Venture capital markets

Abstract

At present, Armenia is emerging from a period of considerable economic problems caused by natural disaster in 1988, and social and political upheavals entailing the collapse of the Soviet Union, severe war in Nagorno-Karabakh and long-lasting blockade. The Armenian government has undertaken measures to improve the situation through implementation of a wide program of market reforms. These measures include privatization of agricultural land and industry, introduction of a comprehensive system of taxes that is aimed to encourage export and foreign investment, reform of the banking system. However, it is early to think of Armenia as an attractive country to venture capital firms. To become so, there should be substantially reduced all or some of the risks and constraints discussed above. Of course, this is a long-term process, and Armenia should achieve the economic and political stability step by step through involvement in international organizations on the one hand, and through improvement of investment climate by implementation of more elaborated reforms in all spheres of the country’s life.