Monday, 4 June 2012
Tigran Sargsyan: Armenia has consciously chosen the European path of development
The government delegation headed by Prime Minister Tigran Sargsyan is on a visit to the Kingdom of Belgium. Tigran Sargsyan visited the Center for European Policy Studies (CEPS) and made a statement.
The head of government dwelt on Armenia’s European integration processes, the implementation of reforms and programs in the South Caucasus.
Expressing gratitude for the invitation and the opportunity to speak at the Center for European Policy Studies, the Prime Minister stated in part:
“We are living in an age of rapid changes. International crisis and large-scale transformations, which are currently happening in the world, induce us to reconsider the path we passed and to define a new agenda of reforms.
In the light of global patterns of change, we fully realize that our society needs changes. We know from history, however, that not all changes yield the desired goal. I believe, therefore, that the success of fundamental change depends on the ability to collectively formulate goals and to secure the people’s engagement in the process of achieving them.”
In the Premier’s words, the experience of European states clearly demonstrates the effectiveness of democratic institutions in accomplishing this, while respecting the fundamental right of freedom of expression and the importance of pluralism and public debate.
“Armenia has consciously chosen the European path of development. Our choice stems from the shared Christian roots of our heritage and the decision to move away from our past under authoritarian regimes. The centuries-old legacies of the Ottoman Empire and the Soviet Union have fundamentally shaped our social behavior.
Democratic reforms do have the potential to change behaviors, and they start with improving the electoral process, strengthening protection of property rights, safeguarding judicial independence, and promoting the emergence of a middle class – an independent class of economically and socially responsible voters and citizens,” Tigran Sargsyan said.
The Prime Minister advised that the May 6 parliamentary elections heralded a breakthrough in the consolidation of democracy in our country.
“According to the reports of European observers, these elections were the best elections ever held in Armenia during the twenty years of its independence. Despite the remarkable progress in reforming our country, there is still a gap between the values and aspirations declared by Armenia and our present reality.
In today’s world, change happens more quickly than ever. Armenia, therefore, has to accelerate the implementation of reforms and the institutional transformation. It has now become clear that the technical assistance and financial support of the European Union is crucial in ensuring fast and substantive progress,” the Prime Minister stated.
In this context, the head of government emphasized that the Eastern Partnership offered by the EU is a vital tool that can boost the transformation process.
Reiterating his gratitude for the proposal, Tigran Sargsyan reaffirmed Armenia’s intention to further develop our economic and political integration with the Union.
The Prime Minister evoked the talks on Association Agreement currently underway with the EU.
“Remarkable progress has been made in this area as recognized by the European Commission. We have already launched negotiations on a visa facilitation and readmission framework with the EU. In two week, we will also launch negotiations on a Deep and Comprehensive Free Trade Area with the EU, which was preceded by a long preparation period of serious reforms in a number of priority areas. In addition to these achievements, three Armenian political parties have recently become EPP members. We seem to be embarking upon a new phase in our relations with the EU,” the Prime Minister said.
According to the head of government, the implementation of reforms necessary for launching the DCFTA negotiations along with the steps, which enabled us to undertake the most democratic elections in our history, proved the Armenian Government’s commitment to expand upon our long-term cooperation with the EU.
Tigran Sargsyan noted that with the efficacious support of the European Union, Armenia managed to implement a number of important reforms
“We succeeded in establishing a strong and independent Ombudsman in Armenia.
We introduced e-governance in all the structures of the Armenian Government and an electronic tax-return system along with reducing the frequency of payment deadlines, which is an important tool for improving the business environment and reducing corruption risks.
Corruption and ineffective public administration are serious obstacles on our road to reform. For this very reason, we have developed and are currently implementing an Anti-Corruption Strategy, which officially delegates the monitoring of success to third parties.
We have streamlined the delivery of the most essential public services. We have made our administration more transparent.
We have invested in the online Interactive Budget system, which gives people public access to information about the state budget, including data on how and why funds are being spent.”
Tigran Sargsyan advised that citizens now have the ability to track the progress of applications they have submitted to government bodies. All the aspects of government procurements have become visible to the public through the mandatory electronic payment system. It is now possible for society to be more engaged in the decision-making process of the Armenian cabinet thanks to published sitting agendas and broadcast sessions.
The Premier informed that an ethics commission has been set up, which holds public hearings to initiate discussions on the conduct of high-level officials and conflicts of interest. Legislation has been adopted requiring 500 high-level officials to publicly declare their income and assets. This information will also be accessible to the public online.
The funded pension system has been launched to be fully effective as of 2014.
The head of government said to be convinced that the new system may give our citizens a greater sense of responsibility for their own future. This, along with the formation of a more substantial middle class, will promote the creation of a more active civil society.
Concerning the steps toward shaping a better business environment, Tigran Sargsyan pointed out that Armenia has moved up by 6 points in the World Bank’s Doing Business Report and is recognized as the country that implemented the most reforms during the period from May 2010 to June 2011. In 2011, our country also went up 6 points in the Global Competitiveness Index.
“Strong democratic institutions, such as freedoms and equal representation, are vital to a country’s political stability. In this respect, the May 6 parliamentary elections were an important milestone.
Thanks to fair conditions for competition and equal access to media resources, the elections were a critical step forward in terms of advancing democracy in our country.
The 2012 World Press Freedom Index Report is another good indicator of our progress in strengthening civil society and democracy. According to this report, Armenia has made significant advancements in terms of freedom of press, ranking 77th out of 180 countries leaving behind many EU-member and candidate countries,” Tigran Sargsyan stressed.
As the Prime Minister noted, on the downside, our reform potential is seriously undermined by real geopolitical risks that continue to mar the South Caucasus.
Firstly, Azerbaijan’s hostile rhetoric, uncontrolled military spending, and explicit desire to resolve the Nagorno-Karabakh issue by means of war, further escalate the political tension in the region.
“Secondly, the continuing blockade of Armenia by Turkey sharply reduces the possibilities of diversifying the Armenian economy. Turkey’s ambitions in our region negatively influence the peace talks on the Nagorno-Karabakh conflict, contributing to the delay of its settlement.
With no intention at all to question the EU efforts aimed at maintaining international peace and stability, I want to draw your attention to the fact that the international sanctions against Iran are, in fact, challenging our potential for economic growth. Other than Iran, the only corridor that today connects Armenia to the rest of the world is through Georgia,” Tigran Sargsyan emphasized.
The tragic events that occurred in our region in August 2008 revealed the vulnerability of the Armenian economy caused by our over-dependency on a single transport corridor. At the time, we survived only by arranging the transport of essential commodities via Iran.
The head of government reminded that the tightening of sanctions sharply reduces the availability of this corridor, while our joint efforts with the EU to open the Turkish border have failed.
The Prime Minister noted that the possibility of dormant conflicts’ reemerging in the South Caucasus can only be reduced by building a common platform of values.
“Turkey, Azerbaijan, Georgia, and Armenia all claim to be on the European path of development. We clearly recognize that effective reforms along this path will contribute to regional security and cooperation. The only viable option for the countries of our region should be based on values such as mutual trust, tolerance, and solidarity, all of which are among the cornerstones of modern Europe,” Tigran Sargsyan stressed.
According to the head of government, the global crisis has brought to light the fundamental problems of our country: insufficient diversification of the economy, an ineffective public administration system, and unequal conditions for competition. In addition, the economic crisis has affected a rise in poverty, an increase in external public debt, and high inflation.
Noting that all of these factors have reduced our potential to implement reforms, Tigran Sargsyan said that the European Union has gone a long way toward helping Armenia overcome the consequences of the global crisis.
“Dear colleagues,
Our reform ideology is founded on the objective of establishing a strong democratic society. We believe that the most productive way to reach that objective is to form a substantial middle class,” the Prime Minister noted and presented the highlights of Armenia’s reform agenda.
In particular, the head of government said that the educational reform is the most effective way to increase intellectual potential and to accelerate changes in societal behavior. A modern society cannot be built without modern universities. An independent judiciary can safeguard democratic rights and freedoms and promote entrepreneurship.
Tigran Sargsyan advised that a new strategy on promoting export potential of the country was recently adopted by the Government. It is aimed at creating new jobs and will be implemented on a private-public partnership basis.
“A priority is the betterment of the business environment. This goal can be attained by creating a level playing field and bringing all oligopolies into the realm of properly functioning tax and competition regimes. At the same time, competition is impossible without tax and customs reforms. We are well aware that any delay in reform action may undermine confidence in our government.
I am confident that the EU’s support will be essential for Armenia to take bold steps in this direction. It will enable us, among other things, to manage risks and ensure macroeconomic stability,” Tigran Sargsyan pointed out.
Summarizing his statement, the Prime Minister said that our current situation clearly requires radical change and bold initiatives.
According to Tigran Sargsyan, the European Union has an important role in sustaining peace and stability in the South Caucasus by means of more active engagement in the region through stimulating and supporting reforms.
“Armenia needs the financial and intellectual support of the donor community to fill the existing gap between our reform potential and our declared values. With the leadership of President Serzh Sargsyan, Armenia has the political will to speed up the reform process. Hence, we remain committed to further active and fruitful engagement with the European Union,” the Prime Minister of Armenia concluded.
In conclusion, the Prime Minister answered the questions of interest to the audience.
