1. Enhancing Armenian Competitiveness: Successes and Challenges
Paul Davis
Chief Operating Officer & Vice-President
The Pragma Corporation

2. Competitiveness climate in Armenia
Equal treatment of local and foreign owned companies
Stable Macroeconomic situation
No restrictions on capital expatriation and foreign exchange operations
Liberal trade regime: maximum import tariff rate - 10% (weighted average tariff rate – 4.7 %) and no export tariffs
WB Doing Business ranking
Top-Tier reformer in 2012 and 2013
# 32 in 2013 ranking (among 185 nations)
Index of Economic Freedom
One of the most liberal economies in Central Europe and Eurasia
# 38 in 2013 ranking (among 177 nations)

3. Selected macroeconomic indicators for 2011
Source: data.worldbank.org

4. Recent success stories
Property rights registration
Real estate property registration
Centralized collateral and finance lease registry for movable assets
Tax administration reform
E-filing and e-invoicing for tax payment purposes
Introduction of risk-based audit system
Improvements in Tax Appeal System
- IFRS introduction
- Expanded provision of other e-Government services
- Business registration

5. Work in progress and Challenges
Best practice-compliant customs procedures
Improving the procedures governing customs valuation, clearance and logistics
Success story – Certificate of origin
- Business insolvency and business liquidation
- Commercial arbitration / contract enforcement
- Competition enforcement
- Inspection reform
- Mandatory certification
- Permitting
- Licensing
Guillotine approach to eliminate, streamline and update regulatory guidelines
Success story – Construction permits

6. Sector specific challenges
Hospitality / Tourism
Aviation liberalization
Creating sustainable PPP framework in selected tourism destinations
Food processing
Internationally accredited laboratories
Internationally recognized certification bodies
HACCP compliance
Pharmaceutical and IT
IPR enforcement
Streamlining Sector specific customs procedures
GMP standards in Pharmaceutical sector

7. Major structural challenges
Access to financing
Inadequately educated workforce
Infrastructure constraints
Capacity to innovate
The most problematic factors according WEF Global Competitiveness Index

8. Addressing competitiveness challenges - EDMC approach
Sellected value chains
High Tech Sector (IT & Engineering Services)
Pharmaceuticals & Biotechnology
Food Processing
Hospitality
Major types of interventions
Enhanced productivity and improved market access
Workforce development
Business environment improvement
Expanded access to finance

9. Addressing competitiveness challenges – EDMC approach
Improving access to finance
Nom-collateralized lending
Branchless distribution channels
Trade finance instruments
Small Enterprise Assistance Fund/SEAF. - The first equity investment in “New Force” LLT: to create regional food distribution platform
Workforce development
International accreditation of academic programs and certification courses
Curriculum development jointly with industry champions and industry associations
SME mentoring by local and international seasoned executives and entrepreneurs
Business enabling environment
Working with the Government and private to address critical investment climate constraints
Enhanced productivity and improved market access
Promoting B2B meetings – Digitec, Hannover Messe
Tourism Promotion Strategy and Tourism Branding Strategy
GMP Certification
Organic certification

10. Thank you