"Pashinyan's plan' not to bring 2008 back to Armenia

The volume of investments as indicated by the Armenian government program is extremely insufficient, the Prosperous Armenia Party PM Mikael Melkumyan said, commenting on the government program's economic part.

"Increasing the amount of investments from 15.5% to 23% of GDP means that we will be unable to reach even the 41% indicator in 2008," he said. "$120 million per year is not enough," Sputnik Armenia cited the MP as saying.

Melkunyan noted that "having economic growth of 7-7.5% is not enough either." "It’s important that people sense it; and for that, at least 2.5 to 3 billion dollars in investments are needed," the MP said.

According to him, difficulties in connection with credit resources hinder Armenia’s economy, due to which businesses are unable to get affordable loans.

The governmental program was adopted on February 14 against the background of stormy discussions. It was supported by the deputies from Nikol Pashinyan’s My Step bloc and apposed by the Enlightened Armenia and Prosperous Armenia parties.

Director of the Institute of Political Studies Sergei Markov, speaking with the correspondent of Vestnik Kavkaza earlier, explained that the blockade of borders will not allow Armenia to fully develop under any other conditions. "In order to achieve economic progress, Armenia has political will and a systematic approach attempt, demonstrated by Nikol Pashinyan, support of his actions by the majority of the population and citizens' need to accomplish this economic revolution, as well as support from rich Western countries. But this is not enough, since Armenia, first of all, it is in a state of economic blockade due to the unresolved Nagorno-Karabakh conflict, and this is the main obstacle," he said.

The situation is complicated by the fact that Armenia has a very small and narrow market. "The Armenian economy can only develop in integration with any larger market. It cannot develop with Russia as a result of logistical obstacles associated with the blockade of the Azerbaijani border, and with a weak transit capacity through Georgia. Iran has big problems with the economy. In addition, the position of the diaspora, which could provide serious investments, is still unknown - there is support in words, but it is not yet clear that there will be investment support from the diaspora," Sergei Markov said.

The writer, journalist, Vesti FM radio station host Armen Gasparyan stressed that Armenia needs very serious economic and social reforms. "Also I don't know whether any economic breakthrough is possible, even with a decrease in the level of corruption. The fact is that the republic cannot be moved geographically - it will continue to have borders with Turkey without diplomatic relations, and Azerbaijan, being in a state of war, both borders are closed," he said.