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Russian political expert is skeptical of Azeri-Turkish-Georgian plan to form a military alliance

Armenian Government to cut its passenger traffic subsidies to South Caucasus Railway

Armenia and Georgia to build a bridge of friendship between Bagratashen and Sadakhlo

Armenia to build a farm to breed Sevan trout

Georgia conducts active measures to eliminate consequences of landslide on Georgian Military Highway

The Prime Minister of Georgia was presented the 40-Year Old Armenian Brandy

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Natali Pharm Company to be licensed to import narcotic and psychotropic substances to Armenia

Sports and Concerts Facility after K. Demirchyan to be signed off to Defense Ministry of Armenia for debts

Azerbaijan breached ceasefire on the Line of Contact nearly 40 times over the last two days

Ruben Melkonyan: It is too early to speak about Ankara-Tbilisi-Baku axis

Aziz Tamoyan: 200 Yezidi families from Iraq will settle in Artsakh

Hovik Abrahamyan calls for taking his statements the right way

Beeline offers Let's Talk service to corporate customers

VTB Bank (Armenia) starts providing "diamond" lombard loans

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Armenian man who fired at Turkish Embassy emblem in Russia to wait for court verdict under arrest

Orange begins “Smartphonization of Armenia”: bring your old phone and get a new smartphone at half price

U.S. Ambassador to Armenia addresses parties to Karabakh conflict in Armenian

Economist: Vorotan Cascade of HPPs must remain under state management

NKR Defense Army Commander: Baku blackmailing OSCE Minsk Group

Investigation Committee: Karen Petrosyan might be abducted from Armenia's territory

Manvel Grigoryan: In case of war in Artsakh, the boys of oligarchs and statesmen will also be fighting

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VTB Bank (Armenia) prolongs working time at some of its branches

Beeline grants its customers 1,000 intra-network minutes or 1,000MW Internet traffic on their birthdays

Paruyr Hayrikian to embark on hunger strike on 8 September

Aziz Tamoyan: Yazidis are killed on the same scenario as Armenians in 1915

Hovik Abrahamyan: I cannot wave a magic wand to bring everyone out of the shadow

Nikol Pashinyan urges Parliament to provide privileges to residents of near border Armenian communities

Roman Pope to serve liturgy timed to Armenian Genocide centennial

Washington refuses to sell Cougar military vehicles to Baku


Zardusht Alizadeh: Arriving in Sochi, Aliyev and Sargsyan once again demonstrated the world that Russia is still the demiurge in the Caucasus

Masis Mailyan: Unlike Azerbaijan, global centers of force are not interested in growing tensions in Nagorno-Karabakh conflict zone

Sergey Grinyayev:The West’s sanctions are extremely positive for the Eurasian Union project

Alexey Kolomiyets: West's sanction will hardly sober Putin and the Kremlin

Hrant Bagratyan: Sanctions will have tangible impact on Armenia

Georgi Kolarov: The second Nagorno-Karabakh war is inevitable

Artashes Shaboyan: Reduction in consumer demand has a negative effect on supermarkets

Tigran Davtyan: If you have a telephone with you, it means that you have a wallet with you too

Shmuel Meirom: Israel is willing to contribute of its experience in the field of economy, but it cannot force Israeli business to invest in Armenia

Marine Karapetyan: Ameriabank on large business: problems and solutions

Eduard Sharmazanov: The opposition camp has no leader to steer the people

Alexander Zinker: Readiness of the Kremlin to protect its “Big Russian world” is dangerous for Russia itself

Vahe Davtyan: lternative power engineering should be developed regardless of fluctuations in electric power tariffs

Alexander Krylov: Taking into consideration the experience of the EU, Russia has to refuse maximal extension of the Eurasian Economic Union

Rasim Musabekov: Not only global but also the regional geo-political balance is changing

Zardusht Alizade: Apart, Armenia and Azerbaijan will always remain non-democratic fascist states

Report: Monopolies, poor education, non-diversified exports and one-dimensional financial system impede economic growth in Armenia

  • by Gayane Isahakyan

  • Tuesday, March 4, 20:29

 To ensure long-term and sustainable economic growth, one should first of all remove the key constraints, Manuk Yergnyan, Head of EV Consulting, said at today's presentation of the 5th National Competitiveness Report of Armenia (2013-2014). This time the Report was dedicated to Growth Imperatives and Constraints.     

"Without removing the key constraints impeding the growth of economy, the efforts towards liquidation of other impeding factors will be senseless and inefficient.

The report identifies 4 key areas that currently impede growth through restraining more productive and massive investments in the country", said Yergnyan. The change agenda that needs to be spearheaded by both public and private sectors includes these four broad policy areas. 

One of the constrains is insufficient quality of human capital. "Armenia is not short of educated people.  The problem is the imbalance between the demand and supply of skilled labor force. There is a significant gap between the economy needs and the labor force supplied by the education system", he said. 

Another constraint is the distortions in competitive landscape. "The unfair competitive landscape and the shadow business have an unfavorable effect on the activities of certain enterprises and the economy in general. The recovery of the competitive landscape and creation of equal conditions for all companies will considerably boost entrepreneurship development in Armenia", Yergnyan said.  

The third constraint is the lack of self-discovery. "The prospects for economic growth of Armenia inevitably depend on exports. The current structures of exports and direct foreign investments give no new opportunities for exports and innovations. The strategic industrial policy of the country should aims to create such opportunities", he stressed. 

The last constraint is one-dimensional financial system. This prevents the country from financing different sectors of its economy. "In order to meet economic needs, we need a diversified financial system. Our financial system is dominated by banks and has no developed capital markets or share or venture funds," Yergnyan said.

He believes that the dialogue between the private and public sectors should be aimed at preventing the abovementioned constraints, particularly, at creating fair and equal competitive landscape, enlarging industrial policies, stimulating investments in education and sophisticating the financial system.

Armenia's Prime Minister Tigran Sargsyan said that it is the Government's priority to create a fair and equal competitive landscape for all companies. "This is the key driver of economic growth. If we do this, we will consider our mission done. Our second priority is to effectively redistribute our finances and actively funding SMEs. This is not only economic but also political goal as democratic society cannot exist without a well-off middle class," Sargsyan said.

Opposition MP from Heritage Party Armen Martirosyan said that the abovementioned problems cannot be solved without drastic governmental reforms. 

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