ArmInfo. At this stage, about 30% of the staff of regional administrations will be reduced. Minister of Territorial Administration and Development of Armenia Suren Papiyakn said this on February 11 in an interview with journalists.
According to him, the work on optimizing the staff of regional administrations was initiated by him in October 2018. A consulting company was involved in the process thanks to the funding of the Swiss Agency for Development and Cooperation. Studies have been conducted in several administrations. Based on them, developments have been made and there are already ready-made schemes for optimizing work. After their adjustment and approval of structural changes in the government, the turn will come to optimization in the regions. "Optimization is aimed only at productive management and attracting more qualified personnel to the state system," explained Papikyan.
To note, the government of Nikol Pashinyan, in order to optimize state budget spending and increase the productivity of the state apparatus, initiated a process of restructuring the state apparatus. It is already known that out of the 17 ministries, there will remain 12. It also provides for the closure of state-owned companies, SNCO, the Bureau for Program Implementation and the Funds. Optimization, according to various estimates, will affect from several hundred people to several tens of thousands. The bulk of the remaining out of work, according to the authors of the initiative, must find its niche in the private sector. Nevertheless, many experts express fears that the already large number of "unemployed" will be replenished with new ones. In particular, there is concern about the ability of the private sector to absorb such a large number of state officials who are "overboard". In addition, the desire of a "private trader" to hire a specialist, which was reduced precisely because of his lower qualifications, is being questioned. The process, as experts note, has another aspect. Unemployment will pull demand down, which is detrimental to the economy. In the face of declining sales, there is a risk that the business will increase margins and price increases in order to restore lost income.