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On My And Your Money
Naira Hayrumyan
Story from Lragir.am News:
http://www.lragir.am/engsrc/economy25173.html
Published: 16:41:42 - 17/02/2012
The World Bank is trying to save the Armenian government from social
discontent and is actually allocating loans for the payment of social
pensions and benefits.
The World Bank may allot a USD 118 million loan in the next few weeks,
said the Head of the WB Yerevan office Jean-Michel Happi.
He informed in a press conference that loan agreements worth 80
million and 11 million USD 80 and 11 million have already been
confirmed. Besides, a USD 12 million worth program of support for tax
administration reforms, as well as another USD 15 million worth
program of water supply improvement in urban communities are foreseen.
If social payments in Armenia are paid though international loans, if
the government does not invest money in the development of the
economy, if no new plants, enterprises are set up, where does the
money of Armenian taxpayers go? Moreover, the government reports tax
collection increase every year.
Is this money spent on sustaining the exaggerated bureaucratic staff,
financing its fuel and upholstered furniture? Or is this money spent
to pay the huge foreign debt?
By the way, Happi stated for the first time since the 2008 crisis that
the foreign debt of Armenia has grown significantly and today it is
unstable. Actually, the World Bank knows that Armenia's situation is
unstable but all the same it continues financing arrangements.
What is the reason the World Bank supports the government of Armenia
and its reforms? Reforms must be reflected in real indexes, whereas
statistics does not show relevant economic growth. Does it mean the WB
wants to have Armenia bogged in debt to manipulate its authorities the
way it wants?
In the end, if the WB does not support the current government, people
may come to power who will set forth the policy of increasing the
foreign debt, a minimum solution for social problems and turning the
country into a banana republic. The new government could develop a
real program of industrial development, liberalization, promotion of
business, based on material production, and Armenia may become an
independent state.
Does the World Bank need such an Armenia? Will the next parliament
which will possibly host opposition parties ratify loan agreements and
further aggravate Armenia's dependence?
Naira Hayrumyan
Story from Lragir.am News:
http://www.lragir.am/engsrc/economy25173.html
Published: 16:41:42 - 17/02/2012
The World Bank is trying to save the Armenian government from social
discontent and is actually allocating loans for the payment of social
pensions and benefits.
The World Bank may allot a USD 118 million loan in the next few weeks,
said the Head of the WB Yerevan office Jean-Michel Happi.
He informed in a press conference that loan agreements worth 80
million and 11 million USD 80 and 11 million have already been
confirmed. Besides, a USD 12 million worth program of support for tax
administration reforms, as well as another USD 15 million worth
program of water supply improvement in urban communities are foreseen.
If social payments in Armenia are paid though international loans, if
the government does not invest money in the development of the
economy, if no new plants, enterprises are set up, where does the
money of Armenian taxpayers go? Moreover, the government reports tax
collection increase every year.
Is this money spent on sustaining the exaggerated bureaucratic staff,
financing its fuel and upholstered furniture? Or is this money spent
to pay the huge foreign debt?
By the way, Happi stated for the first time since the 2008 crisis that
the foreign debt of Armenia has grown significantly and today it is
unstable. Actually, the World Bank knows that Armenia's situation is
unstable but all the same it continues financing arrangements.
What is the reason the World Bank supports the government of Armenia
and its reforms? Reforms must be reflected in real indexes, whereas
statistics does not show relevant economic growth. Does it mean the WB
wants to have Armenia bogged in debt to manipulate its authorities the
way it wants?
In the end, if the WB does not support the current government, people
may come to power who will set forth the policy of increasing the
foreign debt, a minimum solution for social problems and turning the
country into a banana republic. The new government could develop a
real program of industrial development, liberalization, promotion of
business, based on material production, and Armenia may become an
independent state.
Does the World Bank need such an Armenia? Will the next parliament
which will possibly host opposition parties ratify loan agreements and
further aggravate Armenia's dependence?