Growth Challenges and Government Policies in Armenia

This report reviews growth trends in Armenia for the period 1994-2000, outlines major weaknesses of existing development patterns, and suggests a package of policy recommendations designed to accelerate enterprise restructuring, attract investment, and encourage the creation of new businesses in the medium term (three to five years). Such steps are needed to sustain (and preferably to increase) the current growth rates, to stop emigration among the young and skilled, and to reduce poverty. The government needs to focus much more clearly on generating the environment for private sector led growth by removing bottlenecks in policies, infrastructure, and institutions that prevent new private businesses from flourishing. International aid donors can help by supporting the removal of administrative barriers for investments, the rehabilitation of infrastructure, and the creation of "restructuring agencies" that will enable firms in key sectors to overcome or avoid common constraints to business growth in Armenia. Successful restructuring by such firms should have a demonstration effect on the country's economy and help consolidate public support for moving forward the program of reform begun a decade ago.

Bibliographic Details

Main Author:	World Bank
Language:	English en_US
Published:	Washington, DC 2002-02
Subjects:	GOVERNMENT POLICY, BUSINESS ENVIRONMENT, PRIVATE SECTOR DEVELOPMENT, INTERNATIONAL AID, RESTRUCTURING, PRIVATE INVESTMENTS, INFORMAL SECTOR, GOVERNMENT EMPLOYEES, ENTERPRISE RESTRUCTURING, ENTREPRENEURS, SMALL & MEDIUM SCALE ENTERPRISES, PUBLIC ENTERPRISES, LIQUIDATION, BANKRUPTCY, CORPORATE GOVERNANCE, FAMILY PRODUCTION UNIT, RECOMBINATION, MICROENTERPRISES, STAGNATION (ECONOMICS), BORROWING COSTS, DEREGULATION, LAND MARKETS, PUBLIC SERVICES, LICENCES, TAX SIMPLIFICATION, TAX ADMINISTRATION, CUSTOMS ADMINISTRATION ADMINISTRATIVE BARRIERS, AGRICULTURE, ASSET MANAGEMENT, BANKING SUPERVISION, BIRTH RATE, BUDGET CONSTRAINTS, BUDGET DEFICITS, BUSINESS DEVELOPMENT, CAPITAL MARKETS, CENTRAL BANK, CITIZENS, COMMERCIAL DEBT, COMPARATIVE ADVANTAGE, COMPARATIVE ADVANTAGES, COMPARATIVE ANALYSIS, COMPETITIVENESS, CONSOLIDATION, CONSUMER GROUPS, CONSUMER PRICE INDEX, CPI, DEBT, DIRECT INVESTMENT, ECONOMIC ACTIVITY, ECONOMIC COOPERATION, ECONOMIC DEVELOPMENT, ECONOMIC EXPANSION, ECONOMIC GROWTH, ECONOMIC IMPACT, ECONOMIES IN TRANSITION, ELECTRICITY DEMAND, EMIGRATION, ENERGY CONSUMPTION, ENTERPRISE SURVEYS, EXCHANGE RATE, EXCHANGE RATES, EXPORTS, FARMS, FINANCIAL CRISIS, FOREIGN INVESTORS, FREE TRADE, GDP, GOVERNMENT REGULATIONS, GROSS DOMESTIC PRODUCT, GROWTH PERFORMANCE, GROWTH POTENTIAL, GROWTH RATE, GROWTH RATES, GROWTH REGRESSION, GROWTH THEORY, HOUSING, HUMAN CAPITAL, IMPORTS, INCOME, INCOME LEVELS, INFLATION, INSTITUTIONAL FRAMEWORK, INSTITUTIONAL REFORMS, INSTITUTIONAL WEAKNESSES, INTEREST RATES, INTERNATIONAL DEVELOPMENT, INTERNATIONAL RESERVES, LABOR FORCE, LABOR PRODUCTIVITY, LAWS, LEGAL FRAMEWORK, LIQUIDITY, LIVING STANDARDS, LOCAL GOVERNMENTS, MACROECONOMIC CONDITIONS, MANAGERS, MARKET ECONOMIES, MIGRATION, OWNERSHIP STRUCTURE, PERFORMANCE CATEGORIES, POVERTY LINE, PRESENT VALUE, PRICE CHANGES, PRIVATE SECTOR, PRIVATIZATION, PRODUCT MARKETS, PRODUCTIVITY, PRODUCTIVITY GROWTH, PUBLIC EXPENDITURES, PUBLIC SECTOR, PURCHASING POWER, PURCHASING POWER PARITY, REAL GDP, SECTORAL POLICIES, STATISTICAL ANALYSIS, SURPLUS LABOR, SUSTAINABLE GROWTH, TAX REGIME, TRANSITION ECONOMIES, TRANSPARENCY, TRANSPORT, UNEMPLOYMENT, URBAN SERVICES, VALUE ADDED, WAGES, WHOLESALE PRICES, WORKERS, WORLD TRADE ORGANIZATION, WTO,
Online Access:	http://documents.worldbank.org/curated/en/2002/02/1723020/growth-challenges-government-policies-armenia https://hdl.handle.net/10986/14069
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