World Bank2013-06-202013-06-202002-020-8213-5089-7https://hdl.handle.net/10986/14069This report reviews growth trends in Armenia for the period 1994-2000, outlines major weaknesses of existing development patterns, and suggests a package of policy recommendations designed to accelerate enterprise restructuring, attract investment, and encourage the creation of new businesses in the medium term (three to five years). Such steps are needed to sustain (and preferably to increase) the current growth rates, to stop emigration among the young and skilled, and to reduce poverty. The government needs to focus much more clearly on generating the environment for private sector led growth by removing bottlenecks in policies, infrastructure, and institutions that prevent new private businesses from flourishing. International aid donors can help by supporting the removal of administrative barriers for investments, the rehabilitation of infrastructure, and the creation of "restructuring agencies" that will enable firms in key sectors to overcome or avoid common constraints to business growth in Armenia. Successful restructuring by such firms should have a demonstration effect on the country's economy and help consolidate public support for moving forward the program of reform begun a decade ago.en-USCC BY 3.0 IGOGOVERNMENT POLICYBUSINESS ENVIRONMENTPRIVATE SECTOR DEVELOPMENTINTERNATIONAL AIDINTERNATIONAL AIDRESTRUCTURINGPRIVATE INVESTMENTSINFORMAL SECTORGOVERNMENT EMPLOYEESENTERPRISE RESTRUCTURINGENTREPRENEURSSMALL & MEDIUM SCALE ENTERPRISESPUBLIC ENTERPRISESLIQUIDATIONBANKRUPTCYCORPORATE GOVERNANCEFAMILY PRODUCTION UNITRECOMBINATIONMICROENTERPRISESSTAGNATION (ECONOMICS)BORROWING COSTSDEREGULATIONLAND MARKETSPUBLIC SERVICESLICENCESTAX SIMPLIFICATIONTAX ADMINISTRATIONCUSTOMS ADMINISTRATION ADMINISTRATIVE BARRIERSAGRICULTUREASSET MANAGEMENTBANKING SUPERVISIONBANKRUPTCYBIRTH RATEBUDGET CONSTRAINTSBUDGET DEFICITSBUSINESS DEVELOPMENTBUSINESS ENVIRONMENTCAPITAL MARKETSCENTRAL BANKCITIZENSCOMMERCIAL DEBTCOMPARATIVE ADVANTAGECOMPARATIVE ADVANTAGESCOMPARATIVE ANALYSISCOMPETITIVENESSCONSOLIDATIONCONSUMER GROUPSCONSUMER PRICE INDEXCORPORATE GOVERNANCECPIDEBTDEREGULATIONDIRECT INVESTMENTECONOMIC ACTIVITYECONOMIC COOPERATIONECONOMIC DEVELOPMENTECONOMIC EXPANSIONECONOMIC GROWTHECONOMIC IMPACTECONOMIES IN TRANSITIONELECTRICITY DEMANDEMIGRATIONENERGY CONSUMPTIONENTERPRISE SURVEYSEXCHANGE RATEEXCHANGE RATESEXPORTSFARMSFINANCIAL CRISISFOREIGN INVESTORSFREE TRADEGDPGOVERNMENT REGULATIONSGROSS DOMESTIC PRODUCTGROWTH PERFORMANCEGROWTH POTENTIALGROWTH RATEGROWTH RATESGROWTH REGRESSIONGROWTH THEORYHOUSINGHUMAN CAPITALIMPORTSINCOMEINCOME LEVELSINFLATIONINSTITUTIONAL FRAMEWORKINSTITUTIONAL REFORMSINSTITUTIONAL WEAKNESSESINTEREST RATESINTERNATIONAL AIDINTERNATIONAL DEVELOPMENTINTERNATIONAL RESERVESLABOR FORCELABOR PRODUCTIVITYLAWSLEGAL FRAMEWORKLIQUIDATIONLIQUIDITYLIVING STANDARDSLOCAL GOVERNMENTSMACROECONOMIC CONDITIONSMANAGERSMARKET ECONOMIESMIGRATIONOWNERSHIP STRUCTUREPERFORMANCE CATEGORIESPOVERTY LINEPRESENT VALUEPRICE CHANGESPRIVATE SECTORPRIVATE SECTOR DEVELOPMENTPRIVATIZATIONPRODUCT MARKETSPRODUCTIVITYPRODUCTIVITY GROWTHPUBLIC EXPENDITURESPUBLIC SECTORPUBLIC SERVICESPURCHASING POWERPURCHASING POWER PARITYREAL GDPSECTORAL POLICIESSTATISTICAL ANALYSISSURPLUS LABORSUSTAINABLE GROWTHTAX REGIMETRANSITION ECONOMIESTRANSPARENCYTRANSPORTUNEMPLOYMENTURBAN SERVICESVALUE ADDEDWAGESWHOLESALE PRICESWORKERSWORLD TRADE ORGANIZATIONWTOWorld Bank10.1596/0-8213-5089-7