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ARTSVIK MINASYAN: "THE DOWNSLUMP OF THE ARMENIAN ECONOMY MEANS THE GOVERNMENT HAS NO MORAL RIGHT TO REMAIN IN POWER"
Vestnik Kavkaza
Feb 2 2012
Russia
Deputy chairman of the committee on monetary and fiscal issues of the
Armenian parliament, Artsvik Minasyan, told VK about ways out of the
crisis for the economy.
- Armenian officials traditionally blame the world financial crisis
for the sad situation in the economy of Armenia. What are real grounds
for the problem?
- Unfortunately, there were no any serious achievements in
the economy of Armenia in 2011. Living standards are reducing;
Armenian competitiveness is weak; monopolization is being improved;
migration is growing. There are small successes, but they cannot
be called achievements. Some of such successes are development of
the concept on export of the industrial policy, providing the State
Committee on Protection of Economic Competitiveness of Armenia with
some instruments, the target of additional budget incomes in 101
billion drams. My expectations for 2012 depend on the results of the
parliamentary elections. Our population should apprise this or that
political party from the point of view of economic policy, which it
intends to provide.
- What is your appraisal of the current government?
- Individually members of the government are skilled specialists,
but the current government should resign. It is relevant, as
none of principles of the adopted governmental program 2008 were
implemented. Moreover, instead of progress the country is undergoing
regress, in this context the government has no moral right for
remaining in power. Early 2012 was marked by an active interference
of President into social-economic issues. Meetings were held, orders
were given, but the situation hasn't stabilized. Even official data
on the social-economic situation are negative. There are objective
and subjective reasons for growing of migration - the world crisis
and the inadequate policy of the government.
- Establishing of the investment space favorable for investors is
widely discussed. What has been done in reality?
- In the end of 2011 the ruling Republican Part of Armenia presented
its economic strategy, which said about promotion of investment
attraction of our country. At the same time, my colleagues were not
managed to name at least one guarantee that this strategy will be
implemented. Motivation of investments is a priority for the economic
policy of the republic, but I don't understand why foreign companies
would invest to Armenia. What has changed - investment environment,
dependence of courts on power, or human rights protection? In reality
nothing is doing in this sphere. If we are not managed to establish an
adequate environment in the country, we won't implement the strategy.
- Armenian economic laws are as good as Western ones. The point is
they do not work...
- It not the only reason. Unfortunately, in our economic policy
high-liberal approaches prevail. Meanwhile, there are other directions
in the world, and participation of the government in economy is
thought to be important, especially in the post-crisis period. The
government should not only develop liberal laws, but also influence
internal formation of prices, defining purchasing enterprises and so
on. There are a lot of possible schemes. They will enable the internal
market to step on a new level.
- Armenian officials have their own views on the situation...
- I think their arguments are ridiculous. It is true that some
economists and officials state that after monopolies would be
canceled, products would const even more. In reality the situation
is different. The scale effect is working when we speak about natural
monopolies, for example, in infrastructure. When we speak about import
of products and services, this argument is false. I'm sure the role
of the state in economy should be more aggressive, as only due to
it national revenues in GDP could reach 35%, 25% of which should be
taxes inflows.
- Why did your fraction vote against the governmental fiscal project
for 2012?
- I think the budget 2012 doesn't take into account possible inflation
scenarios and risks. Growth of incomes is predicted according to
inflation, but how inflation will influence budget spending is not
clear. The policy of spending part of the budget doesn't differ from
the budget 2011, except increase in 41 billion drams for the social
sphere. There no serious changes in correlation of direct and indirect
taxes. It is important to discuss launching of the program budgeting,
which will enable the government to appraise using of resources
in details.
- Every year the government speaks about the social direction of the
budget. At the same time, investments are not mentioned.
Doesn't it contradict the Economic strategy by the ruling party?
- It is true that majority of spending in the state budget is current
expenses. Thus, investment resources will be scarce in 2012.
However, we need investment for improvement of the economy.
Unfortunately, the social-economic policy hasn't changed for three
years as well.
Vestnik Kavkaza
Feb 2 2012
Russia
Deputy chairman of the committee on monetary and fiscal issues of the
Armenian parliament, Artsvik Minasyan, told VK about ways out of the
crisis for the economy.
- Armenian officials traditionally blame the world financial crisis
for the sad situation in the economy of Armenia. What are real grounds
for the problem?
- Unfortunately, there were no any serious achievements in
the economy of Armenia in 2011. Living standards are reducing;
Armenian competitiveness is weak; monopolization is being improved;
migration is growing. There are small successes, but they cannot
be called achievements. Some of such successes are development of
the concept on export of the industrial policy, providing the State
Committee on Protection of Economic Competitiveness of Armenia with
some instruments, the target of additional budget incomes in 101
billion drams. My expectations for 2012 depend on the results of the
parliamentary elections. Our population should apprise this or that
political party from the point of view of economic policy, which it
intends to provide.
- What is your appraisal of the current government?
- Individually members of the government are skilled specialists,
but the current government should resign. It is relevant, as
none of principles of the adopted governmental program 2008 were
implemented. Moreover, instead of progress the country is undergoing
regress, in this context the government has no moral right for
remaining in power. Early 2012 was marked by an active interference
of President into social-economic issues. Meetings were held, orders
were given, but the situation hasn't stabilized. Even official data
on the social-economic situation are negative. There are objective
and subjective reasons for growing of migration - the world crisis
and the inadequate policy of the government.
- Establishing of the investment space favorable for investors is
widely discussed. What has been done in reality?
- In the end of 2011 the ruling Republican Part of Armenia presented
its economic strategy, which said about promotion of investment
attraction of our country. At the same time, my colleagues were not
managed to name at least one guarantee that this strategy will be
implemented. Motivation of investments is a priority for the economic
policy of the republic, but I don't understand why foreign companies
would invest to Armenia. What has changed - investment environment,
dependence of courts on power, or human rights protection? In reality
nothing is doing in this sphere. If we are not managed to establish an
adequate environment in the country, we won't implement the strategy.
- Armenian economic laws are as good as Western ones. The point is
they do not work...
- It not the only reason. Unfortunately, in our economic policy
high-liberal approaches prevail. Meanwhile, there are other directions
in the world, and participation of the government in economy is
thought to be important, especially in the post-crisis period. The
government should not only develop liberal laws, but also influence
internal formation of prices, defining purchasing enterprises and so
on. There are a lot of possible schemes. They will enable the internal
market to step on a new level.
- Armenian officials have their own views on the situation...
- I think their arguments are ridiculous. It is true that some
economists and officials state that after monopolies would be
canceled, products would const even more. In reality the situation
is different. The scale effect is working when we speak about natural
monopolies, for example, in infrastructure. When we speak about import
of products and services, this argument is false. I'm sure the role
of the state in economy should be more aggressive, as only due to
it national revenues in GDP could reach 35%, 25% of which should be
taxes inflows.
- Why did your fraction vote against the governmental fiscal project
for 2012?
- I think the budget 2012 doesn't take into account possible inflation
scenarios and risks. Growth of incomes is predicted according to
inflation, but how inflation will influence budget spending is not
clear. The policy of spending part of the budget doesn't differ from
the budget 2011, except increase in 41 billion drams for the social
sphere. There no serious changes in correlation of direct and indirect
taxes. It is important to discuss launching of the program budgeting,
which will enable the government to appraise using of resources
in details.
- Every year the government speaks about the social direction of the
budget. At the same time, investments are not mentioned.
Doesn't it contradict the Economic strategy by the ruling party?
- It is true that majority of spending in the state budget is current
expenses. Thus, investment resources will be scarce in 2012.
However, we need investment for improvement of the economy.
Unfortunately, the social-economic policy hasn't changed for three
years as well.