Economy of Arménie

Economic situation

Growth rate bordered 13.5% in 2006. The Gross domestic product has in the same time increased of more than 13%.

The Arménie was the richest République of * the Soviet Union. It was the case. Ca is almost now.

Since, and because of the collapse of the Soviet Union in December 1991, as well as the quasi continuous conflict with the close Azerbaïdjan (in connection with areas Azeri populated of Armenians, Nagorno-Karabakh), the Arménie knew a economic Déclin major, with nottement of small percentages of growth, which concentrated on some sectors chosen, mainly limited to Yerevan the capital, (or * Erevan). Under the old Soviet planning system central , Arménie had developed a significant industrial sector, producing Machines-outils of provisioning, textile, and other manufactured goods, which it sold with the other republics in exchange of raw materials and energy.

Since 1991, Arménie also commutated with the leasing of small size far from the agricultural complexes of béhémoth of the Soviet era. The agricultural sector has long-term needs of more than investment and updated technology.

The Privatization of the Industrie knew a slow rate/rhythm, in the first years of the Indépendance, because of strong * the Corruption. Strategic interests such as the sector of the telecommunication of Arménie or the factories electric, were sold with the Greek interests and Russian, respectively. Arménie is an importer of food, and its resources mineral (copper, but, bauxite) are weak.

Since 1994 however, the Armenian government had launched an ambitious economic program in relation to the the IMF, which had like consequence of high positive growth rates during the period 1995-2003. Arménie also managed to reduce the Inflation, to stabilize the local currency (the Drachme), and with Privatiser the majority of the small and medium-sized undertakings.

The sector of service as well as the small and medium-size companies constitute an increasing share of the Armenian economy.

The banking system

Before " We had money, but anything with acheter". " Now we have many things on sale, but not of money for the acheter."

Then one of richest of the former Soviet republics, Arménie suffered from a virtual fusion of the economy, which with started with the plan of * Perestroïka of Gorbachev, which accelerated the regular erosion of the Soviet economy already badly at the point. Arménie depended then strongly on the old Soviet Union for its trade. Raw materials were imported of Siberia or of the Republics of Central Asia, they were then treated in * Arménie, then to re-export through l'* Soviet Union and the countries of * the Warsaw Pact.

With Perestroika, the planned economy started to dissolve. It reached a critical mass in 1988, with the earthquake of Spitak on December 7th of this year. The earthquake was very devastator who it was, but it became terrifying while it showed the incapacity of the powers centralized in Moscow to reduce the situation. Promises were made immediately be essential to sprinkle materials with the jet, workmen of construction and “to rebuild the whole area in the 18 months”. The promises were never yet maintained, and up to 40% of the population of zone of earthquake of phase in the provisional shelters.

The problems were still localized at the zone of earthquake when Azerbaïdjan imposed a blockade of energy against the country in 1989, like repair for the declaration of Nagorno Karabakh of independence. The rationing of energy started, and of the factories were forced to reduce the production. While waiting, the ethnic tensions in Georgia at Abkhazia divided the primary education routes of transport of ground and rail into Russia, whereas Azerbaïdjan refused the alternative routes by their territory.

Without connections of rail and road via Abkhazia or Azerbaïdjan, the country lost each trade agreement which it had in a blow. That took years of negotiation to restore the traditional commercial associates, whereas transport was limited to the air cargo and forwarding via the ports géorgiens.

All the collapse of the economy came with dissolution from the Soviet Union in 1991. Lately the independent republics awoke to note that although they were perhaps free of the dictatorship of Moscow, they were also completely cut out traditional commercial associates, which extend sometimes from the thousands of miles far by several new countries, each one with its own habits and of the laws of border. Ironically, the only part of the Soviet Union to the advantage of the situation is Moscow, which was pilot of true a seven year old pole which does not show any sign of the stop.

Tie profit of the situation were a certain number of individuals undertaking who began a commercial sector, which forms the part of the current economy now. Stands and simple markets on street-side, the tiny kiosks occurred almost during the night, because manifestly the empty racks with the stores of state started to fill of imported goods. In one year, purchasing power of the population--what had stuffed the roubles left since there were so much few actions available for Soviet periods--narrowed, and in October of 1992, the rouble crumbled, making the valuable article of currency less than the paper which it was printed top. A reflection of time was a common joke among people of the country, “it was us did not have money, but anything with to buy. Now we have all on sale, but no money to buy it. ”

The tax system

The World Bank in particular pushed the programs which seem suspiciously as those which estropié economies involutes in Africa and South America, and which led to a revision of the policy of the World Bank.

What was not never known, and is always unknown, is the actual value of the economy, or gross domestic product. Are ready to state the true value during the Soviet time for the fear of the reprisals, Armenians notorious never not to leave no matter whom know how much they are worth the sorrow. Sev Shuka (literally “black-market”) which occurred with beginning of the year 90 made the greatest difficulties for economists and tax collectors of tax. They start to arrange on 4 billion dollars of annual income for the country, in opposition to the 350 million the government (which represented only the quantity that they could really lucky find). Even in worst of the periods (and them were brutal, with the cut of electricity at one hour or thus at the day during some of the worst winters on the disc, and the people having to fight in crowd to obtain the state-subsidized goods), the economy developed while the policies of liberalization came into effect. The economy was still supported by the humane efforts of assistance which pumped more than 400 million dollars annually in the economy by in-pleasant assistance, and by Diaspora Armenians sending of the handing-over to the families in the republic.

The economic program of the reform of the government stressed liberalization, stabilization, and the economic reorganization. The agricultural majority of area were privatisée little of time after independence, and privatization in other sectors goes from the front one. The price control only applied to one limited number of essential goods and services, and is eliminated.

Side of the macro-economy, the policy of stabilization became a priority of government, data the challenge of a difficult budgetary position combined with the need for reducing inflationary pressures and for maintaining the stability of foreign exchange rate. It carried out a certain success in its efforts of stabilization, reducing the monthly rate of inflation recently to choose figures to reign of level of triple-figure at the end of 1993.

At the same time, the macro-economic hearth had its limitings device effects on the economic growth. Led by the World Bank and the IMF (Funds international currency), which judges Arménie on restrictions of expenditure more serious than those on the United States or Western Europe, the real investment in the country was remote below the hopes. The World Bank in particular pushed the programs which seem suspiciously as those which estropié economies involutes in Africa and South America, and which led to a revision of the policy of the World Bank. A plan led by WB to provide guarantees for loans to the national credibility of Arménie and damaging of carrier of air as international investors, and to a new plan is not privatisé the health system has the potential to close outside poorest of the medical assistance.

Potential

The government continues to push the industrial production, in spite of him dubious competitive advantage on the worldwide market. The industries supported by the government for the investment include the manufacture of machine tool, electrical engineering, electronics, technology by radio, the production of metals and the concentrates nonferrous, the extraction of the noble metals and the rare elements of the noninvaluable metal ores, nontraditional energy resources, treating construction, the production of the consumer goods such as the leather shoes, knittings, the covers, the textiles, the fruit and vegetable putting out of box, and the production of cheeses, mineral water, the wines, the cognac, etc

While waiting, the private sector developed several principal industries only, and these exposure the greatest promise for the term. None them is in the heavy sector of industry, being based all on budding world industries of service and state-of-the-art technology. The programming of computer and the development of software gained a significant balance in the economy in three last years, with the export of the software and the computer programming ahead among them. The chip and component manufacture, the data-processing genius, and the uses of programming the enormous intelligence in the country, and are not based on the consumption of massive energy, or the unfavourable ecological use. The Armenian knowledge of computer well-known in industry, like companies like Intel, Microsoft and IBM is broken to the top of the programmers and the Armenian engineers of emigration to beginning of the year 90.

In the near future one of the great economic potential for the country, beside information technologies, is tourism. The country has an infrastructure integrated to place 800.000 visitors per month, and before the energy blockade of 1989, the country accommodated annually up to 1,5 million tourists. This sector with started to be restored starting from the middle of the Ninety (with visitors for 1997 exceeding the three previous years totals combined). Since 2001 and the celebration of the 1700éme birthday of the adoption of Christianity; making of Arménie the first Christian State in the world; the number of tourism did not cease increasing. In 2007 500.000 tourists were awaited booster rocket by the year of Arménie in France and the year of France in Arménie. One expects that the sector has a constant dynamic growth in the years to come. The country counts on 1000 000 tourists in the near future following the example Jordan today.

Generations

Arménie is divided between old man and new; between the old tactics and psychology (and much of thought wistful at the old days), and movements daring to exploit the greatest force of Arménie, power of the spirit to propose something again.

The challenges which faces the economy, because it is made the country politically and socially, are as much to make with differences in generations which they are with a wiser use of the resources and competition on the worldwide market. The older generation always looks at the days of glory of the massive Soviet factories, whereas the young race with information and the service age. The young people adapted remarkably well to the market economy, often exceeding the capacities of their relative to gain the income. With very few exceptions, the greatest richness produced in the country is by those under the age of 30. Other side, older people always count on the businesses and the Soviet in back-room thinking to lead the businesses, which limited their competitive advantage. The investors generally conclude the businesses with young contractors, and the young catch the best potential to develop the economy.

In five last years, the enormous positive changes occurred in the country. The electric current was reconstituted, the sectors of transport reopened, the blockade of energy was broken by gas and oil provided by Russia and Turkmenistan, the factories started to begin again with limited production, and the private sector develops firmly, in particular in Yerevan. The macro-economy and the official economic reports/ratios on side, the visitor will see the obviousness of the new richness in the country: the new stores, coffees and restaurants open atan astonishing rate, people are well equipped and Federal, and the building cranes start to still move. Does true middle-class start to develop, and would have of the promises of government to revise the tax system (which acts as a discouragement to pay, with an income combined by 70% breaker and a national insurance contribution) is carried out, the economy can carry out the significant growth. While it is, the country is divided between old man and new; between the old tactics and psychology (and much of thought wistful at the old days), and movements daring to exploit the greatest force of Arménie, power of the spirit to propose something again.

Source? http://www.tacentral.com/economy.asp

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