"ARMENIA HAS TURNED INTO A LAUNDRY"
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[04:11 pm] 19 September, 2007
"Dram revaluation is quite unnatural in a country like Armenia,"
economist Zoya Tadevosyan said.
According to her currency appreciation is abnormal in a country having
40 per cent unemployment, economic crisis and abject poverty. "I can
call this phenomenon a disease, an Armenian syndrome, which focuses
on one’s own interests," she added.
During today’s seminar titled "Behavior" of the RA dram, economic and
political motivations and outcome" experts stated that the abnormal
dram revaluation testifies to the authorities’ indifference to the
country and absence of will-power.
Ms Tadevosyan finds the widely-accepted belief that foreign transfers
contribute dram appreciation illogical. According to the economist,
transfers first of all harm the most vulnerable stratum of the society
– the poor.
On the other hand, "It is vital to promote export in a developing
country like Armenia. The gap between export and import has greatly
deepened over the past years. Foreign goods prevail over local goods
at Armenian markets and are sold at high prices. For instance, sugar
importers have had 70 per cent superprofit"
Zoya Tadevosyan noted that any investment in the country is pointless
because of the current artificial state. "Currency policy reigns in
Armenia which is aimed at strengthening shadow economy and enriching
oligarchs. In this sense, our country can be considered risky for
investments. A number of legislative amendments are needed to change
the situation as Armenia resembles a laundry where everyone wants to
wash his dirty clothes," she said.
Economist Tatul Manaseryan referred to economic paradoxes. Once
he worked overseas and returned to Armenia with pockets full of
money. Therefore, he does not agree with analysts who suggest turning
transfers into investments.
On the other hand, it is due to mention that there is capital overflow
in Armenia. Well-off Armenians make investments abroad which means
they don’t inspire confidence in investments. We should attempt to
reveal whether this is determined by economic growth, political state,
etc" he said.
Each of us is guilty of the current situation, Manaseryan concluded.