Conflict between oil and food corporations makes us become “losers”
Economist Leanid Zaika shares this view buy says this is not the main factor. He thinks that even if Belarus has an open economy – when domestic prices match world prices, the government attempts to regulate prices administratively in the country.
“Unfortunately, the government has so far tried to regulate prices. Many commodities are more expensive in Belarus than in the world market and some goods are cheaper. Last year, Belarus bought poultry from Finland for 60 cents per one kilo. In Belarus, it is sold for $3 per kilo. If we brake the prices, we will simply end up in a situation when these goods will be exported to the neighboring countries”.
However, Uladzimir Adashkevich, first deputy economy minister and the chairman of the pricing committee, does not think that we are facing a hike in prices. He insists that prices would always be raised gradually.
“We are having gradual changes in prices. In agriculture and food production, we are raising the purchasing prices”, he says.
Surprisingly enough, Leanid Zaika says that the upcoming change of power in the US is the main reason for the price growth in Belarus. In the view of the economist, Republicans, who are likely to be defeated by Democrats, are trying to make money on oil corporations in the last moment.
“I think that the egoism of large corporations, oil corporations in the first place, stand behind the soaring prices. Apparently, Democrats will take over from Republicans in the US. Republicans who support oil corporations try to make some quick money”, Zaika says.
While oil prices hit record highs, agricultural corporations have begun raising their prices as well. This conflict between oil and agricultural corporations has made losers of us, ordinary consumers, Zaika believes.
“Two groups of interests – oil corporations and food companies -- have clashed. As a result, we have become losers”.
It is worth noting that there is yet another objective factor that contributes to soaring prices. It is associated with the deficit of certain resources or with the replacement of the orientation of the world’s production. For instance, when people started building spaceships and submarines, there was a high demand for titan. Experts forecast that in 10-15 years we should expect the deficit of drinking water and higher prices for this product.
