Armenia compared with car caught in windstorm
On July 26, Yerevan hosted a discussion on "Armenian Economic Policy: Further Steps" organized by the International Monetary Fund (IMF) and Armenian International Policy Research Group (AIPRG).
The event brought together Armenian Ministers of Finance and Economy, representatives of the Central Bank and experts of the International Monetary Fund (IMF).
"Economic developments follow the scenario foreseen by the Armenian government. Economic growth is possible provided that the global market registers no frustrations and surprises," RA Minister of Finance Tigran Davtyan said July 26.
Mr. Davtyan believes that the global economic crisis is overcome and today Armenia is stepping a new phase - a phase of stability and development. The country has all grounds to return to the pre-crisis situation but the government still expects the support of IMF in the development and maintenance of macroeconomic stability.
IMF resident representative in Armenia Guillermo Tolosa said IMF would continue assisting Armenia. He compared IMF with a rescue squad and Armenia - with a car which was speeding up in 2003-08. But later the car was caught in a windstorm and broke down.
According to IMF resident representative, the Armenian government and Central Bank were quick enough to respond and repair the car. Armenia is already void of economic storms and has taken the path of stable economic development, he underlined.
Further, Mr. Tolosa compared the car's wheels with microeconomic stability and engine with microeconomic policy and said that the latter needs to be changed.
"If you drive a Soviet car on European and American highways it will break down as quickly as when you drive a Mercedes on Armenian roads. We need a good car with a good engine on good roads," Minister of Economy Nerses Yeritsyan said in reply to Guillermo Tolosa.
Mr. Yeritsyan thinks Armenia should make structural changes in the sphere of economy laying a special accent on the industrial policy. That is to say, Armenia must increase export, update substructures, make the country's roads compliant with European standards and make great investments.
Nerses Yeritsyan believes the reforms are imperative today to raise the competitiveness of Armenia on the global market.
