Meghri Becomes Armenia’s Third FEZ

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The government of Armenia has set up the Meghri Free Economic Zone, close to its border with the Islamic Republic of Iran. The project, managed by the Ministry of Economic Development and Investments, aims to increase export-oriented production in Armenia and to attract more investors. This will be thanks to a preferential trade regime with the European Union and its being a member of the Eurasian Economic Union (EEU) on one hand, and a common border with Iran, on the other. Continue reading Meghri Becomes Armenia’s Third FEZ

Can Armenia Keep a Foot in Both Camps?

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Geography and history are political tyrants and nowhere more so than for in Armenia. For all the emphasis, nowadays, on the potential of regional trade, Armenia is boxed into a situation that offers little or no openings. History, distant and none too distant, rules our alliances with Turkey or Azerbaijan and Russia’s brutal show of force in Georgia, in 2008, casts a sombre shadow on Tbilisi’s room for manoeuvre. Continue reading Can Armenia Keep a Foot in Both Camps?

Cautious Upturn in Emerging Europe Haunted by the Spectre of Uncertainty

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For the economies of emerging Europe, the international economic environment appears generally positive. In 2017-2018, GDP growth in the Euro area is expected to hover at around 1.7 per cent. The international financial markets have stabilised and the current economic mood is improving. Because of the global recovery, the US Fed is expected to increase interest rates further in 2017, while oil prices are likely to rise. In the EU, disbursements from the payments’ cycle of the European Structural and Investment Funds are only just beginning, indicating higher co-financed investments in the Central and Eastern European EU member states (EU-CEE) from this year onwards.

Continue reading Cautious Upturn in Emerging Europe Haunted by the Spectre of Uncertainty

Are Labour Shortages Driving Economic Growth?

The global economic environment continues to be challenging. The ‘wounds’ inflicted by the global financial crisis of 2008 have not yet healed completely and world economic growth remains rather subdued. This particularly applies to the advanced countries and especially to the Euro Zone, which is the most important trading partner for the Eastern European countries.  Continue reading Are Labour Shortages Driving Economic Growth?

The Deep Roots of Currency Crises in the Former Soviet Union

Since the end of the 1980s, when the centrally planned Soviet economic system entered the final phase of its agony, at least five rounds of region-wide macroeconomic turbulence (which led to currency crashes) have been recorded. These include: the collapse of the Soviet monetary system (1989-1993), monetary instability and high/hyperinflation in the newly established successor states of the former Soviet Union (FSU) (1992-1995), the Russian and Commonwealth of Independent States (CIS) financial crisis of 1998-1999, fallout from the global financial crisis of 2007-2009 and the most recent crisis of 2014-2016. Furthermore, some countries have experienced individual currency crises, such as Belarus in 2000 and 2011.  Continue reading The Deep Roots of Currency Crises in the Former Soviet Union

Mayor: Armenia And Its Capital Yerevan Offer Safe Investment And Tourism To a Growing World

In 2015, 1.19 million foreign tourists visited Armenia. That is one per cent fewer than in 2014, as the country attracted fewer visitors from Russia, but almost ten per cent more than in 2013. The country is also one of the ten safest destinations in the world, according to the Global Terrorism Index 2015. International airlines such as Air France and LOT fly to Yerevan regularly and Qatar Airways will begin flights in mid-May, 2016. Continue reading Mayor: Armenia And Its Capital Yerevan Offer Safe Investment And Tourism To a Growing World

The EU’s Benign Neglect Of Eastern Europe

The EU has been consistently very weak in dealing with post-Soviet countries (except the Baltic states) compared with the former Communist countries of Central Europe and Southeastern Europe. The latter knew exactly where they wanted to be after 1989: part of the Euro-Atlantic constellation. Joining the EU and NATO was their goal. It was about coming home to a reunited Europe. Continue reading The EU’s Benign Neglect Of Eastern Europe

World Bank’s Doing Business Report 2016 Resume For Emerging Europe

Almost every single economy in emerging Europe implemented at least one reform in the last year to improve their business environment. In consequence, as many as 16 economies in the region are featured in the Top 50 of the World Bank’s Doing Business 2016 report. Emerging Europe speaks to Rita Ramalho, Manager of the World Bank–IFC Doing Business, who has compiled a resume about the emerging Europe region especially for us, about how the reforms introduced have helped make doing business easier across the region. Continue reading World Bank’s Doing Business Report 2016 Resume For Emerging Europe

Europe Needs To Be More Proactive In Embracing Armenia

Armenia, located at the crossroads between Asia and Europe, has often been a victim of centrifugal forces from the centres of gravity it is surrounded by. Roman and Persian armies frequently met on Armenian highlands in fierce battles already in the first centuries of the new era. Having had one of the most tragic pages in the nation’s history in 1915 when almost 1.5 million Armenians were massacred by Ottomans, Armenia was left with no choice but to join the emerging new Russian-led empire of the 20th century — the Soviet Union. Continue reading Europe Needs To Be More Proactive In Embracing Armenia