ARMENIA ‘HAS ACHIEVED’ INTERNATIONAL RECOGNITION OF OLIGOPOLIC GOVERNMENT SYSTEM
ArmInfo
2009-12-25 16:08:00
Interview with Manvel Sargsyan, expert at the Armenian Center of
National and International Studies (ACNIS)
Mr. Sargsyan, the head of the WB Office in Yerevan has recently said
that Armenian economy needs diversification, which is almost impossible
without liquidation of oligopolies. What does such statement mean?
It means, I think, that Armenia "has achieved" international
recognition of oligopolic management system. The latest statements by
the WB and IMF representatives allow such a conclusion. All this took
place against the background of the mess around the Armenian-Turkish
railway which many structures pined hopes with, he says. Sargsyan
mentions the statement by Aristomene Varoudakis, WB office in
Yerevan, saying that economy of Armenia needs diversification, which
is almost impossible without rooting out corruption in the tax and
customs spheres, creating equal competitive opportunities in the
market as well as liquidating oligopolies. It is noteworthy that such
international financial organizations like the WB and the IMF and not
political subjects were the first to make such statement. They hereby
dispelled our illusions that economy of Armenia will began recovering
after the 18% decline of GDP. Earlier on October 18 the WB Managing
Director Dr. Ngozi Okonjo-Iweala called it senseless pinning hopes for
economic progress with opening of the railway from Turkey to Armenia,
for the Armenian economy is oligopoly and the Armenian people must
do something about it.
What can the people do?
The point is that everyone in Armenia had long ago understood the
nature of the administrative construction where the key specific is
the phenomenon of dividing the rights and responsibilities between the
union of oligarchs and the serving parties as well as the remaining
public. The principle of inequality in the country is no secret for
anyone. Considering the factor of monopolization of the property and
business as well as the key information sources, such construction
seems unshakable. That is, the international recognition of the
given circumstance last year was quite notable. Armenia is closely
connected with financial, political and human rights structures. The
relations with Armenia were and are being built also proceeding from
this evaluation. It was no mere chance that in the period when the
financial crisis affected all the countries in the world, the topic
of the "unfair" government system of Armenia proved in the focus of
attention of many instances.
Varoudakis also highlighted that Armenia’s foreign debt will reach 50%
of GDP by 2011…
Varoudakis also highlighted that Armenia’s foreign debt will reach 50%
of GDP by 2011 that indicates the oncoming catastrophe. To redeem the
foreign debts Armenia must diversify economy that requires liquidation
of oligopolies. This, in its turn, requires political will since
many politicians are connected to the heads of those oligopolies with
invisible threads. If there is no will, we should prepare for bigger
economic problems, such a vicious cycle.
Why the authorities do not understand that?
The whole political economic system in Armenia is a single whole. It
would be wrong saying that the incumbent authorities in Armenia were
of another opinion of the state of affairs inside the country. After
all, Prime Minister Tigran Sargsyan admitted in public yet in early
2009 that the political economic system of the country is oligarchic.
However, a year after his statement, Tigran Sargsyan was advised "not
to be busy with trifles" and to join the course on neutralization
of the claims against the Armenian oligarchy at international
financial structures. Well aware of the situation the authorities
displayed no desire to correct it. Moreover, they took a course
towards misinformation of the public to maintain the administrative
construction so favorable to them. They hoped for success of such
approach with the launched "Turkish course". They supposed that the
mess around the salvatory Armenian-Turkish relations would overpower
the desire to oppose the authorities. Their approach was a success
for a half-year, when the radical opposition leaders welcomed the
activity of the authorities. Nevertheless, at the end of the current
year the Turkish topic lost its effect.
And yet, the authorities will think up something…
The authorities still hope to outplay this situation. In the current
conditions, President of Armenia Serzh Sargsyan applied the power
centralization mechanism once again having invented nothing new. He
convened RPA congress on November 28, having advanced a quite expected
thesis saying Armenia needs to form a stable intra-party system.
Moreover, he stated that "the changes we can fix inside the party,
will be easily designed for the public". Taking into account the
RPA staff, it will be clear that the country has taken a course
for further bolstering of the oligarchic system. Therefore, the key
figures of the government headed by Prime Minister Tigran Sarkisyan
joined RPA. No one has been left in the top echelon to blame big
owners for the state of economy in the country.
What can such centralization of power lead to?
The matter is that the situation on the eve of 2010 is extremely
critical. Centralization of all the power resources within RPA and
attachment of a common status of "RPA member" to all the existing
staff is a two-edged sword. In case of another collapse of economy
even by partial fall of the national currency, the stake on a stable
intra-party system may not pay off since the authorities are more
afraid of the political ambitions of their members. In this case,
blaming oligopolies for the economic situation in Armenia shake all
the echelons of the power. In other conditions no one would resort
to toughening the discipline of that camp. If there is no desire
and opportunities to save the country, the energy is directed to
self-salvation.
From: Emil Lazarian | Ararat NewsPress