Economist: “Crisis will continue”
Public demands are increasing with the change of living conditions, says economist Alek Yenigomshyan.
The economist notes that the global economic crisis will continue as long as the financial system remains unchanged. The latter is based on the aspiration to gain maximal profit - something characteristic of the capitalist system.
The price of general commodities is made up of the cost of raw material, labor and taxes and, as public demands have increased worldwide, it is impossible to expect big profits. Less profit cannot boost the volume of investments; hence it weakens the pace of development and creates a crisis.
Countries that have a dominant position in monetary policy, i.e. the USA, dictate the rules of the game and can create a chaotic situation on the global market by increasing or decreasing the rate of their currency.
"The global developments directly affect Armenia and its economy. If we add corruption risks and monopolies, we can find Armenia in a catastrophic situation," said the economist.
To overcome the crisis the globe should be ruled from different poles. The superpowers are already working in this direction, said Yenigomshyan.
