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