Causes and possible consequences
The problems of today's Armenian economy are vividly discussed by financiers, experts, politicians and "ordinary" citizens.
It is clear that not only the global financial crisis has caused problems in the Armenian economy. The high level of monopolization of the economy and oligarchization of the economic model, as well the growth of corruption in all administrative areas of the economy, have become the main obstacles hindering its development. As a result, people have started participating in opposition rallies, and the authorities were forced to consider possibilities of structural shifts in the economy. President Serzh Sargsyan has finally outlined the main vectors of the activities of ministries and other agencies responsible for the sector. The president’s administration has remembered about problems and even the existence of the real economy, industry and even small- and medium-sized business.
Apart from oligarchy and corruption, the Armenian economy has been troubled by an economic model imposed upon Armenia by international financial institutions, in which priority is given to macroeconomic stability. As a result, the Armenian economy has undergone a "domino effect" - the creation of fundamental risks, even for a banking system which is traditionally successful even during crises.
The government and the fiscal structure responded to these challenges only with increased administrative pressure, aimed at the fulfilling the fiscal plan. Traditionally, pressure was not directed at the major monopolies or the basic consumer banking services, but at small- and medium-sized businesses.
The state apparatus is not going to stop this process. The authorities are working toward a single goal - postponing the collapse of the oligarchical system in Armenia.
Problems can be solved only by shaking the whole economic system and eliminating the monopolies, as well as taking measures against the omnipotence of bureaucrats, tax and customs bribery and bullying. The current government will never do this. Instead it will take half-measures, which have no relation to long-term economic development.
David Stepanyan, Armenia. Exclusively for VK