TWO FAMILIES HOLD 12 PERCENT OF ARMENIA’S GDP
Lragir.am
14-06-2007 15:52:42
The German Friedrich Naumann Foundation and the Armenian Agreement
Center held a round-table meeting in the series "Armenia 2007" on
June 14.
The main speaker was the former prime minister of Armenia Hrant
Bagratyan.
He entitled his speech: "Build democracy, get dictatorship."
Before speaking about Armenia Hrant Bagratyan enumerated some
phenomena which are typical of almost all the post-Soviet states: the
economic reforms are ahead of the political reforms, first structural
then institutional reforms were implemented, two-digit growth is
reported everywhere, reforms are slow in countries which have mineral
reserves. For Armenia, "these developments cannot sustain evolution,
it will blast one day, like it has been the case throughout our
history." Hrant Bagratyan said his analysis is based on the official
statistics, but he does not trust this statistics because "they are
exaggerated three or four times."
In the United States 400 families hold 10 percent of the GDP of
Armenia, in Russia 40 families hold 26 percent of the GDP, in Armenia
44 families hold 55 percent of the GDP and two families hold 12 percent
of the GDP. "This affects governance and elections." "One cannot run
a bank and be the vice president of the Central Bank. One cannot run
a hospital and be in charge of the health sector. One cannot run a
sphere 35 percent of which belongs to them. There cannot be neutrality
or independence," Hrant Bagratyan said.
According to Hrant Bagratyan, centralization of the capital hinders
economic reforms. On the other hand, business owners try to become
oligarchs, participate in the public administration, and again prevent
the reforms. As a result, it is difficult to separate property from
government, public administration from economic activities.
If we take into account the enterprises we gave to the Russians
in return for the Diaspora and debt, Armenia is the third in the
Caucasus by the correlation GDP-foreign investments. Georgia’s foreign
investments total 38 percent of the GDP, in Azerbaijan 70 percent,
in Armenia 20 percent.
According to official statistics, over the past 5 years jobs
have decreased by 400 thousand. In addition, return on tax has
decreased. "Black economy grows. The economic growth is harmful rather
than useful to the country."