The Hrayr Maroukhian Foundation (HMF) with the financial support and assistance of the Friedrich-Ebert-Stiftung (FES) of Germany has commissioned a number of studies and policy papers contained within its series, “Social Reforms in Armenia.” While the focus of these papers has been on specific sectors such as agriculture, education, social housing, etc., they have also always included the economic impact of ineffective policy and lack of vision. This current
study reflects on one of the most critical problems facing Armenia – the existence of monopolies. Economists, political powers, the business community and civil society in Armenia have repeatedly discussed and debated the issue of monopolies however practical and feasible solutions have not been designed or applied.
The study, “Monopolies in Armenia,” which the Hrayr Maroukhian Foundation presents to the public attempts to answer a number of questions, proposes solutions and makes specific recommendations to regulate monopolies in the country.
The current economic policy practices of the Republic of Armenia does not secure market competitiveness, nor does it have in place the proper mechanisms to regulate the existence and continuing rise of monopolies. This has led to abuse of market power, market distortions, lack of economic competition for goods and services they provide, and persistent market entry barriers.
Today, certain sectors in the country’s economy are highly monopolized and this serves as an impediment to securing competition and diversification in the market.
The study looks at the global experience in the struggle against monopolies, presents examples of how other countries have developed mechanisms for regulation and securing competition in their national economies, analyzes the state of markets in the Republic of Armenia, provides an overview of government policy and the activities of the State Commission for the Protection of Economic Competition, and proposes recommendations for the regulation of monopolies in Armenia.
The HMF is confident that this study will also be a valuable tool for researchers, economists, students and others because of the vast body of information contained therein.