Economic reforms must be realistic, expert
Preventing the growth of the consumer price can be achieved by comprehensive measures - eliminating the monopoly, reduction the cost of loans for business, stimulate entrepreneurship in the regions, said in an interview with Cətin sual (Difficult Question) of Turan agency economic expert, Nazim Bedamirli, former member of Parliament, a member of the ruling party "Yeni Azerbaijan."
As for the causes of price increases in the last few days, this happens for different reasons, he said. First of all, due to the increase of import duties on a number of goods on October 1.
A large part of consumer goods are imported, and many local goods are manufactured from imported raw materials. As a result, 70-80% of consumer goods are imported.
The growth of the dollar rate in recent weeks also affected the increase of prices. Finally, high prices are the result of monopoly and absence of fair competition.
"Therefore it is necessary to create equal conditions for all the subjects of business, except when one is removed by administrative means, to create favorable conditions for the other," said Beydamirli.
Another reason for rising prices is rise in price of credit resources. After raising the CBA accounting rate, deposits increased by 15%, and loan rates are at least 24%. Businessmen have to return the 24%, and pay taxes and make other obligatory payments, which leads to a twofold increase in the prices of their products. Therefore, it is required to make credits cheaper, and the development of the border duty-free trade, said Beydamirli.
It is also necessary to reform of state structures. In particular, there is no need in the executive branch in each district. Their functions can be transferred to the municipalities, and the executive branch may represented by the representatives of the president in 10 economic regions of the country.
Also, the regional ministerial offices should be created - education, finance, and others.
It is necessary to reform the tax system - combine the collection of income tax and compulsory payments to social insurance, reduction of the single tax and the abolition of the State Fund of Social Protection of Population.
Fair competition and the elimination of administrative obstacles will help to decrease prices and improve the quality of goods and services.
Beydamirli is sure that the promotion of private initiative, the creation of conditions for business development in the regions, would stimulate geographically balanced development of the economy, the return of the population of cities in the province, raising occupation.—06D--
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- Political Monitoring
- 6 October 2016 18:50
Difficult question
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Sentyabrın 1-nə təyin olunmuş növbədənkənar parlament seçkilərində iştirak etmək üçün imzatoplama kampaniyası hazırda davam edir. Hazırda mindən çox şəxsin namizəd olmaq üçün müraciət etdiyi bildirilir.
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