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PLAN FOR FUTURE?: GOVERNMENT'S FIVE-YEAR PROGRAM APPROVED BY PARLIAMENT DESPITE HARSH CRITICISM FROM OPPOSITION
By Naira Hayrumyan
ArmeniaNow
22.06.12
Photo: www.parliament.am
At a special meeting on Thursday the Armenian parliament approved a
five-year program of the government by a vote of 75 to 47, with one
abstention. The "for" votes came from lawmakers representing the
ruling Republican Party of Armenia (RPA) and its junior coalition
partner, Orinats Yerkir. All the other factions, including ARF
Dashnaktsutyun, Heritage, the Armenian National Congress (ANC) as
well as the Prosperous Armenia Party (PAP) which refused to form a
coalition with the RPA following the May 6 parliamentary elections.
The voting in the National Assembly revealed several important
vectors, and first of all the fact that an opposition camp capable of
consolidating efforts and pressurizing the government is emerging in
Armenia. Despite the fact that the government's program was adopted
by the two coalition parties that have an absolute majority in the
parliament, some very strong criticism was heard during the debate
and Prime Minister Tigran Sargsyan, overall, could not answer the
main points of this criticism.
Though, he said, he was satisfied with the discussions of the program,
he also said that some opposition MPs voiced "artificial" arguments
against him. The head of the government stressed that almost all
concerns voiced during the debate are reflected in the program, which
also indicates ways of overcoming these problems. At the same time,
Sargsyan admitted that the government led by him failed in late 2008
to predict the economic crisis that had a significant negative impact
on the economy of Armenia.
Armenia's former foreign minister, PPA faction member Vartan Oskanian,
however, noted that the prime minister who, before being appointed to
his current post in April 2008, headed the Central Bank, was unable
to move beyond his "monetarist thinking", which is also reflected in
the program of the government. He reminded Sargsyan that in 2008 he
returned from the United States, where the financial crisis had already
begun and then presented a draft budget for 2009 with a projected
economic growth of 9.5 percent, while the country eventually got a
14.5-percent GDP fall.
The opposition accused the government of lacking specific estimates and
proposed steps in the program. Member of the Heritage faction Alexander
Arzumanyan called the program "a collection of toasts and good wishes",
saying that would be difficult to implement. Some oppositionists also
said that by making general statements, the government reserves for
itself the way for a retreat so that it would not later be accused
of reneging on specific items.
Meanwhile, presenting the achievements of the past four years in the
National Assembly, the head of the Armenian government also spoke
about some concrete plans. In particular, Sargsyan said that a venture
capital fund will be set up to encourage innovative business. For
the first time the government intends to provide financial and
technical assistance to small businesses for which it is going to
simplify taxation procedures. Sargsyan intends to introduce a system
of medical insurance, a contributory pension scheme, make education
free for socially vulnerable categories, provide young families with
subsidized mortgages, issue 1 million drams (about $2,500) for the
birth of third and fourth child and 1.5 million (about $3,700 ) for
the birth of the fifth and subsequent children. The government intends
to ensure an annual economic growth of 5-7 percent, increase exports,
to double the current minimum wage, which is 32,500 drams (about $80)
a month, to reduce the official poverty rate by 8-10 percentage points,
and to create more than 100,000 jobs.
But speaking in the Parliament, PAP faction secretary Naira Zohrabyan
said that the government promised to reduce poverty three years ago,
but instead it has increased to the level of 35.8 percent. Emigration
has also reached unprecedented levels, as the population of an average
village daily leaves the country. She said that the policy of the
government, in fact, has not changed, even though the previous program
failed, and the composition of the government has seen little change,
too. Zohrabyan stressed that someone must be made to answer for the
14.5-percent economic decline in 2009.
However, it is not excluded that, as MP Arzumanyan said, "the program
is of a temporary nature" and that considerable changes will take
place in it after the presidential election of 2013. "What has been
submitted by the Government aims for the next 6-7 months, to somehow
survive the winter," he said.
By Naira Hayrumyan
ArmeniaNow
22.06.12
Photo: www.parliament.am
At a special meeting on Thursday the Armenian parliament approved a
five-year program of the government by a vote of 75 to 47, with one
abstention. The "for" votes came from lawmakers representing the
ruling Republican Party of Armenia (RPA) and its junior coalition
partner, Orinats Yerkir. All the other factions, including ARF
Dashnaktsutyun, Heritage, the Armenian National Congress (ANC) as
well as the Prosperous Armenia Party (PAP) which refused to form a
coalition with the RPA following the May 6 parliamentary elections.
The voting in the National Assembly revealed several important
vectors, and first of all the fact that an opposition camp capable of
consolidating efforts and pressurizing the government is emerging in
Armenia. Despite the fact that the government's program was adopted
by the two coalition parties that have an absolute majority in the
parliament, some very strong criticism was heard during the debate
and Prime Minister Tigran Sargsyan, overall, could not answer the
main points of this criticism.
Though, he said, he was satisfied with the discussions of the program,
he also said that some opposition MPs voiced "artificial" arguments
against him. The head of the government stressed that almost all
concerns voiced during the debate are reflected in the program, which
also indicates ways of overcoming these problems. At the same time,
Sargsyan admitted that the government led by him failed in late 2008
to predict the economic crisis that had a significant negative impact
on the economy of Armenia.
Armenia's former foreign minister, PPA faction member Vartan Oskanian,
however, noted that the prime minister who, before being appointed to
his current post in April 2008, headed the Central Bank, was unable
to move beyond his "monetarist thinking", which is also reflected in
the program of the government. He reminded Sargsyan that in 2008 he
returned from the United States, where the financial crisis had already
begun and then presented a draft budget for 2009 with a projected
economic growth of 9.5 percent, while the country eventually got a
14.5-percent GDP fall.
The opposition accused the government of lacking specific estimates and
proposed steps in the program. Member of the Heritage faction Alexander
Arzumanyan called the program "a collection of toasts and good wishes",
saying that would be difficult to implement. Some oppositionists also
said that by making general statements, the government reserves for
itself the way for a retreat so that it would not later be accused
of reneging on specific items.
Meanwhile, presenting the achievements of the past four years in the
National Assembly, the head of the Armenian government also spoke
about some concrete plans. In particular, Sargsyan said that a venture
capital fund will be set up to encourage innovative business. For
the first time the government intends to provide financial and
technical assistance to small businesses for which it is going to
simplify taxation procedures. Sargsyan intends to introduce a system
of medical insurance, a contributory pension scheme, make education
free for socially vulnerable categories, provide young families with
subsidized mortgages, issue 1 million drams (about $2,500) for the
birth of third and fourth child and 1.5 million (about $3,700 ) for
the birth of the fifth and subsequent children. The government intends
to ensure an annual economic growth of 5-7 percent, increase exports,
to double the current minimum wage, which is 32,500 drams (about $80)
a month, to reduce the official poverty rate by 8-10 percentage points,
and to create more than 100,000 jobs.
But speaking in the Parliament, PAP faction secretary Naira Zohrabyan
said that the government promised to reduce poverty three years ago,
but instead it has increased to the level of 35.8 percent. Emigration
has also reached unprecedented levels, as the population of an average
village daily leaves the country. She said that the policy of the
government, in fact, has not changed, even though the previous program
failed, and the composition of the government has seen little change,
too. Zohrabyan stressed that someone must be made to answer for the
14.5-percent economic decline in 2009.
However, it is not excluded that, as MP Arzumanyan said, "the program
is of a temporary nature" and that considerable changes will take
place in it after the presidential election of 2013. "What has been
submitted by the Government aims for the next 6-7 months, to somehow
survive the winter," he said.