The World Bank has published the results of their latest analysis of Armenian economy. The title of the analysis is too long: “Business field and production management analysis implemented by the European Bank for Reconstruction and Development and the World Bank”. There were two points for this program implementation. First of all here Armenian economy was analyzed and compared with the economies of Central and Eastern Europe, as well as CIS countries. Besides that they have also made comparisons with the results of analysis in 2002 and 2005. These two comparisons describe the situation of our economy in a very good way. With the purposes of finding the reasons that prevent business field from development they have analyzed 201 companies. They included both small and medium enterprises, as well as state-owned and private companies in their analysis. In 2002 most of our businessmen thought the most important things that prevented the field from development was the fiscal policy, taxation and the prices for financing. These marks have not changed during the last three years. The fiscal policy hasn’t developed. The taxes haven’t been reduced. It is still difficult to find sources for financing (borrowings) business development. Most of the businessmen think so. The analysis of 2005 pointed out one important thing. Our authorities always speak proudly about macro-economical stability. But in spite of this about 55% of our businessmen think that one of the things that prevent the field from development is macro-economical instability. It is worth to mention that according to their evaluations Armenia has the highest mark of macro-economical instability in comparison with the CIS, Central and Eastern Europe countries. We have also shortcomings in our taxation and price policies too in comparison with these countries. In 2002 when the anti-corruption program was just in the beginning stage, only 25 % of our businessmen were disappointed about corruption. But now, when the president’s staff, the government and the NA take serious steps and make speeches dedicated to this problem, the situation is different. Now 32 % of our businessmen are disappointed about corruption (instead of the 25% in 2002). You may remember that this commission first of all targeted on teachers and doctors. But our businessmen don’t hesitate to point out the fields where it is easier to solve problems with bribe. Those fields are the taxation and customs bodies, as well as the judicial system. And what is more important, about 12% of our businessmen have paid money to make contract with the government. This number covered 1 % in 2002. In these three years the economy has developed and the government makes more contracts. As well as the bribe sums that officials ask have increased. Customs service creates another problem in the business field. The negative influences of this field have been discussed from four points of view. Armenia is in the last place in connection with all these four points. For instance the number of companies that spent more then one day on customs service proceedings reached 75 %, but in 2005 this number reached up to 100%. And this number is increased in case when the authorities are always proud of our legislation and economical policy and say that they support exporting. For a country that has agricultural direction of development it is very bad to keep the products more than one day. Also importers spend much money on customs services. According to the European Reconstruction and Development Bank and the World Bank, unofficial payments have increased for about 6-7 times during these last three years. Unofficial payments in taxation field have increased by 3,5 times. Of course we can explain what “unofficial payment” means to officials that try to struggle against corruption. Yes, we can, but only in case if there is need and sense for it. According to their information Armenia is the first one among these countries with its control and revision activities in taxation field. The taxation bodies don’t make so many revisions in any of these countries. Instead of this our country is in the same level with Central Europe countries with the number of revisions. This is an objective mark, because the weight of import in our economy is high. But the fact that we are a leader in connection with the number of revisions and as well as the fact that these revisions last very short is very interesting from the point of view of corruption. Armenian businessmen think communications is also a problem that prevents the field from development. Our communications is more expensive than in other countries. But instead of this Armenians don’t have any losses as a result of strikes like in the other countries. After this analysis program implementation “Armentel” applied to the court and made their employees to stop the strike. This means that due to the existing mark of unemployment and existing labor legislation strikes are not dangerous for businessmen. Strikes are not dangerous even for “Armentel”, for whose services all the other businessmen always complaint.
