Expert: Armenia should chart new course

YEREVAN, March 15. /ARKA/. Armenia is in need of a new economic policy, Vazgen Safaryan, the chairman of Association of Domestic Manufacturers and the head of Public Council’s financial, economic and budget commission, said Monday in Novosti International Press Center.

“U.S. President Franklin Roosevelt adopted a new policy in 1933, after the crisis, and time has come to us to chart a new course,” he said.

Safaryan thinks that export area needs substantial reformation.

He thinks Armenian government pays insufficient attention to domestic products, since after declaring its independence the country started heading the road of free market economy, which is based on ten recommendations of. Washington Consensus

One of these recommendations warns against spurring and regulating industry.

“None of our prime ministers succeeding each other has made any correction to industrial policy,” Safaryan said.

Washington Consensus is a kind of the microeconomic policy recommended by some economists to those countries facing financial and economic crises.

Safaryan also said that things have already started changing.

He pointed out that Armenian government approved an industry recovery concept in January.

“This gives us ground for hope that progress is possible in this area.”

In its concept, the government singled out creation of favorable environment as one of its top-priority objectives.

This environment will enable Armenia to develop into industry-oriented country. Under the concept, the country will increasingly be building up the share of industry in its GDP from year to year.

The government also put special emphasis on development of export-oriented industry. Speaking about the new economic policy, the expert said that it should be focused on industry.

He added that the government should also include tax administration improvement, shady dealing reduction and the problem of foreign debt ratio to GDP to its industry policy strategy “to transform Armenia from a soviet-era consumer country into a manufacturer country”. M.V.-0--