To Build a Factory, Schools and Universities Are Needed: Gevorg Papoyan

The Minister of Economy of Armenia, Gevorg Papoyan, posted a note on his Facebook page addressing the "ridiculous and glorious" statement regarding the proposition that "the state should build schools instead of factories." In his previous two posts, he elaborated on the topic, questioning whether the Armenian government is facilitating the construction of factories or not.

He previously cited political examples that led to the establishment of factories from scratch in Armenia, and now aims to present numbers and facts showing how, with the support of the current government, thousands—yes, thousands—of small, medium, and large production enterprises have upgraded their production capabilities. These enterprises have replaced the outdated machines and technologies from the 60s, 70s, 80s, and 90s with modern equipment from Germany, Japan, the U.S., and other countries.

Notably, those benefiting the most from government programs are members of the family that originated the notion of "the state should build schools instead of factories." They are particularly diligent during the days when subsidy amounts are received. A separate post will delve into this issue.

The government has three programs aimed at increasing the productivity of manufacturing enterprises. Specifically, businesses can purchase equipment through loans or leasing, with the state covering a significant portion of the interest on those loans or leases. To understand the extent of this support, we can each recall how much loan we have taken and how much we have ultimately repaid the bank, including interest.

The beneficiaries of this governmental support program number 6,805, who have acquired equipment worth 503.8 billion drams (around $1.316 billion) for a total of 21,430 units, with the government reimbursing 60.5 billion drams. Thus, when looked at in today’s exchange rates, this program has introduced new equipment valued at around $1.316 billion into our economy.

Why is this important? It is crucial because, without modern equipment, high-quality, cost-effective, and competitive production cannot be achieved. Consequently, competitiveness in foreign markets is unattainable, which means exports cannot be increased. Without exports, there can be no developed economy and no job creation, especially not high-paying jobs, and ultimately, no factory will be built.

Furthermore, regarding the results of the program, while our productivity was merely $5.2 per hour in 2017, by 2024, it has nearly doubled to $10.3 per hour.

Additionally, to build, operate a factory, and produce goods, schools and universities are indeed essential, while roads are necessary for exporting the factory's products.

It is worth recalling that the Minister of Economy commented on the claim made by Narek Karapetyan, the coordinator of the “Our Way” movement, that the state should not focus on "building schools and roads, but rather factories."