The press reported that Serzh Sargsyan has recently met with 30 entrepreneurs and urged them to make investments in the economy and create jobs. He gave the example of Gagik Tsarukyan who is reportedly going to build a cable and repair roads in the ski resort of Tsaghkadzor.
“Everything is going to be fine, the situation will improve in the future because more large investments are expected but we should not rely on foreign investments, the entrepreneurs of Armenia should also be active,” Sargsyan told them.
The meeting took place after the opening of Samvel Karapetyan’s Rio Mall. Tashir Group owned by Samvel Karapetyan has announced its intention to invest 1 billion dollars in the energy sector in the upcoming 10 years. The economists and experts on the energy sector have already commented on this statement, and the general opinion is that these are not investments but commitments relating to the Electric Networks of Armenia. This is another issue.
The statement of Tashir Group says the Closed Club of Investors set up by Samvel Karapetyan and Prime Minister Karen Karapetyan is related to these investments. However, it became known that there is no club as such and most of the members do not only run suspicious businesses but also have big debts which have been “bought” by Samvel Karapetyan in return for the agreement to participate in the club. This was a political move intended to create support for the prime minister, and the costs are covered by Samvel Karapetyan.
In fact, the government has not kept its promise to attract investments at 850 million dollars during the current year.
Hence, the Club of Investors gave birth to a mouse in the form of 1 billion dollars within 10 years which is not an investment as such.
Interestingly, Serzh Sargsyan met with the Armenian entrepreneurs after this. About 30 people attended this meeting, which is the number of members of the Club of Investors. Serzh Sargsyan told them that they should not rely on foreign investments only. This means that this direction has failed. On the other hand, there is a need to ensure the economic part in Serzh Sargsyan’s future political plans.
In fact, this problem could be resolved in Armenia. According to different sources, every year about 1 billion dollars is taken out of Armenia. The formal explanation is that the Armenian market is tiny, and capital is looking for new markets. On the other hand, the available statistics is an indicator for foreign investors. Why would they invest where local entrepreneurs export their money?
The stats of outflow of capital at 7-12 billion dollars over the past 10 years – means that a lot of money is created in Armenia and the problem is with the management of the capital. Even if half of the money is invested in Armenia, one can at least expect economic growth and development.
The only problem of the ruling system in Armenia is money. This system fears shortage of money. This is the situation, and Serzh Sargsyan has called a meeting of the club and urged them to make investments.