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7 views

Sample Script 4

Uploaded by

akamaurumi96
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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The economy of Armenia, despite its richness of natural resources such as minerals, is

underdeveloped compared to other nations in the region. The country is heavily reliant on
service industries such as tourism due to the lack of capital and land for other industries. Her
national GDP hovered at about $11B USD in this decade, and her per capita GDP is only
37% of Russia’s, both being former USSR nations. The country’s people suffered from a
poverty rate of 30% due to the lack of well-paid jobs and the low work intensity of jobs in
general.

!. Average sizes of farms in Armenia is small. During the country’s transition into capitalism
from communism, the supply of imported food from former USSR was no longer sufficient
and small farmlands were quickly leased to individuals to quickly increase production. The
average size of farms is 1.4 hectares.
The small and decentralised farms are labour-inefficient and the small area also makes
efficiency-enhancers like machines uneconomic to use. The landlocked country cannot
produce much of her food and must import food from further away, both driving up the cost
of food stuffs.
Moreover, as studies have shown, poverty in Armenia can be correlated to altitude of land. In
fact, Armenia has a significant amount of mountainous areas where transportation is
expensive and welfare is insufficient due to the low population density.

2. One in four jobs in Armenia is a low-pay job. The high unemployment rate made workers
work underpaid with little choice just to support their families. They are unable to get jobs
that can fully utilise their education level even if they stayed in school for the prescribed
years.
Moreover, jobs offered by informal firms and businesses are subjected to lower pay.
However, 64% of all jobs in Armenia is reportedly offered by such businesses, meaning that
such jobs might be the only jobs available to one.

3. Grey, or unofficial businesses are reported to evade many taxes. This has a huge impact on
the government’s revenue and therefore her ability to provide welfare and support the
country’s development with funds. The lower overheads also meant that they have an unfair
advantage over white, or proper businesses, impeding the growth of the “overworked”
economy.

1. Encourage the set up of farming cooperatives by promotion and subsidies can help
stimulate mechanisation and the use of other efficiency-enhancers. This would lower the
price of foods available in the country, in turn increasing the purchasing power of Armenians.

2. Since Armenia is self-sufficient in power, slight subsidies for energy-intensive industries


such as technological firms and data centres may help utilise the abundant power to bring
incoming capital to the economy. The general subsidisation for efficiency-enhancing
technology for firms ca, in the long run, bring prosperity to Armenia.

3. Since the procedure involved in setting up a business in Armenia is reported to be


complicated, the procedure should be simplified to encourage businesses to become official.
Discounted tax rates could also be applied to new firms to encourage this. Tax evasion should
be curbed with more regulations, and more importantly, enforcement. These would result in
increased tax revenue for all projects listed in the group.

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