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China makes poor Georgia starve2011-01-27 18:46
Mikheil Saakashvili loves boasting of things that don't exist. Among the hits is his statement that Vladimir Putin imitates him in everything. Apparently, Mishiko considers Georgia as a fantasy world behind the mirror where things happen the other way round and time flows back. A month ago Putin had a live talk with the nation, and now the Georgian leader decided to show "the right" way of communicating with people. The boaster from Tbilisi was shown live on First Caucasian Channel answering questions of Georgians.
Mishiko's talk to his nation was as virtual as all other things in the country's public and political life. Common people were interested in acute questions like a drastic rise in food prices. The Georgian leader, high in the clouds as usual, could not deny that pace gathering inflation is a major economic challenge to his government. He also named culprits - the Chinese.
"Georgian government, like governments of other states has no levers to stop inflation. We must realize that inflation rises when living conditions in some countries improve. Now people of China have improved their lives, they want to have better food and buy more foodstuffs. Many bought cars and consume more fuel. All this provokes price growth and inflation", - was the situation in the world food market, as explained by president of Georgia. Still, every cloud has a silver lining: let China make Georgians starve but the country will not face hyperinflation. Citizens can be calm about it.
Mishiko's phrase demonstrated his gross ignorance in world economy issues. He seems to think that the volume of foodstuffs in the world is a constant. Thus, when something grows somewhere, something else decreases elsewhere. But even admitting this childish view of the problem a question appears: why does Georgia have to lose?
In reality, the world is facing overabundance of foodstuffs, and the problem of massive malnutrition in Africa, for instance, is connected with the foodstuff producers' refusal to lower prices. Certainly, prices are influenced by inflation and depending on the conjuncture they can grow at a drastic speed like wheat prices that went up in Russia last year because of the summertime drought. Usually, however, it happens to specific products and has a limited period of time. But these problems don't stop China from "eating better", unlike Mishiko's compatriots. Curiously enough, GDP per capita in the PRC is slightly higher than in Georgia - USD 3550.