Faculty of Economics

This article capitalizes possible impacts of ICT to the economy of Armenia with forecasts and distinction with ICT related succeeding several countries. It is introduced in article the current situation in Armenia and gives policy recommendations. Pointed in article, that the world economy is transforming from an industrial age to an informational/knowledge based age, where the role of ICT is becoming increasingly powerful and vital compared to labor force and capital. The article aims to show that Armenia with its objective and subjective economic and political problems could become developed and wealthy with well-built ICT industry promoted strategy. Authors suggest the recommendations to the Government of Armenia needs in establishment of healthy operation of the political-economic body of the country based on market-oriented cooperation between public-private and research development centers/educational sectors of the country to better utilize the benefits of ICT industry. It is noticed in article, about the important role of several indicators that have been developed by international organizations and consulting companies to assess the correlation between ICT and economic growth as well as the major factors of ICT growth. Authors emphasis the impacts of ICT on a country are on both levels of the economy: macro and micro levels. On the macro level of national economy, ICT impacts the information and knowledge assessment process; speeds up and reduces the costs of production and transactions; and connects people, NGOs, enterprises, and communities. Bellow in article, is presented the cases of several countries for better illustration of the economic, political and social benefits of ICT industry growth. It is pointed that that the ICT industry has become the carrier of modern national economy development: the country is better equipped, it would better benefit from the process taking place in the world market. Introduction. The world economy is transforming from an industrial age to an informational/knowledge based age, where the role of ICT is becoming increasingly powerful and vital compared to labor force and capital. This era for creating opportunity opens the door for any country, developed and developing, to jump into a wealthy economy. Moreover, ICT is an industry where small countries and enterprises can compete and win in the market against large countries and companies, which required investments and Government strong support. The examples of it are fast-growing exports of ICT services. Nevertheless, Armenia is the country with limited natural resources and ICT industry with well formulate national ICT policies and strategies could be based for further economic growth and national wealth. The article aims to show that Armenia with its objective and subjective economic and political problems could become developed and wealthy with well-built ICT industry promoted strategy. Analysis of recent researches and publications. The better equipped a country is for ICT, the greater the benefits. Martin L. Weitzman's recombinant growth model attests to this. According to him, the neoclassical model considers technological progress as exogenously given, while it is an endogenous