U.S. Aid To Armenia Linked With Clean Polls

U.S. AID TO ARMENIA LINKED WITH CLEAN POLLS
By Ruben Meloyan

Radio Liberty, Czech Rep.
Dec 12 2006

The provision of $236 million in additional U.S. economic assistance
to Armenia is conditional on proper conduct of its forthcoming
parliamentary and presidential elections, U.S. officials said on
Tuesday.

The five-year aid package is part of the U.S. administration’s
Millennium Challenge Account (MCA) program that seeks promote economic
and political reforms around the world. Armenia and neighboring
Georgia remain the only ex-Soviet states eligible for the scheme. The
Millennium Challenge Corporation, a U.S. government agency managing
it, has already disbursed the first $1.4 million installment of the
sum earmarked for Armenia.

"In order for Armenia to continue to receive this funding, the Armenian
government must maintain a high level of performance in ruling justly,
investing in people and promoting economic freedom," Anthony Godfrey,
the U.S. charge d’affaires in Yerevan, told reporters in Yerevan. "Only
by continuing to institute democratic reforms, including ensuring a
free and fair process in the run-up to the 2007 and 2008 elections,
can Armenia make sure that its people can continue to benefit from
this $236 million program."

Earlier this month, the MCC reaffirmed Armenia’s eligibility for
the program despite serious concerns about the Yerevan government’s
democracy and human rights records that were expressed by the
corporation’s chief executive, John Danilovich. In a May letter to
President Robert Kocharian, Danilovich said that a "continued negative
trend in Armenia’s policy performance would endanger the continuation
of the recently signed [MCA] Compact."

Godfrey warned that the MCC might therefore reconsider its decision
in the course of the next year. "Normally the board will review
eligibility criteria one time per year," he said. "But in the case of
a sharp drop in any of the [MCA eligibility] indicators or categories,
it can make a more abrupt decision."

"But it’s our great hope that that won’t happen," the U.S. diplomat
added.

Alex Russin, an MCC executive in charge of the compact’s
implementation, made it clear that next year’s parliamentary elections
will be a crucial test for the Armenian authorities’ stated commitment
to democracy and rule of law. "We are concerned about the upcoming
elections, and I hope that it will be a chance for the government
and the Armenian people to demonstrate greater improvement over what
happened last year," Russin said in an apparent reference to the
disputed November 2005 referendum.

The U.S. government strongly criticized the referendum and previous
Armenian elections that were marred by serious fraud reported by
local and international observers.