EMERGENCY SITUATION IN ARMENIA
The government of Armenia is facing the issue of preventing the
domino effect of inflation in Armenia in order to avoid another wave
of dissatisfaction of the society. Resources are searched to repress
the price rise. Some of the oligarchs may be asked not to raise the
prices of their products.
The situation is an emergency, and the government has launched fire
extinguishing operations. The question occurs at the expenses of
what the fire will be extinguished. Compensation or repression of
price increase requires money. Does the Armenian government have
money? Will personal savings be invested in the economy, or the
compensation of the repression will be held on account of further
debts not only foreign, but also home taken from local oligarchy and
repaid by promises or privileges.
This is a very high price for Armenia which has been paying already too
much, since the very first years of independence and especially after
the ceasefire, to the clans, oligarchic groups and military-feudal
figures.
The issue is that this process should stop in Armenia and these groups
need to start paying the state and not vice versa. It is very important
to extinguish the fire taking into account the social-psychological
state of the population, but the effect will be short-term, because
economic rules of Armenia are a fire risk. Economy is a phenomenon
which in small countries is under the influence of permanent risks.
Economic competition and freedoms of the creative environment are
the firefighting systems, which are always ready to respond in case
of smoke. In Armenia’s economy “fire extinguishers” are used which
is an outdated and inefficient technology. When the fire burns in
the economy, in Armenia firefighting systems don’t respond, but fire
extinguishers are immediately used, because there is no firefighting
system, no competition and economic freedom.
In Armenia this system needs to develop, otherwise the fire maybe
extinguished today, but the level of economic and social security
won’t rise. More it will further reduce because the price will be
paid by the state and won’t be compensated. Therefore every time
paying a price, the government gets closer to the insolvency border.
It is natural that those who “lend” resources to the state for
using the “fire extinguishers” are not interested in the creation of
firefighting systems. They are for example Russia, which subsidies
the gas price, or the local oligarchy, which can blackmail the state
with the inflation demanding guarantees and further privileges.
In this matter, the local oligarchy and Russia are allies, because it
stems from their interest that the state turns to them for help. The
state, in this case the political power, turns to them, instead of
carrying out systemic changes. It is clear that the state interest
is subordinated to the interests of the power.
Consequently, if someone from the power announced that they are doing
everything in order to rule out inflations, to repress prices, it may
seem social caring attitude towards the citizens, but on the other
hand, it may be promotion of the current system.
State policy requires immediate steps in Armenia aimed at economic
competition and freedoms, which will empower the society to resist
to inflation on their own and will reduce t he social burden of the
state giving more possibilities to it to help the layer of the society
which is unable to use the possibilities, which does not have enough
physical or intellectual potential to express its creative capacities
under competitive conditions.
Only statements are issued about this policy in Armenia, on the
practical plane, the power is still obeying the economic bludgeon of
Russia and oligarchy.
JAMES HAKOBYAN 17:04 09/07/2013 Story from Lragir.am News:
From: Baghdasarian
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