Ar­me­ni­ans and a long list of bro­ken, failed prom­ises

Azer News - - Karabakh Conflict - By Rashid Shiri­nov

Ar­me­nian PM Karen Kara­petyan’s op­ti­mistic prom­ises and speech ide­alisms fall short of re­al­ity.

All the prom­ises in­clud­ing de­vel­op­ing big­ger projects, en­sur­ing eco­nomic growth and elim­i­nat­ing cor­rup­tion had gone in vain dur­ing his year in of­fice.

None of Kara­petyan’s big­gest prom­ises as the prime min­is­ter have been kept, while Ar­me­ni­ans are es­pe­cially dis­ap­pointed be­cause of the failed in­vest­ment boom, which the PM re­peat­edly promised.

Samvel Kara­petyan – an Ar­me­nian busi­ness­man liv­ing in Rus­sia and brother of Karen Kara­petyan – was sup­posed to be one of the main in­vestors into the Ar­me­nian econ­omy. How­ever, fol­low­ing the ten­sions be­tween the broth­ers, Samvel gave up the idea of large in­vest­ment pro­grams into the coun­try, Ar­me­nian Zhoghovurd news­pa­per states.

Thus, in­stead of en­joy­ing boom in in­vest­ments, Ar­me­nia has to sur­vive and main­tain its poor econ­omy by other ways that have long been run­ning out.

For­eign in­vest­ments in Ar­me­nia sharply de­creased in the first half of 2017 com­pared to the same pe­riod of 2016. The Na­tional Sta­tis­ti­cal Ser­vice re­ported that in­vest­ments in the real sec­tor of the Ar­me­nian econ­omy in Jan­uary-June made less than $52 mil­lion, in­clud­ing direct in­vest­ments that equaled $36 mil­lion.

The out­flow of in­vest­ment was $19 mil­lion, while direct in­vest­ments de­creased by al­most $2.5 mil­lion.

In­vest­ments from Rus­sia also showed a neg­a­tive in­dex – -$53.8 mil­lion, and direct in­vest­ments de­creased by $13.8 mil­lion.

Ex­perts re­mind that at­tract­ing in­vest­ment was the main election pledge of the rul­ing party. How­ever, it failed to keep the word mak­ing Ar­me­nia more de­pen­dent on for­eign donors.

Ar­me­nian ex­perts and econ­o­mists have long ago warned that it is nec­es­sary to en­sure at least 7-8 per­cent of GDP growth to avert the im­pend­ing de­fault. How­ever, the re­al­i­ties show that the coun­try’s gov­ern­ment couldn’t even reach the promised 2 per­cent of growth, as it stood at only 0.2 per­cent in 2016.

The econ­omy of the coun­try re­mains crit­i­cal, de­mon­strat­ing un­be­liev­ably low in­dexes ev­ery year. De­scend­ing econ­omy, high poverty and in­creas­ing out­flow of peo­ple are the pure re­al­i­ties in Ar­me­nia.

The Sargsyan gov­ern­ment seems to have bit­ten off more than it could chew.

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