"Bad" is not a limit -- crisis steps further in Armenia
By Laman Sadigova
The level of poverty and mass depression in Armenia is increasing day by day. One or other statistics reveals a critical situation of the country’s economy. But what does the government do to overcome it?
Constitutional amendments, implemented in Armenia despite public disagreement, can hardly improve the welfare of ordinary citizens. In fact, they are even not aimed at the welfare of the economy or to raise the living standards. And while the government tries to freeze its power and not to be flung over side, people are suffering from poverty and injustice.
Every time when the Armenian government blames external factors in negative processes taking place in the country, the ordinary citizens should understand that the system that is created in this post Soviet country is not working. The reason of the problems is not outside the "wall" but inside it, sitting in the governmental structures, stealing people's money.
The Armenian officials' only answer on all the problems is simple and easy – to take loans, forgetting about deplorable state of the government when the country is close to bankruptcy.
Armenians, mostly surviving due to the external transfers that are reduced now, after crisis in Russia, are in a deep financial pit. The decline in external transfers was no less spectacular - $478.5 million or 32.3 percent. Thus, Armenian citizens received almost half a billion dollars less than a year ago from abroad. "Russian" transfers decreased by almost $471.8 million.
The country drove itself to a standstill, conducting aggressive international policy towards its neighbors. Armenia is blocked and isolated and nobody strives to help it, to be honest.
In 2015, Armenia witnessed a downward trend in a consumer demand, a consequence of reducing the population’s solvency. The newly adopted 2016 public budget has also left no hope for a better year because of its high deficit rate.
The official statistics say that the trade turnover of this post-Soviet country decreased by 5.6 percent this year. The main share of trade reduction fell on the retail trade, which declined by 4.6 percent.
Reduction in demand of food products, including bread, the consumption of electricity was recorded. This trend also embraced communications services, where revenues compared with last year fell by 5.8 percent and cellular communication by 8.5 percent.
Moreover, many economists say that the monopoly way of economy in Armenia, which is supported and strengthened by the country’s authorities, led to a significant weakening of the sector of small and medium businesses.
The Armenian Bank Union reported that the net profit of the banking system in January-September 2015 compared to the same period last year decreased by 53.3 percent. Reducing flow of private transfers to Armenia affected not only the solvency of the population in general, but also on the solvency of Armenian manufacturers and exporters, what lead to an increased amount of non-performing loans.
Now, on the eve of holidays, the consumer demand on the Armenian market is decreasing. Firstly, people simply do not have money, and, secondly, a relentless migration also hits economy. Back in April, experts pointed out that the decline in the production of bread in Armenia connected with the decreasing number of population.
The slowdown in prices in anticipation of the New Year not only points to a drop in demand and, in general, the decline in economic revenue, which creates a new set of problems for the country, already in difficult socio-economic situation.
All the factors, even after a slight sight on the Armenian economy, indicate on that the situation will only get worse.The crisis, that absorbed the country, is a result of ill-conceived policy and corrupted structures, and as long as the governmental system is not "cleaned", Armenia will not overcome it.
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