PILLAR 7. Without a capital market there is no real investment environment, and without such an environment there is no development

One of the deepest problems of Armenia’s economy is not the lack of money, but the lack of capital circulation and trust.

Today, the economy continues to operate under a closed and non-transparent model, where the investor is not protected, corporate governance is weak, and the securities market is practically non-existent.

Transparency as the norm of the economy

The new economic model requires transparency and accountability to become the rule, not the exception.

We propose to eliminate the distinction between “open” and “closed” joint-stock companies.

Every company must make a clear choice: either operate under the simplified regime of an LLC, or become a full-fledged joint-stock company with proper accountability, accessible shares (securities), circulation on the stock exchange, and, naturally, a protected investor.

This makes the business environment predictable and understandable for investors.

Strategic companies under public oversight

Companies operating in key sectors of the economy must have the status of “public interest companies,” and their legal form must be that of a joint-stock company.

This applies to the banking system, energy, telecommunications, natural monopolies, as well as mining and infrastructure operators.

High accountability here is not a restriction, but a tool of economic security.

Profit tax as an investment-stimulating model

A key driver for the development of the securities market is a new approach to profit taxation.

Joint-stock companies will be taxed only at the moment of profit distribution. Undistributed profits that are reinvested into production, technology, or expansion will not be taxed.

This encourages capital accumulation, long-term investment, and company growth.

The securities market as a pillar of the new economy

The combined result of these reforms will form a real capital market. Investments will become broad and accessible, businesses will move out of the closed model, and public trust in the economy will increase.

This is the seventh PILLAR of “Wings of Unity.” Without a developed securities market, Armenia cannot have an investment-driven, production-oriented, and resilient long-term economy.