The Inclusive Growth Is in the Core of Armenia's Development Strategy

• 04.11.2018, 13:47
• Lilia Amirkhanyan
•  "Insight" Analytical Center ,  Armenia

During the consultation on "Armenia's Development Strategy 2030", which was recently held by Armenian President Serzh Sargsyan, the main principles and directions of economic development of Armenia were discussed. The President instructed that during the next two decades the activities of the state bodies in Armenia should be directed to a significant increase in economic activity. The President mentioned in his speech that each citizen will experience the growth results.

In particular, Sargsyan emphasized the importance of inclusive growth. This is very important in terms of the interests of the citizens of the Republic of Armenia on the one hand, and on the other hand, in order to be perceived as a partner in the international arena. It should be noted that global economic institutions have recently emphasized the importance of inclusive growth. What does it mean? It is the kind of economic growth that involves all layers of society in the process. In other words, inclusive growth implies economic growth and growth of people's welfare. In this case, it is assumed that even if no economic growth is observed, thanks to new technologies, new advanced approaches, people's well-being is increasing. The transition to this very economic model was emphasized by the President.

The next most important issue to which Sargsyan drew attention was reducing the unemployment rate, especially among young people, and in particular, seeking to guarantee hundreds of thousands of jobs.

One of the most important preconditions for sustainable economic development is a healthy and effective tax system. Moreover, the system should be such that it will not harm the budget or the businessmen. Referring to this question, the President highlighted the necessity of switching to the indirect taxation system, which should be carried out in the near future. The peculiarity of the indirect tax system is that the tax on sales of goods or services is initially calculated in the price of the product, so, in essence, the tax burden will be distributed to the consumer, instead of directly deducting from the business entity. This will give them the opportunity to carry out more efficient and free economic activity, and the solvency of consumers will be provided with the help of the President’s above mentioned recommendations.