Publication: South Caucasus and Central Asia - The Belt and Road Initiative: Armenia Country Case Study
Date
2020-06
ISSN
Published
2020-06
Author(s)
World Bank
Abstract
Armenia is a small land-locked
mountainous country with relatively difficult access to
regional and global markets. The borders with Azerbaijan in
the east and with Turkey in the southwest and west are
closed. Only the borders with Georgia in the north and Iran
in the south are open for trade and transport. Roads
dominate its mode of transportation because of its mostly
mountainous terrain. The only cross-border rail connection
is through Georgia. None of the BRI-corridors pass through
the country and even the one that goes through Georgia is
only accessible in the western direction. This note assesses
the potential impact of BRI over connectivity and the
Armenian economy. It looks at how, if fully implemented
globally, the BRI is expected to achieve better transport
connections and greater economic integration, discusses
improvements in Armenia’s cross-border transport,
electricity and ICT infrastructure to-date, and the
potential impact of the completion of BRI transport projects
on lowering Armenian shipment time. It further looks at the
likely economic impact of BRI-related reductions in shipment
time on exports, FDI and GDP, the within-country regional
distribution of that impact and how complementary polices
can enhance the positive impact, mitigate risks and reduce
regional inequity. Finally, it also examines the fiscal risk
of scaling-up investment in BRI projects in the coming years
without undermining medium-term debt sustainability.
Citation
“World Bank. 2020. South Caucasus and Central Asia - The Belt and Road Initiative: Armenia Country Case Study. © World Bank, Washington, DC. http://hdl.handle.net/10986/34120 License: CC BY 3.0 IGO.”