Will Armenian business show any progress?

July 11, 2011 - 16:33 AMT

PanARMENIAN.Net - The government’s efforts for development of business environment in Armenia first of all aim to create better conditions for entrepreneurs’ activity and improve economy totally but not positioning the country high in the international organizations’ rankings, RA Minister of Economy of Armenia stated.

“It is not important who and how evaluates us, it is our life and business improvement what really matters,” Tigran Davtyan told journalists on July 11 in Armavir province.

Government’s initiative on reduction of tax reports, licenses, periodicity of tax reports submission and payments, simplification of business registration procedures are expected to have positive effect on Armenia’s rating in the Doing Business World Bank’s report. It should be mentioned that Armenia ranked 48th in Doing Business 2011.

Minister Davtyan noted that the government will achieve its goal if by the yearend the poll demonstrates that the business ‘was relieved’. “This is our main objective and not obtainment of figures,” said the Minister.

Daniel Fisher, senior editor at Forbes magazine ranked Armenia 2nd (following Madagascar) in the list of the World’s Worst Economies in 2011.

Forbes assessment for Armenia is based on a range of indices for the last three years, namely, economic growth, inflation, as well as current deficit rate, which deteriorated in the country especially during crisis period of 2009, according to Minister of Finances of Armenia Vache Gabrielyan. “This is a snapshot assessment (for narrow period of time), it may not be the same in 2012, and is totally conditioned by the situation of 2009,” the Minister said.

In comments to the article issued on Forbes magazine’s web-site, one of readers expressed surprise that Armenia was ranked the second worst economy in the world.

“It is most probable that Armenia is not No2 in absolute figures. We considered only those countries for which IMF had data for the last 3 years. Armenia experienced slowdown connected with the collapse of construction sector financed through international transfers, and the situation will, certainly, improve. I bet, Armenia will not be in the list next year,” Fisher wrote in reply.