The Asian Development Bank (ADB) is supporting Armenia in its effort to expand its private sector, diversify its economy, cut red tape, and gain access to new markets, says Shane Rosenthal, ADB's Country Director for Armenia.
Yerevan, Armenia – Despite being a landlocked country with few natural resources, Armenia has come a long way since independence in 1991, with all major socio-economic indicators drastically improved.
The Asian Development Bank now is supporting Armenia in its effort to expand its private sector, diversify its economy, cut red tape, and gain access to new markets, says Shane Rosenthal, Country Director for Armenia at the Asian Development Bank.
What is Armenia’s current state of the economy?
Since independence in 1991, Armenia has come a long way. Gross domestic product per capita has increased ten-fold in the country, in large part because of smart decisions about investment and because of good connections with its main trading partner, Russia.
We now have a country where the electricity is reliable, where most of the population has access to clean water, where business is beginning to thrive, not least because it is possible to register a business in a short amount of time. It’s possible to go to a bank and get a loan.
This economy needs to diversify into new products, into new markets. That may mean Europe, it may mean other Eurasian economic union members, and increasingly, it may mean looking eastward, toward Asia.
What role does ADB play in Armenia’s development?
ADB has focused on what it does best vis-a-vis other development partners in Armenia. And that, for us, means infrastructure.
“Armenia’s growth can no longer depend on the public sector to play the leading role. The private sector needs to be the one that takes this country forward.”
Infrastructure in terms of connectivity, helping upgrade the national highway system so that cargo and people can reach neighboring countries more quickly, more reliably.
It means making the cities more livable with improved water supply.
How can the private sector support Armenia’s development?
Going forward it’s important to understand that Armenia’s growth can no longer depend on the public sector to play the leading role. The private sector needs to be the one that takes this country forward. And that means diversification. It means ease of doing business, and it means access to new markets.
ADB is going to focus increasingly on a balanced portfolio, between the public and private sectors. It’s clear that Armenia’s future will depend on the role that the private sector plays. And there, Armenia has many advantages: a strong financial system, a strong diaspora, with very good connections around the world, and a very strong educational base.Stay up to date Subscribe to our newsletter and get the latest issues, news, events, jobs and data in your e-mail inbox.