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ARMENIA'S ECONOMIC LAWS SHOW PROGRESS - ECONOMISTS
11:54 * 22.12.14
Gagik Makaryan, Chairman of the Republican Union of Employers of
Armenia (RUEA), notes progress in Armenia's business environment for
a number of reasons.
"The first positive change is the 'one-window' principle and simplified
laws. Besides, progress has been recorded due to reforms in supervisory
bodies," Mr Makaryan told Tert.am as he commented on the Forbes Best
Countries for Business list, which ranks Armenia 56th.
With respect to business environment problems, Mr Makaryan said:
"One of the major problems is that, however hard the government tries
to reform laws, certain cases require more aggressive intervention,
without hopes for self-regulated market."
Although in other states the government is supposed to ensure
favorable conditions, in Armenia such factors as black economy, unequal
conditions for competition and inspections, management quality and
personnel problems impede the process.
"I would like the government to pay more attention to such problems,"
Mr Makaryan said.
He points out the need for work with banks in simplifying loan terms,
- ensuring low-interest loans or subsidies.
"Unfair competition does not imply punishment of businessmen for
changing prices in certain cases.
Rather, it is unequal attitude by officials, inspections and local
government bodies. The situation needs improvement."
The government should pay more attention to innovative research
centers, which would be more efficient in terms of management and
economic stability, technologies and export.
"Such companies will prefer transparent activities due to high
profits," Mr Makaryan said.
According to him, Armenia's incumbent government is more active,
especially Prime Minister Hovik Abrahamyan.
"Half of the ministers are passive, but the premier, although he is
not an economist, is taking practical steps. He does not waste time
and makes prompt decisions."
Vice-Chairman of the Heritage party, economist Armen Martirosyan
believes that although the Forbes Best Countries for Business list
ranks Armenia 56th, it does not reflect the reality.
"I think any economic practice is evidence, and it shows quite a
different picture," he said.
The latest developments are clear evidence that Armenia cannot be
said to have a favorable business environment.
"We see pressure on small and medium businesses year by year, with
their share decreasing, and a lack of large-scale investments in
Armenia," Mr Martirosyan said.
With respect to international organizations' assessments, he said:
"For advisability reasons they may make positive assessments, but
the real situation does not change."
Only top-ranking officials own big businesses in Armenia, and they
are in the authorities' hands.
"Market competition is out of the question here. Small and medium
businesses are unprotected, and, despite cheap labor forces,
large-scale investments are few in number in Armenia," Mr Martirosyan
said.
"Some legal reforms may have been implemented, but the reality is
strikingly different from the official documents."
Despite the fact that Armenia gets huge amounts to implement education
and health reforms, but the real situation is worsening in the country,
Mr Martirosyan concluded.
http://www.tert.am/en/news/2014/12/22/armen-gagik-comments/1542282
11:54 * 22.12.14
Gagik Makaryan, Chairman of the Republican Union of Employers of
Armenia (RUEA), notes progress in Armenia's business environment for
a number of reasons.
"The first positive change is the 'one-window' principle and simplified
laws. Besides, progress has been recorded due to reforms in supervisory
bodies," Mr Makaryan told Tert.am as he commented on the Forbes Best
Countries for Business list, which ranks Armenia 56th.
With respect to business environment problems, Mr Makaryan said:
"One of the major problems is that, however hard the government tries
to reform laws, certain cases require more aggressive intervention,
without hopes for self-regulated market."
Although in other states the government is supposed to ensure
favorable conditions, in Armenia such factors as black economy, unequal
conditions for competition and inspections, management quality and
personnel problems impede the process.
"I would like the government to pay more attention to such problems,"
Mr Makaryan said.
He points out the need for work with banks in simplifying loan terms,
- ensuring low-interest loans or subsidies.
"Unfair competition does not imply punishment of businessmen for
changing prices in certain cases.
Rather, it is unequal attitude by officials, inspections and local
government bodies. The situation needs improvement."
The government should pay more attention to innovative research
centers, which would be more efficient in terms of management and
economic stability, technologies and export.
"Such companies will prefer transparent activities due to high
profits," Mr Makaryan said.
According to him, Armenia's incumbent government is more active,
especially Prime Minister Hovik Abrahamyan.
"Half of the ministers are passive, but the premier, although he is
not an economist, is taking practical steps. He does not waste time
and makes prompt decisions."
Vice-Chairman of the Heritage party, economist Armen Martirosyan
believes that although the Forbes Best Countries for Business list
ranks Armenia 56th, it does not reflect the reality.
"I think any economic practice is evidence, and it shows quite a
different picture," he said.
The latest developments are clear evidence that Armenia cannot be
said to have a favorable business environment.
"We see pressure on small and medium businesses year by year, with
their share decreasing, and a lack of large-scale investments in
Armenia," Mr Martirosyan said.
With respect to international organizations' assessments, he said:
"For advisability reasons they may make positive assessments, but
the real situation does not change."
Only top-ranking officials own big businesses in Armenia, and they
are in the authorities' hands.
"Market competition is out of the question here. Small and medium
businesses are unprotected, and, despite cheap labor forces,
large-scale investments are few in number in Armenia," Mr Martirosyan
said.
"Some legal reforms may have been implemented, but the reality is
strikingly different from the official documents."
Despite the fact that Armenia gets huge amounts to implement education
and health reforms, but the real situation is worsening in the country,
Mr Martirosyan concluded.
http://www.tert.am/en/news/2014/12/22/armen-gagik-comments/1542282