Gap between rich and poor widening, with vague prospects for middle  class formation - expert

ArmInfo. The gap between the rich and the poor is widening in Armenia, and the prospects for  formation of a middle class remain vague, political analyst Vahe  Davtyan believes. 

In dealing with the poverty problem in Armenia one needs to apply the  "multivariable estimation principle" - considering a number of  factors, such as healthcare, housing conditions, education, etc. 

"In preparing different statistical analyses, we can state that about  half of Armenia's population are facing social security problems - in  some ways or others. However, the most regrettable fact is vulnerable  children, which poses a threat as well. According to UNICEF, 64% of  Armenia's children are socially vulnerable. This is especially  obvious in rural regions, where this figure is 82% against 53% in  urban areas.  According to UNICEF, only 12% of Armenia's children do  not have social problems," Mr Davtyan said.  

Since the attitude to old people and children is the criterion  showing a state's social development level, the first article of the  first chapter of Armenia's Constitution sounds at least utopian. 

"During the last three years, Armenia's Central Bank has raised the  basic rate up to 10%. It will inevitably cause a rise in interest  rates on loans for both businesses (with a further rise in prices for  goods and services) and population, with a great number of people  under the burden," he said. 

Following the "multivariable estimation principle" in assessing the  poverty level, one can conclude that every third Armenian resident is  poor (very poor or destitute). 

"The conclusion is that the gap between the rich and the or widening,  with vague prospects for the formation of a middle class. It is  obvious that without overcoming a social crisis in Armenia, it will  be extremely difficult and even impossible to overcome the political  crisis and start building up foreign relations architecture in  national interests. For most of the population will be in search of  their daily bread, others will leave as guest workers and a small  part of the population will continue playing with 'the political  beads'," Mr Davtyan said.