Growing Escape

    • Comments - Wednesday, 23 May 2012, 11:09

According to the National Statistics Service, in the first four months of 2012 the economic activity grew by 7.2% compared with the same period of 2011. This statistics is interesting besides another statistics for the past four months published by the State Migration Service. In the first four months 57,320 people left Armenia, which is more by ten thousand compared with the same period of the past year. On the one hand, economic activity grew by 7.2%. On the other hand, the number of those who left the country grew by 20%.

At first sight, this paradox has a simple explanation. First, the growth of economic activity is determined by the pre-election spring when the pro-government parties spent immense funds to buy votes. In addition, there were considerable social assignments both by a government decree, i.e. from the public budget, and from slash funds, which was not reported anywhere. Plus campaign funds, and there is a huge sum which apparently resulted in a 7.2% growth of economic activity, ensuring a desired picture for official statistics.

Perhaps this is the reason why despite this activity rate those who left Armenia were more active because the pre-election expenditure ensured a very short-term effect, and people do not get at least medium-term guarantees, at least seasonal work and stable income.

People, therefore, are leaving.

There is another reason. In Armenia the economy and citizens have very little to do with each other. The point is that economic activity may grow while the effect of this activity is felt only by the oligarchy which owns the greater part, if not the whole of the economy of Armenia.

Ordinary people do not get anything from this activity because their wages do not increase, their income does not grow, instead prices rise. Getting no share of this activity, the citizens leave the country forever or for seasonal work.

Consequently, a 7.2% activity of the Armenian economy, even it if is real, it does not have a real value because it does not help to keep the citizens in Armenia, ensure their welfare, does not have the capacity to support this goal because the economy of Armenia continues to be based on the oligarchic will, while citizens continue to be fed on pledges of systemic reforms.

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