Armenia’s new cabinet viewed as crisis manager – economist

14:52 • 25.10.16



The Armenian government’s new program is a clear declarative program.

It should be viewed in the context of personnel policy and changes that followed Karen Karapetyan’s appointment as Armenia’s premier, economist Ashot Khurshudyan told reporters on Tuesday.

“It is important to link the premier’s appointment and following changes and consider the development in this respect. The government has surprised and made me feel glad because it has inspired great hopes in society. People even write letters to the premier, which means an appreciable social response to the latest cabinet reshuffle,” Mr Khurshudyan said.

People would perceive the premier and ministers as “authorities,” whereas Armenia’s new cabinet is perceived as a “crisis management cabinet.”

Elaborating on the government program, Mr Khurshudyan said that it often uses the term “subsidies,” which can hardly be welcomed because it is at taxpayers’ expense.

Asked about possible discrepancies between the new government program and the newly adopted tax law and 2017 draft budget, Mr Khurshudyan said that the tax law was drafted much earlier.

Although uninformed of details, Mr the economist admits discrepancies between Armenia’s economic policy and tax policy.

“I think that the tax law would be different if it had been drafted following the present guidelines. I see discrepancies in the guidelines.

“The major task is to enhance efficiency. But we cannot raise the level of Armenia’s efficiency and industry, as assets, to that of western states for the simple reason - lack of confidence,” Mr Khurshudyan said.

With respect to management, the economist said that the general motivation in Armenia is different from economic requirements.

“They are not in harmony in our government system now. The art of management is to harmonize them. But it is not so for lack of confidence. For example, since they were unable to fight corruption, they decided to legalize it by transferring penalties to a special fund and pay bonuses due to it.”  

Betghehem Arabyan





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