YEREVAN — Armenia has the most monopolized economy among former Soviet Union and Eastern European countries, according to a new report released by the World Bank (WB).

The report entitled “Re-Engineering a New Growth Model for Armenia: Accumulation, Competition, and Connectivity” was presented at the WB Yerevan office on Wednesday.

According to the report, about 20 percent of Armenia’s economy belongs to monopolies, which is the highest rate among former Eastern bloc countries, while along with oligopolies (when two or three players dominate the market) monopolies control nearly two-thirds of Armenia’s economy.

“A limited number of companies are dominant in the main sectors, the share of monopolies and oligopolies in the entire economy remains high,” said World Bank senior economist Gohar Gyulumian.

For several years top government officials in Armenia have declared at the highest level that issues of separating political powers and business and dealing with oligopolies remain among the priorities of the authorities. The latest World Bank report shows, however, that no progress has been made in Armenia in this direction yet.

The World Bank report also calls for a new growth model for job creation in Armenia. It outlines four areas crucial for that purpose, including higher investment and better financial intermediation between savers and investors, private sector-led job creation and improvement of workers’ skills, stronger competitive pressures in the markets for goods and services to improve incentives for companies to innovate, adopt new technologies, and become more efficient.

“Competition is thus of crucial importance for the dynamism of the economy. Pro-competition reforms and effective implementation of antitrust rules can lead to significant productivity gains and consumer savings,” says the report, whose authors also call for enhancing connections of the landlocked Armenian economy with world markets, including through land, air, and through internet and communication technologies, “as that would contribute to efficiency gains and competitiveness.”

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Sign Up for Our Newsletters

Get notified of the latest updates from MassisPost.

You May Also Like

First Phase Of North-South Transport Corridor Completed

YEREVAN — Armenian officials inaugurated on Tuesday two sections of the North-South…

PM Pashinyan Meets with US Congress Members Calls for Increased US Assistance

YEREVAN (RFE/RL) — Prime Minister Nikol Pashinyan called for increased U.S. assistance…

“My Visit to the Tsitsernakaberd Memorial Complex is an Experience that I Treasure in My Heart”

Interview with the Raphael Lemkin scholarship alumna Valeria Thus VALERIA THUS is…

Armenia Climbs to Record 30th Place in FIFA Ranking

ZURICH — Armenia has advanced eight spots in the new International Federation…