High prices are caused by abuse of powers and misuse of mandate (video)
Monopolies and abuse of dominant positions increase the rates of poverty and migration and closure of shops and businesses, says economist Atom Margaryan. “When we look at the prices, especially those of the consumer market, they are not comparable with the prices of markets in producing countries,” he says. Mikael Melkumyan, a lawmaker from the Prosperous Armenia Party (BHK) says, “WE are not able to control the prices because we do not have regulations and antitrust policy to combat monopolies.” During the Christmas season, Armenians had to pay an average of 970 drams for one kg of bananas while the prrice of bananas was three times cheaper in the Russian city of Krasnodar (about 310 drams per kg). This speaks to the weaknesses of the State Commission for Protection of Economic Competition. “The different in 600 drams which I call quasi-rent is caused by the abuse of one’s political position, patronage and mandate. The problem is in the political dimension,” says Atom Margaryan. Economists do not exclude the abuse of monopoly position in the petrol market. Petrol prices have slumped to around $30 a barrel in recent days, however the prices have remained the same in Armenia. “They say they import petrol from Russia and the prices are much higher there but the prices for petrol have gone down about40% after the fall in crude oil prices. People in Armenia have to pay for monopolies, they have no other option,” says economist Bagrat Asatryan. The economist accounts monopolies for the logic of the political system. “There is coalescence there which is quite illogical: they will not allow someone to enter into the sphere and have profits.” “Societies in developed democracies reached the heights of prosperity and productivity through struggle and self-organization, and we see that they do not have serious problems in force majeure situations,’ Atom Margaryan added. In his yearend press conference, Minister of Economy Karen Chshmarityan said the government has not and will not fight against monopolies. It is impossible to ban monopolies in Armenia, he said.
