Business & Economy

It seems as though Armenia’s statistics for macroeconomics are not connected with the average Armenian citizen’s lifestyle. Macroeconomics, which the economists like to talk about often, is always changing in contrast to the lifestyle of the average citizen. As a result, society is indifferent to the entire index of economics. However, economical statistics do not deserve that. After all, economy integrates our daily life. The holiday season in December is just the time for showing the materialistic side. Everyone “suddenly” notices the rise in prices and blames economy for that. The authorities also share the opinion of the people. The only hope is that the prices don’t get recorded in the economical index. For example, the Board of Protection Against Economical Competition dealt with the rise in prices for eggs. The board observed the rise and at the end claimed that the major egg producers-the factories in Lusakert, Arzni and Yerevan-have nothing to do with it. The three major producers occupy 80% of the egg market. But according to the Economy board, they are not raising prices. Hundreds of merchants are the ones who have control over the prices. This is a great yet ridiculous answer. Too bad that it is not universal and doesn’t refer to other products.

Who made the chicken expensive?

The Minister of Agriculture could answer this question. But in that case it would become clear that Armenia neither has plans for securing the health of the people nor cattle-raising. The government is not doing anything to improve cattle-raising in the country. Instead, it is just making statistic reports. According to those statistics, pig-breeding has been growing since 2001. It was during that year when pork was sold for 900 drams. Everyone could see that there was major production and the agriculture was convinced that pig-breeding was not profitable. During the next couple of years, the naive villager rushed to free that burden off his shoulders. According to statistics, as of January 2004, the number of pigs had reduced by 22,000. As a result, the price of meat rose. The national, traditional pork is sold for 2500-2800 dram a kilogram during the holidays. We think that it is easier to force an Armenian to cook other meat products than to force the Ministry of Agriculture to lead economy in the right direction.

Agriculture is considered a risky business around the world. In Armenia, it is even more risky. The villager himself decides what to plant and what to grow, without any suggestions or help from anybody. As a result, we get a periodic overproduction of any type of produce and the next year the majority of villagers refuses to produce. That is why the prices of products keep going up and down. A tomato may cost 50 drams one year and 150 the next and this is ongoing.

Someone’s walnut

The next thing that Armenians set on the holiday table is walnuts and the pastry made with walnuts. Spring 2004 was not a good year for economy. The cold weather hurt the farms. Nobody knows exactly how many walnut crops were damaged. Walnuts were sold for 5,000 drams a kilogram at the beginning of December. The consumer feared the increase in prices and bought whatever was recommended at the price that was recommended. During the past couple of years, villagers were complaining that they don’t have the opportunity to sell their own produce in Yerevan and other large cities. The thing is that the individual resellers living in the city can not do that, but it is very hard to prove that. The resellers could barely sell the produce on their own. We could only predict that large capital is being made by reselling. That became evident during the middle of December when the press wrote that the customs did not allow Georgian merchants to import walnuts into Armenia.

Many people have been talking about the blockade that is considered self-explanatory. The presumptions made by the people may steer us into buying apricots imported from other countries. However, as soon as the 5000 dram walnuts started being sold at the market instead of the 3,500 dram Georgian walnuts, the presumptions changed. The price of Armenian walnuts reduced in this battle between the Armenian and Georgian walnuts. This is not the best example for the competition going on in the market. There were two large worldwide companies that started competing against each other in the inner market during the holiday season. The lemonade producing Yerevan company under the slogan “Always Coca-Cola” raised its delivery prices in December. The other worldwide capital making company was waiting for the right moment-all of a sudden the lemonade produced by the “Pepsi-Cola” company was sold at the markets. They were sold at lower prices than those of the competitors. “Pepsi” also started broadcasting commercials on television. It is interesting to follow up on this competition. It is hard to imagine how the Board of Protection Against Economic Competition of Armenia studies the production documents of “Coca-Cola” and “Pepsi” and predict that they have come to terms with raising the prices during the holidays. In general, it is interesting to follow up on economical statistics. By following up on the above mentioned, we make things a little clearer for us. For example, the rise in prices of national wine is not due to the trade going on during the holidays. The reason for this is that the grape crops were 30-35,000 tons less in 2002 and 2003. That is why there was a rise in prices.

Generally, objective economic factors help explain the negative sides of economy. All the positive sides are a result of the hard work put in by the dedicated workers. You don’t believe me? Check the official news printed in the papers and you may be convinced.