“ARMENIA HAS TURNED INTO A LAUNDRY”
Support A1+!“Dram revaluation is quite unnatural in a country like Armenia,” economist Zoya Tadevosyan said. According to her currency appreciation is abnormal in a country having 40 per cent unemployment, economic crisis and abject poverty. “I can call this phenomenon a disease, an Armenian syndrome, which focuses on one's own interests,” she added.
During today's seminar titled “Behavior” of the RA dram, economic and political motivations and outcome” experts stated that the abnormal dram revaluation testifies to the authorities' indifference to the country and absence of will-power.
Ms Tadevosyan finds the widely-accepted belief that foreign transfers contribute dram appreciation illogical. According to the economist, transfers first of all harm the most vulnerable stratum of the society – the poor.
On the other hand, “It is vital to promote export in a developing country like Armenia. The gap between export and import has greatly deepened over the past years. Foreign goods prevail over local goods at Armenian markets and are sold at high prices. For instance, sugar importers have had 70 per cent superprofit”
Zoya Tadevosyan noted that any investment in the country is pointless because of the current artificial state. “Currency policy reigns in Armenia which is aimed at strengthening shadow economy and enriching oligarchs. In this sense, our country can be considered risky for investments. A number of legislative amendments are needed to change the situation as Armenia resembles a laundry where everyone wants to wash his dirty clothes,” she said.
Economist Tatul Manaseryan referred to economic paradoxes. Once he worked overseas and returned to Armenia with pockets full of money. Therefore, he does not agree with analysts who suggest turning transfers into investments.
On the other hand, it is due to mention that there is capital overflow in Armenia. Well-off Armenians make investments abroad which means they don’t inspire confidence in investments. We should attempt to reveal whether this is determined by economic growth, political state, etc” he said.
Each of us is guilty of the current situation, Manaseryan concluded.
