WORLD BANK RECOMMENDS ARMENIAN GOVERNMENT TO DIVERSIFY ECONOMY AND ASSURE COMPETITIVENESS

ArmInfo
2009-10-19 11:17:00

ArmInfo. World Bank recommends the government of Armenia to diversify
the economy and assure competitiveness, World Bank Managing Director
Ngozi Okonjo-Iweala said at Sunday press-conference in Yerevan.

She also said, "if the government succeeds to get through these
challenges, it will be able to assure further development of the
country’s economy".

According to her, the global crisis should be considered as an
opportunity to change the economy structure and diversify it, paying
much attention to investments in another prosperous economy sectors,
at least in information technologies. "I am sure the economic
diversification can really help to overcome the problems in the
Armenian economy", she said.

Ngozi Okonjo-Iweala also said that great dependence on money transfers
from abroad, reaching 18% of GDP, is the Armenian economy weakness.

She added that WB supports the Armenian authorities in implementation
of customs and tax reforms, however, a political will is required
to intensify the fight against corruption and further liberalization
of economy.

According to WB managing director, meeting with the president of
Armenia has been scheduled on Sunday, and they will discuss the country
development issues. "It is necessary for the president to show an
absolute intolerance to corruption", she said. The authorities have
to fight against oligopoly and other negative phenomena to assure an
competitiveness, WB representative emphasized.

However, she added, efficiency of implementation of the government’s
anti-crisis programme, aimed at business development and retention
of the budget state expenditures at the cost of foreign borrowings,
especially, the social expenditures, is the most topical problem at
present. She thinks this programme is justified and fair, and the
authorities have to start developing the crisis overcoming strategy.

In general, WB is pleased with the rates and level of implementation
of its programmes in Armenia, as well as the with the course of the
government’s anti-crisis programme, she said.

Ngozi Okonjo-Iweala arrived in Armenia on October 17. She met
with Armenia’s Prime Minister Tigran Sarkisyan and members of the
government, as well as got acquainted with the course of implementation
of WB programmes in the republic’s regions. In particular, the
matter concerns implementation of social programmes, reconstruction
of rural roads and development of the regions. WB director also said
that essential reduction of money transfers to Armenia, growth of
unemployment and economy recession in general is observed under the
global crisis. (Ed. Armenia’s GDP over eight months, 2009, reduced
by 18,4%). ‘The situation in economy would be worse if the government
did not respond to the crisis’, she said.

In general, WB provided Armenia with credits to the total sum of $1,3
bln for carrying out of 54 programmes. The programme of partnership
with Armenia for 2009-2012 envisages extension of credits to $545 mln.