THIRD GENERATION REFORMS

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12:39:58 – 01/03/2010

On February 23, the Armenian National Congress issued its "100 Steps"
project on socio-economic policy systemic changes the author of which
is the Armenian former Armenian Prime Minister Hrant Bagratyan. In
this connection Lragir.am asked him several questions.

Mr. Bagratyan, is "100 step" the continuation of the former policy
of reforms? Is it a project of reforms of second or third generation
or one to overcome the current situation?

It is a difficult question. After the release of "100 steps", I am
asked if I am liberal or not. Certainly, the main question is the
construction of a liberal economy. This is a scheme of reforms of
third generation. It coincides with 10 years of Kocharyan’s tenure
when there were mistaken ideas on development. What they considered
development did not contain any potential at all. For example, the
construction which cannot be exported. We have the examples of 50
countries proving that such development is catastrophic, in other
words, huge districts are constructed which are useless.

These are reforms of third generation and the liberal economic policy
is continuing. Here, you will see a more limited approach towards
liberalism. No one can blame us for yielding our liberal positions.

Currently, the development circle of the economic policy lasts 20-25
years and in this period, the centralization and decentralization
of economic policy are inevitable. And when I am asked why it was
necessary to include in the "100 steps" limitation of elements, I want
to say that now we are too far away from being liberals or socialists.

We just see where the country found itself, we see trends of general
development that we must undertake and we see the concrete steps that
must be done. We need to reckon with the fact that there is.

The failure of the reforms of second generation led to undesired
structure of economic and profit distribution when 10-15 people
participate in the economic prosperity of the country and there is no
enterprising activeness. We must overcome this phenomenon. We need to
invite people to take part in the development of the country. In the
modern world, it is impossible to be competitive with 10 businessmen,
especially if they are not the best and they were granted that status
by the state.

Mr. Bagratyan, is "100 steps" a borrowed model from other countries?

No it is not. Of course, we have studied and tried to find precedents.

We were guided by the needs of our practice and by the development
trends of the global world and tried to find a model which would
work in Armenia. In addition, I have to ask to view "100 steps"
interrelated that is all its steps are to be made. Otherwise, the
effect will be negative. Steps are to be interrelated.

Mr. Bagratyan, this project is one containing serious liberal
elements. Do you think it can work in a country having great dependence
on Russia?

I do not accept these theses. These theses are speculated by those
who overcame the height of wealth. One of our oligarchs argued that
monopolies are needed, because they saved us in emergency situations.

This is absolute nonsense that has nothing to do with the economy. In
addition, I would have asked not to exaggerate the role of Russia. In
fact, Russia has no relation to what is happening in our country. In
the end, Russian companies work here, which, though are not a model of
high culture, but culture in these companies is much greater than what
is happening in companies of our oligarchs. Moreover, they will not
hinder this plan. Recall that in 1994-95, when we already had recorded
economic growth, but there was none in Russia, Russia’s ambassadors
asked me how we managed since Russia did not. In the end, our land
reform was the only political and economic example in our history,
which was commended by all 6 countries of the CIS, where agriculture
ministers were instructed to study and apply this experience.

The project aims at decreasing oligopolies’ role. Does it suppose
for redistribution of property?

Naturally. Did they earn all that? No seizing of property. Just
a tax field is to be created which will provide for inexpedient
conditions for oligopoly and monopoly. We do not need them. If natural
competitiveness again brings about the creation of oligopolies and
monopolies, we will once again break them down. Our history showed that
our worst enemy is a nabob, an unfairly wealthy Armenian. In case of
the Turks it is easy: all unite against an external enemy. And now,
as to the internal enemy, everything is more complicated. They are
not to blame, this state has given them such a condition. And now the
state must change this situation. They will fall apart by themselves,
they will not be allowed own the super profit.
From: Baghdasarian