STATE OF ARMENIAN ECONOMY WILL NOT IMPROVE WITH FORMATION OF NEW GOVERNMENT, EDUARD AGHAJANOV SAYS

Noyan Tapan
April 11, 2008

YEREVAN, APRIL 11, NOYAN TAPAN. The newly elected president of
Armenia Serge Sargsian has received a hard inheritance in terms of
the country’s economy.

Expressing this opinion at the April 11 press conference, economist
Eduard Aghajanov said that despite the economic growth registered in
recent years, some indices have declined. For example, in 2007 the
foreign trade deficit exceeded twofold the 2006 index, reaching a
dangerous level. Besides, 5 years ago exports were exceeded 1.5fold
by imports, whereas now this index makes 3fold. However, the most
worrying fact is that construction has the largest share in Armenian
GDP, while agriculture and industry are in second and third place
respectively. "It means that Armenia is a construction-agricultural
country. There is no such classification in the world. That is,
we have formed an absurd structure of economy," E. Aghajanov said.

In his opinion, an innovation model of economy – which has
formed the developed countries, with knowledge making its basis
– should be created in Armenia in order to overcome the current
situation. E. Aghajanov reminded about the recent statement of the
RA minister of trade and economic development that Armenia should
start selling knowledge. "How can our country sell knowledge when
budgetary allocations for science make only 6.8 bln drams or 0.2%
of GDP?" E. Aghajanov expressed his doubt.

According to him, the upcoming change of the government will not
rectify the situation. "When a bus driver is replaced by another
driver, the bus will continue moving on the same route," the economist
said.