NEW ARMENIAN CABINET UNVEILS STRATEGY
by Natalia Leshchenko

Global Insight
April 29, 2008

The Armenian parliament is discussing today the five-year
development strategy proposed by the newly formed government of
Tigran Sarkisian. The programme pledges the strengthening the rule
of law, improving the business environment and implementing other
"second-generation" reforms. Economy Minister Nerses Yeritsian said
that the programme aims to sustain Armenia’s economic growth by
guaranteeing fair business competition and taking other measures to
improve the overall investment climate. The main locus of such reforms,
the Prime Minister pointed out, will be the improvement of the work of
the tax and customs agencies that are still often accused of arbitrary
action. The parliament is highly likely to pass the strategy since it
is worked out with the representatives of all parliamentary factions,
and the government controls the parliament to a nearly full extent.

Significance:The governmental programme is a predictable continuation
of the policies of President Serzh Sargsyan, who had stepped into
the position from having been prime minister. Anti-corruption
reforms are much needed, as well as the streamlining of the fiscal
and customs policies implementation. The governmental commitment to
the declared goals of improving the investment climate, however, will
need to be verified by action, as corruption will be hard to root out
given its strong penetration into the administrative bodies of the
country. Finding social peace will also be a major task, after the
bloody crack-down on post-election protests this March. The programme
put forward to the parliament by Armenian government has all the right
words in it–the question is whether the government will prove able
to sing to its own hymn sheet.