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ECONOMIST OUTLINES IMPACT AND COST OF ELECTIONS IN ARMENIA
epress.am
03.30.2012
About $70 million USD is spent during elections in Armenia, according
to approximate calculations by economist Samvel Avagyan, who included
the expenses of all candidates and political parties, as well as the
allocations from the state budget in his calculations.
Speaking to journalists in the capital today, Avagyan said the
elections have a dual impact on economic process - direct and
indirect. Direct influences are manifested through retail trade,
publishing, advertising, the media industry and foreign exchange rates.
"If you follow closely, the impact of the elections to a certain
extent is reflected in official statistics - particularly during
the 2007 parliamentary election, there was a recorded 20% increase
in retail trade in the month of April alone. Also recorded was a
certain appreciation of the exchange rate against the dollar. These
are direct influences," he said.
The main indirect influence, according to the economist, is that
during the campaign period investment is reduced to some extent, since
the business sector is actively involved in political processes and
expectant (standby) situations arise, as a result of which investment
suffers.
"Furthermore, those populist promises which are made during that
time by different political forces, by the ruling political party and
opposition parties, negatively affect government programs, since the
government likewise, it seems, begins to take certain populist action,"
he said.
epress.am
03.30.2012
About $70 million USD is spent during elections in Armenia, according
to approximate calculations by economist Samvel Avagyan, who included
the expenses of all candidates and political parties, as well as the
allocations from the state budget in his calculations.
Speaking to journalists in the capital today, Avagyan said the
elections have a dual impact on economic process - direct and
indirect. Direct influences are manifested through retail trade,
publishing, advertising, the media industry and foreign exchange rates.
"If you follow closely, the impact of the elections to a certain
extent is reflected in official statistics - particularly during
the 2007 parliamentary election, there was a recorded 20% increase
in retail trade in the month of April alone. Also recorded was a
certain appreciation of the exchange rate against the dollar. These
are direct influences," he said.
The main indirect influence, according to the economist, is that
during the campaign period investment is reduced to some extent, since
the business sector is actively involved in political processes and
expectant (standby) situations arise, as a result of which investment
suffers.
"Furthermore, those populist promises which are made during that
time by different political forces, by the ruling political party and
opposition parties, negatively affect government programs, since the
government likewise, it seems, begins to take certain populist action,"
he said.