By Giannis Georgoulas
Life is becoming increasingly difficult for households today. The gap between those who are financially comfortable and those struggling to make ends meet on their wages has widened significantly. The middle class is shrinking globally, and with it comes growing anger and anxiety. This is reflected at the ballot box and in the polls, as it’s only natural that people search for hope.
But hope is often exploited. Sometimes by political opportunists who seek to win votes through unrealistic promises, and other times by fraudsters luring people with promises of outsized returns from fake investments, only to steal hard-earned money from those barely getting by.
This is where the state must step in. It has a duty to find ways to curb high costs and ensure citizens enjoy the best quality of life possible, while also limiting such predatory behaviors. Can digital transformation help? I believe it can, and not just in theory. There are practical, proven tools already in use elsewhere.
Here in Cyprus, the launch of the e-kalathi app is a good start, if it functions as intended. With the advancement of technology, the state could go further. By analyzing big data using modern tools, we could compare prices and detect price gouging before it spreads.
Singapore’s Competition Authority, for instance, uses AI models to uncover price-fixing cartels and intervene where necessary. Using blockchain, we can track the origin, pricing, and journey of goods, eliminating arbitrary markups and restoring transparency.
In the UAE, pilot programs are already underway to stabilize prices. And if we’re advocating tax reform, why not also develop a dynamic VAT adjustment platform? One that can temporarily reduce VAT rates in sectors experiencing sharp price spikes. In Finland, they’re already testing a “sandbox” model where continuous price monitoring informs smart tax relief.
Supporting our local producers must also become a top priority. This could be achieved through a platform that connects them directly with consumers for basic goods. In the Netherlands, the Boeren & Buren platform is doing just that; cutting costs for shoppers and increasing income for producers.
Finally, the public sector needs to embrace new AI tools to conduct transparent online procurement auctions that deliver better products at better prices. India is already doing this across all ministries.
Solutions exist. What’s needed now is the will, the know-how, and the organization to make them work.
Giannis Georgoulas is a Strategic and Business Consultant.
