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#3 - JRL 8166 - JRL Home
pravda.ru
April 13, 2004
Experts on price growth in Russia
Most Russians are troubled with price growth for utilities, public transport fares and consumer goods.
Oleg Bogomolov, Academician:

The percentage of spending on utilities, power and phone bills in Russia is not 30-40 percent, unlike some Western countries. Yet increasing the tariffs for power and utilities results in increasing all other tariffs. If fuel prices are growing, cost of producing food and consumer goods increases as well.

The reasons for increasing tariffs should be questioned. Media report on many facts of irrational use of profit by monopolies: they construct luxury offices, purchase aircrafts to fly to the seashore for holidays and so on.

Who audits our biggest gas and oil companies? Suddenly the information of billions of dollars on the bank accounts of 20 managers of such a company is revealed. Where did they get the money? Was it necessary to raise the tariffs or the companies have some reserves and hide them? They prefer lay their financial burden on the consumers".

Evgeny Andryushenko, Doctor of Sociology"

People have always made their judgment about their authorities by price increase of fall for the basic consumer goods and services.

Special scientific institutions controlled not by the authorities, but by civil society institutions and having access to independent media, could analyze the current events objectively, but there are no such institutions yet.

There is a need of civil society which appoints officials, controls and changes them. The professional and honest legislative body is the first main attribute of the civil society.

The honest competition of work force and talents (including for the post in authorities) is the second condition for civil society. However, Russian authorities in Yeltsin"s period wittingly distorted the notion of "market". With the help of lobbyists from criminal groups and foreign corporations prices became dependant on such monopolists as United Power Network headed by Mr. Chubais.

The authorities are instable when they are indifferent to the people"s essential needs and serve parasitic capital jumping from one country to another and playing with prices.

Konstantin Vanshenkin, poet, writer:

There is certain inconsistency between the things we hear from the authorities and the real life. They say inflation is decreasing, economy is on the rise, people"s earnings are growing and the number of the poor is reducing. No optimistic reports and cheerful statements can persuade people that things are improving - everybody sees prices growing.

Why is the state behaving so blatantly by increasing public transport fares, utilities and tariffs with no grounds?

Event in the hard post-war period price decrease for a number of goods was announced several times. In this way it was demonstrated that life was improving. There are no other arguments to prove that life became better.