OSCE OFFICIAL URGES ARMENIA TO DECENTRALIZE POWER, SETTLE INFRASTRUCTURAL ISSUES

/ARKA/
April 17, 2009
YEREVAN

Armenia can create clusters if it decentralizes power and establishes
systems with great autonomy, Head of OSCE Yerevan Office Sergey Kapinos
said today at a conference on the genesis and prospects of the global
financial crisis. He also urged Armenia to solve infrastructural
problems and reconstruct roads.

"Clusters are rather interesting and perspective, with OSCE being among
those who are making attempts to create clusters in regions. These
activities include searching support points in economy and creating
economic biosystems of symbiosis," Kapinos added.

He also stressed the role of growth corridors in boosting economic
rates, citing India’s example.

"Everything depends on how fast international transport corridors
open," Kapinos said.

Touching upon the impact of the global financial crisis on Armenia,
he pointed out two planes of the issue.

"The first plane includes tactical steps and prompt measures that
can help tackle the impact of the crisis. The second plane includes
long-range measures to restructure and modernize economy," the OSCE
official said, stressing the need for simultaneous activities.

"All we can say now is that prompt measures are being undertaken. We
may argue about their effectiveness. I personally think that the
real sector gets a selective su pport," he said, pointing out the
weak points of the policy.

Abel Aghanbekyan, academician from the Russian Academy of Sciences,
previously said Armenia could develop up to 11 economic clusters,
becoming an industrial country. According to his estimates, each of
these clusters can inject up to $3bln in the country’s GDP.