TODAY.AZ / Politics

Armenia nears its end with sustaining Azerbaijani lands’ occupation

26 November 2015 [17:35] - TODAY.AZ

/By AzerNews/

By Sara Rajabova

Armenia’s long-standing aggressive policy figuratively speaking is a ‘knife’ with two sharp tips.

Yerevan's aggressive and ethnic cleansing policy, which resulted in the occupation of Azerbaijan’s internationally recognized territories, seems to bring to end the military junta in this country.

The current economic and social situation in the country is a striking example of this policy that has been implemented by the corrupted leadership over many years.

The Nagorno-Karabakh and seven adjacent regions of Azerbaijan, which Armenia occupied following collapse of the Soviet regime in both countries in early 1990s, remind a rope tightly span around its neck.

Armenia's aggressive policy in fact deprived the country with limited economic opportunities of all the chances to take part in the regional and international projects, with participation of and initiated by Azerbaijan.

In addition, incompetent government’s unsuccessful and useless policy resulted with one-third of the Armenian population living below the poverty line and fleeing the country as the best way of salvation.

The International Monetary Fund’s recent report revealed that among the risks that could cause the further deterioration of the situation in Armenia is the conflict with Azerbaijan and a possible deterioration in the Russian-Georgian relations.

The IMF experts predict high risk of aggravation of the Armenian-Azerbaijani conflict, stressing that it may involve other countries, presumably, Russia and Turkey.

The report also noted that the Armenian government will allocate more than $116 million in 2015 to finance the temporarily occupied territories of Azerbaijan.

It is about 1.1 percent of the country’s GDP [it is expected that Armenia's GDP volume will be about $10.6 billion in 2015], according to the IMF report.

However, the amount of funds allocated to the temporarily occupied territories of Azerbaijan amounted to 0.9 percent of GDP in 2014, the report said.

The Armenian military dictatorship was unable to carry out control over the occupied territories, which the army razed to the ground after the invasion.

By increasing the amount of funds allocated to the occupied territories the government indeed worsened the situation in its country even more. The country has run out almost all methods to tackle the miserable economic situation.

Now, it only relies on the funds allocated by the Armenian diaspora and international organizations, as well as money transfers from the foreign countries, particularly from Russia.

The recession in Russia due to sanctions imposed on the country over the Ukraine problem, has deepened the crisis in the ‘satellite’ country .

Thus, Armenia's foreign debt in 2015 can increase up to 48.2 percent of GDP, according to IMF report. The IMF predicted a further increase in the foreign debt of Armenia up to 2017 (51.6 percent of GDP) and a slight improvement by 2020 (50.9 percent of GDP).

In general, the IMF stressed worsening of the economic situation in Armenia in 2015. This is connected with the economic situation in Russia, which is the largest trading partner and a key source of investment and financing for Armenia.

Over the first nine months of 2015, transfers into the country decreased 32.2 percent, in the annual calculation, to nearly $426 million. Further, the total income of people through transfers declined by one-third, and this terrifying financial decline throughout the country promises new economic disasters for this nation with a population of 2.7 million people.

Furthermore, the IMF believes that deterioration of the Russian-Georgian relations can disrupt energy supplies to the country, in particular imposing a negative impact on transport and trade.

One-third of the Armenian population lives below the poverty line and does not have the ability to pay increased taxes. Unemployment, monopoly, corruption, and migration are joined by problems such as the increasing prices of basic utilities from year to year.

In this context the only way to improve the situation seems to be the change of the corrupted and incompetent government that is a main culprit of this miserable situation in the country.

URL: http://www.today.az/news/politics/145503.html

Print version

Views: 1528

Connect with us. Get latest news and updates.

Recommend news to friend

  • Your name:
  • Your e-mail:
  • Friend's name:
  • Friend's e-mail: