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SOCIAL-ECONOMIC PROBLEMS IN ARMENIA
Vestnik Kavkaza
Aug 31 2012
Russia
According to official data, in the first half of the year Armenia,
saw progress in several spheres of the economy. The correlation between
export and import in favor of the second has always concerned political
and expert circles. But now the authorities say about the 13% export
growth, while import pace is 6.2%. The industrial and agricultural
sectors of economy improved. The industrial growth was 13.4% in the
period from January to June; the agricultural growth - 10.2%.
Nevertheless, some important indexes do not correlate with the
general socio-economic situation presented by the government. Economic
activity is 7-8% in Armenia, but a price fall is seen at the market
of houses. The socio-economic situation improves, but prices for
apartments fall for unknown reasons. Moreover, the number of people
who take mortgage loans increases. "It is difficult to find such
imbalance - the economic growth and houses prices' fall - in any other
country. It is nonsense, as improvement of the socio-economic situation
leads to quick increase of prices for houses," the economic observer
of the opposition newspaper Armenian Times, Aik Gevorkian, is sure.
According to official data, in recent three years flat prices in
Yerevan decreased gradually. In 2010 1 sq. m in Yerevan cost $719,
this year the index is $638. But decrease of houses prices didn't
lead to the growth of deals.
Moreover, Armenia still hasn't settled such a painful economic issue
as correlation of taxes and GDP. Taxes are only 17% of GDP, while in
normal countries this index is at least 25%. The higher this index is,
the less is the share of shadow economy. In Armenia the index doesn't
grow, thus, the shadow economy doesn't reduce.
The other worrying tendency is veiled. In the first half of the year
the volume of electricity produced by TPP increased by 44%. The index
is possible, but only from the first sight. The fact is that the
volume of electricity produced by the hydroelectric station decreased
by 12%. It is well-known that electricity produced by TPP costs more
than electricity produced by the hydroelectric station. It means
electricity prices will grow for population.
The reasonable question is: if everything is so smooth, than why does
the migration level grow, as well as the number of the poor? According
to the migration service, 83760 people left Armenia in recent 7 months
and they didn't come back. Last year the index was 78644 people.
In 2010-2011 106 thousand people left Armenia. If the same migration
pace continues, in 2010-2012 150 thousand people will leave Armenia.
It is 5% of the population. The poverty level increased by 12%
in comparison with 2008 in Armenia. The index is 35.8%. Therefore,
all general socio-economic problems such as unemployment, migration,
"shadow economics" growth, business monopolies are still unsettled.
From: Baghdasarian
Vestnik Kavkaza
Aug 31 2012
Russia
According to official data, in the first half of the year Armenia,
saw progress in several spheres of the economy. The correlation between
export and import in favor of the second has always concerned political
and expert circles. But now the authorities say about the 13% export
growth, while import pace is 6.2%. The industrial and agricultural
sectors of economy improved. The industrial growth was 13.4% in the
period from January to June; the agricultural growth - 10.2%.
Nevertheless, some important indexes do not correlate with the
general socio-economic situation presented by the government. Economic
activity is 7-8% in Armenia, but a price fall is seen at the market
of houses. The socio-economic situation improves, but prices for
apartments fall for unknown reasons. Moreover, the number of people
who take mortgage loans increases. "It is difficult to find such
imbalance - the economic growth and houses prices' fall - in any other
country. It is nonsense, as improvement of the socio-economic situation
leads to quick increase of prices for houses," the economic observer
of the opposition newspaper Armenian Times, Aik Gevorkian, is sure.
According to official data, in recent three years flat prices in
Yerevan decreased gradually. In 2010 1 sq. m in Yerevan cost $719,
this year the index is $638. But decrease of houses prices didn't
lead to the growth of deals.
Moreover, Armenia still hasn't settled such a painful economic issue
as correlation of taxes and GDP. Taxes are only 17% of GDP, while in
normal countries this index is at least 25%. The higher this index is,
the less is the share of shadow economy. In Armenia the index doesn't
grow, thus, the shadow economy doesn't reduce.
The other worrying tendency is veiled. In the first half of the year
the volume of electricity produced by TPP increased by 44%. The index
is possible, but only from the first sight. The fact is that the
volume of electricity produced by the hydroelectric station decreased
by 12%. It is well-known that electricity produced by TPP costs more
than electricity produced by the hydroelectric station. It means
electricity prices will grow for population.
The reasonable question is: if everything is so smooth, than why does
the migration level grow, as well as the number of the poor? According
to the migration service, 83760 people left Armenia in recent 7 months
and they didn't come back. Last year the index was 78644 people.
In 2010-2011 106 thousand people left Armenia. If the same migration
pace continues, in 2010-2012 150 thousand people will leave Armenia.
It is 5% of the population. The poverty level increased by 12%
in comparison with 2008 in Armenia. The index is 35.8%. Therefore,
all general socio-economic problems such as unemployment, migration,
"shadow economics" growth, business monopolies are still unsettled.
From: Baghdasarian