YEREVAN, April 25. /ARKA/. The most critical problem of Armenia’s economy is its monopolized structure where all goods segments are occupied, head of the economy and business institute of Russian-Armenia (Slavonic) University, former minister of finance and economy Edward Sandoyan said.

“The task number one is market demonopolization”, Sandoyan said in his interview to ARKA Agency.

Efforts should be made to destroy monopolies using all different kinds of methods, including taxation, anti-monopoly regulations, revenue-expenditure declaration by officials and complex measures to promote micro and small-sized businesses, Sandoyan said.

“But once again – small businesses cannot develop when there are monopolies possessing all the markets. It is a fact. The trick is that we’ve driven ourselves into an economic trap and a surgery or a political interference is the only way out,” the expert said.

According to Sandoyan, more efficient political institutions could help demonopolize markets and promote competition.

“There is another, authoritarian mechanism, like the one used by Lee Kuan Yew. And there is also a third way out, when amid globalization and greater involvement in global processes, in integration in particular, more foreign investments may flow into Armenia’s economy and new foreign businesses may come and may, in competition, win over the local oligarchs, due to more effective management for example”, director of the Economy and Business Institute of Russian-Armenian university said.
But, Sandoyan said, no foreign investor is interested in a monopolized economy.

“In order to come, to compete and win, they need to first of all be interested”, he said. –0--