In fact this slammed the Armenian government, which has committed to follow a policy of economic reforms, improving Armenia’s positions in international rating reports. The government explains the reduction of investment volumes in Armenia with global financial crisis and other related processes, and they assure that the adoption of a pension fund reform will help them to generate long money to fuel the economy. In fact billions have been taken out of this country, which needs every dollar so much.
Wasn’t this the best forum to speak about the perks and benefits of the new reform and devastate the counter-arguments of all opponents on the matter? And so Sargsyan spoke. The text of the speech amounted to 7 pages (A4 format, Sylfaen, fonts 12 and no spaces). This would mean a lengthy speech, which would give an answer to all the questions. The Premier first spoke about the necessity of applying the new reform.
The main justification of the pension reform is that the government promises decent pensions to senior citizens. But is it really so? Let us try to understand how much an average pension will be due to the new pension system. For the calculation let us pick the recent figures.
This once again comes to prove that the state treasury needs money very badly. As you see the statement doesn’t bring up the sanctions that can be possibly applied. It means that this statement was made as vaguely as possibly in order not to contradict the decision of the constitutional court.
Our main goal was to avoid war. At present there is a little threat of a big war. But we need to accept that we need a big change necessity. But there is a big need of revolutions and it is the problem of the elite to reach this impulse to the Republicans and the rest of the parties. If this goes on the situation is going to be worse in 20-30 years. The rest of the steps depend on who the leader is.
The remaining amount after tax is 75,600 drams. The compulsory pension fund payment that is 5 per cent is not calculated on this amount but on the gross salary, i.e. 100,000 drams. In this case it is not 5 per cent but 6,6 per cent of the net salary.
In Armenia we notice a shocking phenomenon. The government calls all of its actions, even the most negative with a lofty goal – “We are doing it for the people.” It means they usually do it for the people, whose pockets are emptied for this goal.
The summarized indexes of the year are not ready yet but according to the National Statistics Service in January-September DFI in Armenia reduced by 62,1% (about three times) and amounted to 409,6 million. So we should sadly record that in 2013 the picture is dire. Under these circumstances we have two options.
Last year the Global Financial Integrity organization published a report entitled “Illegal financial outflow from developing countries 2002-2011,” which caused a lot of discussion among the Armenian government.
Perhaps everybody has seen the commercial of the new pension reform with participation of the devil and the angel. In that commercial the angel is trying to persuade the public that the more you invest in the pension fund the more the state will invest on your behalf.
