Economy of Armenia - Domestic Business Environment

Domestic Business Environment

Armenia ranks 32nd out of 185 economies according to the 2013 ease of doing business index .

Armenia's economy is competitive to a few extent with government-connected individuals enjoying de facto monopolies over the import and distribution of basic commodities and foodstuffs, and under-reporting revenue to avoid paying taxes.

Despite pronouncements at the highest levels of government on the importance of free competition, Armenia is next to last in the effectiveness of its anti-monopoly policy according to the 2010 results of the World Economic Forum Global Competitiveness Report.

According to Vahram Nercissiantz, President Serzh Sargsyan's chief economic adviser, "Businessmen holding state positions have turned into oligarchs who have avoided paying sufficient taxes by abusing their state positions, distorted markets with unequal conditions, breached the rules of competition, impeded or prevented small and medium-sized business’ entry into manufacturing and thereby sharply deepened social polarization in the republic.

Following the advice of economic advisors who cautioned Armenia's leadership against the consolidation of economic power in the hands of a few, in January 2001, the Government of Armenia established the State Commission for the Protection of Economic Competition. Its members cannot be dismissed by the government.