Armenia does not use neighbors’ controversies in building regional policy:
Speech by President of Armenia Robert Kocharyan at the Bertelsmann
Foundation
Regnum News Agency
November 18, 2006
President of the Republic of Armenia Robert Kocharyan who is paying a
working visit to Germany made 16 November 2006 a speech at the Bertelsmann
Foundation. REGNUM introduces the full text of the speech published at the
Armenian President’s official website.
"Ladies and Gentlemen,
I am delighted to join you here today. It is very natural that this talk is
taking place in the Bertelsmann Foundation. Describing the processes
unfolding in Armenia since independence, the most frequent word to be used
is ‘reform’ – economic, social, and political. There is virtually no domain
of life which would not undergo serious reform after the collapse of the
Soviet Union and transition of Armenia to democracy and market economy. We
restructured our institutions, reviewed policies, overturned the structure
of the economy. Everything was new and challenging.
Unfortunately, this process was complicated by the war imposed on us,
blockade, which still continues, and a severe energy crisis. We replied by
intensifying the speed of transformations, mobilizing resources, and
increasing the effectiveness of the governance.
Armenia is not rich in natural resources. However we are known for the most
important of them – the human one. It is first of all expressed in the
widely-recognized entrepreneurial and hard-working nature of the people. Our
characteristic feature is the high level of motivation among the people to
start private businesses.
To be able to fully benefit from these advantages, it is essential to
establish favorable environment for business-oriented people, and provide
safeguarded investment policies. This envisions liberalization of the
economy and of trade regimes, establishment of competitive conditions and
the minimization of the state’s interference in the business affairs.
As a result, we witness serious changes in the structure of the economy,
both in terms of its branches, and of property types. 85 per cent of the GDP
is produced in the private sector, with over 40 per cent in small and medium
businesses.
We are particularly proud of this last figure. The middle class is in the
process of formation. This seriously affects the public perception about own
future.
Obviously not everything is smooth yet. We particularly feel a pressing need
for a qualitative improvement of the tax and customs administration. The
fight against corruption needs to be intensified at all levels according the
action plan adopted by the government.
We also need to further develop the sector of financial services in Armenia.
For that we have a good potential in the form of efficient banking system,
which is being continuously upgraded.
While we see a serious increase in foreign direct investments in Armenia, we
know that there is still more to achieve in the upcoming future. In this
regard I have to fully acknowledge and express our sincere appreciation for
the technical assistance and direct involvement Germany has in this field in
Armenia. The programs of technical assistance and financial cooperation
implemented with KWF and GTZ bring a solid contribution in this regard.
Armenia’s accession to the World Trade Organization in 2003 pushed forward
our integration into the world economy and made relations with our partners
more predictable.
Last year a joint study by the Wall Street Journal and Heritage Foundation
placed Armenia 27th in its index of open economies globally. Effectiveness
of the reforms is reflected in figures. In the last six years the annual
growth of GDP averaged at 12.2 per cent. Foreign investments last year
totaled at 500 million US dollars.
Such progress allows our Government to address social problems, challenging
our society. I would like to particularly emphasize the Poverty Reduction
Program, which has been developed in close cooperation between the
Government, international financial institutions, and Armenia’s civil
society. That experience is used by the World Bank as a case study for the
development of similar programs in other countries.
This year our government has announced another priority, which shall result
in a systemic change in the society. We have launched a major program for
the development of Armenia’s rural areas. Currently there is a big gap
between the situation in the capital city and countryside. We have mobilized
available resources, as well as have called on our Diaspora structures to
take all the necessary steps to provide better quality of life to villages
of Armenia. In our view this will provide incentives for young people to
develop their regions, towns and rural communities.
Another competitive advantage we base our reforms upon is the high literacy
level Armenia has. We intend to develop science-reliant economy. We already
have 2 per cent of IT share in the GDP composition.
Meanwhile, we fully realize that it would be impossible to explore that
advantage without serious changes in our educational sector and in sciences.
That is exactly why Armenia has committed itself to active participation in
the Bologna process to adjust its education system to the European
standards. We are currently also developing a comprehensive strategy of the
reform for the fundamental and applicable sciences. In the difficult period
of transition, the need to invest in people was somewhat neglected, and
currently we attempt to make up for that delay.
Ladies and Gentlemen,
I have started my speech with the economic reforms and their impacts on the
social field, since we are deeply convinced that sustainable democracy is
strongly dependent on the state of economy. While we fully appreciate the
importance of political vision and leadership for rooting the democratic
values in the formerly closed society, we are strong believers of the
democracy from below. It is not enough to create democratic institutions:
without strongly motivated beneficiaries they would be rapidly corrupted and
altered. In our view those capable beneficiaries of democracy are the small
and medium businesses on one hand and the civil society on the other.
Today our government is deeply involved in the process of reforming our
judicial sector. The first phase of that reform took place at the wake of
independence. At that time we were just learning the rules of civil law in
conditions of private property ownerships and in the system of democratic
accountability of the state. Today we work towards deeper reforms, which
would allow for a higher level of independence of the courts, and deeper
respect for human rights. In close cooperation with German partners we now
develop the system of administrative justice, which would regulate disputes
between the state and citizens.
The years of independence have been marked by active involvement of the
civil society in the life of the country. We are encouraged by the
development of NGO sector. Today we witness more professional
non-governmental organizations, which bring people closer to the political
decision-making. All state institutions in Armenia have started to work
closely with civil society groups.
Meanwhile, it is true that we continue to witness the major problem of NGO
sector in any transitional democracy. NGOs, being relevantly a new
phenomenon, o ften continue to be grant-oriented, instead of being
goal-oriented, and have a political agenda, aligning with various political
parties.
Ladies and Gentlemen:
Last fifteen years have been the period of statecraft. Our accession to the
Council of Europe five years ago provided framework for the legal reforms
and institution-building. WTO membership allowed for a quicker and more
motivated transition towards liberal economy. Thinking about continuing the
reforms, we watch the European Neighborhood Policy as a new benchmark. In
our perception the Action Plan signed lately in Brussels is the new roadmap
of our reforms. Armenia intends to develop an efficient cooperation with the
European Commission and strengthen bilateral ties with EU member-states.
This would allow for intensive political dialogue, more trade, active social
and public interactions, and higher mutual security involvement. We count on
German support and cooperation within this new framework.
Over the years Armenia has been consistently shaping its foreign policy,
based on the concept of advantaging from overlap of interests rather than
exploitation of disagreements existing in our region. This has allowed us to
combine perfect relations with Russia, EU, United States, and Iran. It is
also an important part of transformation of our country and society. For
decades, living in the Soviet Union, we were trained to watch the world as
black and white, representing enemies and friends.
The policy of complimentarity also applies to our security model. Armenia is
an active member of the Collective Security Treaty Organization, and at the
same time has done a substantial progress on its cooperation with NATO. The
Individual Partnership Action Plan has been approved, setting the framework
for a long-term institutional cooperation.
Our vision of future of Armenia is that of a prosperous state in a friendly
stable environment. Armenia has four immediate neighbors in the region. Much
to our regret, with two of them we have no relations. Over centuries we
enjoy good neighborly relations with Georgia, and very much hope that recent
dispute between Russia and Georgia will be resolved shortly. We value our
efficient and stable cooperation with neighboring Iran, with whom we
cooperate in many spheres and have started significant infrastructural
programs.
In contrast to this, another major neighbor – Turkey keeps Armenian border
blocked. We even have no diplomatic relations with that country. In our
view, being a member of NATO and craving the EU aspirations, Turkey had to
shape more positivistic policy in the region. More than once we have
proposed to establish diplomatic relations and this offer is still pending.
We believe that neighboring countries should build-up their relations
without preconditions, and moreover, without conditioning those by demands
of a third state.
Armenia attaches great importance to regional cooperation. We believe that
the resolution of conflicts itself should not be regarded as a precondition
for establishing dialogue and cooperation. Rather, the regional cooperation
should be watched as a great trust-building measure, aimed at resolving
existing disagreements. It is obvious, that unresolved conflicts hamper the
process of natural development of the South Caucasus.
That is why we are committed to the peaceful settlement of the Nagorno
Karabagh conflict. OSCE Minsk Group Co-Chairs works hard to bring closer our
positions. Unfortunately, despite active negotiations underway, there is
little room for optimism.
Our principle stand is that the people of Karabagh have implemented their
right for self-determination. It has been done in full compliance with the
international law. Many currently independent states came into existence
after former empires perished. Independence of Nagorno Karabagh was attained
at the time of collapse of the Soviet Union. Moreover, it was the time of
the end of the grand ideological divide. Nagorno Karabagh has never been a
part of independent Azerbaijan. Through a successful construction of its
statehood Nagorno Karabagh Republic has proved its right for existence. It
regularly conducts democratic presidential and parliamentary elections. We
witness the development of the civil society. A generation has already grown
up, which considers itself to be the embodiment and safeguard of that
statehood. We do not recall any case of a nation willingly putting it down
independence it has been enjoying for over 15 years. No one has intention to
do it in case of Karabagh. We speak about irreversible changes that took
place in the people’s mentality.
Ladies and Gentlemen:
I have outlined the main lines of the economic, societal, and political
change underway in the Republic of Armenia. Transition is a process, not an
event. It does have the beginning but never an end. In my view the viability
of a nation is rooted in its capacity to comprehend the need for a change
and its readiness to transform itself. We know that despite the existing
positive dynamic the transformation of our country is only in its early
stage. But we have vision for its goal and commitment to the process.
Thank you for your attention."