PreferredYEREVAN.- Each publication of the indicators of the economic growth has constantly been accompanied by infantile assumptions, Armenian President Serzh Sargsyan said addressing the participants of the Congress of the Republican Party of Armenia.
“It is no secret that since 2007 our Party has been accused of all possible sins. First, we were “selling” Karabakh, remember? This seems to be gone. Than we were disregarding the Genocide – this topic faded away too, it’s impossible to utter same nonsense again and again. And throughout this period, we were witnesses to a real feast of backbiting regarding the situation in the economic area.
Each year starts with the comparison of the final indicators of January with those of December, followed with victorious cries of registered decline. Never mind that comparison between December and January means a simple eye-washing through incompetent conclusions; the important thing is to howl as loudly as possible.
For years, the beginning of each month was marked with “worries” about the non-implementation of the budget of the previous month, through the “I told you” self-assertion. Never mind that later it has always been made clear that the tax and customs authorities exceed tax collection requirements; the important thing is to blacken even if presenting it as a non-fulfillment of the state budget.
Each publication of the indicators of the economic growth has constantly been accompanied by infantile assumptions. Everything is quite clear: to present the indicators of the real growth as nominal (which very often was the case in the past), subtract once again the cost of inflation and here you are – with your “brilliant” economic knowledge you’re an accomplished aspirant for receiving the laurels of the champion of decadent rhetoric.
If all these still yield no results, take up another “quality-checked” method: level to the ground the entire state statistics. Never mind that the specialized international structures praise the work of the National Statistical Service; it’s no problem because you already have great experience of accusing the Venice Commission, international financial institutions, different European structures, commissioners, OSCE, even the US, Russia and France of cutting a deal with the Armenian authorities. It’s ridiculous but also true that some are ready to level our statistics to the ground when it registers positive advancement and growth and gladly accept as true when that very same agency registers decline or reduction.
And if publications on “Oh, God, we’re doomed” topic nevertheless remain futile, never mind – regularly voice a concern that the Government has simply messed up the economic policy. Here too, a self-important posture and strict regularity is the key,” President said.
President Sargsyan presented certain figures. “In 2007, the Republican Party won the parliamentary elections and, as stipulated by the law, received a state budget, which along with the resources of the Pension Fund made 658 billion AMD. Today, the Party is concluding this juncture of its governance with a budget up to 1 trillion 44 billion AMD. How many such “failed governments” have you seen?
Delivering the country from the clutches of a precarious crisis without social upheavals had a price to pay, and we had paid that price. We paid it in the first, purely financial phase of the crisis, swallowing quietly all the accusations which at times where getting to cursing, lest to become a tool in the ad campaign on the unavoidability of collapse. As a result, we blocked every avenue which was leading to the collapse of the financial and banking system otherwise we all would be buried under its debris.
We also paid during the economic phase of the crisis, when were designing bailout programs for each enterprise and were getting money for the social programs dram by dram. That was our job and our responsibility; and we were performing it silently, not despairing of the unfair blackening. As Vazgen would have said, we did it without a grumble.
We withstood a tough challenge and in the process strengthened yet more the immune system of our state. We also registered some results, which is also worth something.
In 2011, GDP per capita made almost 3174 USD, while in 2006 it was 1982 USD – it has increased by 1.6. For me, this figure is not satisfactory. It is even а shameful figure since today in civilized countries per capita GDP ranges from 30 to 50 thousand USD. But, as we have always said and agreed upon that all figures should be put into comparison because otherwise the question arises – who are the judges? In terms of internationally comparable prices, GDP per capita in 2011 was close to 5395 USD.
We were able to restore the number of jobs lost to the crisis and move forward. Besides recovering the losses, we also succeeded in this period of time in increasing the number of employed people by almost 18 thousand.
In the last five years, average nominal wages have increased by 1.8, while in real terms that number is 40.4 percent, which means that from 63.9 thousand AMD it became 115.3 thousand AMD.
Export of goods and services in 2011 compared to 2006 increased by 1.6 and reached 2.4 billion USD. For comparison, it is more than the GDP, i.e. total of goods and services produced in the Republic of Armenia in 2002.
In the same five years, deposits on the saving accounts of the population and businesses have almost tripled, reaching 983 billion AMD. In addition, the number of customers increased by 595 thousand, 565 thousand of which are physical persons, our citizens.
From 9.2 percent in 2006, as of end of 2011 the volume of the loans provided to the economy reached 32.9 percent of GDP. Again for comparison, it is more than Armenia’s entire GDP in 2001.
In 2011, the tax revenues-GDP ratio reached 20.1 percent of GDP, improving the situation in five years by 3 percent points. It is a serious figure indeed. In the absolute value of the last year’s indicators, it is almost 116 billion AMD. At the same time, we have also provided considerable incentives to the businesses, particularly for the development of small and medium enterprises, whose, so to speak, “budget price” only in 2011 made almost 60 billion AMD. These two absolute numbers testify to one thing only; it has become possible to take hundreds of billions of drams worth economic activity out of shadow economy.
In the same period of time, social expenses increased by 1.9; as for pensions, they were increased by 2.2. As a result, average and basic levels of pensions increased 2.5 times, average social benefits were raised by 79 percent, childcare allowances – 7 times, and benefits for the third and each subsequent child – 12 times.
Resources channeled into the areas of health care and education grew 1.5 times. Step by step, we succeeded in bringing premium health care services to the regions of Armenia, and will continue to do so. We have also created opportunities for our youth to receive the world’s best contemporary education, and will further develop those opportunities.
New avenues have been found to supplement resources for science and culture, introduced were new mechanisms and results will be apparent already this year. Just one example: this year, only budget funds envisaged for the culture excel amounts envisaged for year 2007 by 65 per cent, and now make 15.4 billion AMD.
In 2011, subsidies directed to the local communities excelled the 2006 level 2.2 times, and from 14.7 billion AMD reached 32.5 billion. Housing construction in the earthquake zone and expenses for the purchases of apartments, against 4.1 billion drams worth programs in 2006 and three previous years, programs implemented in 2009-2011 were worth 79 billion drams.
In the last five years, the area of potentially irrigated lands increased by 22 thousand hectares. Tendencies to decrease areas for the cultivation of grain crops, which started in 2005, were prevented, and crop yield has increased almost two times.
In 2007-2011, investments in the industry area reached 226.7 billion drams, and already in 2011 the annual increase of industrial output twice surpassed the average indicator for the CIS countries.
Production in the area of Information Technologies compared to 2007 increased by 2.5 and made 205 million USD. The number of companies working in the area has grown by 82 percent, coming close to 300 in 2011 and creating almost 7000 jobs.
In 2007-2010, specific weight of the goods, which require high qualifications and enhanced technologies in the overall export of industrial production rose by 1.4. It should be noted that for the same period of time, the growth of output in the same category in Georgia and Azerbaijan was two times less than in Armenia, and in Turkey it was inferior to the growth in Armenia 1.6 times.
In 2007-2011, in the framework of state assistance programs, the small and medium enterprises in the Republic of Armenia received 1.5 times more funds than in 2002-2006. The development index of the small and medium enterprises in Armenia compared to 2002 has grown ten fold.
Also in 2011, the number of tourists visiting Armenia doubled compared to 2006 and crossed the threshold of 750.000.
Tariffs for cellular phone connections have decreased dramatically, while the number of cell phone subscribers has increased almost 3 times, and now it is close to 3.8 million. In 2010, in per capita ratio for the mobile communication subscribers, in the CIS region Armenia was second only to Russia, and among 210 countries of the world was the 43rd, outperforming all its immediate neighbors.
Compared to 2007, internet access for the residents of Armenia in 2011 reached 45 subscribers per hundred persons. In 2006, the wholesale price for 1Mb/sec of internet connection was 5.4 million AMD. Currently, it is 35.6 thousand drams, or more than 150 times less than before.
In the last five years, road construction works were doubled compared to the previous five years. In 2007-2011, nearly 1500 km of roads were constructed or renovated in Armenia.
The number of gas subscribers exceeds the level of 2007 by almost 200,000, while supply of drinking water from previous 11.18 hours, in 2011 came close to 16.64 hours per day.
These are some facts from the achievements that we have been able to register in recent years, struggling at the same time against the global financial and economic crisis and its upshots.
Now, the question is: Are these results good? I would say, no (given there was no crisis). Could we have worked better? Of course, we could. Could the results have been better should there be another political force leading the country? Certainly, they could have been. However, there is a second question which also has the right to exist: could the results have been worse?... However, let this one be a rhetorical question,” he said.
