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NewsMontenegro's boycott call: Experts debate impact on prices and economy

Montenegro’s boycott call: Experts debate impact on prices and economy

The Montenegro Employers’ Association (CUP) has commented on the call from Alternative Montenegro (ACG) for a boycott of stores on Friday, January 31, emphasizing that while the intentions may be noble, such actions could lead to unintended harm. CUP pointed out that ignorance or lack of information is no excuse in these situations. Olga Nikčević from the Center for Consumer Protection (CEZAP) supports ACG’s initiative but is skeptical about its potential effects, stating that it is difficult to organize Montenegrin citizens, even for “bigger issues.”

CUP acknowledges the motivations behind calls to improve citizens’ living standards, even if it means resorting to a boycott to reduce prices. They affirm that the right to such actions is legitimate when consumers believe their interests are at risk. However, CUP warns that the consequence of the boycott could be harm to domestic businesses, the economy, and ultimately the standard of living for citizens, contradicting the very goal of the initiative. They remind that the employees in these companies are also citizens of Montenegro.

CUP also expressed concern over the continued disregard for the findings of an analysis by the Economics Faculty in Podgorica, which disproves claims that retailers are to blame for high prices. Nikčević believes that while the boycott might lead to some temporary action, it could result in people buying in larger quantities before or after the event, which may not have the desired long-term effect.

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She also pointed out the risks of relying solely on such actions, citing a previous attempt by CEZAP to encourage citizens to bake bread at home instead of buying it during a price hike, which failed to have any significant impact.

CUP’s mission of improving the economy and business relations leads them to caution that a boycott could ultimately harm the very people it aims to help. They argue that if prices are to be reduced, this should be done through broader and more sustainable actions, not through tactics that could harm businesses and their employees.

Nikčević also mentioned that although official inflation data shows a decrease, consumers have not felt the effects, citing that many people still report not seeing lower prices despite government efforts to limit margins.

When asked if there is a better way to reduce prices, Nikčević suggested more long-term actions, such as encouraging domestic production. She believes that investing in agriculture could help Montenegro become more self-sufficient, particularly given the country’s relatively small population and the potential of its high-quality food production.

In the short term, consumers could discipline retailers by shopping at smaller stores if they feel large chains are unjustifiably raising prices. Nikčević also suggested that prices could be reduced by 10% across the board, with a review of the impact after a few months. She emphasized that simply lowering the prices of specific products would not achieve the desired effect.

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