JAPAN'S ECONOMIC POLICY IN ARMENIA (1992-2021)

Abstract

The purpose of this article is to show the economic policy of Japan towards Armenia after the establishment of Armenian-Japanese diplomatic relations. The article presents three phases of Japan's economic policy, taking into account the type of assistance provided by Japan to Armenia, which is correlated with Armenia's economic and GDP’s growth. The first phase covers 1992-99, during which bilateral economic relations were limited to grant assistance provided by Japan to Armenia, with the aim of supporting the economic recovery of the newly independent state and ensuring sustainable economic growth. The second phase (2000-04) marked the beginning of economic cooperation between the two countries. Due to its stable economic growth, Armenia received loans from Japan for developing economic infrastructures. During the third phase (2005- up to date) Japan has expanded its cooperation with the Republic of Armenia and begun to provide technical equipment for the development of targeted sectors. At this stage, Japan clearly defined the direction of its assistance and the sectors necessary for the stimulation of the Armenian economy, in particular, the energy sector, small and medium-sized businesses, as well as the development of villages. Japan also greatly supports Armenia by providing Japanese technologies for risk prevention in natural disaster zones and organizing training courses and discussion- meetings for Armenian specialists aimed to promote capacity building on the implementation of disaster risk reduction and emergency situations. Since 2018, Japan has begun to consider Armenia as a full-fledged economic entity, and review the possibility to build mutually beneficial economic relations. The main witnesses are the signed agreement on investment liberalization in 2018, the visit of Japanese Foreign Minister Taro Kono to Armenia for developing bilateral relations in the fields of banking, innovation, food security, information technology, artificial intelligence, cultural exchange, scientific and educational projects, as well as active contacts of Armenian President with Japanese organizations.