First step towards financial collapse: Armenia rescinds scholarships

Hamid Hamidov
Day.Az writer

Despite less than a month is left for the beginning of 2010, Armenia still withholds expenditures of the budget providing only limited data. It is understandable since revenue sources of the public budget have cleaned considerably. Especially, financial influx of the diaspora, most part of which turned away from the Armenian state after Sargsyan’s signing the Armenian-Turkish protocols, has been major source of revenue for many years.

As a result, Armenian statesmen make every effort to form the budget for the next year. Budget expenditures are reduced as much as possible. For instance, a few days ago the 2010 state budget assignments for science were reported to reduce because of the alleged demographic reasons. Armenian Education and Science Minister Armen Ashotyan preferred not to divulge these “demographic reasons”. Most likely, these are reducing number of students largely due to the demographic crisis and outflow of citizens from unpromising country which is a catastrophe for Armenia.

But the most interesting was the education minister’s statement, urging to fully stop granting monthly scholarships. It turned out the amount of scholarships in the country has not changed since 1990 and still comprises 5,000 drams (less than $13) which is ridiculous even if to judge by Armenian standards - the amount which cannot meet students’ any need. Moreover, only honors students have received scholarships over the last 19 years.

So, being inspired of survival of students lacking excellence in studies "wise" Armenian men decided to deprive straight A students of being rewarded for their good progress. Of course, someone will say it is wrong to stimulate a desire for knowledge by paying ridiculous size of scholarships, but the common international practice says quite the opposite.

Trying to somehow excuse for such an action, Armenian education and science minister said the saved funds "will be directed at the formation of the students’ loan fund under the alleged program implemented jointly with the World Bank. That sum will be used to issue student loans. The loans may be available for a wide range of students."

I think the Armenian society has already raised the question on the amount of loans drawn from the ridiculous sums of former scholarships for excellent students. What kind of loans they will be and to whom and on what principles they will be issued? .. There are many questions. But no answer.

Cancellation of scholarships is only a drop in the sea of budget cuts for 2010. The coming year will show the Armenian community the true power of the Armenian government in drafting sources of budget revenues in many respects. Indeed, since Armenia has gained independence, it has enjoyed support of the Armenian diaspora which is likely reduce its support greatly in the coming year. Of course, someone from the diaspora, especially those who have a business in Armenia, will continue to assist the Armenian government. So, the Armenian people will have to live in the coming year based on own force, which the country and the government is short of.
 
Perhaps, the year of 2010 will enable the Armenian government to assess its power and face the truth - they will survive no longer in the region without normal relations with Azerbaijan...