When Nerses Yeritsyan was appointed RA Minister of Trade and Economy Development, experts unanimously stated positive opinions about him that by being a sensible, unbiased, non-clannish policy maker he will put forward a new thesis which will describe the so-called second generation of reforms.
After the completion of his 100-day period at office in September Mr. Yeritsyan presented his agenda, spoke about the plans of his ministry but it is clear that no global image of Armenia will be shaped without a consolidated action of the government. About half year has passed since the formation of the new government and we tried to check from Yeritsyan what directions of Armenia’s development were outlined and what concrete steps are taking in that direction. It turned out that Yeritsyan was still building the model of RA economic development, which would be launched in 2008. “First of all we should be able to build the horizon of the future in order to make it reality. I think that 50% of the work is the good plan to be realized later,” said Yeritsyan. The dream Armenia of Yeritsyan should exceed the development levels of Singapore. It should turn from an importer state to an exporter state. Armenia should also appear in the list of 20 most developed states. Furthermore, the minister believes that Armenia has all the necessary pre-conditions for that development – first it doesn’t have resources and secondly Armenia was at war. “The absence of resources helps you not to get arrogant. The second pre-requisite is the post-conflict states, such as Ireland, New Zealand. Yes, it helps to think faster and better.” If countries like Singapore needed 30 years for their progressive development Armenia can reach that level sooner because the launch conditions of our country are much better. And the launch of the reforms will start in 2008. In the minister’s opinion Armenia has a great development potential for the service sector – tourism, mediation and consultation services, financial and healthcare services. Of course, it is necessary to maintain and develop industry. But it should be done in accordance with the requirements of the new economy. Mr. Yeritsyan thinks that the reforms of the first generation of our country proceeded quite effectively. And now it is the time for the second generation reforms. And the second generation will guarantee the increase of the competitiveness level of our country worldwide. “We just need an accurate agenda and will to pass all the necessary steps. We have overcome the stabilization stage and have created market institutes. Now we should raise the level of those institutes, which will function by paying high salaries and by providing high quality of activity. The whole world bases its economy on knowledge. They signify the role of universities and education overall. They signify he role of professionals and experts, who not only get education but also conduct research. This research doesn’t imply complicated surveys but simple introductory research. If we succeed in this within 5-10 years others will be trying to compare themselves to us and striving to reach our progress. As a result we will have an army of incessantly working scientists, which will periodically conduct researches as well as an army of businessmen, which will originate from those values of educated scientists. In these conditions we will create an infrastructure, which will connect education with business. The launching conditions are created already, now we need to test the development model.” And while Armenia is on the way, which Singapore, Ireland and New Zealand took, we asked Yeritrsyan at the expense of what Armenia’s state budget is going to grow in 2008, which is planed about 1 billion USD more compared to the last year budget. The launch of the new generation of reforms should be launched based on the current budget, should it not? The Minister thinks that the amount of 2008 state budget is a serious political and a courageous decision. “The amount of 2008 budget is large and ambitious,” says Yeritsyan. “And if no rules are changed, no serious institutional steps are taken we won’t be able to have such a budget. This means that the budget 2008 already implies serious state-level reforms. Only major ambitions can result such budget. The whole problem is that our companies have a very good accounting audit. That’s the reason why tax inspection is getting even more abstruse. The current tax burden requires such a trick from the STS. Now we have to check and inspect the difference and similarity between the audit results of various entrepreneurs, which caused surprise among the businessmen. The Prime Minister stated about the restriction of tax policy months ago as well as tax levying. We are not used to the fact that a statement can be followed by action. The entrepreneurs had sufficient time to correct their administrative policies.” The minister referred to the recent strict inspections of NA MP Khachatur Sukiasyan’s Bjni mineral water factory. Several employees of the factory were taken to the police. Besides that the computers and accounting register books were moved to the police department. Put shortly, the functioning of the company was interrupted. Mr. Yeritsyan just like all the other government officials thinks that the noise around Bjni has a political context. Yeritsyan believes that the inspection is being politicized by the management of the factory, but not by the people.