Why aren't state-owned military-industrial companies created in Armenia? Mkhitar Hayrapetyan shares his vision

Both international and Armenian experience show that it is better to entrust the management of military-industrial companies to the private sector rather than the state. Armenian Minister of High-Tech Industry Mkhitar Hayrapetyan expressed this opinion during the Second Armenian Global Summit, answering the question of why the state does not create its own military-industrial enterprises, which it will manage itself, given the strategic importance of this industry.

According to Mkhitaryan, the state has a management stake in several military-industrial companies, and only one of them has not accumulated debts of several hundred million drams.

“We looked into the reasons why the state cannot effectively manage these factories or military-industrial companies, and we got some answers, which led us to the conclusion that although this area is of strategic importance, the participation and leadership of the private sector is also important,” the minister said.

Ayrapetyan added that the state, of course, still retains a number of functions for monitoring the activities of companies operating in this area and for providing licenses for import and export.

"Company management, implementation of development programs, organization of exports, search for partners on the international market, attraction of new investments - we believe that free market relations should be the basis of all this. At the same time, the state retains all those functions that can neutralize the risks that may arise, taking into account the strategic importance of this area," Ayrapetyan noted, adding that the state does not plan to "exit" from companies where it already has a large share, but instead plans to implement programs for their "recovery."