Armenian government fails to remedy socio-economic situation in country

11 September 2018 15:36 (UTC+04:00)

By Rashid Shirinov

The need for Armenia to revise its domestic and foreign policy has become more evident in recent months. Growing unemployment and inflation, reduction of pensions and wages resulted in the overthrow of the Sargsyan regime this spring, but  the doleful situation remains the same for now.

Armenian experts themselves recognize that at a time when the whole society is imbued with corruption schemes, economic growth is impossible. Consequently, there will be no investment or development in such a country. Armenia is still unable to pay off the external debts of all the previous ruling regimes. The ‘revolution’ that happened in Armenia this spring has not created a favorable environment for foreign investors.

“There is an opinion that if we fight against corruption, monopolies, everyone will immediately come to Armenia. I do not deny the need to fight corruption. We need to fight it, but I am sure that we cannot fight against it only by imprisoning and judging,” Chairman of the Standing Parliamentary Committee on Economic Affairs Khosrov Harutyunyan has recently told Armenian media.

He added that the Armenian government must not only punish, but also implement structural changes so that the corruption disappears.

Another reason for the instability of the socio-economic situation in Armenia is its dependence on the imports of the most essential goods, from grain to petroleum products. In this regard, the current foreign policy of Armenia can soon cause major problems for the country.

For instance, given Armenia’s dependence on Russian gas supplies at a cheap price, Yerevan should not try to ‘tease’ Russia by its overtures with the West. Otherwise, there will be a risk of either freezing in winter or paying world prices, which Armenia will not be able to handle because of its meager budget.

Thus, serious mistakes of the current Armenian leadership both in domestic and foreign policy, and its continuing ignore of the problems of the ordinary population suggest that the day when Armenians will start to hate their new government is not far off.

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Rashid Shirinov is AzerNews’ staff journalist, follow him on Twitter: @RashidShirinov

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