Tuesday, June 26 2018 17:02

ArmInfo.If the transfer to the funded pension system in Armenia is not implemented, the burden on the state budget will increase, which in future is fraught with increased taxes. The head of Research Center "Alternative", economist Tatul Manaseryan expressed opinion on June 26 at the press  conference.

"The public should have a clear idea of the consequences if there is  no transition to a funded pension system. Everyone knows that we are  an aging nation because of the migration of young people. There are  more people of retirement age in the country than young people,  hence, the burden on paying pensions also increases, "he said. The  economist explained that in this case the state will have to go on  increasing taxes, and this will further exacerbate the situation in  the country and increase the flow of migrants.

In this regard, he cited the example of Chile, where the introduction  of the new pension system has solved a number of serious problems in  the state, although initially the public was somewhat skeptical about  the transition. As a poor state in Latin America, about 80 countries,  including developed countries such as the United States, Japan, etc,  borrowed the Chilean model. In the first 5-10 years the system  yielded results - the savings and state incomes doubled, of which the  state paid pensions and solved a number of social problems. "We will  not be able to develop the economy unless social issues are resolved.  GDP growth can not be more important than the level of income, which  is the basis for economic development and investment flows, "he  stressed.

At the same time, the economist indicated that those who oppose  changes are engaged in manipulation.  "These are the same people who  destroyed the economy of Armenia in the 90s. Expressing their  personal views, they argue that this system is so bad that for 45  years, whence they take this figure is also unclear, these funds will  disappear irrevocably from the state treasury, which in turn will  increase the poverty level in the country. According to them, every  year the budget will lose about 5-6% of investments, and as a result,  there will not be enough funds to pay pensions, "he said. According  to T. Manaseryan, such an approach on the part of false experts is  dishonest and is nothing more than manipulation, which pursues one  goal - instill fear among the masses.

At the same time, the economist does not exclude the risks associated  with the introduction of a funded pension system, in particular  foreign exchange, domestic political shocks, etc. The expert named  the uncertainty due to the lack of such experience as the biggest  drawback. "This is a completely new model, and it is very important  that the expert community correctly explain the reasons for concern  to the public, and not manipulate, giving incorrect conclusions. The  main thing is to be honest and through discussions, to develop a  model, taking into account the national interests of the country,  "the economist stressed.  People, according to Manaseryan, need to  explain that pension funds and deposits carried out by them are  insured, and ordinary citizens will not lose their savings.