This report reviews growth trends inArmenia for the period 1994-2000, outlines major weaknessesof existing development patterns, and suggests a package ofpolicy recommendations designed to accelerate enterpriserestructuring, attract investment, and encourage thecreation of new businesses in the medium term (three to fiveyears). Such steps are needed to systain (and preferably toincrease) the current growth rates, to stop emigration amongthe young and skilled, and to reduce poverty. The governmentneeds to focus much more clearly on generating theenvironment for private sector led growth by removingbottlenecks in policies, infrastructure, and institutionsthat prevent new private businesses from flourishing.International aid donors can help by supporting the removalof administrative barriers for investments, therehabilitation of infrastructure, and the creation of"restructuring agencies" that will enable firms inkey sectors to overcome or avoid common constraints tobusiness growth in Armenia. Successful restructuring by suchfirms should have a demonstration effect on thecountry's economy and help consolidate public supportfor moving forward the program of reform begun a decade ago.
PDF
download
878987797
028-85220240
