World Bank2013-08-282013-08-282001-11-30https://hdl.handle.net/10986/15451This 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 systain (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 GOVERNANCERECOMBINATIONFAMILY PRODUCTION UNITMICROENTERPRISESSTAGNATION (ECONOMICS)BORROWING COSTSDEREGULATIONLAND MARKETSPUBLIC SERVICESLICENCESTAX SIMPLIFICATIONTAX ADMINISTRATIONCUSTOMS ADMINISTRATION ADMINISTRATIVE BARRIERSAGRICULTUREANNUAL GROWTHBANKRUPTCYBUDGET CONSTRAINTBUDGET DEFICITBUDGET DEFICITSBUSINESS ENVIRONMENTCENTRAL BANKCOMPARATIVE ADVANTAGESCOMPARATIVE ANALYSISCOMPETITIVENESSCONSUMER GROUPSCONSUMER PRICE INDEXCORPORATE GOVERNANCECPICURRENCY APPRECIATIONDEBTDEFICIT FINANCINGDEREGULATIONDEVALUATIONDIRECT INVESTMENTDOMESTIC INFLATIONECONOMIC ACTIVITIESECONOMIC ACTIVITYECONOMIC COOPERATIONECONOMIC DEVELOPMENTECONOMIC EXPANSIONECONOMIC GROWTHECONOMIC THEORYEDUCATED PEOPLEELECTRICITY DEMANDENERGY CONSUMPTIONEXCHANGE RATEEXPORT GROWTHEXPORT PROMOTIONEXPORTSEXTERNAL SOURCESFINANCIAL CRISISFINANCIAL DEPTHFINANCIAL SECTORFISCAL ADJUSTMENTFISCAL BALANCEFISCAL DEFICITFOREIGN EXCHANGEFOREIGN EXCHANGE REGIMEFOREIGN INVESTORSFREE TRADEGDPGLOBAL ECONOMYGROSS DOMESTIC PRODUCTGROWTH PATHGROWTH PERFORMANCEGROWTH PROSPECTSGROWTH RATEGROWTH RATESGROWTH THEORYHIGH GROWTHHIGH GROWTH RATEHIGH INEQUALITYHUMAN CAPITALIMPORTSINCOMEINCOME LEVELSINEQUALITYINFLATIONINFLATION RATEINSTITUTIONAL ARRANGEMENTSINSTITUTIONAL REFORMSINSTITUTIONAL WEAKNESSESINTEREST RATESINTERNATIONAL RESERVESLABOR FORCELABOR MARKETLIQUIDITYLIVING STANDARDSLOCAL BUSINESSLOW INFLATIONMACROECONOMIC MANAGEMENTMACROECONOMIC PERFORMANCEMACROECONOMIC POLICIESMACROECONOMIC POLICYMACROECONOMIC STABILIZATIONMARKET COMPETITIONMEDIUM TERMMONETARY POLICYMONETARY SUPPLYNATURAL ENDOWMENTSNEGATIVE IMPACTOILPARLIAMENTPERFORMANCE CATEGORIESPOLICY PACKAGEPOLICY REFORMSPOVERTY REDUCTIONPRICE CHANGESPRIME MINISTERPRIVATE SECTOR DEVELOPMENTPRODUCTIVITYPUBLIC ASSISTANCEPUBLIC DEBTPUBLIC EXPENDITURESPUBLIC SECTORPURCHASING POWERPURCHASING POWER PARITYREAL EXCHANGE RATEREAL EXCHANGE RATESREAL GDPREAL GROWTHREAL INTEREST RATESREFORM PROGRAMSECTORAL POLICIESSHARP REDUCTIONSIGNIFICANT REDUCTIONSSOCIAL PROTECTIONSTABILIZATION POLICIESSTRUCTURAL ADJUSTMENTSUSTAINABLE GROWTHTIGHT MONETARY POLICYTRADE REGIMETRANSITION ECONOMIESTRANSPARENCYTREASURY BILLSUNEMPLOYMENTVALUE ADDEDVOTERSWAGESWHOLESALE PRICESWORLD TRADE ORGANIZATIONWTOWorld Bank10.1596/15451