THE WAY ARMENIANS LIVE

By Eka Lomidze

Political circles of Armenia think that clan economy stands in the way of efficient development of country’ s economy.

The process of eradication of clan economy will be a difficult one. This “victim” will also tell on political circles. Efficient economy starts from efficient public administration. In one of his interviews Armen Darbinyan, ex prime minister of Armenia, raises the issue in the following way: result of inefficient public administration is colossal number of budget officials in Armenia nowadays. In this background insufficient attention is attached to the encouragement of private initiatives. Yet development of private sector always entailed progress of economy.
In Darbinyan’ s opinion, Armenian clan economy stands in the way of the development of private initiatives. It is not difficult to reach a great economic index in Armenia. There is a normal macroeconomic index in the country, but it does not comprise system index because systematisation of branch development was not implemented. Darbinyan thinks the main thing is lack of system in Armenia that would give the government the possibility to transit to new economy that would take into account new technologies, ideas, original and efficient business plans. The Government spent too much time on the rehabilitation of old economy, which will produce only a temporary effect. If a tendency of the development of new economy does not concurrently come into being in this background, Armenia will face system crisis again.
According to the ex prime minister of Armenia, in a personal interview with him representatives of international credit organisation expressed their admiration of the fact that the country has money in the form of credits, but it does not have appropriate business projects, ideas, new technological decisions. Yet in 1997 Armenia received the status of the country where commercial ideas can receive financing. It is not cause by the absence of subject, but rather by clan economy that stands in the way of the development of private sector.
In the first quarter of 2002 inflation totalled o,9% in Armenia. According Armen Tegeryan, the chief official of Central Bank, the given index does not exceed the frames envisaged by the programme, so there are no reasons for concern.
We should note that under the 2002 data, 3% level of inflation was planned in Armenia.
The USA still continues to provide active assistance to Armenia. According to the American ambassador, 4 millions were assigned for the development of military art. Washington also finances an education centre not far from Erevan that envisages for the encouragement of foreign investments and export of 1 million dollars’ worth Armenian production. Karen Gregoryan, chief of this programme (from the side of the World Bank) said it was on preparatory stage. The Central Bank and Government of Armenia signed a very important document.
As for Russian and Armenian relations in economy, the most important issue here is debt restructuring. Robert Kocharyan and Vldimir Putin reached an agreement about the exchange of debts for investments. Vice prime minister Valdimir Klebanov considered the agreement to be a real positive move in the sphere of relations of Armenia and Russian for the last ten years.
Armenia will give Russia several enterprises in exchange for debts among them factory “Mars” and two enterprises functioning at Erevan Research Institute.
Since 2002, the programme about home doctor institution entered a new phase in Armenia. The funds assigned by the World Bank total 10 million dollars. Approximately 800 million of drachma will be assigned for hygiene of the population. Other means will, certainly, be used for prophylactics of epidemic and assistance for pregnant women and children.
According to Ararat Martichyan, the Minister of Armenia, there will be staff redundancy, mainly, at the expense of retiring people.
The decision of telecommunication monopolist “Armentel” about per minute payment for internal calls caused a great agitation in Armenia. “Armentel” and ministry of transport opposed each other. They came to the agreement that has come in force since 15 April. Under this agreement, the cost of tariff was reduced twice. Till the end of the year almost the whole territory of Armenia was digested: digital telephone stations will be established. The picture that formed itself after the analysis of processes in all spheres gives us the right to speak about economy of Armenia, relationships of Armenia with both Russia and Western countries. Armenia wishes to have good relationships with both sides: in its relationships with Russia the rear is provided by traditional interrelations, with the West – strong Diaspora.