Article Index

Ways to overcome the existing obstacles to economic development, including

Stimulation of investments

      Ensuring favorable climate for investments largely depends on combined activities of the state, enterprises and commercial banks directly relating to investment, in the context of general investment policy. Key instruments for the state investment policy include anti-corruption, additional payment, tax-budgetary, monetary and anti-monopoly policies, structural reforms, etc.

Development of financial markets

      Development of financial market should begin from the trust formulated amongst the society first of all for the state and judicial systems, and later on for financial and economic institutes.

Improvement of competitiveness

      The party believes that it is important to create effective mechanisms for protection of ownership rights irrespective of the type of ownership, restrict monopolist activities in the domestic market, ensure equal rights for all business entities, undertake effective and decisive measures against corruption, patronage and shadowiness resulting therefrom, ensure transparency in activities of companies.

Development of small and medium business

        The party believes that it is important to ensure consistency in implementing small and medium business sector reforms. The party considers small and medium business to be one of the key points for formation of the middle class in Armenia, which will promote economic growth as developing itself, create new jobs, enhance territorial development and reduce poverty.


        Current share of small and medium business in GDP of Armenia is too small and does not correspond to its potential. This situation was created as a result of overwhelming corruption in state administration and judicial systems, with artificially created excessive concentration of economy in the hands of certain people, monopolized markets, and flourished shadow economy. Significant increase in small and medium businesses will be possible as ensuring the following:


      • Legislative and administrative reforms;
      • Fair competition in tax, customs, financial, credit and other sectors;
      • Anti-corruption actions;
      • Development and implementation of innovative policy;
      • Promotion of investment policy;
      • Development of territorial infrastructures.

Fulfillment of WTO requirements

      Such WTO requirements, which may threaten security and development of this or that branch of economy of the Republic of Armenia, should be negotiated over with WTO about omitting or delaying their fulfillment in Armenia.

Balanced development of marzes

      The key objective of territorial policy should be formation of alternative territorial centers and their sustainable development parallel to Yerevan in economic, scientific, educational and cultural fields. It is necessary to encourage decentralization of human and financial resources from the capital city to spread through the marzes, promote economic, social and from a long-term prospective political decongesting of the city of Yerevan, contribute to strengthening of frontier and high mountainous regions. It is essential to ensure development of infrastructures in marzes by state budget funds. The party believes that self-satisfying and rich communities make grounds for strong state.

Reduction of shadow economy

      Shadow economy constitutes 50%-60% of Armenia's economy, the elimination of which requires elementary political will from the authorities, rather than sophisticated legal mechanisms. The party considers reducing shadow economy and levying taxes upon it as a result of which additional 140 billion AMD (400 million USD) inflow will registered inthe budget already in 2007.

Eradication of corruption

      The party believes that corruption cannot possibly be overcome through institutional measures only, as far as the authorities do not have the political will for that. Following the formation of legitimate authorities elected by people’s votes, we should hunt for arrest and punishment of high rank corruptions in all the severity of the law, requiring compensation for all losses caused by them. It is necessary to carry out a process of economic crime assessment and for forgiveness. As combating corruption it might be essential to create a single independent republican power structure, in the governance of which the role of the representatives of civil society should be central.

Development of industry

      The party gives high priority to development of high technologies (including information) and reprocessing industries and enhanced export of their production abroad, formation of closed-cycle production types, as well as encouragement of cluster arrangements. Special attention should be paid to expansion of competitive production, which will be possible through harmonization of production quality with the international standards. It is necessary to increase the share of industry in the country's GDP.

Development of agriculture

        The party believes that rich and sustainable rural districts are serious guarantee for sovereignty and security of the state. With this regard, it is of crucial importance to:


      • Contribute to production and export of agricultural goods;
      • Create favorable conditions for implementation of investment and loan programs in rural economies. It is necessary to adopt an efficient lending system for the sector, taking into account the characteristics of the given field as defining the maturity dates and interests rates for loan extension, accepting land and other assets used in agriculture as collateral. Apply privileged loan conditions against agricultural enterprises operating in high mountainous and frontier zones;
      • Create favorable conditions and mechanisms for formation of different forms of agricultural co-operations on voluntary basis;
      • Develop flexible system of agricultural insurance and have the state actively participate therein first of all in the form of undertaking indemnification of some losses.

Provision of energy security

      The party believes that it is necessary to diversify energy-carrier sources, increase energy producing capacities, while as a long term objective – close the Metsamor Nuclear Power Plant, given availability of new and modern energy sources capable of substituting it, promote renewable energy, more active participation of Armenia in regional energy programs, boost vigorous policy targeting implementation of the initiative on constructing the Iran-Armenia-EU gas pipeline. In the view of ensuring energy independence of the country, it is of crucial importance to satisfy the main portion of country's energy demand through utilization of natural alternative sources of energy (solar energy, water from almost 150 mountain rivers, wind power, gases from solid waste, gravity force).

Development of industrial infrastructure (energy, communication, transportation, etc)

      Operation and development of county's strategic infrastructures should take place under alert state supervision, while railways and roads exclusively under state ownership.

Innovative development of economy

        Armenia may defeat challenges of both regional and world scale natural competition, developing innovative economy, i.e. economy based on knowledge and high technologies. In this respect, the party considers demonstrating a number of legislative initiatives which will:


      • Provide for privileged tax conditions for such branches of economy as high technologies, including information and nanotechnologies;
      • Considerably increase financing for science and education sectors in the Republic of Armenia;
      • Secure financing in the form of annual subsidization from the state budget for technical, technological upgrade of relevant faculties in state and private education institutions preparing human resources for the above sectors, trainings for the lecturer staff conducted in the best foreign education university and study internships of best students in the best education institutions;
      • Donate funds from the state budget for equipping the secondary and vocational education systems with modern material and technical bases, increasing their current share in the budget expenses up to 5 times. 100% computerization of all schools in Armenia at the expense of state funds, appropriate state orders in state and private institutes for preparation of relevant teachers;
      • Increase the threshold of minimal salary for scientists, regardless of the field, up to 50-fold of minimal salary in the country;
      • Appropriate 50% of budget funds for covering expenses required for participation of relevant Armenian companies in international exhibitions on the above sectors and organizing such international exhibitions in Armenian.

Improvement of corporate governance

      To “Heritage” Party the underpinning of improvement of corporate governance in inter-society mutual trust, honest partner relations between the society and the business, formation of such culture and efficient operation of the judicial system, as well as composition of public trust in it.