Life of Armenian population deteriorates
By Rashid Shirinov
The crisis of Armenian economy is gaining momentum. The situation has deteriorated to such an extent that the country’s markets get empty – the flow of customers and trade volumes are extremely low.
“Population has no purchasing power, no work, no money, the situation is completely paralyzed. People are unable to buy anything. If the government continues such a policy, Armenia will be completely devastated," some Armenian sellers has recently told 1in.am news agency.
Indeed, the unemployment rate in Armenia is still the highest among the CIS countries, making up 18.4 percent. Hundreds or former workers go to numerous rallies in Yerevan and other regions of Armenia to protest against current government and to get a job. However, the authorities cannot solve this terrible social and economic problem – new jobs do not open in the country. All the government can suggest to the dissatisfied unemployed is false promises.
“People leave for Moscow, there is almost nobody left here. We do not have expectations from the government, we rely on ourselves only,” another Armenian resented.
In fact, more and more Armenians head abroad, mostly to Russia, to find money for themselves and for their parents, who mainly stay in Armenia. This also leads to aging of the population – that is why Armenia faces demographic crisis as well.
In addition to jobs and wages, the situation with pension allocation in Armenia is also doleful. The minimum pension in Armenia is 14,000 drams ($29), while average pension over the country is 35,800 drams ($75). “It is impossible to live on such a pension, if you compare it to the minimum consumer basket,” head of the Armenian National Congress faction Levon Zurabyan stated in the Armenian Parliament.
According to the Armenian National Statistical Service, the minimum consumer basket in the second quarter of 2016 was 55,700 drams ($117).
Some 198 billion drams ($417 million) are spent on labor pensions from the state budget of Armenia. There are 460,000 pensioners in the country – hence, those funds are not enough to bring their pensions up to the minimum basket.
“Where to get the money from? Annual theft from the Treasury makes up 700 million drams. Put an end to this and provide a decent life for pensioners," Zurabyan urged in the Armenian Parliament.
Moreover, the international donors of Armenia have set a requirement for providing next loan to the country –tax revenues should be increased by 60-70 billion drams ($130,000-150,000). Therefore, the Armenian government has adopted a new Tax Code – otherwise, the donors will not provide Armenia with loans in the next year. This, of course, hits the life condition of the already exhausted population.
No wonder that the former President of Armenia Levon Ter-Petrosyan has recently recognized that his country is facing a serious economic disaster which can lead to default. Moreover, this was admitted by the ruling Republican Party of Armenia, too. "The economic situation in Armenia is so bad that there is nothing else left to deteriorate," Alik Petrosyan, MP from the Party, told news.am. “This state of things cannot go on any longer, steps should be taken.”
However, the government of Armenia turns a deaf ear to all such statements. The only goal of majority of Armenian authorities is to feed up themselves and their entourage. The life of ordinary Armenians does not matter the government.
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Rashid Shirinov is AzerNews’ staff journalist, follow him on Twitter: @RashidShirinov
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