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Integrity Scorecard

2007 Assessment

Armenia: Integrity Indicators Scorecard

Armenia: Integrity Scorecard Report > Sub-Category: Privatization
Indicators		Score
50	Is the privatization process effective?	67
51	Can citizens access the terms and conditions of privatization bids?	15

Indicator and sub-Indicator Details

Is the privatization process effective?

50a: In law, all businesses are eligible to compete for privatized state assets.

Score:

YES

Comments:

References: The Law for Protection of Economic Competition of the Republic of Armenia www.arlis.am

50b: In law, there are regulations addressing conflicts of interest for government officials involved in privatization.

Score:

YES

Comments:

References: The Law on Public Auction of the Republic of Armenia www.arlis.am

50c: In practice, conflicts of interest regulations for government officials involved in privatization are enforced.

Score:

100

Comments: In reality, the government and the president of Armenia regulate all privatization processes and government officials could even buy the governmental buildings with a little amount of money, having the patronage of President R. Kocharyan or Serzh Sarkissyan, the prime minister of Armenia.

References: Interview with executive director of Foundation of Small and Medium Businesses Narine Mailyan (August 7, 2007, at his office)

Can citizens access the terms and conditions of privatization bids?

51a: In law, citizens can access privatization regulations.

Score:

YES

Comments: Though the Law on Freedom of the Republic of Armenia theoretically covers privatization bids, there are no specific provisions, codes or regulations on this issue.

References: There are no specific codes, provisions or rules on this case.

Peer Review Comments: There are no specific provisions, codes or regulations on the issue of privatization.

51b: In practice, privitizations are effectively advertised.

Score:

100

Comments:

References: Interview with executive director of Foundation of Small and Medium Businesses Narine Mailyan (August 7, 2007 at his office)

51c: In law, the government is required to publicly announce the results of privatization decisions.

Score:

YES

Comments:

References: There is no requirement for the government to publicly announce the results of the privatization process.

51d: In practice, citizens can access privatization regulations within a reasonable time period.

Score:

100

Comments: Citizens can access privatization regulations through the announcements published or advertised in mass media, however, participating in it usually is very complicated.

References: Interview with executive director of Foundation of Small and Medium Businesses Narine Mailyan (August 7, 2007, at his office)

51e: In practice, citizens can access privatization regulations at a reasonable cost.

Score:

100

Comments: Although citizens can access records of privatization free of charge, participating in it usually is very complicated for small businesses because the government often gives preference to oligarchs.

References: Interview with executive director of Foundation of Small and Medium Businesses Narine Mailyan (August 7, 2007, at his office)