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PM PLEDGES TRANSPARENCY ON STATE OF ARMENIAN ECONOMY
World Markets Research Centre
Global Insight
July 27, 2010
Armenian Prime Minister Tigran Sargsyan said during a televised
interview that the government is keen to hold open discussions
about the state of the economy. He explained that transparency on
economic challenges will help to solve issues more effectively with
the public's involvement. Sargsyan named some of the top challenges
facing the government, including the inefficiency of the governing
system, corruption, and the shadow economy. He added that avoiding
public discussions on these issues is counterproductive; instead,
a frank dialogue with the public would enable progress. Sargsyan also
expressed optimism that 6.7% economic growth in the first half of 2010
will be replicated in all sectors of the economy except agriculture.
Significance:The Prime Minister's appeal to the public is not a
mere gesture, but reflects his ongoing efforts to curb the influence
of Armenian oligarchs and cut corruption. Sargsyan has always been
keen to prove that, as a non-political figure, he can modernise the
Armenian economy. There have been some results in terms of improving
the business environment, tax collection, and the introduction of
e-commerce; however, some major issues remain unsolved. The economy has
an oligarchic and monopolistic structure with an uneven distribution
of tax--small and medium-sized businesses with no political contacts
have to shoulder the tax burden while oligarchic monopolies that are
heavily represented in the government and parliament often avoid
taxation. Sargsyan does not have a strong backing among the top
political hierarchy, hence his attempts to rally public support to
force the politically connected business sector to adhere to tax and
other regulations. The Armenian electorate is certainly sympathetic
to his calls, but at the same time worried that if the Prime Minister
is finding it difficult to curb the oligarchs' influence, the public's
calls are likely to remain unanswered.
From: A. Papazian
World Markets Research Centre
Global Insight
July 27, 2010
Armenian Prime Minister Tigran Sargsyan said during a televised
interview that the government is keen to hold open discussions
about the state of the economy. He explained that transparency on
economic challenges will help to solve issues more effectively with
the public's involvement. Sargsyan named some of the top challenges
facing the government, including the inefficiency of the governing
system, corruption, and the shadow economy. He added that avoiding
public discussions on these issues is counterproductive; instead,
a frank dialogue with the public would enable progress. Sargsyan also
expressed optimism that 6.7% economic growth in the first half of 2010
will be replicated in all sectors of the economy except agriculture.
Significance:The Prime Minister's appeal to the public is not a
mere gesture, but reflects his ongoing efforts to curb the influence
of Armenian oligarchs and cut corruption. Sargsyan has always been
keen to prove that, as a non-political figure, he can modernise the
Armenian economy. There have been some results in terms of improving
the business environment, tax collection, and the introduction of
e-commerce; however, some major issues remain unsolved. The economy has
an oligarchic and monopolistic structure with an uneven distribution
of tax--small and medium-sized businesses with no political contacts
have to shoulder the tax burden while oligarchic monopolies that are
heavily represented in the government and parliament often avoid
taxation. Sargsyan does not have a strong backing among the top
political hierarchy, hence his attempts to rally public support to
force the politically connected business sector to adhere to tax and
other regulations. The Armenian electorate is certainly sympathetic
to his calls, but at the same time worried that if the Prime Minister
is finding it difficult to curb the oligarchs' influence, the public's
calls are likely to remain unanswered.
From: A. Papazian