“COURAGE IS REQUIRED FOR ECONOMIC DEVELOPMENT”: ARTSAKH FORMER PRIME MINISTER DELIVERS A LECTURE AT YSU

At the beginning of the meeting the dean of the Faculty of Economics and Management Hayk Sargsyan thanked the guest for the initiative of the lecture.

“This lecture, which was also sent to the RA Prime minister Nikol Pashinyan in the form of an open letter, aims at proposing solutions to the problems related to economic growth”, mentioned the Dean of the Faculty.

Arayik Harutyunyan started his lecture with the rates of the index of happiness.

“A few days ago it became clear that Armenia had improved is position in the rating by 16 points up, however it is only in 116th place: is the country we dream of the one located beyond the first 100 positions?”.

Analyzing the situation, the former Prime Minister referred to the theme “The role of oil factor in Artsakh and regional problem” which aroused a question about the relation of oil to Artsakh.

“At that time the construction of Baku-Tbilisi-Ceyhan pipeline through which Azerbaijan oil was to be exported”, explained the speaker. “We had information that in 2010 there would be the peak of oil mining, and due to it Azerbaijan would get great financial resources. At that time, I already had the economic analysis according to which in 2014-2016 we would likely be involved in the war”.

During the April war everybody understood in the 21st century war is primarily based on economic grounds. According to him, the voice of Azerbaijan President changes in accordance with oil prices.

“No matter how much we speak about the political aspect of the conflict, it can hardly get its logical solution within coming 10-15 years, and our task is to avoid war in this period and get an economic growth. The only way to avoid war is to achieve economic growth of at least 8 %”. He pointed out both direct and indirect investments as the way of economic growth.

“We shouldn’t be afraid of external debt increase if it is aimed at investment increase”, stressed the speaker. He pointed out to the example of highly developed countries which had and have budget deficit but fixed the significant economic growth at the same time.

“Our resources are rather humble but other hand, economic reforms require courage and we must not be afraid of budget deficit”.

“We have the problem of infrastructures development. Serious state investments are required in the agriculture. There are about 200 000 hectares of uncultivated lands. The reason is not farmers’ laziness but the low competitiveness of their production. We shouldn’t be afraid of purchasing new agricultural machinery and equipment by credit financial means. Only in that case farmers’ production will become competitive”.

In respond to the opinion spread in the media as for the new authorities are obliged to reduce the external debt the speaker stated that it is not a serious economic analysis.

“External debt increase is to be aimed at GDP growth. The task of the new authorities is to be the creation of investment programs to attract foreign investors. Debts are not to be scared, they must be turned into profits”.

At the end of the meeting Arayik Harutyunyan answered the questions of students, lecturers and journalists.