Inglab Ahmedov: "The nonsense of expensive life in Baku is that it is observed under the low wages"

Baku has really become one of the most expensive cities in the world, said famous economist Inglab Ahmedov, commenting on the data of the international rating of cost of living, according to which Baku occupies the 75th place, following just three capitals of the former Soviet states - Moscow, Kiev and Tallinn, leaving all others behind, including most US states, for example Washington and British Glasgow, Birmingham and Canadian Montreal.

He said there are several reasons for it.

"First of all, this is an oil factor. Big money appearaed, at the same time, if most capital operate the oil export revenues as financial administrator, while in our case Baku is also an oil and gas capital, where the life of this capital extensive industry goes on for over 14 years", said he.

As an example, he said that expensive Moscow only regulates oil and gas revenues, at the same time, for example Hanti-Mansiysk, which extracts gas, undertakes a part of the expensiveness of life in the country. The same can be said of Norway, where oil and gas are produced in Stevanger, while the means from its export are controlled in Oslo or Kazakhstan, where oil is produced in Atyrau or Katachaganak, while incomes are regulated in Almaty and now in the new capital Astana.

"Baku is both a producer and a regulator. In this connection I think the issue of a new capital will become so urgent that the powers will have to made a painful decision to move the capital to one of the small cities of the country or build a new city for this purpose.

The second reason is the financial policy of the government, based on consolidation of manat against the main world currencies, while the recent dollar conduct, its cheapening against other currencies, strengthened this trend. Most Americans feel not at ease in Europe, when they have to spend all money, they have collected for years.

And the last is a factor of corruption. The high level of prices is backed by a great flow of windfall money, which distort the whole price construction. This distorted demand does not imply a real cost and can not be explained by the principles of normal market economy", said Ahmedov.

He said law abiding citizens, who can not catch up with this racing.

"Thus, Baku is not only one of the expensive cities of the world, it can also be called the most unjust cities of the world. One thing is clear, if this circle is not broken, its social implications can be unpredictable.

According to him, the nonsense of expensive life in Baku is that it is observed under the low wages.

/Day.Az/