One Armenia party slams new government's 'Economic Revolution' concept as 'manipulative effort'

The Armenian government's ″economic revolution″ concept was an intentionally coined phrase aiming to manipulate the public sentiments among specific target groups, members of the One Armenia party said in a statement today, criticizing the Armenian government's 2020 Draft State Budget.

Highlighting the existing shortcomings, the party questions the authorities' real commitment to realize the promised reforms. ″That question, certainly, is difficult to answer – not because of the fact that the macro-economic and tax-budgetary indicators reflected in the [Draft] Budget block any chances for giving unequivocal assements but also due to the failure to identify the implications behind the 'economic revolution' to make the concept clear to either professional circles or the responsible figures in our government. In our deepest conviction, the term was put into circulation as just an ear-friendly phrase to manipulate the sentiments of selected social groups - instead of pursuing specific targets or visions,″ reads part of the statement.

The party also highlights the omission of the proposed terms from the finalized version of the document.

Proceeding further to an analysis of the macro-economic indicators, it notes that the proposed 9% economic growth is only slightly above the 2019 estimates (6,3%) and essentially lower from the 2017 and 2018 forecasts.

The party claims that no tangible changes were observed in the country in the ″post-revolutionary period″ despite the new government's promise to make the diversification of the economy a major target.

As another manipulative method, One Armenia highlights an increasing focus on the 2018 records (instead of a comparison with the achievements recorded over the past year).

It also blames the government for a failure to cut down the shadow economy, noting that the estimated tax-to-GDP ratio is expected to be only 22.6% in 2020 instead of last year's 22.3% and 20.9%.

One Armenia expresses its disappointment also with the investment dynamics, noting that the investment-to-GDP ratio will increase only to 22.9% (from the 22.4% in 2018 or the 22.9% in 2019). ″That picture, certainly, testifies neither to a swift growth in investments nor to any revolutionary changes. Guiding ourselves by superficial judgements though, we can only presume that the persons indicated by [Prime Minister Nikol] Pashinyan do not trust this government. A more insightful analysis would reveal though that the factors making the country less attractive to investors and hamparing investment flows are more profound in nature and far more systemic than the 'velvet revolitionists' could have possibly fancied themselves. The economy has failed, in the past one and a half years, to create the necessary competitive advantages to boost the investment inflows. The realization of investments, obviously, is not linked to invitations sent to specific persons time and again, but rather – to a clearly outlined economic development strategy, efficient government institutions, legitimacy, as well as effective steps towards creating a more investment-friendly climate,″ says the party.