Hakob Badalyan

11:44:59 - 21/05/2009

According to the National Statistics Service, in the first four month
of 2009, the GDP of Armenia decreased by 9, 7 percent. A little more,
and Armenia, from a country which registers a double figure increase,
will become a country which registers a double figure decrease. This
prospect may retard the allocation of the loan of 500 million from
Russia, the agreement of which was finally signed on May 20. The
signing of the agreement took several months. Let as wait to see how
much time will take the allocation of the money to Armenia.

But, let us assume that the money will quickly be allocated to
Armenia. What is Armenia going to do with that money? The Prime
Minister, Tigran Sargsyan, stated tat Armenia will direct it to the
development of infrastructures and for the promotion of the small
and midsize businesses.

These objectives are quite expressive, which became standard
expressions, and the small and midsize businesses do not feel any
encouragement, which, according to the government, the World Bank
and the state budget have already started to give in the form of
approximately 100 million dollars.

Instead, the expenditures are tangible, which are made for electoral
purposes, though in the form of the state program of greening and
putting in good order Yerevan. The GDP of Armenia decreases by 9,
7 percent, the state collects debts from foreign countries, and the
Yerevan City Hall covers with flowers the bridges and the subways of
Yerevan and increases the number of lightened streets and lanes. All
this is made on account of the money from the budget.

Imagine, a family collects debts in order not to reach poverty but they
spend that money for decorating the windows and the doors of their
house. As if, Yerevan needed only flowered bridges. In case of a GDP
9, 5 percent decrease, the state had to pass to the regime of strict
economy. In this case, the state had to launch the construction of a
Davidashen-Zovuni bridge, which could provide for some positive effect
in the economy with the help of its multiplicative effect. While,
the state uses the money for this construction for the city cleaning
program, for Gagik Beglaryan to be able to wage his electoral campaign
of the Yerevan Mayor election.

Judging by the present aspect of the government words and actions,
it is very doubtful that the Armenian government is going to use
the 500 million Russian loan effectively. The maximum that may be
expected is that in a certain period, there will be additional 500
million in the budget. But, its existence will not solve any problem,
but the sum will be spent, will be circulated a little, than it well
become property for someone, and will find its place in somebody's
pocket. It is all the same, the debt will be paid off by the state,
consequently, who wants, may care for the state.