Pashinyan’s idea of inclusive economic growth is good, but difficult to implement, economist says

ARKA, Armenia
Aug 20 2018

YEREVAN, August  20. /ARKA/. The idea of inclusive economic growth, announced by Prime Minister Nikol Pashinyan at an August 17 rally,  is good, but difficult to implement, Hrant Mikaelyan, an economic researcher at the Yerevan-based Caucasus Institute, said today.

Speaking to tens of thousands of Armenians, who gathered to mark the first 100 days of his government, Pashinyan promised to replace the current ineffective economic model with an inclusive one, saying that  all citizens will receive equal opportunities to run businesses and all will be equal before the law and the tax authorities.

According to Mikaelyan, the idea is difficult to implement, since the number of wealthy people is limited. The situation can be corrected by equitable distribution of income, which should be done  in a way as to not go against the market laws.

In his words, for  inclusive economic growth to succeed, the growth of incomes should outstrip economic growth indices for several years and that should go in parallel with elimination of monopolies and reducing unemployment rate.

On the results of the first 100 days of the government, Mikaelyan pointed out a set of good macroeconomic indicators, recalling that the first 30 days of the government were spent on personnel reshuffling.

According to the National Statistical Committee, Armenia’s economic activity grew by 9.3% in the first half of 2018 when opposed to the same time span of 2017, according to the numbers, released today by the National Statistical Committee (NSC).

The economic activity in July increased by 11.1% from the year earlier, while in June it grew by 9.6% from 2017 June. Armenia’s foreign trade turnover in the first 7 months of this year amounted to about $4.089.8 billion, having increased by 26.8% from the same period of 2017. The government’s projection of GDP growth for this year is 4.5% 

The positive aspect of the new government's work, according to Mikaelyan is that  bringing large businesses to the net and subsequent fines did not lead to the closure of businesses.  "This is very important for economic stability," he said. -0-


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Emil Lazarian

“I should like to see any power of the world destroy this race, this small tribe of unimportant people, whose wars have all been fought and lost, whose structures have crumbled, literature is unread, music is unheard, and prayers are no more answered. Go ahead, destroy Armenia . See if you can do it. Send them into the desert without bread or water. Burn their homes and churches. Then see if they will not laugh, sing and pray again. For when two of them meet anywhere in the world, see if they will not create a New Armenia.” - WS