Social polarization in Armenia has not decreased after the 2018 change of power. Former Prime Minister Khosrov Harutyunyan argues that only a partial redistribution of capital took place. He describes it as a “structural adjustment within the wealthy class,” not a systemic reform that could reduce inequality.
Inequality has intensified
According to Harutyunyan, polarization has not declined; instead, it has become deeper. Poor households have grown poorer, while the wealthier groups have undergone only internal restructuring. As a result, social polarization in Armenia remains a serious security concern.
He recalls that back in 2007–2008, US President Barack Obama described growing inequality as a “national security threat.” Harutyunyan notes that in Armenia’s case—surrounded by a hostile environment—the risk is even more serious. What makes the situation worse is the absence of any meaningful steps to reverse the trend.
Governance failures as a root cause
The former prime minister believes that governance failures are the main driver of growing social polarization. These failures strengthen corruption mechanisms and reduce the country’s ability to attract investment. As a result, few new economic opportunities emerge, and existing ones concentrate in the hands of a limited group.
Harutyunyan emphasizes that the government’s declared fight against corruption is not supported by necessary institutional reforms.
“Corruption disappears only when the system no longer needs it, and when corrupt officials constantly feel the risk of inevitable accountability,” he explains.
Public procurement and systemic distortions
He argues that it is impossible to discuss reducing corruption while around 76% of public procurement is conducted through a single supplier. Such a pattern inevitably deepens distortions in public life and generates a powerful multiplication effect.
Investment climate deteriorates
Economic development is another key factor in reducing social inequality. However, Harutyunyan believes that discussing Armenia’s investment attractiveness today is nothing more than “dangerous self-deception.”
“No rational investor will put money into a country where the judiciary is influenced by the executive branch,” he states.
According to him, large-scale investments simply will not come without institutional guarantees.
He cites the example of the Amulsar mining project, where after years of disputes, the investor transferred 12% of its shares to the Office of the Prime Minister.
“What is this, if not racketeering? International investors absolutely see this,” Harutyunyan remarks.
He also recalls the case of the Zangezur Copper-Molybdenum Combine, where 25% of the company’s shares were transferred to the government:
“This is not a public-private partnership involving joint investment. This is simply a demand for a share.”
The issue of institutional responsibility
According to Harutyunyan, if the state genuinely intended to obtain shares, it should have happened only through a court decision and been transferred to the State Property Management Department.
“The Prime Minister’s Office is not an institution responsible for economic policy. It cannot bear responsibility for the consequences of such decisions,” he says.
Conclusion: no institutional progress
Harutyunyan concludes that the current processes cannot be seen as institutional development and will not lead to greater social equality in Armenia.
“This does not differ from the mistakes that the current authorities once criticized in their predecessors,” he states.