To a stomach-based economy

Do you hear this expression first time? You might have not heard it because they usually caress our ears by using more attractive expressions, such as a science-based economy.

You might have heard that the members of government state that Armenia is going to have a science-based economy. But the bitter truth is that both economy and the society are gradually becoming alienated from science and start to rely more on stomach needs – that is the living and surviving factors. It would be more accurate to claim that they are thrust toward these factors. Let’s start from the beginning.

Prime Minister Tigran Sargsyan was the one that circulated the idea of science-based economy. After being appointed Premier in 2008 he started to state that his team will base the development on economy on science and it should rely on a strong education system. The Premier and the officials of the economic block have been using this expression for so many times after these years that it has become a pleasant expression to the year.

“We see the future of the country as a science-based society and economy,” used to say Tigran Sargsyan and he would claim that it would be necessary to make investments in the education sector, in particular in the IT sector. He would believe that IT sector is our top advantage. The vision of building a science-based economy was also reflected in the 2008-2012 government plan. It is necessary to increase the funding for development of education. In 2007, prior to Tigran Sargsyan’s appointment to the post of the Premier, the state funding allotted to education would amount to 2,9% of the GDP.

The government was anticipating to increase it to 3,5%. But in 2012 the education funding amounted to only 2,5% of the GDP (in 2012 the country’s GDP was approximately 4 trillion AMD and only 105,5 billion was allotted to education).

Moreover, if we also consider the fact that the government was planning to increase the country’s GDP by8-10% then the mentioned funding should at least have been doubled. But the funding grew only by 1,9 billion or by 1,8%. If we take into account the inflation rate of the past years then we can claim that the funding allotted to education actually decreased.

That’s pretty much it about the science-based economy. Now let’s advert to the stomach-based economy. In 2008 the social expenses amounted to 6%. The government was planning to increase it by 0,2% by reaching it 6,2%. But the state funding for social programs amounted to 7,6% of the GDP in 2012. The increase of the funding of social programs was indeed necessary.

Furthermore, it was less than it should have been because even the 50% growth of social funding couldn’t have drastically cut the poverty level in the country and the rates of migration. So the problem is not why the government has increased the social expenses. The problem is that the solution of social issues doesn’t allow to build a science-based economy.

This is logical in some sense because it would be unrealistic to assume serious development of science with an empty stomach. During the past 5 years the government didn’t build any grounds for development of science. On the contrary it tried to ensure that people at least survive. For them priority is to feed the society. Let’s also add that this is reflected in the new government program as well. In the 62-page document the word “science-based” is not used even once. And the word science is used only three times, two of which in the same sentence.

By Babken Tunyan