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PM Pledges Transparency On State Of Armenian Economy

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  • PM Pledges Transparency On State Of Armenian Economy

    PM PLEDGES TRANSPARENCY ON STATE OF ARMENIAN ECONOMY

    World Markets Research Centre
    Global Insight
    July 27, 2010

    Armenian Prime Minister Tigran Sargsyan said during a televised
    interview that the government is keen to hold open discussions
    about the state of the economy. He explained that transparency on
    economic challenges will help to solve issues more effectively with
    the public's involvement. Sargsyan named some of the top challenges
    facing the government, including the inefficiency of the governing
    system, corruption, and the shadow economy. He added that avoiding
    public discussions on these issues is counterproductive; instead,
    a frank dialogue with the public would enable progress. Sargsyan also
    expressed optimism that 6.7% economic growth in the first half of 2010
    will be replicated in all sectors of the economy except agriculture.

    Significance:The Prime Minister's appeal to the public is not a
    mere gesture, but reflects his ongoing efforts to curb the influence
    of Armenian oligarchs and cut corruption. Sargsyan has always been
    keen to prove that, as a non-political figure, he can modernise the
    Armenian economy. There have been some results in terms of improving
    the business environment, tax collection, and the introduction of
    e-commerce; however, some major issues remain unsolved. The economy has
    an oligarchic and monopolistic structure with an uneven distribution
    of tax--small and medium-sized businesses with no political contacts
    have to shoulder the tax burden while oligarchic monopolies that are
    heavily represented in the government and parliament often avoid
    taxation. Sargsyan does not have a strong backing among the top
    political hierarchy, hence his attempts to rally public support to
    force the politically connected business sector to adhere to tax and
    other regulations. The Armenian electorate is certainly sympathetic
    to his calls, but at the same time worried that if the Prime Minister
    is finding it difficult to curb the oligarchs' influence, the public's
    calls are likely to remain unanswered.




    From: A. Papazian
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