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ARMENIA FACES SOCIAL COLLAPSE
AzerNews, Azerbaijan
Dec 2 2013
2 December 2013, 19:23 (GMT+04:00)
By Jamila Babayeva
Socio-economic situation in Armenia has declined over the pas few
years and the country has faced serious problems, such as increasing
external debt, unemployment, migration and poverty.
Reports released by the Natonal Statistics Service, as well as
international organisations, well mirror the miserable reality.
One third of the country's population currently lives in poverty and
the forecasts are still pessimistic, since for the next 12 years the
half of poor people in Armenia are expected to remain in poverty.
Based on the country's Strategic program for perspective development
2012-2025, the Armenian government predicts that the poverty rate
in the country will drop to 13.6 percent by 2025 from 32.4 percent
in 2012.
UN Resident Coordinator and UNDP Resident Representative, Bradley
Busetto, believes that unemployment and poverty are Armenia's current
challenges.
According to the World Bank's last report, the unemployment rate in
Armenia is "far above the regional average" and 18 percent of the
workforce is unemployed at present.
Unemployment and poverty are the major drive for increasing migration
in the country. Many Armenian citizens leave the country in order
to find a better life abroad. Only in the past three years, 250,000
people have left Armenia, Russian media outlets reported.
"Migration is now one of the most important and widely discussed
issues in the country's political and social circles. Armenia may be
left without Armenians before 2040," the report said.
Poor investment environment and lack of natural resources makes the
country less attractive for foreign investments, leaving no chance
for miserable economy to survive and create new jobs for local people.
According to the National Statistics Service, the inflow of foreign
investments to Armenia's economy dropped by almost 40 percent in the
first three quarters of 2013, compared to the same period of time
previous year.
Unsettled Nagorno-Karabakh conflict hampers development
The situation is far complicated due to the Armenian authorities'
unconstructive position on the long-standing Nagorno-Karabakh
conflict. Current social-economic situation cannot restore without the
resolution of Nagorno-Karabakh conflict, which Armenia broke out with
the neighboring Azerbaijan in 1988. Armenia's aggressive policy left
the country out of all major regional economic projects, including
the Baku-Tbilisi-Ceyhan oil pipeline and the Baku-Tbilisi-Kars railway.
As a response to Yerevan's aggressive policy, Turkey also closed
its borders with Armenia, demanding it to withdraw its troops from
occupied lands of Azerbaijan. The blockade of the country continues
to slowdown economic growth in Armenia.
Armenian armed forces have occupied 20 percent of Azerbaijan since
1992, including the Nagorno-Karabakh region and seven surrounding
districts.
Armenia constantly violates a ceasefire agreement signed with
Azerbaijan in 1994 and refuses to implement the U.N. Security Council's
four resolutions on the liberation of the Nagorno-Karabakh and the
surrounding regions.
Many Armenian experts believe settlement of the Nagorno-Karabakh
conflict is crucial for the country's economic development. They
think that Armenia needs to develop a serious economic development
project to resolve its problems.
In this case radical reforms could be the best remedy to improve poor
socio-economic situation. However, the first step in this way should
be the constructive position on the resolution of Nagorno-Karabakh
conflict. Armenia should abandon its aggressive policy against the
neighboring countries to benefit the multi-million regional economic
projects. Otherwise, social collapse in Armenia is inevitable.
From: A. Papazian
AzerNews, Azerbaijan
Dec 2 2013
2 December 2013, 19:23 (GMT+04:00)
By Jamila Babayeva
Socio-economic situation in Armenia has declined over the pas few
years and the country has faced serious problems, such as increasing
external debt, unemployment, migration and poverty.
Reports released by the Natonal Statistics Service, as well as
international organisations, well mirror the miserable reality.
One third of the country's population currently lives in poverty and
the forecasts are still pessimistic, since for the next 12 years the
half of poor people in Armenia are expected to remain in poverty.
Based on the country's Strategic program for perspective development
2012-2025, the Armenian government predicts that the poverty rate
in the country will drop to 13.6 percent by 2025 from 32.4 percent
in 2012.
UN Resident Coordinator and UNDP Resident Representative, Bradley
Busetto, believes that unemployment and poverty are Armenia's current
challenges.
According to the World Bank's last report, the unemployment rate in
Armenia is "far above the regional average" and 18 percent of the
workforce is unemployed at present.
Unemployment and poverty are the major drive for increasing migration
in the country. Many Armenian citizens leave the country in order
to find a better life abroad. Only in the past three years, 250,000
people have left Armenia, Russian media outlets reported.
"Migration is now one of the most important and widely discussed
issues in the country's political and social circles. Armenia may be
left without Armenians before 2040," the report said.
Poor investment environment and lack of natural resources makes the
country less attractive for foreign investments, leaving no chance
for miserable economy to survive and create new jobs for local people.
According to the National Statistics Service, the inflow of foreign
investments to Armenia's economy dropped by almost 40 percent in the
first three quarters of 2013, compared to the same period of time
previous year.
Unsettled Nagorno-Karabakh conflict hampers development
The situation is far complicated due to the Armenian authorities'
unconstructive position on the long-standing Nagorno-Karabakh
conflict. Current social-economic situation cannot restore without the
resolution of Nagorno-Karabakh conflict, which Armenia broke out with
the neighboring Azerbaijan in 1988. Armenia's aggressive policy left
the country out of all major regional economic projects, including
the Baku-Tbilisi-Ceyhan oil pipeline and the Baku-Tbilisi-Kars railway.
As a response to Yerevan's aggressive policy, Turkey also closed
its borders with Armenia, demanding it to withdraw its troops from
occupied lands of Azerbaijan. The blockade of the country continues
to slowdown economic growth in Armenia.
Armenian armed forces have occupied 20 percent of Azerbaijan since
1992, including the Nagorno-Karabakh region and seven surrounding
districts.
Armenia constantly violates a ceasefire agreement signed with
Azerbaijan in 1994 and refuses to implement the U.N. Security Council's
four resolutions on the liberation of the Nagorno-Karabakh and the
surrounding regions.
Many Armenian experts believe settlement of the Nagorno-Karabakh
conflict is crucial for the country's economic development. They
think that Armenia needs to develop a serious economic development
project to resolve its problems.
In this case radical reforms could be the best remedy to improve poor
socio-economic situation. However, the first step in this way should
be the constructive position on the resolution of Nagorno-Karabakh
conflict. Armenia should abandon its aggressive policy against the
neighboring countries to benefit the multi-million regional economic
projects. Otherwise, social collapse in Armenia is inevitable.
From: A. Papazian