Economy
- March 7th, 2011
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The Armenian republic has been through a harrowing 120 years of oppression and this along with Russian communist rule has created a nation that requires much help in the form of Economic aid. To have a true free democracy and the ability to operate on the international stage truly independently Armenia must have a strong economic base.
Currently Armenia receives grants and funding for numerous international organizations including The World Bank and the IMF. A number of international countries are also loaning the republic funds to attempt to stabilize the economy by reducing the deficit, stabilizing the currency (to everyone’s benefit) and developing Armenian businesses and trade. The republic receives one and a half billion dollars per year in these two types of financial support. This support is vital at the moment but the state must not become reliant on it for political and economic reasons. Politically it s dangerous to rely on certain partner countries for finance as it often can lead to control of international policy by those financers. Economically we must strive to grow our business base so we can be truly independent.
One of the key goals should be to develop more energy sources ourselves. Currently Armenia only produces between 30% and 40% of our energy and we are still heavily reliant on Russia. It is important that these energy supplies should come from multiple sources so no supplier or country has a hold of future. The recent Iran gas pipe is a perfect example of this wider distribution.
Growth of the economy should be one of the countries priorities the size of the economy is a little over eight and a half billion dollars. Much of Armenia’s exports are through metals and diamonds however we need to widen our economic base. The removal of Russian trading has had a deep effect on the economy but ultimately this will be positive. However its vital we build robust structures and strategies and break free of the central economic model of the Russians.
There have been many successes especially in the early parts of this millennium before we, like all countries, were affected by the global meltdown. One of the economies greatest successes has to be the control of inflation. Inflationary pressures often affect “new” economies like the newly established republic.
Agriculture and the services sectors should be prioritized, we can see the dramatic effect being reliant on the construction industry can have. Currently we are to dependent on metal prices and the construction market and greater development in agriculture and the service sectors should assist this. We also need to encourage international businesses to Armenia and look for outside top talent to run Armenian businesses. It will be a rocky road but great strides have been made already.