Ministers not the only consumers

July 11, under the chairmanship of President Ilham Aliyev a meeting of the Cabinet of Ministers was dedicated to the socio-economic development for the six months of 2012.

    For half a year the GDP grew by 1.5%, and the non-oil sector - by 11.3%. "This is the highest index in the world economy," President said. In addition, the country's macroeconomic situation was stable, the inflation was 2.2%, and the income increased by 14.2%.

    According to the Center for Economic Development head, Doctor of Economic Sciences Gubad Ibadoglu, the figures voiced by Ilham Aliyev do not reflect the potential of the country. Moreover, they indicate the dominance of direct public investment in the non-oil sector.

    The growth of the non-oil sector by 11.3% on a slowdown in hydrocarbon production is due to the Eurovision Song Contest 2012, says the economist. If you look at balance of funds invested in the action itself and its infrastructure, we see that this is the biggest segment of government spending in January-June this year.

    Statement by the President to increase income by 14.2% against a background of low inflation is also devoid of a real database. The Market Basket in Azerbaijan and internationally is a number of different products and product range. Local shopping is a set of essential foodstuffs, essential for human survival. The set defined by the World Bank consists of 106 items, including medicines, clothing, and public transportation. Apparently, the President believes that the citizens of Azerbaijan just eat potatoes and drink milk.

    So, if we count the income of the population impartially and not politicize this segment, we find that it did not rise against inflation. In general, the government should timely move on to the international method of calculating inflation in order to avoid "pink" indicators, the scientist said.

    Also he believes real economic growth should be reflected on the shelves. What is the range of products sold, manufactured by domestic industry and what is its weight in the real economy? On what do people spend "real" money? Is that the services (including utilities) or meat or grain products? On the shelves, still, there is dominance of imports, and between quality and wholesale selling price there is a huge difference.

    In the area of industrial goods and construction materials in general there is complete failure - the population here prefers to buy only imported goods. So, before the report of "ecumenical achievements," we must count on the real "army" of consumers, not just on the officials. - 17D-