The Government of the Republic of Armenia

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Dear National Assembly Chairman,
Dear Members of Parliament,

Congratulating you on your election as members of the National Assembly of fifth convocation, I wish you fruitful legislative work.

I believe that all of us, the members of the National Assembly and the members of the Government, regardless of our party affiliation, are united over the noble idea of the realization of national goals, strengthening and prosperity of the motherland.

Today the Government, in accordance with Article 74 of the Constitution of the Republic of Armenia, submits its program to the National Assembly for approval.

The government program was developed in accordance with the basic provisions of the National Security Strategy of the Republic of Armenia, the electoral programs of the President of the Republic of Armenia, the Republican Party and the Rule of Law Party, given the programs presented in the parliamentary party ideas that are comparable with those documents.

The years of the previous program were a period of trials, challenges and achievements.
• Led by the President of the Republic of Armenia, we were able to substantially mitigate the manifestation of the internal political divisions and intolerance that, in particular, adversely affected the investment environment and business environment.
• We managed to keep the normal life of the country safe from the turmoil caused by regional hostilities. In particular, we carried out additional unforeseen costs, increasing the number of essential commodities and the level of official reserves.
• Through army construction and active foreign policy, we ensured the safety of our country, strengthening the guarantees of peace. In the past three years in the republic have been imported and produced twice as many arms as before.
• We were able to mitigate the economic impact of the global financial crisis and to develop a more diversified economy.
• In difficult financial and economic crisis, when many developing countries, declining jobs, pensions and benefits, we not only meet its social obligations, but also increased the salaries, pensions and social benefits that mitigate the negative effects of the crisis.
• In the framework of the anti-crisis program, we were able to raise funds and direct them toward the modernization of infrastructures, lending to small and medium business and enterprise backbone, resulting in saving of about 10,000 jobs. In the disaster area, we carried out large-scale construction works and provided 5000 families without shelter apartments.
• We made it easier to obtain the many offered by the State party services, significantly reduced in the middle and lower echelons of the state system contacts with citizens, resulting in significantly reduced corruption.

To achieve this and numerous other results significant efforts were made by the National Assembly, civil society and our citizens.

At the same time, we are clearly aware of existing problems. We have always been open and transparent, took a fair criticism, do many of the problems identified.
• The paucity of quality jobs, immigration and poverty remain problems that require urgent solving.
• We still have not managed to completely eradicate corruption and create equal competitive conditions for economic entities.
• Abuse of dominant position in the economy continues to be a frequent occurrence.
• There is still low public confidence in the judicial system.

The program of the Government aims to solve these problems.

Fellow Deputies,

In these circumstances, we need a breakthrough development - development, which will be the main guarantee of self-reliance and the mobilization of domestic resources.

Obviously, the economy, human capital and institutional structures, we have a large, untapped potential. From this we derive the three priorities.

First, our economy must be competitive.

The fundamental change that we propose in economic policy, is that from now on the state will be responsible not only for a favorable business environment, but will be directly involved in the implementation of per-sector industrial policy.

Together with the private sector there will be formed common ground of dialogue, through which each prospective industry will create a specific set of instruments and the mutual obligations will be installed.

At least 11 areas with the private sector agreements will be signed, which will include commitments from the private sector in terms of investment and a set of tools to promote the state as a result of doubling the volume of exports in these sectors.

A.
There will be set up at least two free economic zones, which will incorporate innovative businesses with modern jobs.

Through free trade agreements with the CIS and the European Union, new markets will open up for Armenian goods and services.

We will create a venture fund that will encourage innovative businesses.

We will maintain the progressive pace of development in the field of information technologies.

Through grants, we will encourage communication of educational institutions and manufacturers.

The Government will create a favorable environment for increased involvement of the Diaspora in Armenia’s economy and encourage investment.

In tourism, the Government will ensure the development of infrastructures. In order to develop mass tourism, we will encourage the expansion of hotels, attracting prestigious international brand networks, development of tourist homes.

B.
Complex examination of the problems of village and agriculture is a key change in government policy.

Farming must be profitable and the stay in the countryside - comfortable.

The State will continue assisting agriculture. We will make more readily available fertilizers, fuel, machinery and seeds.

We will subsidize interest rates on agricultural credits.

European standards will be introduced in food safety, with strengthened control over the Armenian consumer market.

We will provide a threefold increase in modern greenhouses.

The construction of rural schools and roads will be a funding priority.

Significant funds will be allocated to supply drinking and irrigation water, telephone services and electricity.

C.
There cannot be a competitive economy and a competitive state which fails to guarantee a significant role for small and medium businesses.

For small and medium-sized businesses there will be formed by a simplified tax field.

We will continue assisting small and medium enterprises financially and technically.

For the first time, the Government will provide targeted technical and financial assistance to emerging small and medium businesses.

By establishing specific criteria for location of major shopping facilities, we will protect the interests of small and medium businesses.

We will carry out activities aimed at overcoming disproportionate regional development, which will help us make a more efficient use of national resources.

The second priority is the development of human capital.

Each citizen of the Republic of Armenia shall have the opportunity to build his happiness at home.

The government is obliged to create vast opportunities for the citizens’ self-expression.

The best way to prevent emigration is to provide jobs, a favorable environment for life and justice.

A.
Changing social policy will be aimed at eliminating the causes of inequality. First and foremost, this means providing access to education and employment for vulnerable groups.

We will create a system for providing integrated social services, which will aim to provide in a difficult situation for people of integrated social services they need, according to the one-stop-shop principle. Services will include job placement, vocational training, legal advice, guidance, etc.

We will introduce a funded pension system to ensure a secure and dignified old age. Pension funds, savings accounts of citizens will be doubled by the state.

Consistently continue the policy of increasing pensions.

We will carry out a program of social housing, which also provides for an unsecured flat sections on the basis of available employment.

B.
Dear Deputies,

In the 21st century, a competitive state means an educated society.

The State will create access to education for all citizens regardless of their social status and age.

We will keep a focus on the quality of education. From guaranteed minimum nine-year education we will make the transition to a guaranteed twelve-year education, including vocational education.

Free schooling, including higher education, will be provided to vulnerable groups.

Each first-grade schoolchild will be given a free computer.

Universities should become a basis for modern society, combining science, teaching and innovative production.

The university entrance system will be reviewed to gradually eliminate entrance examinations. That is, admission to college will be easier, graduation – more difficult.

Together with the universities and research institutes, the government will invest in the field of innovation and research to create modern research infrastructures.

B
In health care, our goal is to ensure the availability and quality of services.

In the framework of public procurement for certain diseases and vulnerable layers gradually introduce health insurance institution.

The program of reconstruction of regional medical facilities will be continued throughout the country providing access to modern health services.

The right to urgent heart operations will be guaranteed for all citizens of Armenia.

C.
In the field of nature protection, the Government will have the key task of improving the quality of life.

We will strengthen the state’s environmental control with the establishment of high-quality criteria for air, water, green space recycling.

We will introduce tighter controls over the exploitation of mineral resources, as well as the restoration and reproduction of natural resources.

In the center of Yerevan, we shall rule out the possibility of making buildings which do not match the history and appearance of the capital.

D.
Changing cultural policy will be directed toward the formation of new and widely demanded by the national society of types that will help us get rid of the false values and qualities characteristic of Armenian appearance.

The placement of state orders will promote national and universal values through music, film, as well as drama and television series.

Folk dance and singing will be taught at school, with the inclusion of national traditions and culture in educational programs.

E.
As part of demographic policy, we will stop the trend of aging society, prevent emigration, stimulate the growth of birth rate and will support those wishing to return to homeland.

Newlyweds will get soft loans for housing.

Households will get one million dram for the birth of a third and a fourth child, and 1.5 million for the birth of the 5th and each subsequent child.

Treatment of children under the age of 10 years, including at hospital, will be free.

We will increase the involvement of the diaspora in the development of human capital.

The third priority is the development of institutional capacity.
Society requires us to provide for fairness and justice in all spheres of public life. And we will do it.

Effective institutions create incentives for full realization of human capabilities. The reform of the institutions will reveal our growth potential, it ensure equitable distribution of economic benefits among different individuals and social groups.

A.
Free realization business opportunities and investment growth is impossible without the presence of a fair competitive field. Competition violations by those big businesses regularly abusing their dominant position is an obstacle to sustained economic growth in the Republic of Armenia.

The implementation of the government’s economic program will be impossible without fundamental changes in the implementation of competition policy.

We will strengthen the powers and the tools for the commission on protection of economic competition.

We will eliminate barriers to market entry, ensuring equal competitive conditions for all.

B.
By means of the “Regulatory Guillotine,” we will continue removing administrative obstacles, reducing business costs and risks.

All inspection bodies will have to use the system of risk-based checks and audits, with increased transparency of these processes. The number of inspection bodies will be reduced by half.

We will dramatically increase the provision of public services electronically, thereby reducing the risks of corruption.

We introduce a unified and fair system of remuneration of officials, increase the number of welfare package beneficiaries.

C.
Tax and customs system should be internationally competitive, have the ability to reduce the shadow economy and improve the business environment.

The customs value and the process of customs clearance will be given in compliance with European standards, and construct modern border crossings.

D.
In the sphere of defense, public order, security and justice, a focus for us will be to improve the level of security for every member of society. Our citizens must feel that they live in a secure, prosperous and safe country.

In society, we shall strengthen the respect for compulsory military service through continuous improvements in the armed forces of social and educational conditions.

The demobilized will get job and training opportunities on a preferential basis.

The government will increase the level of responsibility for violation of individual rights by law enforcement officers.

We will establish more stringent training requirements and the moral standing of judges and prosecutors.

Dear Deputies,

I want to assure you that the Government will ensure the continuation of its previous program through the activities suspended due to the crisis.

Next to Gyumri technology park’s five laboratories, work is underway on construction of new building technology park.

The commissioning of Dilijan’s newly built Central Bank’s premises and supporting infrastructures will contribute to the formation of a financial center in the near future.

At the request of the Government of the Republic of Armenia started work on the construction of radioisotope accelerator, which will be completed within two years, and in Yerevan to ultra-modern diagnostic oncology center.

This year large-scale work started on construction of North-South road corridor, which is of strategic importance.

Completed is the negotiation stage for the construction of the new Medzamor NPP unit and developing a road map for financial investment.

Dear Deputies,

Through implementation of this program, the Government will pursue the following targets in 2012-2017:
• provide 5-7% GDP growth-based progressive economic growth as compared to developed countries,
• provide progressive rates of exports relative to imports,
• raise the minimum wage is at least twice,
• provide a minimum of 140% level for the minimum wage / poverty index
• increase birth rate to 1.8,
• provide access to preschool education for children 5-6 years at least 90 percent,
• increase the level of average employment (insurance) pension to bring it to 125-135% over the poverty line,
• ensure poverty reduction by 8-10 percentage points,
• Create more than 100 thousand new jobs, while the number of non-agricultural employment will increase by 30-50 thousand
• ensure growth of government revenue collection annually at a rate of 0.3-0.4% of GDP.

Dear Deputies,

The elections to the National Assembly showed that the program reflected in the demand of society and very relevant.

We consistently go through changes. In a rapidly changing world, we expect new challenges and new problems. Their decisions also require new approaches.

Only values remain unchanged: patriotism, honesty, fairness, diligence, loyalty and tolerance.

These values will ensure progress.

I want to conclude my speech with the following statement of the President: “We have a historic opportunity to build a new Armenia, literally in the hands of each one of us. And we will do it.”