Armenia's Economic Pulse

[londontsi]

Re: Armenia's Economic Pulse

The Government has found a new destination for its hard pressed population

http://www.news.am/eng/news/36214.html

Qatar needs Armenian employees

Qatar started showing interest in Armenian experts. On October 28, the Armenian government agreed to sign a deal on labor utilization in the territory of Qatar.

Qatar’s economy has been rapidly developing due to rich energy resources and policy of “open doors” carried out by the local government.

Country’s population is not large - 800,000, while Qatari total only 30%. Economic and social projects are mainly implemented due to foreign manpower.

Qatar’s authorities and businessmen are interested in inviting Armenian experts, offering favorable terms. For instance, salary of a nurse totals $850, while that of a doctor from $1,500 to 7,000. Besides, employers compensate apartment and travel expanses.

[londontsi]

Re: Armenia's Economic Pulse

YEREVAN (RFE/RL)–Armenia’s business environment still leaves much to be desired despite being more favorable than in most countries of the world, the World Bank said in an annual survey released on Thursday.

The bank’s “Doing Business 2011” survey rates 183 economies on nine aspects of government regulation of domestic firms, including investor protection and the ease of starting and closing businesses and registering property.

Armenia is 48th in the rankings topped by Singapore, down from 43rd place in occupied last year. By comparison, neighboring Georgia and Azerbaijan, ranked 12th and 54th respectively.

The report found an improvement in only one research category: Trading across borders. “Armenia made trading across borders easier by introducing self-declaration desks at customs houses and warehouses, improving border operations through investments in new equipment, and introducing a risk management system,” it said.

In all other categories, the country’s ratings have slightly worsened over the past year. Tax administration remains the Achilles heel of the Armenian business environment. According to the World Bank, only 14 other nations have more cumbersome and complicated tax procedures.

The authors of its survey argued that Armenian businesses have to pay various taxes as many as 50 times a year and spend an average of 581 hours on that, much more than companies in developed Western countries. Still, the country’s combined tax rate of about 41 percent is slightly below the Western average.

Armenia continued to score poorly on investor protection and the issuance of government permits for construction. But it again received much higher marks in the business and property registration categories.

The survey said it takes 15 days to start up a business there. The average business registration period in the developed world is about 14 days. Also, Armenia ranked 5th in the world in terms of the simplicity of legal procedures for registering property.

In a separate statement, the World Bank stressed that its survey does not assess all aspects of business regulation around the world. “For example, it does not measure security, macroeconomic stability, corruption, skill level, or the strength of financial systems,” it said.

Nor does it gauge the extent of fair business competition in a particular economy. A lack of such competition in Armenia, resulting in the effective monopolization of some lucrative forms of business, is a major source of complaints from local entrepreneurs. That is also widely seen as a serious hurdle to the country’s economic development.

The World Bank and the International Monetary Fund have long been pressing the Armenian authorities to improve the investment climate and tackle government corruption. A high-level IMF mission called for “bolder and deeper reforms” in that area following a September visit to Yerevan.

[Mos]

Re: Armenia's Economic Pulse

The major sectors of our economy are in the hands of a few select elite. This severely cuts competition and innovation, the best thing we can do for our economy? Change this, get rid of the elite from controlling large sections of the economy, and make it a much more competitive environment encourage other countries to invest in Armenia.

We are way to dependent on remittances, and cannot constantly rely on them for our survival. We need to have more economic independence. Be it with tourism or a liberal tax policy (for businesses), but I will repeat again, the biggest step will be elimination of oligarchs.

[KarotheGreat]

Re: Armenia's Economic Pulse

The major sectors of our economy are in the hands of a few select elite. This severely cuts competition and innovation, the best thing we can do for our economy? Change this, get rid of the elite from controlling large sections of the economy, and make it a much more competitive environment encourage other countries to invest in Armenia.

We are way to dependent on remittances, and cannot constantly rely on them for our survival. We need to have more economic independence. Be it with tourism or a liberal tax policy (for businesses), but I will repeat again, the biggest step will be elimination of oligarchs.

Do you know that every economy of the world is under the control of a very small elite. For example Belgian companies on the Bel20 are being controlled by the same people, the people that have the money. So the fact that economy will be controlled by a minority will never change. What Armenia needs is to find a way to create jobs and get more companies to invest in the country; the way to destroy or weaken the oligarchs is get more foreign investors investing in the country.

Armenia needs to get a more strict ta policy because taxes in Armenia are a joke now, the state should start taxing and collecting those taxes. The state needs for funds to keep the country going (to pay the police, military etc.)

[Mos]

Re: Armenia's Economic Pulse

Do you know that every economy of the world is under the control of a very small elite. For example Belgian companies on the Bel20 are being controlled by the same people, the people that have the money. So the fact that economy will be controlled by a minority will never change. What Armenia needs is to find a way to create jobs and get more companies to invest in the country; the way to destroy or weaken the oligarchs is get more foreign investors investing in the country.

Armenia needs to get a more strict ta policy because taxes in Armenia are a joke now, the state should start taxing and collecting those taxes. The state needs for funds to keep the country going (to pay the police, military etc.)

The oligarchs that are in control in Armenia are not equivalent to that "elite" in Belgian. Oligarchs, in high positions in the government, own substantial portions of the economy by supporting monopolies and not letting competition. It's a much bigger problem in Armenia, than in Belgium, obviously.

The tax policy is crafted by oligarchs for oligarchs. No wonder it's so liberal.

[KarotheGreat]

Re: Armenia's Economic Pulse

The oligarchs that are in control in Armenia are not equivalent to that "elite" in Belgian. Oligarchs, in high positions in the government, own substantial portions of the economy by supporting monopolies and not letting competition. It's a much bigger problem in Armenia, than in Belgium, obviously.

The tax policy is crafted by oligarchs for oligarchs. No wonder it's so liberal.

It's the same thing they control the big companies and the government, and most of them are from the old nobility. No, the situation in Armenia is different and very special, the only thing is that Armenian economy is small and the elite new. That's the difference, wait till the economy grows you'll see the oligarchs become business men and work in the grey area of the law.

[retro]

Re: Armenia's Economic Pulse

It's the same thing they control the big companies and the government, and most of them are from the old nobility. No, the situation in Armenia is different and very special, the only thing is that Armenian economy is small and the elite new. That's the difference, wait till the economy grows you'll see the oligarchs become business men and work in the grey area of the law.

Your industry is in Russian hands and Russia's trade liberalisation and banking reforms are short sighted and developing markets really isn't that crowds strong suit. Nevertheless, sooner or later they will find the right way out of the forest.

The road ahead for Armenia is to regulate and break up monopolistic industries, such as it's utilities sector, package them and float them on global markets. As the reality is that Armenia isn't going anywhere without large scale, capital investment.

Armenia already exports power to Iran in exchange for natural gas and Armenia needs to industrialise more and tap into Iran's markets. Armenia should reduce it's European import tariffs on air freight. As if the Europeans can export goods in volume to Armenia, then they can always magically disappear.

[Mos]

Re: Armenia's Economic Pulse

It's the same thing they control the big companies and the government, and most of them are from the old nobility. No, the situation in Armenia is different and very special, the only thing is that Armenian economy is small and the elite new. That's the difference, wait till the economy grows you'll see the oligarchs become business men and work in the grey area of the law.

And the Armenian oligarchs are from the Soviet Era and the elite families of the time. And even after the collapse have retained their positions in Armenian society. Bottom line is the oligarchs in Armenia are slowing down our economic progress and progress in general. At least if people are going to control large sectors of the economy let them be businessmen who've worked their way up the economic chain, and aren't just the sons or relatives of a rich elite family.

[Tigranakert]

Re: Armenia's Economic Pulse

And the Armenian oligarchs are from the Soviet Era and the elite families of the time. And even after the collapse have retained their positions in Armenian society. Bottom line is the oligarchs in Armenia are slowing down our economic progress and progress in general. At least if people are going to control large sectors of the economy let them be businessmen who've worked their way up the economic chain, and aren't just the sons or relatives of a rich elite family.

It's not an Armenian thing, for example the top 1% controls more than 50% of the wealth in the USA. As Armenia itself is an extremely poor country, you can see the distinction more clearly.

Mr. Negative. I think you should cry more often.

[Mos]

Re: Armenia's Economic Pulse

It's not an Armenian thing, for example the top 1% controls more than 50% of the wealth in the USA. As Armenia itself is an extremely poor country, you can see the distinction more clearly.

Mr. Negative. I think you should cry more often.

Mr. Negative? You know how much damage the oligarchs have done to Armenia and Armenian people? Oligarchs are just remnants of the same type of oligarchs that controlled the economy and politics from Soviet Union. The oligarchs can do whatever they want as not only they have so much economic control but also political control. So stop acting like it's not a big problem, go ask any Armenian from Armenia and they will agree that these oligarchs are a big problem.