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"THE RESULTS OF THE ELECTIONS WON'T CHANGE THE SITUATION IN ARMENIA"
Vestnik Kavkaza
Nov 1 2012
Russia
David Stepanyan, Yerevan. Exclusively to Vestnik Kavkaza
The member of the administration of Armenian All-National Movement,
the head of the parliamentary committee on international affairs of
Armenia in 1995-1999, the expert of the European Business Association
on Investment and Market Access Affairs, Ovanes Igityan, told Vestnik
Kavkaza about peculiarities of the investment climate in Armenia
ahead of the incoming presidential elections.
- Armenia went up by 18 points in the rating of the World Bank Doing
Business for 2013 - from 50th to 32nd place. Is this rather high
place reflecting the real climate established by control bodies for
doing business in Armenia?
- Even the 32nd place in the Doing Business rating is not enough
for changing the tendency of reduction of direct investments into
Armenia. Only countries which managed to attract investments from
abroad were able to cope with the crisis. Even the US which has
always had the strategy of investment export, market penetration
and increase of a political factor in other states and continents
considers attraction of investments into American economy today. It
means an importance of direct and indirect investments. The wave of
patriotism covered Armenian Diaspora under Robert Kocharyan has gone. A
contemporary businessman from Diaspora can be attracted only by certain
rules of business, rather than by pressure on his patriotic feelings.
We have to withdraw stereotypes. For example, it is thought that the
Armenian market is too small and it is difficult to attract investors
here. However, it is obvious that a lot of spheres are waiting for
investments, for instance, tourism. The real problem is not the size of
the market, but its underdevelopment. Our market is still not regulated
enough. Our Association together with the European Commission tried
to improve the business-climate of Armenia. But the government often
acts as if investors need this more than Armenian economy.
- So you see no governmental contribution to the promotion of the
nvestment attraction of Armenia?
- The Armenian government deals with accounting rather than with
ideology and a strategy of economic development. There are a series
of directions which have to be developed by the state in favor of
better economy: IT, technoparks across the country. But it is not
implemented. Moreover, many consider Armenian economy which is based
on private transfers as a developed economic model. The banking system
is working for transfers, transfers are spent for goods which provide
the budged with taxes. The government doesn't mind about increase
of transfers and, therefore, promotes export of labor forces through
recruiting agencies. At the same time, they forget that the historic
experience led to development of skills of Armenians and as the result
Armenian communities in other countries, despite their paucity, have
much more professional specialists and successful businessmen than
other ethnic-groups. The state has to plan and divide robbery from
development, avoiding robbery projects. Armenia has no lack of money
which is confirmed by expenses by our politicians and tycoons abroad.
- But here we can speak not only about expenses, but also
investments...
- Many of them try to invest into foreign countries because they
don't want to connect their future with Armenia. However, they often
fail to invest abroad -they lack knowledge, including language. Their
capitals are a dead-weight. At the same time, Kazakhstan which has
much more resources is actively developing legislation on regulation
of concessional projects and investment security. Few citizens of
Kazakhstan invest into foreign economies and prefer investment into
their own country. Despite huge volumes of energy resources, Kazakhstan
implements the European system of electricity saving, which is much
recommended for Armenia importing energy. This sphere is waiting for
investments. There is only one obstacle - the Armenian business-climate
is too far from European standards. Even the closed border with Turkey
is not the point. We shouldn't encourage a foreign investor to the
prejudice of an Armenian investor. Today business depends on whether a
businessman has certain contacts, on a bureaucrat who interferes with
your business. The role of a person is bigger that the role of the law.
- Will the results of the presidential elections in February change
the situation?
- I don't think so, considering the way how Armenia conducts
elections. If everything remains the same, we will have no elections
in a European, civilized sense in 2013. The visual part of the
presidential elections will be presented perfectly. But people will
come, throw ballots into ballot-boxes for money or under pressure of
the authorities. Today political forces are considered in Armenia as
participants of the elections; people forget that the main participant
is the society which is absolutely indifferent these days. It is easy
to manipulate by a passive society, given presence of money and an
administrative resource.
There are a lot of factors which are able to wake the Armenian society
up: beating soldiers, murders in army, the crime in Arsnakar, impudence
of politicians appointing their children to state positions, weakness
of laws. But the waking-up is not happening. As the result the power
will get as much votes as it wants.
http://vestnikkavkaza.net/analysis/politics/33212.html
Vestnik Kavkaza
Nov 1 2012
Russia
David Stepanyan, Yerevan. Exclusively to Vestnik Kavkaza
The member of the administration of Armenian All-National Movement,
the head of the parliamentary committee on international affairs of
Armenia in 1995-1999, the expert of the European Business Association
on Investment and Market Access Affairs, Ovanes Igityan, told Vestnik
Kavkaza about peculiarities of the investment climate in Armenia
ahead of the incoming presidential elections.
- Armenia went up by 18 points in the rating of the World Bank Doing
Business for 2013 - from 50th to 32nd place. Is this rather high
place reflecting the real climate established by control bodies for
doing business in Armenia?
- Even the 32nd place in the Doing Business rating is not enough
for changing the tendency of reduction of direct investments into
Armenia. Only countries which managed to attract investments from
abroad were able to cope with the crisis. Even the US which has
always had the strategy of investment export, market penetration
and increase of a political factor in other states and continents
considers attraction of investments into American economy today. It
means an importance of direct and indirect investments. The wave of
patriotism covered Armenian Diaspora under Robert Kocharyan has gone. A
contemporary businessman from Diaspora can be attracted only by certain
rules of business, rather than by pressure on his patriotic feelings.
We have to withdraw stereotypes. For example, it is thought that the
Armenian market is too small and it is difficult to attract investors
here. However, it is obvious that a lot of spheres are waiting for
investments, for instance, tourism. The real problem is not the size of
the market, but its underdevelopment. Our market is still not regulated
enough. Our Association together with the European Commission tried
to improve the business-climate of Armenia. But the government often
acts as if investors need this more than Armenian economy.
- So you see no governmental contribution to the promotion of the
nvestment attraction of Armenia?
- The Armenian government deals with accounting rather than with
ideology and a strategy of economic development. There are a series
of directions which have to be developed by the state in favor of
better economy: IT, technoparks across the country. But it is not
implemented. Moreover, many consider Armenian economy which is based
on private transfers as a developed economic model. The banking system
is working for transfers, transfers are spent for goods which provide
the budged with taxes. The government doesn't mind about increase
of transfers and, therefore, promotes export of labor forces through
recruiting agencies. At the same time, they forget that the historic
experience led to development of skills of Armenians and as the result
Armenian communities in other countries, despite their paucity, have
much more professional specialists and successful businessmen than
other ethnic-groups. The state has to plan and divide robbery from
development, avoiding robbery projects. Armenia has no lack of money
which is confirmed by expenses by our politicians and tycoons abroad.
- But here we can speak not only about expenses, but also
investments...
- Many of them try to invest into foreign countries because they
don't want to connect their future with Armenia. However, they often
fail to invest abroad -they lack knowledge, including language. Their
capitals are a dead-weight. At the same time, Kazakhstan which has
much more resources is actively developing legislation on regulation
of concessional projects and investment security. Few citizens of
Kazakhstan invest into foreign economies and prefer investment into
their own country. Despite huge volumes of energy resources, Kazakhstan
implements the European system of electricity saving, which is much
recommended for Armenia importing energy. This sphere is waiting for
investments. There is only one obstacle - the Armenian business-climate
is too far from European standards. Even the closed border with Turkey
is not the point. We shouldn't encourage a foreign investor to the
prejudice of an Armenian investor. Today business depends on whether a
businessman has certain contacts, on a bureaucrat who interferes with
your business. The role of a person is bigger that the role of the law.
- Will the results of the presidential elections in February change
the situation?
- I don't think so, considering the way how Armenia conducts
elections. If everything remains the same, we will have no elections
in a European, civilized sense in 2013. The visual part of the
presidential elections will be presented perfectly. But people will
come, throw ballots into ballot-boxes for money or under pressure of
the authorities. Today political forces are considered in Armenia as
participants of the elections; people forget that the main participant
is the society which is absolutely indifferent these days. It is easy
to manipulate by a passive society, given presence of money and an
administrative resource.
There are a lot of factors which are able to wake the Armenian society
up: beating soldiers, murders in army, the crime in Arsnakar, impudence
of politicians appointing their children to state positions, weakness
of laws. But the waking-up is not happening. As the result the power
will get as much votes as it wants.
http://vestnikkavkaza.net/analysis/politics/33212.html