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.