Identifier
Created
Classification
Origin
08ASHGABAT324
2008-03-10 11:29:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Ashgabat
Cable title:
TURKMENISTAN: WEEKEND INSPECTIONS LEAD TO SHOP
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UNCLAS ASHGABAT 000324
SIPDIS
SENSITIVE
SIPDIS
STATE FOR SCA/CEN, EEB
E.O. 12958: N/A
TAGS: PGOV ECON SOCI TX
SUBJECT: TURKMENISTAN: WEEKEND INSPECTIONS LEAD TO SHOP
CLOSURES AND BETTER PRICES -- AT LEAST, TEMPORARILY
REF: ASHGABAT 0290
UNCLAS ASHGABAT 000324
SIPDIS
SENSITIVE
SIPDIS
STATE FOR SCA/CEN, EEB
E.O. 12958: N/A
TAGS: PGOV ECON SOCI TX
SUBJECT: TURKMENISTAN: WEEKEND INSPECTIONS LEAD TO SHOP
CLOSURES AND BETTER PRICES -- AT LEAST, TEMPORARILY
REF: ASHGABAT 0290
1. (U) Sensitive but unclassified. Not for public Internet.
2. (SBU) Over the weekend of March 1-2, Embassy officers
noticed that some private shops at some of the larger markets
were closed or sealed for inspection, especially shops
selling imported alcohol, tobacco, and other luxury goods.
Bucking the trend of recent days (reftel),good-quality meat
and poultry were readily available for much lower-than-usual
prices. (NOTE: As reported reftel, meat merchants recently
have been resorting to a number of measures to get
higher-than-allowed prices for their meat, including both
selling only low-quality meat at the government price or
forcing consumers to pay more for better-quality meat, then
telling those customers to under-report the price they paid
for meat if asked by police. END NOTE.) On March 3, the
shops were open again, with registration certificates
displayed in the windows. Meat prices had risen back above
the government limit of 39,000 manat per kilo to 55,000 manat
(approximately $2.75 at the commercial exchange rate) by the
following weekend.
3. (SBU) COMMENT: This temporary shutdown was connected to
tax inspections, which lasted only a day or two. The
presence of inspection officials forced meat sellers to sell
meat at the government-imposed prices. The authorities also
routinely close markets on the first Monday of the month for
the ubiquitous Soviet-style "sanitary inspection." And
police routinely patrol markets in order to kick ladies
selling milk out of the peripheral areas. None of these
practices are encouraging the foundation of a market economy,
which government officials proclaim they have an interest in
doing. While making sure food stalls are sanitary and
checking tax receipts are the purported reasons for the
inspections, they also provide rent-seeking opportunities.
The system of routine closures probably won't end any time
soon, as it is one of the main ways in which sanitary and tax
inspectors and the police supplement their meager government
salaries with bribes. As evident from the price rise in the
meat markets, despite government efforts to control some
prices, supply-and-demand market principles still win out.
END COMMENT.
HOAGLAND
SIPDIS
SENSITIVE
SIPDIS
STATE FOR SCA/CEN, EEB
E.O. 12958: N/A
TAGS: PGOV ECON SOCI TX
SUBJECT: TURKMENISTAN: WEEKEND INSPECTIONS LEAD TO SHOP
CLOSURES AND BETTER PRICES -- AT LEAST, TEMPORARILY
REF: ASHGABAT 0290
1. (U) Sensitive but unclassified. Not for public Internet.
2. (SBU) Over the weekend of March 1-2, Embassy officers
noticed that some private shops at some of the larger markets
were closed or sealed for inspection, especially shops
selling imported alcohol, tobacco, and other luxury goods.
Bucking the trend of recent days (reftel),good-quality meat
and poultry were readily available for much lower-than-usual
prices. (NOTE: As reported reftel, meat merchants recently
have been resorting to a number of measures to get
higher-than-allowed prices for their meat, including both
selling only low-quality meat at the government price or
forcing consumers to pay more for better-quality meat, then
telling those customers to under-report the price they paid
for meat if asked by police. END NOTE.) On March 3, the
shops were open again, with registration certificates
displayed in the windows. Meat prices had risen back above
the government limit of 39,000 manat per kilo to 55,000 manat
(approximately $2.75 at the commercial exchange rate) by the
following weekend.
3. (SBU) COMMENT: This temporary shutdown was connected to
tax inspections, which lasted only a day or two. The
presence of inspection officials forced meat sellers to sell
meat at the government-imposed prices. The authorities also
routinely close markets on the first Monday of the month for
the ubiquitous Soviet-style "sanitary inspection." And
police routinely patrol markets in order to kick ladies
selling milk out of the peripheral areas. None of these
practices are encouraging the foundation of a market economy,
which government officials proclaim they have an interest in
doing. While making sure food stalls are sanitary and
checking tax receipts are the purported reasons for the
inspections, they also provide rent-seeking opportunities.
The system of routine closures probably won't end any time
soon, as it is one of the main ways in which sanitary and tax
inspectors and the police supplement their meager government
salaries with bribes. As evident from the price rise in the
meat markets, despite government efforts to control some
prices, supply-and-demand market principles still win out.
END COMMENT.
HOAGLAND