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June 19, 2009
1. Dream factory or ghost studio? Armenian `Hollywood’ far from
glamour or glitz
2.** **Exam tide: Many students surprised and disappointed by
Armenia’s new education exams
3. Summer Time-Out: Opposition takes a break. Will its return bring
changes?
**4.** **Iran** Brings New Meaning to Closed-Door Elections
5. Banner year?: Tourism head predicts increased number of tourists
despite global decline in industry
6. Opinion: Political analyst predicts end of `Armenia-Turkey
honeymoon’
7. Strategic split: Fast lane geopolitics may reduce Russia’s
influence in the region
8. Crisis and solutions: Karabakh struggles to weather global economic
turmoil
9. Driver, policeman, kickback: Corruption risks still high on
Armenian roads, largely through driver ignorance
10.** Weathering the Storm: the lessons for Armenia from the unrest in
Iran
11.** Aid Approved: U.S. Panel agrees to $51 million for Armenia next
year
12. Big bout: `Armenian v Turk’ as Boxing King Arthur challenged by
`fellow German’
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1. **Dream factory or ghost studio? Armenian `Hollywood’ far from glamour
or glitz
By Karine Ionesyan
ArmeniaNow reporter
The new owners of HayFilm Studio, after purchasing it four years ago,
promised that soon the studio would be beyond recognition with the newly
constructed building instead of an old shabby studio, new heating and air
systems, elevators. In short, they said the film studio would be equipped up
to the standard of super modern Hollywood studios.
Years have already passed, yet the distinguishing badge of the `Armenian
Hollywood’ remains the dilapidated buildings and deserted territory, while
not a single movie was produced during that time. (The only use of the
studio so far has been as premises for shooting soap operas).
Hamo Bek-Nazaryan HayFilm studio, the country’s only film production studio,
was founded in 1933 and produced more than 350 full-length feature films,
more than 150 cartoons and dozens of short-length films.
In 2005 it was sold for 350 million drams (about $946,000) to Director of
`Armenia Studio’ CJSC Bagrat Sargsyan, who presented himself in the name of
Cafesjian Foundation (whose founder is Gerard Gafesjian, also known in
Yerevan as the owner of the Cascade complex, one of the capital’s landmarks,
which itself is far behind in anticipated completion).
Besides the fact that the new owners have not started reconstruction yet,
many employees of former HayFilm stayed unemployed. (The name of the studio
was changed into CS Films, and this year the old name of HayFilm was
reinstated.)
According to a government decision, after the privatization the new owners
should have signed working contracts with the employees of HayFilm for a
year. However, soon after the privatization some 100 people were fired.
Cameraman Karlen Hovhannisyan was one of them.
`There was no film production during the period we were working. They
managed to destroy the laboratory of film development – a huge territory
covering 40 hectares was transformed into warehouses; part of it became a
warehouse for Osram lamps (produced in Germany), another part – into
greenhouses or hotbeds,’ Hovhannisyan says.
As he mentions, only film production areas are being used in that territory,
because they provide profit: soap operas are being shot there.
`There was a time when specialists of the film sphere were forced to work at
an Osram lamp warehouse. So they were putting lamps into boxes and gluing
the holographic film on them,’ says a person who is knowledgeable about the
work of HayFilm employees but asked ArmeniaNow not to disclose his identity.
Ruben Gevorgyants, Art Director of HayFilms, said in an interview with
ArmeniaNow that they ( new owners) had already changed all the windows of
the building; new equipment had been bought, which they rent out. However,
he cannot say what specifically was bought.
`But we do not shoot films yet, because still preparatory works are being
conducted. And I am not sure when exactly they will be over,’ he adds.
As for Osram lamps, Gevorgyants said that it is the owners’ business; they
can have whatever they want to have. In accordance with the Armenian
Government’s decision N 727-A of 2005, the winner of the open contest to
alienate the property of the `Hayfilm’ Film-Studio State Non-Commercial
Organization `must carry out filmmaking and other related activities at
least for 50 years from the day of getting a state registration.’
Nairi Harutyunyan, Head of Staff of State Property Management Department
attached to the Armenian Government, stated that this is a private business,
and if CS Films fulfills its obligations, it can do whatever it wants
concerning other issues. `They present us regular reports, and we know that
they work. For example, they have already digitized 160 films, and 134 films
have been recovered on their initiative. They were obliged to invest 10
billion drams ($27million ) within 10 years; they have already invested 900
million drams (about $2.5 million) within four years, four feature films
are already shot.’
Gevorg Gevorgyan, Director of the Armenian National Cinema Center State
Non-Commercial Organization, contends, however, that not a single movie has
been shot.
`What four films are they talking about?’ he says. `Films currently can not
be produced. Sometimes they give us equipment for rent. Up to now they have
only participated in the production of Albert Lazarian’s `The Dawn of
Sad
Street’ film by 11 percent. And as for the rest of the films, they had no
participation there. We have allocated money, about five million drams (over
$13,500) to them during these four years, and they gave us equipment
instead,’ he says.
As for the digitized films, this process must be monitored by the Ministry
of Culture and Youth Affairs. According to agreement CS Films must digitize
396 films within three years and present two sealed versions (with
corresponding technical standards certificates) of each within two months.
The Ministry of Culture has not given any assessment to the digitized films,
while people specialized in film digitization, have a negative viewpoint,
since because of the bad quality of digitization the colors initially wanted
by a film’s cameramen are spoiled. This is what famous cameraman from
HayFilm Albert Yavuryan told ArmeniaNow before his death ( a year ago).
Currently only about 20 employees are left in CS Films, half of which are
security guards, who have not received their salaries for several months. **
Gevorgyants does not deny this fact, saying that he is also included in the
list of those employees who have not received their salaries for four
months. `There are some problems connected with banks, and besides, the
country is in an economic crisis,’ he says.
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2. Exam tide: Many students surprised and disappointed by Armenia’s new
education exams**
By Siranuysh Gevorgyan
ArmeniaNow reporter
The vast majority of this year’s applicants along with their parents were
both angry and surprised with their low marks at the Armenian language and
literature exams. During the exams almost everybody found out that the
tests were more difficult than they had expected. The first week of exams
has shown that a higher percentage of Armenian applicants get higher marks
in foreign languages than in their mother tongue.
The exams started on June 2 and will finish on June 23, during which about
19,000 applicants will take part in joint entrance exams.
The results of the Armenian language and literature joint exams showed that
only 12 applicants out of 12,000 got 20 points (the highest grade).
Sixty-five
percent (7,800 applicants) got 7.5-13.25 points. In comparison with the
Armenian language 100 applicants out of 8,000 taking English exam got the
highest mark.
The newly appointed Minister of Education and Science Armen Ashotyan shares
the concerns of applicants.
`Yes they (tests) were difficult for everybody,’ says the minister. `So all
the applicants taking exams were under common conditions, but while
considering the number of unsatisfactory marks, it can be noticed that the
majority of performed successfully. The competitive field was kept for all
of them; it was simply transferred into a field with lower marks.’
Ashotyan, who also chairs the State Admission Commission, says that the
reason why the marks for foreign languages are higher is that their tests
are much easier.
`Besides, there is information that cribs (`cheat sheets’) were being
circulated in some exam centers,’ the minister said. `More than a dozen of
cribs are confiscated; they have different forms and are written by
different handwritings.’
Under examination rules, those who get caught using a crib are ordered out
of the room and reprimanded.
Generally, offending students are allowed to continue to sit the exam.
Angela Sargsyan, who got 13.75 in Armenian language and literature, says
that there were such questions included in the test that cannot be found in
the textbooks of neither the Armenian language nor the literature. They
could not be found in the guide-tests designed for applicants, either.
`It was extremely difficult. During my preparations for the tests I got
17-20 points, whereas now my mark shocks me, I did not expect that to
happen, I did not expect the test to be so hard,’ says Angela, 16.
Joint entrance exams in Armenia are held since 2007. As part of an overhaul
of the educational system three years ago the Ministry of Education and
Science decided to hold centralized exams along with graduation exams rather
than holding them in universities over the whole summer. The objective is
to make the entry process easier, while also reducing corruption risks.
Still many believes that the new system only makes things worse.
Arega Ohanyan, principal of Yerevan secondary school N. 100, says that 32
out of 50 graduates from her school took joint entrance exams in the
Armenian language.
`After those exams our students returned very disappointed, rather broken,’
says Ohanyan.
The principal questions the objectives of those who created the tests.
`Why do they want to oppress children? The aim of (lower) schools is not
providing students with absolute knowledge, is it? Otherwise what do they
get from their education at higher educational institutions? And those tests
demand absolute knowledge from children. There are such questions involved
in the tests that are vaguely presented in texts-books, lets say by one or
two sentences. And in the tests those questions are asked to be answered in
detail,’ Ohanyan says.
The Armenian language and literature teacher of the same school Astghik
Papyan says this year tests were 3-4 times harder than last year. Papyan
with her 15 years of experience of teaching says she could hardly get 18
from the test.
`The test was difficult even for me,’ says Papyan. `You have to have
an
absolute memory in order to remember very small details in literature
questions. They also changed the questions for Armenian language. If
previous years the request was to find the wrong word, sentence and etc.,
now they had to count how many mistakes there are. Let’s say, the student
should count and find wrong words among 16 words. If the student miscounts
even one word, he/she will lose the points from that question. Let’s not
forget that these are 16-year-old students, they are nervous during the exam
and may confuse the number s they have counted. It is not possible to count
so much in 3 hours.’
The minister agrees that there are still many things to be done in the
improvement and development of the new examination system, since the phase
of reforms has not been finished yet.
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3. Summer Time-Out: Opposition takes a break. Will its return bring
changes?
By Gayane Abrahamyan**
ArmeniaNow reporter
After the last rally of the current political season, the leader of the
opposition Armenian National Congress Levon Ter-Petrosyan – for the second
time in a year – declared that he is taking a time-out till September. As
political analyst Andranik Tevanyan has put it: `A commercial break is on in
the political field’.
Many assess that break as an attempt to win time to clarify some issues and
standpoints, whereas the authorities are certain that the All-Armenian
movement has played out and is `looking for different reasons to send people
back to their homes’.
Where is the opposition going? Will ANC, Heritage and Dashnaktsutyun be able
to rally as opposition before the parliamentary elections in 2012? These
are the questions people attending last Friday’s rally in front of
Matenadaran were mostly concerned about. But their questions remained
unanswered.
The past two weeks have shown that the opposition badly needs to clarify
some issues, that it’s facing a deadlock and that it must devise a new plan.
The recently held City Council elections not only reshaped the power field
in the country but also caused controversy among opposition members. When
the election results were finalized the critical address of Heritage party
members to ANC revealed the tension which had existed even before the
election but had not been publicized by the Heritage party, not to damage the
party’s reputation.
The long suppressed anger found its expression in Heritage party member,
parliamentarian Zaruhi Postanjyan’s statement that `the elections have
shown
that ANC is not a viable political force’, followed by another critical
statement: `Any political force hoping for people’s votes, has to back
and
support that people not through some occasional events, but especially in
the most critical circumstances. I think that on March 1 and afterwards – no
matter whether Levon Ter-Petrosyan was under house arrest or not – he should
have been with the people.’
This is the first strong position voiced against the opposition not by
government representatives but by members of opposition itself.
If before the elections Heritage had been avoiding explanations of their
decision not to participate in the elections, now they have `opened the
brackets’.
`In that period the opposition mass media voiced extreme slanders against
the Heritage party and we could see that our partners and opposition press
lacked the kind of tolerance for them to allow a second opposition force to
function, because it wouldn’t have weakened the opposition front, on the
contrary, it would have made it stronger,’ says parliamentarian Armen
Martirosyan, adding: `If we had participated in that election, there would
be a confrontation, and the opposition electorate would be disappointed.’
Ter-Petrosyan, who once called dissenters `traitors’ recently said:
`The squabble in the oppositional field does not make sense to me. The field
is so broad that it can make room for everyone. We are ready with open arms
to welcome in the opposition field of any political party, we are not afraid
of competition and won’t miss any chance for cooperation.’
According to political analyst Yervand Bozoyan, the pyramid system of the
opposition collapsed after the elections and a new format must be engaged.
`Ter-Petrosyan’s calculations to create a totalitarian opposition were
justified since the following logic was working: if the authorities are
solid, then only solid opposition can fight against it,’ Bozoyan told
ArmeniaNow.
According to the analyst’s observations, opposite processes are now going on
in the political arena: the authorities will be fortifying their monarchic
positions, whereas the opposition will fall apart.
This means that the opposition is facing three challenges right now – not
only to struggle against the authorities, but also to keep and unite all the
branches of opposition; but the most important and hardest challenge is to
succeed and come to power.
In terms of accomplishing the third task, the opposition now appears to be
in a deadlock. Ter-Petrosyan has repeatedly stressed that they will achieve
a leadership change only through constitutional means — that is by means of
elections, however, the same Ter-Petrosyan has also repeatedly stated that
there are no elections in Armenia and it is impossible to achieve a power
change by means of elections.
`We even have clichés, such as `taking the constitutional way means taking a
way to defeat’,’ Bozoyan says.
Is there a way out of that deadlock?
According to Bozoyan, amendments in the Constitution and formation of a new
force can result in a new governance system in the country.
A change of situation, Bozoyan says, is possible through a new force, a
bearer of new ideas, which would bring forth not only a power change but
also the demand for the change of the system.
`Nothing will change until the system is changed, otherwise, a change of
the
president would simply mean that other oligarchs would come to power,
today’s petrol monopoly would go to someone else, and so on,’ says Bozoyan,
who also adds that he does not see such a new force among the radical
opposition yet.
`If in 1988 people were chanting `Miatsum’ (unity) and `Karabakh’, today
they are chanting `Levon- Nakhagah’ (Levon-President), which means that if
before there was an ideology, today it’s only about individuals. The same
accusations voiced by people against Ter-Petrosyan’s regime, are now voiced
against the current authorities.’
The formation of a new force is the idea voiced also by the Heritage party.
Recently Postanjyan said: `Let them not be insulted by out-of-date formats,
out-of-date lists, and they should not be represented by out-of-date people.
Our nation wants a new breath, a new approach.’
The possibility of Heritage-Dashnaktsutyun tandem seems realistic to
Bozoyan.
`Dashnaktsutiun does not have a distinct leader, however Heritage does
–
Raffi Hovhannisian, and Heritage lacks what Dashnaks have – political party
structures spread all over the country,’ explains Bozoyan. `Uniting these
two forces might succeed as opposition in the future.’
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4. Iran** Brings New Meaning to Closed-Door Elections**
By Elizabeth Gemdjian
Armenian Assembly of America intern
Special to ArmeniaNow
For those Armenians trying to get in touch with Iranian friends and
relatives, communication channels have been anywhere from nonexistent to
irregular since the contentious results of last Friday’s election.
The election that took place on June 12, 2009 resulted in Mahmoud
Ahmadinejad’s controversial reelection over his reformist opponent Mir
Hossein Musavi. **
According to Armenian youths working at the Blue Mosque in Yerevan, who
chose not to be named, `Everything was off the day after the election.’ While
cell phone, SMS, and internet communication is returning to certain areas,
those areas where protests are most prevalent are still largely out of
reach.
However, it is not only the government that is cutting lines of
communication, but protestors as well who `are turning off their cell phones
to keep protest locations secret, because they can trace you with a cell
phone. They are using paper communication to spread word of upcoming
protests,’ according to one of the anonymous Armenian youths.
And Iranians are not alone in facing difficulties maintaining open channels
of communication. According to the youth, `foreign journalists are also
being told to leave the country.
They don’t leave their offices because if they do they will be forced to
go
back to their own countries.’
The British Broadcasting Co. (BBC) also experienced jamming of their news
reports and had to switch networks in order to continue coverage of the
election results.
Keeping communication blocked, however, is proving to be difficult to
sustain. Many Iranians are finding ways around the blocks by using proxy
servers and virtual private networks (VPN), using these accounts to get
news, communicate with those outside Iran, and share videos and pictures of
what is happening in their country. As rumors run rampant about number of
deaths, size of protests, and government actions and motives, the slowly
increasing amount of information coming out of Iran concerning post-election
happenings is generating many strong reactions in Armenia and around the
world.
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5. Banner year?: Tourism head predicts increased number of tourists despite
global decline in industry**
By Sara Khojoyan
ArmeniaNow reporter
While tourist activity around the world is already declining and is expected
to decline more in consequence of the continuing global economic crisis, the
government in Armenia predicts an increase in the number of tourists
visiting the country.
Mekhak Apresyan, who heads the Department of Tourism and Regional
Development of Armenia’s Ministry of Economy, said at the third forum of
tourism competitiveness in Yerevan on Thursday that Armenia has already
recorded an increase in the number of tourists this year as compared to
2008.
`While internationally tourism is expected to decline by two or even three
percent this year, in the first quarter of 2009 Armenia reported the number
of tourists at more than 86,000, which is a 2.8 percent increase over the
same period of 2008,’ said Apresyan.
The Ministry’s Department of Tourism and Regional Development expects a 7-10
percent year-on-year increase in the number of tourists by the end of 2009.
(A total of 558,000 tourists visited Armenia in 2008.)
Nevertheless, Alan Saffery, Senior Competitiveness Expert with the U.S.
Agency for International Development’s Competitive Armenia Private Sector
project (USAID/CAPS), referred at the forum to the warning of the United
Nations World Tourism Organization connected with numbers.
`Even emerging economies which at the beginning seemed to resist better are
rapidly facing the impact of economic crisis,’ warned Saffery, emphasizing
that there are no clear forecasts as to what further impact the crisis may
have on the world tourism industry.
`This crisis is truly global and its parameters in many ways are unclear,’
he said.
The National Competitiveness Foundation of Armenia (NCFA) and the Armenian
Tourism Development Agency (ATDA) are in charge of the realization of state
measures aimed at increasing the number of tourists in Armenia.
ATDA, in particular, implements targeted marketing in Italy and France.
Also, different films and clips telling about Armenia are broadcast on
international media channels, such as CNN and EuroNews. Armenia participates
in international exhibitions (10 in 2008), a comprehensive website (
) with information on Armenian tourism available in eight
languages is expected to be launched soon.
According to ATDA representative Susanna Azoyan, 13,500 brochures in five
languages telling about Armenia were printed, 2,500 CDs released as well as
different books published last year with government and CAPS funding.
However, no figures are available yet to gauge the effectiveness of the
activities of the ATDA, the government and other organizations supporting
the development of tourism in Armenia.
`At the moment it is very difficult to really determine the effectiveness of
all actions, but the Ministry of Economy and the National Statistical
Service are now collecting all the data that can allow us to have
effectiveness indicators. But now we have some figures, for example last
year there was an increase by 40 percent in the number of Italians that
visited Armenia,’ said Saffery.
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6. Opinion: Political analyst predicts end of `Armenia-Turkey honeymoon’
By Georg Khachaturyan
A period of thaw in Armenian-Turkish relations has ended and more chill is
coming, according to a Yerevan-based political analyst who sees Ankara’s
growing concerns not to risk relations with regional ally Azerbaijan.
Sergey Shakaryants argued at a press conference Thursday that Armenian
concessions in the dispute with Azerbaijan over Nagorno-Karabakh are
becoming a more important precondition for Ankara for establishing bilateral
ties with Yerevan than the demand for an end to the worldwide Armenian push
for the recognition of the Ottoman-era killings of more than 1.5 million
Armenians as genocide.
Shakaryants, who spoke as an independent analyst, in the past had worked as
an international affairs export for a number of think tanks in Armenia,
including the Armenian Center for National and International Studies and the
Kavkaz analytical center.
Shakaryants reminded the media about high hopes among Armenians both in
Armenia and its worldwide Diaspora that U.S. President Barack Obama would
use the word genocide in an annual presidential address on April 24,
Genocide Remembrance Day, and that Congress would launch a corresponding
process and all state instances would pass a law condemning the Armenian
Genocide. According to the analyst, Turkey’s behavior after Obama’s failure
to honor his campaign promise and use the G-word proves it does not even
expect such a step from the United States.
`We are ready to conduct negotiations with Turkey, but without any
preconditions,’ said the analyst. `The main precondition of Turkey is that
the Armenian sides [Armenia and Karabakh] must admit their defeat and
surrender in the Karabakh issue,’ he said, pointing out that it is clear
from the latest meeting of the president of Armenia with representatives of
the Armenian Diaspora that Armenia will reject this condition set by Turkey.
And this implies that the Armenian-Turkish `honeymoon’ is nearing
completion, according to Shakaryants.
At the same time, the analyst believes that the Karabakh conflict is
unlikely to be resolved in the near future as Azerbaijan today is not ready
to make concessions, in particular in the issue of the referendum on
Karabakh’s status.
`It is pointless to expect a quick and effective settlement of the problem
today,’ said Shakaryants.
In the current situation, the Armenian side should take a hard-line and
`demand a lot in order to get at least half, and namely what we have no
right to give up,’ he said.
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7.
Strategic split: Fast lane geopolitics may reduce Russia’s influence in
the
region
Analysis by Aris Ghazinyan
The agreement on creation of Collective Rapid Reaction Forces has been
recently signed at the summit of the Collective Security Treaty Organization
(CSTO) in Moscow. The agreement was signed without the participation of
Belarus and Uzbekistan member-countries. Official Minsk has already
qualified the agreement as `illegal’ and sent a note of protest to CSTO’s
secretariat.
Russian President Dmitri Medvedev thinks that Uzbekistan’s and Belarus’s
decision not to sign the agreement on the creation of Collective forces
should not be dramatized. `We are ready for our partners who haven’t signed
that document yet to think it over and after having assessed the situation
to eventually sign the document,’ the president said.
One way or another, the outline of a potentially serious crack within that
most important military-strategic organization is obvious. Some half a year
ago nobody could have even predicted that such weighty players as Minsk and
Tashkent would ignore not only the CSTO summit, but would openly speak out
against the decision to create the Collective Rapid Reaction Forces.
CSTO block was founded during the period when the Soviet Union collapsed
and was an attempt to preserve a single military-political space on the
territory of the disintegrating state. In 1992 seven post-Soviet republics
became members of CSTO – Russia, Belarus, Kazakhstan, Kirgizstan,
Uzbekistan, Tajikistan and Armenia. In 1993 Georgia and Azerbaijan joined
the block almost simultaneously, hoping to get Russia’s support in
inter-ethnic conflicts. However, in the period of `Eltsin Russia’ Moscow was
unable to solve serious political issues, and CSTO was more like an
`internal buy-and-sell market for armaments’, than a serious
military-political factor. For this reason Georgia, Azerbaijan, and
Uzbekistan left the block in 1999.
In 2006, Uzbekistan re-entered the organization, however, quite recently,
news spread on negotiations between the USA and Uzbekistan about opening a
new US military base on the territory of Uzbekistan which would carry out
military operations in Afghanistan, to replace the Kirgiz Manas. (According
to the statement by the Commander of the US military base in Kirgizstan
Christopher Bens, the base will be closed by August 18 as required by the
Kirgiz government.)
Hence, the agreement on creation of Collective Rapid Reaction Forces in CSTO
structure has been signed only by Russia, Kirgizstan, Kazakhstan,
Tajikistan, and Armenia.
To some degree, it is Armenia’s situation that seems most indefinite. All
other CSTO member-countries signing the agreement have a direct land
connection by Tajikistan-Kirgizstan-Kazakhstan-Russia line, but Armenia is
isolated from that vector.
Moreover, as opposed to the Central Asian region, where Moscow’s positions
are sufficiently strong, despite Uzbekistan’s demarche, in the South
Caucasus CSTO’s main rival organization NATO’s positions look a bit more
preferable. It holds strong positions in Georgia and Azerbaijan.
North-Atlantic Alliance member Turkey directly borders the region and is
trying to influence the political process of each of the countries. There is
little doubt that the activated relations between Armenia and Turkey is a
Western project, aimed at `reorienting ‘ Yerevan towards the West. At the
moment Russian military base 102 is located in Armenia (in Giumri), and the
Armenian-Turkish border is guarded by three Russian frontier detachments
together with Armenian forces. Will Yerevan be able to `survive’ this
complicated situation, especially with the view of the split inside CSTO?
`I do not think that Armenia will be looking towards NATO in the nearest
future, despite bordering a NATO country – Turkey, and the recent slight
warming in Armenia-Turkey relations,’ says Leonid Gusev, senior scientific
worker at the Moscow State Institute of International Relations.
`Besides that, the Armenian elite has major connections with Russia
businesswise and in terms of different security structures. There is also a
big Armenian community in Russia, members of which are both Russian and
Armenian citizens who are making huge money transfers to their homeland.
That is why, in terms of practicality it isn’t in Armenia’s interest to join
NATO.’
He also said that at least for another several years Armenia would not seek
NATO membership: `Especially that the Karabakh issue is not settled with
Azerbaijan, which can become another obstacle on the way to NATO, even if
all Armenian elite would want that.’ It is significant, however, that the
Russian expert does not exclude the possibility of such desire on the part
of `all Armenian elite’ .
Ankara, in its turn, has activated efforts in the international arena. As
soon as Yerevan’s readiness to sign the agreement on the collective forces
on June 14 became known, Turkish Foreign Minister Ahmed Davudoghlu made a
statement: `Turkey will submit the Karabakh issue for consideration to the
United Nations Security Council in June. ‘ This statement has come as a big
surprise to Yerevan, which has repeatedly been stating that the dialogue
with Turkey is held only on the issues of bilateral relations between the
countries. The Armenian authorities have not commented on that statement
yet.
One should think the discussion of the Karabakh issue initiated by Turkey at
the UN Security Council and especially the CSTO member-countries’ position
on this issue will seriously affect the perspectives of that
military-strategic organization’s influence in the South Caucasus.
*************************************** ***********************************
8. Crisis and solutions: Karabakh struggles to weather global economic
turmoil
Naira Hairumyan
ArmeniaNow reporter
The Government of Karabakh continues to take certain measures for overcoming
the consequences of the global crisis, which has been affecting the economy
since last year, particularly in the form of decreased tax payments from
mining enterprises.
However, the country in general has managed to keep stability – salaries
and
pensions are paid on time, there is no mass unemployment, construction sites
are operating, agriculture is developing, as is tourism.
Due to the internationally unrecognized status, Karabakh cannot rely on
potential grants and loans from international organizations. That is why the
state budget of Karabakh is made up of its own incomes and the interstate
loan from Armenia, as well as international investments. The interstate loan
from Armenia in the first quarter of 2009 made 7.3 billion drams (about $20
million), which is 35 percent more than last year’s indicator for the same
period. Foreign investment per head made 13,870 drams ($37) instead of the
6,116 drams ($16.5) registered in 2007, which, in correlation with the GDP,
makes 2.2 and 1.2 percents correspondingly.
As for local incomes, the first quarter of 2009 registered 3,742.5 million
drams ($10.1 million), which is 7.7 percent less than during the same period
last year. The reduced indicator is the result of the decrease in tax income
which made 2,2006.9 million drams ($6 million) or 15.5 percent less than
expected.
However, construction continues in Karabakh and there are at least five
construction sites for multi-apartment residential buildings in Stepanakert.
Apartments will partly be given to people within the framework of social
programs, the other part will be sold through mortgage loans. In
January-April of this year, construction worth 7,009 million drams (about
$19 million) was carried out in the republic; last year’s indicator for the
same period was 4,498 million drams ($12.1 million).
According to NKR President Bako Sahakyan, some of the countermeasures to
survive the economic crisis are targeted application of state funds, as well
as conscientious fulfillment of duties. `These are not classic measures,
but
I am convinced that such an attitude will have a positive effect in terms of
overcoming the crisis,’ said the president.
It is not a hard task to oversee who spends state money and how in a small
country like Karabakh. Besides law-enforcement bodies, there is also
parliament adjunct Control Chamber auditing and overseeing different
agencies and organizations. In May, the Chamber revealed violations in the
sphere of school construction – the means allocated to the renovation of
schools in Shushi were dissipated. The Chamber warned that if the money
wasn’t returned within a month, the case would be transferred to
law-enforcement.
Starting from 2008, more than 10 cases were transferred to the prosecutor’s
office, on abuse of position and improper use of state funds.
Moreover, in 2008 the state toughened tax administration policy, which has
had its results – in the first quarter of 2009 the inflow of compulsory
social security tax made 1,110 billion drams ($2.9 million), which is 27.8
percent more than last year’s indicator. This was connected both to the
introduction of cash registers and licensing of certain types of activities.
Following Armenia’s example, for a few months Karabakh has been trying to
bring taxi drivers into the tax field. Despite the fact that they are
registered at tax bodies and are making the fixed payment, the new law
provides for taxi drivers to take `yellow’ license plates and pay a
significant amount of money for registration. Each taxi driver would have to
pay 80,000 drams ($215). Many complain that if they pay taxes as they are
required then working would lack any sense at all.
Economic analyses have shown that under the circumstances of the global
crisis tougher measures often have a reverse effect. At the recent session
of the government a decision was made to reduce the number of times for tax
reporting to only once in 6 months for individuals involved in activities
not implying work for a wage, with a turnover of no more than 36 million
drams ($100,000). Due to that taxing administration rules will be
simplified for small businesses.
Many condition the stability of the social sphere in Karabakh by the fact
that the major part of its population, especially in Karabakh, work at state
budget-funded institutions or receive state pensions and benefits. Out of
the 7,263 million drams ($20 million) of the state budget spent in the first
quarter of this year, 26.1 percent was for paying wages to state employees
and 2,623 million drams ($7 million) was paid in pensions and benefits.
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9. Driver, policeman, kickback: Corruption risks still high on Armenian
roads, largely through driver ignorance
By Gevorg Khachaturyan
In 2006 police bosses pompously announced the launch of an unprecedented
program to be implemented with the support of the World Bank due to which
all road signs would be renovated, new road markings would be drawn and
`spiteful’ traffic policemen would no longer jump out of shrubs to penalize
remiss drivers. Instead, under the program, cameras would be installed
everywhere to watch the traffic instead of GAI, a Soviet-era abbreviation
for the State Automobile Inspection.
The reform was intended to deliver a shattering blow against such a social
evil as corruption on the roads and transfer everything happening between
the driver and the traffic policeman onto the plane of civilized relations.
However, few things have actually changed and while road inspectors have
become more polite, the basic means of extorting money are still widely
practiced.
Director of the `Achilles’ Center for the Defense of Drivers’ Rights
Eduard
Hovhannisyan says it has been more than four months that his NGO has been
realizing a project as part of which drivers, in the event of a road
accident or a disputed situation on the road, may phone the organization and
call its specialist to the scene in order to get free consultation and all
necessary legal assistance.
Hovhannisyan says in the period from February to May the Center received 843
calls, or 8-9 calls a day on the average. Of these 843 calls, 226
immediately concerned so-called corruption risks, in other words situations
when traffic policemen were barefacedly extorting money.
Cases were registered when traffic policemen demonstrated a brazen ignorance
or deliberate concealment of traffic rules or acts of legislation concerning
traffic laws.
As example: GAI are fond of removing the license plate of a vehicle
illegally parked. In its first four months `Achilles’ has reported 57 cases
of illegal removal of license plates.
Armenia’s law on traffic safety adopted in 2005 says, however, that
unscrewing license plates is allowed only when a vehicle does not have a
sign confirming that it passed an annual technical inspection in due time or
if the validity of the sign has expired.
Further, if a traffic cop removes a vehicle’s license plate, he is obliged
by law to issue the driver a 10-day temporary plate. In all other cases the
law requires that the offender should be notified by mail that he has been
penalized. There is hardly a motorist in Armenia who has been penalized for
inappropriate parking this way.
It is common, too, for police officers to confiscate a driver’s license if
the driver argues that his or her rights have been violated.
The law, though, expressly states that a license can be taken in only a few
cases, such as: running a red light for the third time or speeding for a
third time, or refusing to obey an officer’s demand to stop.
In order to have a license reinstated, a driver must pay about $570. Facing
that sum, the driver might favor accepting the traffic officer’s
`negotiation’ of settlement.
Another driving plague is when police tow cars to an impoundment, as in that
case it will cost them a lot of nerves and even more money to get their
vehicles back. But Article 19 (prim) of the above-mentioned law says that a
vehicle can be impounded only if the driver does not possess a driving
license or a document confirming that his vehicle has passed a technical
inspection or if these documents are fake.
In reality, though, drivers in Armenia face impoundment on the whim of GAI
officers.
Twelve cases of illegal delivery of a vehicle to the impoundment have been
reported
during Achilles’ project. In eight cases those vehicles had Georgian license
plates. Driving a car with a driving license issued by a foreign country is
a `valid’ reason for Armenian traffic police to flag a car down and start
extorting money from an unlucky visitor.
But still in 1997 Armenia joined the International Convention on Road
Traffic which it ratified on February 8, 2006. Point 5 of Article 27 of this
Convention says that national driving licenses of more than 160 countries
that have acceded to this document are valid in the territory of the
participating countries.
And what about `breathalyzers’?
The law is very clear on this procedure – in the presence of two witnesses a
motorist blows a so-called sobriety tube and if the orange light of the
device changes to blue, the driver should be taken to a specialized medical
establishment for an examination. Breathalyzers have not been seen in
Armenia since Soviet times and the presence of alcohol in the driver’s blood
is determined by a traffic policeman by what he suspects to be the smell of
it. In these conditions the required presence of two witnesses becomes a
non-rule too – an unlucky driver is dragged to the specialized medical
establishment where he or she also has to pay 1,000 drams ($2.50) for the
examination for which no fee is required under law.
In all such cases, human rights specialists say the situation is unlikely to
change until drivers themselves learn to defend their rights by referring to
corresponding legislation.**
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10.** Weathering the Storm: the lessons for Armenia from the unrest in Iran
**
By Richard Giragosian
For much of this past week, Armenia’s southern neighbor Iran has been
gripped by a powerful, and at times, even violent post-election crisis. While
the past several days have seen the largest anti-government demonstrations
since the 1979 Iranian revolution, with hundreds of thousands of Iranian
citizens protesting a disputed presidential election, the scale and scope of
these protests have also revealed a set of even deeper and more serious
economic discontent.
The post-election unrest poses the most serious challenge to the Iranian
authorities since they came to power in the wake of the Iranian revolution
twenty years ago. In addition, the current wave of unrest is largely
directed against the ruling elite, although it is not, at least yet,
targeting the system itself.
Of course, the current unrest in Iran was triggered by political
developments- namely, by the 12 June presidential election, in which
incumbent President Mahmoud Ahmadinejad was declared the official winner
over his leading rival, former Iranian Prime Minister Hussein Mousavi. But
the deeper cause of the unrest is much more than a political dispute, but
stems from the broader context of the `economics of change’ within Iran.
The `economics of change’
Within this context there is also a class-based confrontation, with much of
the younger and more recently empowered Iranian middle class aspiring for
real change, while the older, much more conservative ruling `clerical elite’
merely seek to sustain the status quo. This division, between those hungry
for change and those simply struggling to hold on to power, also reflects an
economic competition.
For the Iranian middle class, the imperative is for Iran to forge a new
economic future, moving beyond international isolation and state-imposed
sanctions. Their demands are based on more than just hopes for a better
economic future, however, but also reflect more practical demands over
corruption, social restrictions, rising inflation, declining wages and an
overall lack of jobs. Such economic demands, naturally shared by university
students throughout Iran, have only swelled the ranks of the middle class
demonstrators. And it is a formidable force, empowered by years of unmet
promises and frustrated expectations, and also more politically assertive,
better educated and more socially sophisticated than its rivals.
Notably, the demographics of the protests reveal an interesting generational
aspect – whereby the majority of opposition demonstrators have no real memory
of Iran before the 1979 revolution. This youth factor not only infers a
much bolder, more courageous and even idealistic element to the
anti-establishment protestors, but also implies a more difficult challenge
to resolve the demands and expectations of a new generation of Iranians who
have matured only within the confines of years of isolation and economic
disengagement defined by the Islamic Republic of Iran’s world view.
On the opposing side, in open support for President Ahmadinejad, the ruling
`clerical elite’ is backed by a combination of more pious or
religious-minded Iranians and the rural population. For these people,
representing the most conservative elements of Iranian society, their future
is rooted more in the past than the present, and is certainly not seeking
any degree of change. This ruling elite, and the small wealthy upper class
that supports it, is a product of a system that has become defined by the
accumulation of wealth and power in the years after the revolution. Thus,
for this group, by its very nature, any change or deviation from the status
quo is seen as a threat to the system, to the state and, most importantly,
a
threat to their own personal power and wealth.
And it is this underlying economic division, which has only driven and
exacerbated the political unrest and mounting instability that offers
several important `lessons,’ and even warnings, for Armenia.
Lessons for Armenia
First, Iranians are now waging a struggle for the very future of Iran, set
off by a disputed presidential election. In this way, Iran is now facing
its own March 1st post-election crisis, similar to the events in Armenia
last year. Both crises led to the tragic deaths of civilian demonstrators.
Both episodes featured the use, and misuse, of force, with police and
security forces applying an excessive and repressive response to the
demonstrations. In Armenia’s case, the March 2008 crisis remains unresolved
to date, as the authorities have been unable or unwilling to fully and
fairly investigate the events of March 2008. Further, the Armenian case is
also plagued by a failure to adequately resolve the underlying tension and
demands of that crisis.
The second lesson for Armenia from the current crisis in Iran is the fact
that the election revealed that very serious domestic contradictions quickly
developed into a highly volatile and explosive internal situation that no
ideology, no mater how powerful, could contain. For the Armenian
authorities, this lesson also includes a warning: that there can be no
political panacea or substitute for not addressing concrete socio-economic
problems. And with Iran, it is also clear that the recent crisis has shown
that no country in this modern world can remain truly isolated.
But it is the third lesson from Iran, the `economics of change’ as a driving
force behind this tension that is even more worrisome for Armenia. In both
cases, young Iranians and Armenians share the same hopes, for a brighter
future, for economic opportunities, and for a voice in how their country is
governed.
For both countries, there is no return to the pre-crisis status quo. The
political and economic demands for change remain unmet. But to continue to
ignore these basic demands and natural expectations, creates a real risk of
only prolonging the crisis, and most dangerously, merely fuels the fire of
discontent.
=85=85=85=85=85=85=85=85=85=85=85= 85.
Richard Giragosian is the director of the Yerevan-based Armenian Center for
National and International Studies (ACNIS). `Weathering the Storm" is a
weekly column exclusively for ArmeniaNow.
************************************* *************************************
11. **Aid Approved: U.S. Panel agrees to $51 million for Armenia next year
Arpi Harutyunyan
Armenia has been approved by a key House panel of the U.S. Congress to
receive $51.4 million in aid during Fiscal Year 2010. The Foreign
Operations Appropriations Bill approved this week includes $3 million for
Foreign Military Financing (FMF), and $450,000 in International Military
Education Training (IMET). Nagorno Karabakh will receive $10 million.
Meanwhile, funding increases proposed for Azerbaijan, which had raised
charges of disparity from advocacy organizations including the Armenian
Assembly of America () were not approved.
. "U.S. assistance to Armenia helps to offset the impact of Turkey’s ongoing
blockade of Armenia," said Assembly Executive Director Bryan Ardouny. "The
Assembly commends Chairwoman Nita Lowey (D-NY) and members of the
Subcommittee for ensuring this positive outcome,"
The Subcommittee voted to maintain military assistance parity to Armenia and
Azerbaijan, keeping foreign military financing to both countries at $3
million. The panel chose not to accept President Obama’s proposals, included
in the FY10 budget that he released earlier this year, to reduce economic
aid to Armenia by 38%, from $48 million to $30 million, and to tilt the
military aid balance in favor of Azerbaijan.
"Today’s Subcommittee action sends the right message to the people of
Armenia and Nagorno Karabakh, that America will continue to assist our
friends in the region," said Ardouny. "However, the Assembly remains
concerned about the overall level of assistance to Armenia, especially the
impact of the Millennium Challenge Corporation’s (MCC) recent decision to
hold back funding on a rural roads project. The Assembly will continue to
press for increased assistance to benefit the people of Armenia."
As reported by the Armenian National Committee of America, soon after the
House Foreign Operations Subcommittee’s action, Congressional Armenian
Caucus Co-Chairs Frank Pallone (D-NJ) and Mark Kirk (R-IL) hailed the
panel’s actions.
"I commend the efforts of the Foreign Operations Subcommittee Chairwoman
Nita Lowey and Ranking Member Kay Granger to restore military parity between
Armenia and Azerbaijan,’ said Rep. Pallone. `Their bi-partisan leadership .
. . strengthens the U.S.-Armenia relationship by paving the way for
economic aid to Armenia and assistance to Nagorno Karabakh during this
global recession."
In March of this year, Assembly Board of Trustees Member Van Krikorian
testified before the House Appropriations Subcommittee on State Foreign
Operations and Related Programs, outlining the Assembly’s priorities and
urging not less than: $70 million for Armenia, $10 million for Nagorno
Karabakh as well as $4 million in Foreign FMF and $1 million in IMET for
Fiscal Year 2010.
The full Committee is expected to consider the bill next week with a vote in
the House of Representatives anticipated before the August Congressional
recess.
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12. Big bout: `Armenian v Turk’ as Boxing King Arthur challenged by
`fellow
German’
By Suren Musayelyan
Boxing
A German-Armenian thumper will be in the tenth defense of his professional
boxing title against a fellow German challenger of Turkish descent next
week.
Sparring partners in their early days in professional boxing, International
Boxing Federation (IBF) middleweight champion Arthur Abraham (dubbed King
Arthur) and Hamburg-based Mahir Oral (dubbed Lion) will have a showdown in
Berlin’s Max-Schmeling-Halle on June 27 in what in fact will be a home fight
for King Arthur.
`I have very good memories of this arena, particularly the fight with Khoren
Gevor,’ said Abraham, referring to the 11th round knockout against a fellow
German-Armenian fighter in August 2007.
Abraham (29-0, 23 KOs) and Oral (25-1-2, 10 KOs) are both 29 years of age.
They sparred together in Cologne in 2003-2004 still as commencing
professional boxers and both say they have been on good terms ever since.
At the first press conference before the fight the two boxers spoke with
respect about each other.
Abraham said he took the fight seriously: `We are both sportsmen and are
training hard. We both do our own job – he does his and I do mine – but of
course I would be lying if I didn’t say I want to win. Afterwards, things
will revert to how they were before.’
And Oral said: `It was a great pleasure for me to hear that I was going to
fight Arthur=85We know each other from our early days as sparring partners,
although now we have both matured. Arthur has become King and I have
developed a lot too=85′
Abraham’s trainer Ulli Wegner said he expected a great fight on June 27.
`Mahir
is a great lad. We will let what happens in the ring decide who is the
best,’ he said. `=85Boxing fans have had to witness a few bad fights recently
and that is why we want to put on a particularly good show.’
(Combined sources: Based on foreign media reports)
Soccer
Despite a 0-0 draw against Gandzasar, Yerevan’s Pyunik continues to be in
first place in Armenia’s Premier League championship, with equal points with
second-placed Mika but with a game at hand. In other matches played
over the weekend Ulis lost to Mika 1-2, Kilikia drew against Shirak 1-1 and
Ararat lost to Banants 0-2. Mika beat Banants 2-1 in a match postponed from
one of the previous rounds.
Ararat, the club that was in a close contest with Pyunik for the
championship title last season, thus suffered its eleventh defeat in as many
games this year. It is now ten points behind Gandzasar and travels to play
the latter on Saturday.
In other weekend games (June 20-21), Shirak will host Pyunik, Banants will
play Ulis and Mika will play Kilikia.
(Source: Football Federation of Armenia)
Chess
WGM Lilit Galoyan finished in seventh place (with 6 points) in the Maia
Chiburdanidze Cup that recently ended in Tbilisi, Georgia, reports
In a tournament that had brought together 57 female chess players, the other
two Armenian representatives, WGM Lilit Lazarian and WIM Siranush
Andreasyan, scored 5 ½ and 5 points and finished 12th and 19th,
respectively. Georgia’s Bela Khotenashvili and Lela Javakhishvili shared
the
top spot with 7 points each.
(Source: **)
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