2.17 Any form of corruption poses a serious threat to Armenia’s government system. Corrupt practices diminish the state’s capacity to withstand national security threats. 2.18 Any manifestation of the criminal subculture, violence, hatred, and xenophobia divides society and poses a challenge to the state and society. 2.19 Despite positive trends in economic growth, we still face the challenges of possible financial instability, the scale of the shadow economy, limited economic diversification, and impediments to the investment environment and entrepreneurship. 2.20 Poverty, social inequality, and social polarization continue to exacerbate Armenia’s security challenges and threats. NATIONAL SECURITY STRATEGY OF RA | 7