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Economic Reforms
Economic development of the
Nagorno Karabakh Republic is characterized mainly by changes in the
volume of production and services in the five main spheres of the republic's
economy: industry, agriculture, construction, transport, and trade.
The GDP annual growth rate is 10,4 percent. The GDP
per capita is estimated at 318 U.S. dollars.
The main goals of the economic policy of Nagorno
Karabakh for the next five years are:
- Provide economic growth based on both domestic
and foreign markets
- Achieve macroeconomic balance and stabilize the
state budget through stimulation of real production and further improvement
of the taxation policy
- Continue the process of privatization and attract
foreign investments
- Expand economic integration with the Republic
of Armenia and the world
Economic reforms have been introduced to make a smooth
transition from a command, state-run economy to a socially oriented,
market economy with limited government regulation. Prices have been
liberalized, which has in turn enriched the market with goods. Despite
currency depreciation, the population receives an impetus for engaging
in entrepreneurial activity. Many problems have been addressed during
this transition to a market economy, namely: achievement of macroeconomic
stability; structural modification of the economy; privatization, and
creation of market infrastructure.
The privatization process began in 1995. The privatization
of small and medium-size enterprises is now complete, while the privatization
of larger enterprises continues. The government strongly encourages
substantial foreign participation in these larger privatization ventures.
In the privatization process, the government is consistent
in withdrawing the state from the economy. As a result, the activity
of small and medium businesses, banks, and other trade enterprises has
notably increased.
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