The rich suffered more
The UN predicts that 51 million people will be unemployed and the world will suffer from humanitarian crisis in 2009.
The fact remains that the rich have suffered more from the economic downturn than the poor. According to the International Monetary Fund, the reason for that is because the poor mainly consume food products, while prices for food have gone down worldwide due to the global crisis. According to IMF Armenia Representative Ninke Omes, the rich have recourses and rich friends and are able to easily overcome the crisis. However, the poor don't have that opportunity.
During today's conference entitled "Social Impact of the Global Economic Crisis on Armenia", Omes also brought up a couple of circumstances that may help the poor overcome the crisis. For example, the low inflation and stability of the financial sector are important for, say, the needy to get loans. It is also important for encouraging exports as a result of the floating exchange rate because that will lead to creation of jobs. Omes believes that imports are also important because the needy will be able to purchase products at a low price.
RA Prime Minister Tigran Sargsyan presented the plans and strategy of the RA Government aimed at povery reduction. According to him, pensioners are protected and the government has revised the budget and made changes in expenses by making the transition to an operative management, that is, quarterly expenses. According to Sargsyan, the 700 milion drams conceded to the RA districts is not used effectively and the World Bank will also concede means for effective use.
RA Minister of Labor and Social Issues Arsen Hambartsumyan was optimistic and noted that Armenia has made the transition from the list of low-income countries to the countries with medium income. He also noted that compared to 2004, in 2008 extreme poverty reduced by 54%. According to him, the rise of prices, 25% slash of transfers and the reduction of people leaving for work abroad will have a negative impact on the situation in the country.
The RA government's anti-crisis plan is aimed at preventing, extenuating the effects and stabilizing. The government needs regulation of the legislation, increase in management effectiveness and more. There are already 400 social programs in nearly 300 districts and work is being done to provide 5,000 citizens with jobs.
Head of the World Bank Armenia Office Aristomene Varudakis underscored that the WB predicts that Armenia will find itself in the risk zone and may lose all that it has achieved if it does not take concrete steps.
