Newsfeed

Political expert: OSCE Minsk Group Co-Chairs want to lobby the meeting between Presidents of Armenia and Azerbaijan

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

OSCE Minsk Group Co-Chairs express their serious concern about the increase in tensions and violence in Karabakh conflict zone

Heritage Party considers Volodya Avetisyan to be a political prisoner

Rostelecom expands its sales and customer service network

Arthur Grigoryan appointed commercial manager of mobile communication division at Beeline Armenia

Edward Nalbandian: Armenia wants to start a dialogue on abolishment of visa regime with EU

Edward Nalbandian: Unlike Azerbaijan, Armenia has been consistently proving its adherence to the principles of international law

No third tailing dump in Tukhmanuk

Edward Nalbandian: Turkey, which is striving to the EU, has shut down the border to the neighboring state, whereas a principle of free movement at the EU territory is one of the basic norms

Ali Hasanov: If international organizations can not resolve the conflict, let them step aside and the two neighboring states solve the problem themselves

Vladimir Dorokhin: None of the Azerbaijanis detained at the territory of Armenia are Russian citizens

"Mika cement" to replace owner

Deputy Prime Minister of Azerbaijan: The Azerbaijani people do not believe the OSCE Minsk Group

OSCE representative concerned about Armenia court decision forcing media outlets to disclose sources

The NKR Minister of Foreign Affairs received the Head of the ICRC Mission in Nagorno-Karabakh

Members of Karabakh parliament made a statement to protect Levon Hayrapetyan

"Vallex" Group celebrates Miner's Day

Commandos: Levon Hayrapetyan's arrest is a result of hard work of Azerbaijani and Russian secret services

Ivan Kukhta: The government of Ukraine owns irrefutable evidence of separatists' blame for the crash of the Malaysian Boeing

According to the results of the first half of 2014, growth rates of Ameriabank's indices exceed average market level

ACBA-CREDIT ACRICOLE BANK and American Express have announced the launch of new card "The ACBA-CREDIT AGRICOLE BANK American Express® Cash Back Card"

No visa regime between Georgia and Armenia

Vahagn Hovnanyan: It is necessary to hold a protest action in front Russia's Embassy in Armenia to support Levon Hayrapetyan

Political expert: Growth of tension at the border is a regular ill-fated expression of complexes by Azerbaijan

James Warlick: The number of incidents and resulting deaths and injuries is also a setback in our efforts to work with parties to find a lasting peace

Lake Sevan is on the verge of environmental disaster

Life of the three persons injured in Kashatagh as a result of a landmine explosion is out of danger

EU welcomes ruling of Turkish Constitutional Court regarding investigation into the 2007 murder of Turkish- Armenian journalist Hrant Dink

Armavir mayor's car explodes in mine-studded territory of Kashatagh

Newspaper: Armenian oligarch's company worked in the shadow

Nagorno-Karabakh Police publish details of the case of Azeri saboteurs

Eastern Partnership countries cannot join European Union within the next 5 years

Expert: Decision to increase water release from Lake Sevan to 270 mln cu m is a shady transaction

RESO Insurance Company compensates for damage under hull insurance in 90.9% of cases

VTB Bank (Armenia) and Visa announce the launch of Summer with VTB campaign

Orange Foundation opens a Youth center in Chinari and a computer center in Zorakan in Tavush region

ICRC Yerevan Office holds negotiations to organize a meeting with Azeris detained in Armenian territory

Hakob Sanasaryan: Armenia has chosen the path of destroying its water resources

ICRC Yerevan Office maintains regular contacts with residents of borderline villages

Areximbank-Gazprombank Group's profit increases by 56.1% and capital grows to 21.9 bln AMD

Levon Ter-Petrosyan: the authorities of Armenia are going to replace the "carrot" of the PAP by the "stick"

Ankara has put forward a plan to form a free trade zone with the Customs Union

Ankara's wish to create free trade zone with Customs Union has a dim prospect for Armenia

Levon Ter-Petrosyan: The delay of Armenia's joining Eurasian Economic Union is conditioned by the demand of the EAEU to set a check point at the border to Nagornyy Karabakh

Levon Ter-Petrosyan: The reaction of the Armenian party at the Azerbaijani invasions is quite guarded and inadequate

Sharmazanov to Ter-Petrosyan: It is unacceptable to speculate the Karabakh issue for the political goals

The Golden Apricot Yerevan 11th International Film Festival has come to its end, the official website reports

Rostelecom services available in the center of Yerevan

Regional

Georgian Parliament Speaker to Visit Israel

Jury to Pass Verdict on Accomplices to Georgian General's Murderer in Moscow

Municipal Transport Drivers to Hold Protest Rally Throughout Georgia

The National Press Day

Saakashvili's Party States it is Important to Conduct the Second Round of Elections till July 19

Historical Changes Have Occurred in Georgia - President

Israeli Minister of Agriculture is Paying Official Visit to Georgia

Power Restrictions Imposed in Tbilisi since June 23, 2014

Ramadan begins on June 29

Azerbaijan's democratic forces calling for the Association with the EU

Georgian MFA Responds to U.S. Embassy's Statement, Connected with Incidents during Election Campaign

Georgian Ambassador Demands Explanations from Turkish MFA

Georgian Citizens Abroad not to Participate in Local Elections

Georgian President Delegates Prime Minister to Sign Associated Agreement

Georgian Leadership Welcomes Presidential Elections in Ukraine

We do not Need Saakashvili's Type Mediators in our Relations with Ukraine - Lavrov

Caucasian Muslims Department (CMD) opens an office in Iran, next will be Saudi Arabia

Poroshenko States he Has not Offered Georgian Ex-President Mikheil Saakashvili Adviser's Post

Russia not to Punish Georgia for Signing Associated Agreement with EU-Kosachev

James Appathurai Writes about Georgia in his Page in Facebook

Blogger Abdul Abilov sentenced to five and a half years

Vugar Aliyev committed to strengthening the responsibility of Internet resources

Civil society urges Aliyev to defend democracy

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. 

Send to a friend

To (e-mail)


Your name


Message


Comments

View comments (0)
  • READ ALL COMMENTS
  • POST A COMMENT

Be first to comment on this article

* Indicates required fields