The Reasons for lagging of the pension reform in Armenia

Abstract

The implementation of the funded pension system in Armenia has been one of the most widely discussed policy issues for the recent years. At the same time, this was one of the biggest challenges for the Armenian government in introducing reforms in the social sector. The program of the funded pension system can be beneficial and effective if implemented and interpreted smoothly. The socio-economic conditions in Armenia did not let the reform to unfold the way it had been planned and structured. Since the reform was very comprehensive and complex the government of Armenia should have approached to the issue differently. First of all the government should have taken more persuasive steps to gain the trust of each citizen affected by the reform. The government should have paid more attention to information campaigns, reach each beneficiary multiple to address all concerns and clarify all issues. If the government spent significantly more on the awareness campaigns of the population the picture of the outcome could have been different. If the government still wants to pursue this reform in the country, it should first of all consistently change the perception of the population towards the reform. So far the reform was seen only under a negative light. Several steps should be conducted to boost the interest and positive attitude of the society. The future of the pension reform in Armenia is very obscure. The decision of the Constitutional Court is very decisive. If the latter decides that there are still anti-constitutional articles in the law of the reform, the law will be sent back to the National Assembly for further amendments. Some experts or ordinary citizens think that if the law is sent to the National Assembly for the second time, the government will stop the pension reform implementation in Armenia, but based on this research and the results of the interviews, I think that the government will implement the reform in the country in spite of everything.