There is no shadow economy in Armenia without the participation of the government, the classic shadow economy only amounting to 10 percent in the country.
Economist Vahagn Khachatryan said the aforementioned at the discussion on the Bulgarian experience of reducing the shadow economy held at the session of the International Coordinating Council of Employers' Unions (ICCEU) in Yerevan on Thursday.
In his words, the main problem in Armenia is the absence of competition, both political and economic. The monopoly of the Republican Party of Armenia (RPA)—which Khachatryan labeled “Communist Party”—rules in the sphere of politics. He also noted that Armenian has not outlived the ideology of socialism, which has started returning in the recent years.
Referring to the Armenian economy, Khachatryan said that this is a pure monopoly-oligarchic structure, it being impossible to engage in business without being given the “go ahead.” This is the case with investments as well: the important thing is not the law but the roof. There is no competition as such, this being the key issue hindering the development of business. In 2008, the GDP amounted to $11.6 billion in Armenia, reaching $10.5 now,” he said.
According to the economist, the demographic and poverty issues are not solved in Armenia. “The foreign debt made up $1.2 billion in 2008, whereas now it amounts to $6 billion. The budget has been increased by four times, the GDP doesn’t grow, the unemployment is on the same level, the workforce productivity being the same as in the pre-revolutionary period. The private sector is under the 90 percent control of monopolist oligarchs. That is why we have no freedom of choice,” he said, adding that this situation can be changed only by following the rules of market economy and observing the laws.
