ABSTRACT
In 1991, the government launched a land-reform program, which parcelled out the land held by cooperatives into 380,000 farms, averaging 1.5 hectares each. Priority reform and restructuring issues are increasing economic management capacity, raising domestic revenues, privatization and implementing the banking reform. Despite economic reforms, “much of Armenia’s economy follows a centrally planned pattern of production and trade and is dependent on the production of goods at aging factories with obsolete equipment.” The reform program includes stimulating the private sector, making enterprises and the banking system more efficient, legal reform, privatization and setting up new auditing and procurement systems. Recovery will be achieved by sound policies, such as a stabilization program, put in place, structural reforms and a currency board to control monetary expansion and keep inflation down. The enterprise system of North Korea can be considered as a “variant of the centrally planned socialist economy with some incentive schemes such as profit retention and worker bonuses”.
