As an anticorruption expert Varuzhan Hoktanyan, Executive Director of Transparency International Anticorruption Center gave an interview to “168 Hours” news and analysis online, addressing decline in Armenia’s economic freedom score of 2015 Index of Economic Freedom, released by The Heritage Foundation public policy research institute, its methodology, its reflection of the country’s real image from the standpoint of corruption, its impact on the economic development and the general rating of the country.

According to Varuzhan Hoktanyan Armenia has remained in the same category based on its score, classified as "moderately free" (60-69.9) country. That is it did not face any abrupt qualitative deterioration but it considerably declined. There are ten components of economic freedom. Armenia’s scores declined in 6 out of 10 economic freedoms: property rights (-10.0), fiscal freedom (-2.1), business freedom (-0.4), labor freedom (-14.2), monetary freedom (-6.4), trade freedom. Armenia's scores remained unchanged in financial freedom (-0.1). The country improved its scores in economic freedoms: government spending (+1.5), investment freedom (+5.0) and freedom from corruption (+9.3).

Property rights considerably declined (20.0). By the way, it is the worst index after freedom from corruption (36.0). Others are formal indexes that more characterize legislative field, i.e. they look good on paper. Government spending (82.8) and fiscal freedom (84.4) as a rule have been ranked 70-80 in a scale from 0 to 100, where 100 represents the maximum freedom.

In particular, Government spending is ranked 82.8, fiscal freedom – 84.4, though the latter faced slight deterioration. This should be thoroughly analyzed, and the economists should be more involved in it, since the main decline was observed regarding the freedoms in regulatory efficiency category, for instance business freedom and labor freedom were deteriorated, which might be substantiated by economists. As anticorruption expert Hoktanyan saw more problems regarding non reformatory approach, i.e. convergence of political and business elites, which was strengthened and had more influence on decline in property rights. Another explanation substantiating decline is the following mentioned in the index: “In 2014, the president dismissed several well-known reformers and formed a new cabinet including officials who allegedly have grown wealthy from their government connections. For example, the finance minister has long been subject to media allegations of corruption.”

See the interview in “168 Hours” news and analysis online in Armenian.