The Government of the Republic of Armenia

The Cabinet met today in an extraordinary session. The meeting was welcomed by Republic of Armenia President Serzh Sargsyan.

The meeting first approved the 2012-2017 program of the Government of the Republic of Armenia which was introduced by Prime Minister Tigran Sargsyan.

The full text of Prime Minister’s speech is presented below:

“Dear Mr. President,
Dear Colleagues,

Before giving you the summary of the program, on behalf of the newly appointed Government and myself, I would like I thank the President for high trust and assure that we will do our best to meet your confidence and our people’s expectations.

The program of the government was developed to meet the fundamental provisions of the National Security Strategy of the Republic of Armenia, to comply with the programs of the President of the Republic of Armenia, the Republican Party and the Rule of Law party, as well as the programs of parliamentary parties.

The government program proceeds from the idea that the State must create better and dignified living conditions for the population.

First of all, we must strengthen the foundations of our independent statehood.

The second focus is to get the public institutions to face the man - every member of society.

We went through numerous new challenges during the past few years. In the meantime, we were able to:

- significantly alleviate the manifestations of internal political divisions and intolerance
- keep the country safe from the shocks caused by regional hostilities,
- through army building efforts and a pro-active foreign policy, ensure the security of our country by strengthening the guarantees of peace,
- mitigate the economic impact of the global financial crisis and create a more diversified economy,
- amid escalating economic and financial crisis, increase the level of welfare benefits, pensions and salaries, soften the social impact of the crisis,
- build on the relationship with our CIS partners, and substantially expand the field of cooperation,
- start negotiations with the European Union over the zone of deep and comprehensive free trade
- facilitate the provision of many public services.

In 2008, we initiated a new phase of large-scale reforms covering all spheres of public life.

We spent a lot of resources while overcoming the negative impact of external challenges. As a result, some reforms have not yet been brought to logical conclusion.
At this stage, our task is to convert the first results of reforms into sustained and long-term institutional relationship and make them tangible and visible to everyone. Everyone should see and feel the effect of the ongoing transformations. Each citizen should be provided with the opportunity of self-expression and self-realization.

The program of the Government will be based on the following 3 priorities:

Priority 1 Improved economic competitiveness as a prerequisite for sustainable growth.

In this regard, we will carry out actions in the following areas:
- continued improvement of business and investment environments,
- increased use of innovative technologies,
- ensuring equal competitive conditions for all
- ensuring economic diversification with a greater share of export-oriented sectors
- harmonious territorial development based on the progressive pace of the regions’ economic activity, and the shaping of comfortable villages
- development affordable and sustainable industrial infrastructures aimed at closer public-private sector partnership-propelled economic growth
- modernization of agriculture and agribusiness development assistance,
- ensuring availability of financial resources for businesses and citizens, as well as variety of financial instruments
- achieving a progressive pace of growth comparable with the developed countries, in particular by adhering to a more targeted industrial policy that would help reduce the gap between the incomes of Armenian citizens and those of developed countries,
- expansion of economic partnership by enhancing Armenia’s international integration, increasing opportunities of entering different export markets, emphasizing the importance of partnership within the CIS and the European Union,
- ensuring increased country immunity against external shocks,
- implementation of integrated programs aimed at ensuring economic security.

Priority 2. The development of human capital

In this regard, we will carry out actions in the following areas:
- ensuring broader access to quality education, health and cultural services
- elimination of causes leading to poverty and inequality by providing access to education and employment for vulnerable and active layers of the population
- creation of favorable conditions for the preservation of the Armenian spiritual and cultural heritage, reproduction and development of national values and traditions,
- expansion of the middle stratum of society as a solid foundation of human capital,
- providing targeted services for vulnerable and disabled groups,
- ensuring a decent old-age for each member of society,
- providing jobs and a favorable environment for life, self-realization and social justice as an effective tool to prevent emigration,
- harmonious development of both humans and the nature,
- increased involvement of diasporas in the development of human capital.

Priority 3. Development of institutional capacity.

In this regard, we will carry out actions in the following areas:
- strengthening of public institutions through the development of human capital, streamlining of internal and external activities of different institutions to avoid duplication in functions, building up dynamic co-operation with the private sector and civil society,
- in the public sector, ensuring priority of the principle of “fair play” and providing quality services,
- elimination of the root causes behind corruption through increased transparency and emphasis on the preventive approach in the fight against corruption,
- ensuring increased confidence in public institutions through improved transparency, accountability, responsibility,
- application of stronger professional standards in the system of public administration and establishment of clear-cut enrollment mechanisms,
- building such systems of tax and customs administration and competition protection as would provide for equal and unreserved application of legislation for all business entities.

Weak global demand and uncertainty in economic developments curb the possibility of attracting resources from external economies. Over the next five years, the internal resources-based scheme of development will prevail in Armenia.

The Government expects to achieve this through increased share of export-oriented industries, which implies systematic and effective use of internal resources. The Government will implement the following steps under its 2012-2017 program:

- providing progressive growth comparable to developed countries with a 5.7% GDP growth,
- achieving a progressive exports/imports ratio,
- providing at least a two-fold increase in minimum wages,
- ensuring at least a 140% minimum wage / poverty index,
- boosting the nationwide birth rate to 1.8,
- providing access to preschool education for children 5-6 years, at least 90 percent,
- raising the level of average employment (insurance) pension to 125-135 percent over the poverty line,
- reducing poverty by 8-10 percentage points,
- creating over 100 thousand new jobs, while the number of non-agricultural employment shall increase by 30-50 thousand
- ensuring annual growth in revenue collection at the rate of 0.3-0.4% of GDP.

All these measures and targets are based on the activities and reports made by the Government, the ministries and State departments of the Republic of Armenia. I am convinced that we can succeed in making them realistic through joint efforts. Thank you.”

The 2012-2017 Government Program will be submitted to the National Assembly in the manner established by law.

The meeting approved the motion to convene an extraordinary session of the National Assembly of the Republic of Armenia under which the Government asks the Speaker of the National Assembly to convene an extraordinary session immediately after the first session of the National Assembly.