Armenian poverty on rise

/By AzerNews/

By Laman Sadigova

An economic expert has forecasted an increase in Armenia's poverty rate of at least 1.5-2 percent this year, which is quite an impressive figure.

This sad forecast came from former head of the Armenian Central Bank Bagrat Asatryan, who dismissed hopes that the 2016 state budget would be socially oriented.

"Let's put aside the fairytale of a social accent to the state budget in 2016 as social expenditures comprise only 3.8 percent of the budget and the project does not envision increasing pensions next year," said Asatryan.

Considering the current deplorable situation of the country and its population, this scenario leaves no room for economic and social stability.

In this case, the economist has suggested the government increase its domestic debt.

Armenia will see an increase in its domestic debt, which is predicted to reach 6.6 percent in 2016. The figure only emphasizes the deepening crisis in Armenia, while the government does nothing to rectify the situation.

"It would be more effective for the government to owe its people rather than someone else," stated Asatryan.

Living standards remain low in Armenia, causing many to flee the country in search of a better life.

The situation promises nothing positive for the Armenian people, who are witnessing the harsh effects of a declining economy on a daily basis. It will definitely bring the masses' crisis of confidence in their government to the surface.

If people in this post-Soviet country were silent some 5-10 years ago, today, the anti-government speeches, protests, and calls for a change in the administration have become frequent.

The lack of economic and geological resources; the ill-conceived structure of the economy and commodity production; the huge need for energy; aggressive policies; and a corrupt, criminal government prevent Armenia from getting out of debt. Armenia could become bankrupt or may get absorbed by a larger economy, losing its national sovereignty.

Armenia’s biggest safety net, Russia, has already distanced itself as it is facing its own problems, such as an economic crisis, Western sanctions, and combat operations in the Middle East. The European Union, with which Armenia has increasingly been flirting, does not need the country to be independent.

However, the main goal of the authorities is to hold onto their power, in spite of all the sacrifices the whole country would have to make.