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FORUM IN TSAGHKADZOR BECOMES A PLATFORM FOR MAGNILOQUENT STATEMENTS
by Elita Babayan
Friday, February 7, 19:30
The specialized forum on the Armenian capital market development,
which is taking place in the resort town of Tsaghkadzor, Armenia, has
become a convenient platform for magniloquent statements of economic
authorities. A high-class hotel is hosting extensive discussions on
global and local economic changes with participation of international
and local experts. The participants are adducing arguments in favor of
the pension reform, which, however, will become the only mechanism for
the authorities to take the national economy out of the system crisis,
according to independent experts who spoke on condition of anonymity.
But even this scenario, experts believe, will be temporary and will
only prolong the inevitable fiasco of the public administration system.
The economic authorities' opening speeches were not impartial this
time either. They restricted their speeches to commonly accepted
phrases saying that the development of the stock market in Armenia
is becoming even more topical amid the ongoing pension reforms, which
are of not only social but also economic importance. The development
of the institutional and market infrastructures remains the key goal
of the economic authorities for the years to come.
Officials say that Armenia is one of the few states in the post-Soviet
area that is promising to register a serious economic growth in the
future. They are convinced that the country is economically prepared
when entering the year 2014 and has all prerequisites to gain economic
activity and macroeconomic stability this year. Officials remember the
year 2013 due to the growth in the industrial and agrarian sectors,
as well as rise in exports.
Meanwhile, bank experts and economists do not rule out economic
downturn at the yearend 2014. Moreover, they consider it quite
probable and even inevitable. If the voice recorder is switched off,
they confess that they see progress in not a single more or less
cost-efficient sector of Armenian economy. As regards the pension
reform, they consider it to be the only tool to attract long-term
money and do not rule out improper use of the retirement savings by
the authorities (i.e. the use of the funds to their own advantage).
Nevertheless, the experts do not yet forecast any serious perturbations
in the economy. They believe that the country will keep dragging on
a wretched existence under cover of new reforms.
While the Tsaghkadzor forum participants are demonstrating logorrhea
and discussing the advantages of the new system and while the young
activists (i.e. the future pensioners), together with non-power
factions, are holding rallies, the accumulative pension system,
which has made a stir and still remains unclear for the demonstrators
themselves, is coming into its own "legal" right. In the meantime, the
country remains in prolonged recession and is coming closer and closer
to the seemingly inevitable collapse. It is already unimportant who
is the godfather of the pension reform and who is going to initiate
the future revolutionary upheavals, for the pleasures of the mighty
are the tears of the poor.
The authorities' decision to impose the pension reform has completely
and entirely undermined the almost lacking public confidence in the
authorities. The citizens of our small country have one firm belief
today - they are unlikely to get their retirement savings in some 30-40
years. There are several scenarios of full and irretrievable loss of
the pension assets, ranging from purely hypothetic to economically
substantiated ones. Among the latter experts point out possible
perturbations in the economy such as default or hyperinflation. Experts
think that the citizens' concerns are explained by the long-term
effect of the pension reform.
To note, the development of Armenian capital markets is the focus
of the ongoing forum in Tsakhkadzor, Armenia. The forum was jointly
organized by the European Bank for Reconstruction and Development
(EBRD) and NASDAQ OMX Armenia, with the support of the Central Bank
of Armenia. The program includes three sessions with participation
of the economic authorities, as well as international and local
experts. One of the sessions familiarizes the participants with
Georgia's experience in capital market development. The other two
sessions cover global macroeconomic indices and the current condition
of Armenia's stock market.
http://www.arminfo.am/index.cfm?objectid=2C147CE0-9015-11E3-A8E90EB7C0D21663
From: Emil Lazarian | Ararat NewsPress
by Elita Babayan
Friday, February 7, 19:30
The specialized forum on the Armenian capital market development,
which is taking place in the resort town of Tsaghkadzor, Armenia, has
become a convenient platform for magniloquent statements of economic
authorities. A high-class hotel is hosting extensive discussions on
global and local economic changes with participation of international
and local experts. The participants are adducing arguments in favor of
the pension reform, which, however, will become the only mechanism for
the authorities to take the national economy out of the system crisis,
according to independent experts who spoke on condition of anonymity.
But even this scenario, experts believe, will be temporary and will
only prolong the inevitable fiasco of the public administration system.
The economic authorities' opening speeches were not impartial this
time either. They restricted their speeches to commonly accepted
phrases saying that the development of the stock market in Armenia
is becoming even more topical amid the ongoing pension reforms, which
are of not only social but also economic importance. The development
of the institutional and market infrastructures remains the key goal
of the economic authorities for the years to come.
Officials say that Armenia is one of the few states in the post-Soviet
area that is promising to register a serious economic growth in the
future. They are convinced that the country is economically prepared
when entering the year 2014 and has all prerequisites to gain economic
activity and macroeconomic stability this year. Officials remember the
year 2013 due to the growth in the industrial and agrarian sectors,
as well as rise in exports.
Meanwhile, bank experts and economists do not rule out economic
downturn at the yearend 2014. Moreover, they consider it quite
probable and even inevitable. If the voice recorder is switched off,
they confess that they see progress in not a single more or less
cost-efficient sector of Armenian economy. As regards the pension
reform, they consider it to be the only tool to attract long-term
money and do not rule out improper use of the retirement savings by
the authorities (i.e. the use of the funds to their own advantage).
Nevertheless, the experts do not yet forecast any serious perturbations
in the economy. They believe that the country will keep dragging on
a wretched existence under cover of new reforms.
While the Tsaghkadzor forum participants are demonstrating logorrhea
and discussing the advantages of the new system and while the young
activists (i.e. the future pensioners), together with non-power
factions, are holding rallies, the accumulative pension system,
which has made a stir and still remains unclear for the demonstrators
themselves, is coming into its own "legal" right. In the meantime, the
country remains in prolonged recession and is coming closer and closer
to the seemingly inevitable collapse. It is already unimportant who
is the godfather of the pension reform and who is going to initiate
the future revolutionary upheavals, for the pleasures of the mighty
are the tears of the poor.
The authorities' decision to impose the pension reform has completely
and entirely undermined the almost lacking public confidence in the
authorities. The citizens of our small country have one firm belief
today - they are unlikely to get their retirement savings in some 30-40
years. There are several scenarios of full and irretrievable loss of
the pension assets, ranging from purely hypothetic to economically
substantiated ones. Among the latter experts point out possible
perturbations in the economy such as default or hyperinflation. Experts
think that the citizens' concerns are explained by the long-term
effect of the pension reform.
To note, the development of Armenian capital markets is the focus
of the ongoing forum in Tsakhkadzor, Armenia. The forum was jointly
organized by the European Bank for Reconstruction and Development
(EBRD) and NASDAQ OMX Armenia, with the support of the Central Bank
of Armenia. The program includes three sessions with participation
of the economic authorities, as well as international and local
experts. One of the sessions familiarizes the participants with
Georgia's experience in capital market development. The other two
sessions cover global macroeconomic indices and the current condition
of Armenia's stock market.
http://www.arminfo.am/index.cfm?objectid=2C147CE0-9015-11E3-A8E90EB7C0D21663
From: Emil Lazarian | Ararat NewsPress