HRANT BAGRATIAN: ECONOMIC GROWTH CAUSES DAMAGE RATHER THAN HELPS ARMENIA

Noyan Tapan
Jun 14 2007

YEREVAN, JUNE 14, NOYAN TAPAN. In the US, 400 rich families own about
10% of the gross domestic product (GDP), in Russia 40 families – 16%
of GDP, while in Armenia 44 families own 55% of GDP. Former Armenian
prime minister Hrant Bagratian said this at the June 14 discussion in
his report "To Build Democracy and Get Tyranny". According to him, only
official data, which is exagerrated 3-4 times, was used in this report.

He said that an objective analysis makes it clear that Armenia is not
making a "tiger jump" in terms of its economic development, moreover,
it is behind other Caucasian countries by many indices. The year 1997
when the economic reforms stopped because of the absence of certian
political programs is a "good example" of "how economic reforms should
not be completed."

In the words of H. Bagratian, in the last 10 years the gap between
the rich and the poor has increased 7fold, the shadow economy is
gradully growing, while pensions and benefits in Armenia are smaller
than in the neighboring countries. Therefore, as the speaker noted,
the economic growth registered in Armenia causes damage to rather
then helps the country. He said that such an economic policy forms
a basis for embezzlement, bribery and corruption.