[Armenia] Economic Growth Insufficent for Poverty Overcoming

From A 1 Plus

The level of extreme poverty has reduced in Armenia recently, however the level of poverty has lowered. This is the conclusion of the specialist of the International Monetary Fund, who investigated the situation in Armenia to compile the book titled «Economic Growth and Poverty Reduction in Armenia: Achievements and Challenges». {BR}

The book published in English contains assessments of the progress in the Armenian economy during the recent 10 years as well as optimistic and pessimistic scenarios of development.

What factors were taken into account when writing the optimistic scenario? Was the settlement of the Karabakh conflict and opening the border with Turkey taken into consideration?

Director of the IMF Yerevan Office James McHugh refrained from commenting on the issues. He said the IMF is a technocratic structure and dos not comment on political issues. However the book touches upon the matters and Mr. McHugh only noted that the optimistic scenario was worked out on the basis of non-changeability of the situation.

It was stressed that the further development is not conditioned by the settlement of conflict and opening of borders. Contrary to the Armenian authorities, who consider that economic growth is enough for poverty reduction, Mr. McHugh noted that besides the economic growth the correct work of social system and the tax-budget policy is needed.