COPPER, DIAMONDS AND ALCOHOL DRINKS COMPRISE 242 MILLION OUT OF 235 MILLION GROWTH

Lragir.am
19 May 06

“Who is ruling, and why are they ruling so that our national producers
suffer, have they done harm to the president of the Central Bank, and
why are they ruling so that our importers receive tremendous profits,
have they done something good for the president of the Central
Bank?” On May 19 one of the main opponents of the president of the
Central Bank Tigran Sargsyan, economist Edward Aghajanov asked these
questions to Sargsyan remotely. However, Tigran Sargsyan will hardly
answer these questions because these had been asked before and were
not answered by the person who is in charge of the monetary policy of
Armenia. Edward Aghajanov is mostly dissatisfied with the monetary
policy of the Central Bank, which results in the revaluation of the
dram. The economist believes that this is extremely bad for the local
producers, and turns production and export of goods inconvenient in
Armenia. Due to the revaluation of the dram, says Aghajanov, Armenian
producers are paying extra taxes, whereas importers have appeared in a
privileged situation. We need a policy of a low exchange rate of the
national money to develop export, says Edward Aghajanov, because in
a country with a small market such as Armenia export does not have
alternatives. He says that because of the revaluation of the drum
the indices of industry and exports have gone in free fall. Edward
is dissatisfied with the growth of exports in 2005 too. According
to the economist, 39 percent of exports, about 235 million dollars,
do not make quality.

“Copper and molybdenum comprise 175 million out of 235 million.

In addition, it is due to the growth of prices on the international
market rather than the growth of their physical volume. Diamonds
brought a growth of 37 million dollars, 27.5 million is food and
drinks. Hence, 242 million out of a 235 million growth is these three
products,” says the economist. According to him, these indices are
set down in government statements on the input of technologies in
the economy, innovation and a focus on information technologies.

“Well, does anyone offer these figures to the prime minister, the
president? Small Armenia has two ministries of economy. Great America,
which holds one third of the world GDP, does not have a ministry
of economy, whereas Armenia has two. One is called “the Ministry of
Finance and Economy” and the other is called “the Ministry of Economic
Development and Trade” but there is nobody to tell the prime minister
or the president that guys, see what a situation the country is in,
we are in a recession, the deficit keeps growing, we go in free fall,
our production is not competitive,” says Edward Aghajanov.