Saturday, 12 March 2011
2011 National Competitiveness Fund activity areas discussed
The 19th sitting of Armenia’s National Competitiveness Fund Board of Trustees was held in the Office of Government, presided at by BOT chairman, Prime Minister Tigran Sargsyan.
After discussion and approval of previous sitting’s minutes, new member of the Board of Trustees Raul de Lutzenberger who is the head of EU delegation to Armenia was introduced to the meeting participants.
Addressing the meeting, Prime Minister Tigran Sargsyan touched upon Armenia’s key economic indicators by noting that some 7,7 % growth was recorded in the month of January which is inspires hope for the future: “We have 5,7% growth in industry, construction is on the upgrade which is crucial in that last year’s fall is left behind. The trade turnover is at the same level, there is a small growth. We can boast a significant growth in the tertiary sector – 24.3% - which is mainly due the introduction of the system of mandatory insurance in the country. Commodity circulation went up 2.3% as compared to 2010, and it is important that exports continue to grow with quite a high pace: it was up 21 % in the same period amid a 2% decrease in imports. Power generation went up 20 %. 4.5 % rise was stated in monthly wages with the latter coming up to AMD 105 thousand on an average. Note that they stand at 82 thousand in the public sector and 131 thousand in the private one.”
Concerning the improvements in the other sectors of economy, the head of government stated in part: “High rates of growth are upheld in mining industry not only due to increased prices on the global markets, but also thanks to greater share of investment in this sector: new enterprises have been opened and investments continue upward in this area. Growth stands at 8.9% in the food-processing industry, 11.6 % in the drink manufacturing sector, 34.8 % in the pharmaceutical industry and some 25% in metallurgy.”
The following two priority tasks have been singled by the Prime Minister for the year 2011: control over inflation and development of agriculture: “Inflation has to be reduced twice from the current 12 % down to 6 % by this yearend. Large-scale projects are underway in the farming sector, and we expect to boast a minimum of 10% rise in this field which can help cope with high inflation since the stated mark of 12% was largely due to last year’s 13.5% fall in agriculture. A series of growth-oriented projects are being carried out in this area, including the ones authored by IFAD and FREDA and implemented with the assistance of international organizations. A new project is being launched in cooperation with the World Bank which seeks to push ahead with the movement of cooperatives by introducing updated management schemes, identifying new pasture areas, providing livestock, organizing refrigerating facilities and subsidizing the procurements of agricultural machinery in 55 communities. We have set a a 10% growth target in agriculture for 2011.”
Optimistic about achieving a 10% growth either in industry, the Prime Minister stressed that the government endorsed 14 projects in 2009-2010 with a total of AMD 80bn worth of investment from the private sector.
Concerning the reforms underway in tax and customs administrations, the head of government stated as follows: “Tax and customs administration is our most fundamental problem. If we manage to considerably improve the situation in this field we shall also improve our Doing Business standing. As of January, 2011, a new system of online reporting is effective in Armenia. Those taxpayers using this system no longer need to keep record books which in turn may help reduce the impact of direct contact with tax officers and inspectors. All of these measures are supposed to create a new business-friendly environment in the country. The system is expected to enjoy widespread application from the second half of this year.”
In the context of improved customs administration, the Prime Minister singled out the use of concept of “green light” in Armenia.
After an exchange of opinions on global economic developments, the Board of Trustees went on to discuss the Fund’s financial report for 2010, as well as its strategy, budget and program of activities for the year 2011. In this context, meeting touched upon the prospects of implementing projects in the field of tourism and nuclear medicine. The concept of the Fund’s program of higher education to be launched in 2011 was discussed and concretized.
In conclusion, the Board discussed the Hakhtanak Park Reconstruction Program and a number of organizational issues.
