Priority objective for economic development

Priority objective for economic development


November 19, 2004

During the recent period, Armenia has been experiencing economic
and political stability which enables development of a mid and long
term strategies.

However, there are some obvious arguments here. Supporters of active
constructive policy, justly referring to the failures of the market,
unjustly propose increasing of role of the government, especially in
branch industry policy. On the opposite side, neo-liberals propose
to continue liberalization of the market.

These parties have more in common than they admit. Both stand on the
role of institutes (in the first case – state, in the second â[email protected]~S
market). However, both views are dubious from practical policy
standpoint for the reasons of actual need to change the available
policy or lack of resources.

Anyway, how can we contribute to proportional development of the two
institutions? Note that only in case of successful balance we can
have prosperous and competitive economy.

We single out the following basic approaches: first, unification
approach of government and market. This means a strategy that would
enable establishment both of the state and the market. Second,
effective use of knowledge. Institutional reforms take time. If
knowledge is properly used, the reforms may speed up.

Third, approach of institutional innovations. It takes turning
knowledge into behavior of economic stakeholders and the society to
make the knowledge work, to make it demanded by the market. This is
about social education.

In other word, issues number one for the development of the Armenian
economy is the development of the knowledge “industry”. This is a
pledge for transition to a competitive market.

Creative usage of market and technological knowledge enable solution
of many transitional issues. On the other hand, without development
of the knowledge “economy” it will be difficult to provide desired
economic and consequently strategic-political security level.


From: Emil Lazarian | Ararat NewsPress

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