Growth Challenges And Government Policies In Armenia

Este informe revisa las tendencias del crecimiento en Armenia para el periodo 1994-2000, presenta debilidades importantes de los patrones existentes del desarrollo, y sugiere el diseno de politicas para acelerar la reestructuracion de empresas, atraer la inversion, y promover la creacion de nuevos negocios en corto plazo.

Since 2000, Armenia's economic performance has been remarkable. Real economic growth has averaged 11 percent a year, annual inflation has averaged 3 percent, and poverty and inequality have fallen. The country has outperformed other low-income countries including other members of the Commonwealth of Independent States. This is particularly impressive given the geographical location of Armenia, the closure of two critical borders, and occasional political turmoil. The key factors behind Armenia's economic performance are prudent monetary and fiscal policies, liberal trade and foreign exchange regimes, rapid and relaively well-sequenced structural reforms, and support from the Armenian diaspora. In addition, the implementation of a poverty reduction strategy since 2002 has complemented the effect of economic growth on reducing poverty. This book assesses the country's economic transformation during the last 10 years and discusses the challenges to sustaining these successes.

This study examines the growth determinants and the economic policy challenges that Armenia faces to sustain the rapid growth of the past two years. The paper also seeks to answer the following two questions: Why has Armenia performed relatively better than other transition economies? What are the roles of macroeconomic policies and the level of financial intermediation in explaining growth differences? The paper also draws upon past cross-country experiences by estimating panel regressions on the determinants of growth to make predictions for the Armenian economy.

An NRC ad hoc committee analyzed the current status and future development potential of Armenia's science and technology base, including human and infrastructural resources and research and educational capabilities. The committee identified those fields and institutions offering promising opportunities for contributing to economic and social development, and particularly institutions having unique and important capabilities, worthy of support from international financial institutions, private investment sources, and the Armenian and U.S. governments. The scope of the study included both pure and applied research as well as education in science-related fields. The committee's report addresses the existing capacity of state and private research institutions, higher education capabilities and trends, scientific funding sources, innovative investment models, relevant success stories, factors hindering development of the science sector, potential domestic Armenian customers for scientific results and products, and opportunities for regional scientific collaboration. An Armenian language version of the report is also available.

Armenia sits on the cusp between Europe and Asia, landlocked between Turkey and Iran, two opposing powers. For much of its history, Armenia was forced to contend between two greater powers positioned on either side of it. There was Persia and its powerful influence on one side and Turkey on the other, both interested in advancing and assuming control over the Armenian Plains. Today, these enmities continue to persist, with Turkey refusing to open its borders with Armenia, while there is a strong tourist trade with Iran. Besides these competing countries, Azerbaijan claims the Nagorno-Karabakh enclave, as does Armenia. There are periodic flare-ups, with the most recent ceasefire, brokered by Russia, taking place on 10 November 2020, resulting in Azerbaijan gaining a distinct military advantage, large territories in the disputed region. In August 2017, I traveled to and spent a nearly month in Armenia, visiting sites both in Yerevan, the capital and in locations distant from the capital. The ancient Zorats Karer, site of the Armenian Stonehenge, has massive stones configured in a curving 'S' shape, placed by ancient and unknown people. The site is also known as the 'singing stones' because of the holes bored into the stones. One must conjecture that the ancient construction of Gobekli Tepe in Turkey, attracted ancient hunter-gatherers to this large region, where they constructed these sites for reasons with which we are not familiar. Other than these stones, nothing is known of them, why they were built, and its overall purpose. Even their age is contested. Further south is Tatev, site of an ancient monastery, containing a unique scientific obelisk. The tall stone column, standing free at its base, was designed to predict the severity of earthquakes by its movement. This is a remarkable construction, made by an early seismologist interested in calibrating the periodic earthquakes this area experiences. To travel to the monastery grounds, I crossed the deep gorge by way of the world's longest cable tramway, the Wings of Tatev. As I review in my reviews of journeys to different countries, I visited with the small Jewish community in Armenia. Its chief rabbi, the only formal Jewish leader in the country, welcomed me and I spent one Sabbath as we discussed the history of Jews in the country and the minuscule community he leads today. During the Second World War, he, his mother and aunt sheltered here, finding the country and city a welcome respite from Nazi and Soviet anti-Semitism. Thousand of fellow Jews did the same and were grateful for this place of refuge. But in the years following that world conflict, all but approximately one hundred Jews left the country. Today, they reside in Israel, as in other counties. There is an enduring question why the Armenian setting was not conducive to Jewish settlement and business development. I found Armenia to be a fascinating country, with a long and complex history. Known for the Armenia Genocide, it is a place with attractions that remain unique. I share my journey and the places of interest about this country, with its complex history and its special people.