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Expert: No modern financial system is formed in Armenia yet
27.05.2010
ArmInfo. It is early to speak of formation of a modern financial
system in Armenia, said Hilton Root, expert for international
development and political economy at the George Mason University, at
today's roundtable in Yerevan "Financial system and economic
development".
According to him, today the banking system of Armenia is quite
restricted, conservative and it needs a developed capital market, the
establishment of which needs active steps by the Armenian government.
When presenting his thesis about the financial systems of developing
countries, Root pointed out that first and foremost it is necessary to
introduce up-to-date technologies and implement long-term projects,
which, in its turn, will solve the problem of shortage of long-term
money.
On the other hand, developing markets need serious professional
financial intermediation for creating favorable business conditions.
Root said that, so as to be more attractive for foreign investors, the
financial systems of developing countries should be more transparent.
In order to solve this task, their governments should provide
investors with detailed information about the shareholders of aspirant
companies and about the efficiency of their corporate management
policies. If they do it, attracting investors will become much easier.
Root believes that international financial organizations should stop
lending money to individual countries and should start financing
regional projects.
The roundtable has been organized by the Caucasus Institute of
Armenia, jointly with the US Embassy in Armenia and the Heinrich Boll
Foundation South Caucasus.
From: A. Papazian
27.05.2010
ArmInfo. It is early to speak of formation of a modern financial
system in Armenia, said Hilton Root, expert for international
development and political economy at the George Mason University, at
today's roundtable in Yerevan "Financial system and economic
development".
According to him, today the banking system of Armenia is quite
restricted, conservative and it needs a developed capital market, the
establishment of which needs active steps by the Armenian government.
When presenting his thesis about the financial systems of developing
countries, Root pointed out that first and foremost it is necessary to
introduce up-to-date technologies and implement long-term projects,
which, in its turn, will solve the problem of shortage of long-term
money.
On the other hand, developing markets need serious professional
financial intermediation for creating favorable business conditions.
Root said that, so as to be more attractive for foreign investors, the
financial systems of developing countries should be more transparent.
In order to solve this task, their governments should provide
investors with detailed information about the shareholders of aspirant
companies and about the efficiency of their corporate management
policies. If they do it, attracting investors will become much easier.
Root believes that international financial organizations should stop
lending money to individual countries and should start financing
regional projects.
The roundtable has been organized by the Caucasus Institute of
Armenia, jointly with the US Embassy in Armenia and the Heinrich Boll
Foundation South Caucasus.
From: A. Papazian