a
    10-percent discount, as the website of the Syunik governor's office
    says.

    In June 2013, Khachatryan, a member of the ruling Republican Party
    of Armenia, quit his gubernatorial position after a deadly incident
    near his house in Goris. A man was killed and two others were wounded
    in the shooting in which Khachatryan's son and his bodyguard were
    also involved.

    Heritage Party spokesman David Sanasaryan believes that if proper
    policies are carried out bread and medicines prices can be lowered
    across the country, however, according to the politician, what
    Khachatryan does after his controversial re-appointment can be viewed
    as a way of bribing people.

    "After his scandalous appointment this is a mere publicity stunt
    by which he tries to soothe the situation and show that he is
    trustworthy. Of course, he can lower the price of bread on the
    account of the financial means he stole, but by this he challenges
    the government members, because the latter must be able to explain
    how it is possible to make goods less expensive in Syunik and not
    countrywide," Sanasaryan told ArmeniaNow.

    "As they answered, he has no scientific degree; they will give the
    same answer here," the Heritage representative added, referring to
    the information in the media about Khachatryan's having been awarded
    the title of Doctor of Philosophy for his dissertation entitled
    "State Administration Issues in Syunik Province from Ancient Times
    Till Present".

    It is noteworthy that this information is published on the official
    site of the governor's office, where it is clarified that Khachatryan's
    title of state administration philosophy doctor is awarded by the
    Canadian International Information Academy.

    Lawmaker Tevan Poghosyan knows what price-formation mechanisms by means
    of administrative-command methods are from the past experience only.

    "I know it from the Soviet times which must have collapsed because
    of incompleteness of such mechanisms. I refrain from saying what
    happened in Syunik, prices go down normally because of competition,
    other options are not because we suddenly have free market relations
    either," he told ArmeniaNow.

    Political analyst Armen Grigoryan added that in Armenia the government
    has no authority on price regulation.

    "Of course, it is good to know that bread is less expensive, but if
    the bread is cheaper as a result of the governor's pressure, then
    those businesses will be facing crises in the long term and later
    there might not be any bread production at all," Grigoryan said.

    The political analyst views this policy as dangerous and underlines
    that if businesses close down, 'the Syunik folks definitely will
    not gain'.

    "It is clear that if after committing murder Surik Khachatryan returned
    to the post of a governor with the help of [President] Serzh Sargsyan,
    then the former has the support of the state system, and in such cases
    people of Syunik cannot have a different opinion [but being content]".

    Investigators did not find any incriminating evidence against Surik
    Khachatryan. They also found that Khachatryan's son, Tigran, and their
    bodyguard acted in self-defense protecting their house from intrusion.

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