YEREVAN, August 29. /ARKA/. The global situation is unfavorable for attracting investments to developing countries, including Armenia Tigran Jrbashyan, an economist and the director of Ameria Consulting Company, told reporters on Friday.
In his words, studies of the world economy over the past more than 7 years have revealed new trends – investment flows have changed their directions: in the early 2000s they went from developed countries to developing countries, while in the last decade, on the contrary, from developing to developed ones.
“This is a global trend – the global situation is unfavorable for attracting investments to developing countries, including such as Armenia. At the same time, the policy of overshooting [stabilizing growth, maintaining interest rates – ed.] by the authorities is designed to attract investments”, Jrbashyan said.
He noted that, in fact, practice shows that in such countries there are serious problems in attracting long-term investments, and due to the long persistence of low inflation and interest rates, the export potential suffers, while other countries are pursuing active inflationary and foreign exchange policies and the required amount of investment is not provided.
In his opinion, the matter here is not the authorities, but the long-term phenomenon that has persisted for the past 10-15 years. The crisis should become a stimulus and catalyst for changing this stereotype and paradigm.
“Therefore, the expansionary monetary policy should be primarily aimed at the technological re-equipment of industry and the economy. It would be naive to believe that in the current conditions there will be investments, we must, on our own, ensure changes and progress, increase productivity, and not expect, that some uncle will do it for us, this is a big deception. The secret and the key to investments are in our hands – in the sphere of economic policy, “Jrbashyan said.
He pointed out the importance of implementing capital investments amid the crisis, for the country’s recovery.
“However, the foreseen capital expenditures are not being performed to the full extent. Even in the construction sector, productivity is at a catastrophic level, the main force today is the labor force, despite the fact that many countries have already gone far in technological development, which we have slept through,” Jrbashyan said.