Firm institutional and legal grounds necessary for attracting investments: economist

Aysor.am has conducted an interview with economist Vardan Bostanjyan about preconditions created for economic revolution, necessary changes in the tax code and guarantees for investors.

- Mr. Bostanjyan, after the revolution the Prime Minister stated that the next step must be economic revolution. What prerequisites do you see for economic revolution?

- The whole structure of economic system must be changed radically as what we have is not contemporary system. It demands consistent and continuous work which will be of innovative and investment nature. Without innovations and investment policy agreed with it no considerable progress is possible in the system. Armenia has the necessary potential for it. With its resources Armenia must give impetus to the development of small and medium-sized enterprises. On behalf of small and medium-sized business a middle layer is being formed in the country. Armenia needs reduction of poverty rate.

- How do you assess the current legislation, and which are the main changes to be made?

- In conditions of unequal distribution of tax burden unequal conditions are being created among business entities. In such conditions monopoly situations are being created and tax commitments are not being properly implemented. The first condition to eliminate it is the existence of favorable tax field. As of now, there is no such in Armenia.

- The investors need security guarantees. After each Pashinyan-Aliyev meeting it is claimed that the possibility of resumption of military activities impedes the investments. Is this a grounded concern?

- Of course it is. Each investor, especially a foreign one, has such concern. Businessman wants profit. If they consider Armenia to be risky, they will not make invetsments in Armenia. We must do everything to bring these risks into minimum. We must create institutional and legal firm grounds and ensure state guarantees for each investor to know that he will not appear in force majeure situations.