Author: Chavushian

ITAR-TASS, Russia
Nov 19 2004

WB to provide 20 million-dollar loan to Armenia to fight poverty

WASHINGTON, November 19 (Itar-Tass) – The World Bank has decided to
provide 20 million dollars in a loan to Armenia intended to back
Yerevan’s efforts to eradicate poverty.

The World Bank press service has reported that it will be the first
loan in the frame of a three-year program of assistance to Armenia in
this field.

The project aims to accomplish four main tasks, the first one being
the enhancement of macroeconomic discipline and improvement of
administrative and corporate governance, including the struggle
against corruption.

The other directions are ensuring the ownership rights and the
creation of conditions for stiffer competition in the economy;
forestalling and alleviation of social and environmental risk
factors; and modernization of agricultural modernization.

The World Bank loan is to be released on soft terms through the
Bank’s International Development Association. The government of the
Netherlands will provide 4.3 million euros to co-finance the project.

Greek shares close lower, OTE outperforms

AFX Europe (Focus);
Nov 19, 2004

ATHENS (AFX) – Shares closed lower on blue-chip profit-taking late in
the session, brokers said.

The Athens bourse benchmark general index shed 0.34 pct at 2,623.13
points.

Index heavyweight OTE Telecom bucked the trend, gaining 1.11 pct to
12.76 eur after UBS upped its price target on the share.

UBS increased its price target on OTE to 12.5 eur from 10.5 eur,
reflecting a more aggressive cost-cutting process, slightly less top
line pressure and a lower corporate tax rate.

Brokers said positive news regarding OTE’s foreign investments also
helped lift sentiment in the stock.

Local press reports said that OTE’s talks with Armenia on the market
conditions under which telecom operator Armentel operates are going
well, paving the way for the Greek company’s divestment from
Armenia. OTE owns 90 pct of Armentel and has said that it intends to
pull out of the Armenian market.

Subsidiary cellular operator Cosmote dropped 1.56 pct to 13.88
eur. Earlier, Dresdner increased its price target on cellular operator
Cosmote to 17 eur from 15.50 eur and maintained its buy rating on the
share.

Blue chips dipped 0.42 pct and banks fell 0.83 pct.

Investors chipped away at recent gains in Emporiki Bank, Greece’s
fourth largest bank based on assets. Emporiki gave up 2.29 pct at
23.92 eur.

Alpha Bank dropped 1.23 pct to 24.10 eur and National Bank eased 0.09
pct to 23 eur.

Mid caps slipped 0.69 pct and small caps eased 0.28 pct.

Losers beat winners 188 to 102 with 65 unchanged on volume of 150 mln
eur.

Turan news agency, Baku, in Russian
18 Nov 04

Bulgarian embassy denies journalist of Armenian descent barred from
Azerbaijan

Baku, 18 November: The Bulgarian embassy in Azerbaijan has no
information about the incident involving Bulgarian citizen Eduard
Papazyan, a source at the Bulgarian embassy said while commenting on
a report by the Armenian news agency Arminfo about the deportation of
a Bulgarian journalist named Eduard Papazyan from Baku airport last
night.

Armenian sources insist that Papazyan was accredited among Bulgarian
journalists and arrived in Baku from Istanbul to cover a qualifier
[as published, actually a friendly] between Azerbaijan and Bulgaria.

The diplomatic mission is unaware of the incident and does not know
anyone by that name, the embassy source told Turan.

The press service of the Association of Football Federations of
Azerbaijan [AFFA] has also denied the Armenian report. The head of
the press service, Mazahir Suleymanzada, said that a total of eight
Bulgarian journalists were accredited to the match and there was
no-one named Papazyan among them.

According to the Arminfo report, the Bulgarian ambassador to
Azerbaijan, Ivan Palchev, allegedly took measures to ensure
Papazyan’s normal arrival in Baku.

Margaret Thatcher’s Son Charged in Plot

By RODRIGO ANGUE NGEUMA MBA
.c The Associated Press

MALABO, Equatorial Guinea (AP) – Equatorial Guinea prosecutors
confirmed Thursday they have charged Mark Thatcher, son of former
British Prime Minister Margaret Thatcher, in an alleged coup plot in
the oil-rich west African nation.

Thatcher is accused of having helped finance the coup attempt,
Attorney General Jose Olo Obono said.

Thatcher was added to the existing list of 19 other defendants, all
accused mercenaries, on Tuesday, Obono said.

Equatorial Guinea intends to seek Thatcher’s extradition, a legal
official close to the government’s case told The Associated Press
earlier this week.

Equatorial Guinea alleges Thatcher and other, mainly British
financiers, worked with Equatorial Guinea opposition figures, scores
of South African mercenaries, and six Armenian pilots in a takeover
plot here.

The coup plotters intended to force out the 25-year regime of
President Teodoro Obiang, installing an exiled opposition figure in
his stead as a figurehead leader for Africa’s No. 3 oil producer,
Equatorial Guinea claims.

The alleged plot was exposed in March by South African intelligence
services, and scores of accused mercenaries arrested here and in
Zimbabwe.

Thatcher was arrested in August at his home in South Africa.

Trial resumed Thursday, with prosecutors’ lead witness formally facing
the death penalty after repudiating his alleged confessions in the
case in court on Tuesday.

11/18/04 06:45 EST

Institute for War & Peace Reporting
Nov 17 2004

FROM CHECHNYA TO KARABAKH

Nurses hope to transfer skills learned in one war-torn region to
their own homeland.

By Ashot Beglarian in Stepanakert

In a pioneering collaboration, two nurses from Chechnya are learning
how victims of war are helped to recover in Nagorny Karabakh, so that

they can apply these new skills when they return to their war-torn
homeland.

The two women, Madina Alkhanova and Louisa Dagieva, both aged 25,
have come to Karabakh under a Chechen health ministry scheme funded
by
the United Nations Children’s Fund, UNICEF.

Having worked in different hospitals in Grozny, the women can talk
from experience about how Chechnya’s public health system is in
crisis,
with little help available for the victims of war.

The joint project – bridging two parts of the Caucasus that are very
remote from one another – came about thanks to Vardan Tadevosian,
director of the rehabilitation centre that has been operating for six

years in Stepanakert, Karabakh’s capital. In November 2002, he spoke
about his centre’s work when he attended a seminar in Vladikavkaz
organised by the Caucasus Forum, a network of non-governmental
organisations. A year later, participants in the seminar went to
Karabakh to see
the centre for themselves.

In autumn 2003, Tadevosian met an official from the Chechen health
ministry who spotted the need for a similar rehabilitation centre in
Chechnya, where the legacy of two conflicts has left thousands of
people wounded and disabled.

That meeting resulted in the nurses’ working visit to Karabakh, where

they are in the second month of a half-year course, studying
alongside local students.

The centre was opened in September 1998, with assistance from the
international group Christian Solidarity Worldwide, and aims to
treating
victims of the 1991-94 war between Azerbaijanis and Armenians, and
integrating them back into society.

In 2002, the centre was brought under the Karabakh health ministry.
As well as arranging treatment, it trains patients in skills such as
wood carving, computer technology, needlework, music, drawing and
English.

The two Chechens admit they were cautious about coming to a place
which is overwhelmingly Christian.

“To be honest, some of our relatives and close friends were afraid
for us and tried to talk us out of it,” said Alkhanova. “They said,
‘You are Muslims and they are Christians, nothing will come of it.’
But
we were sure it was all just prejudice.

“We feel very much at home in Stepanakert. We have a lot in common
with the Karabakhis, they have many comparable or similar traditions
and customs.”

Both women say they have good memories of the Armenian neighbours
they once had in Grozny.

Alkhanova says they have been well treated in Karabakh, and describes

the people who work at the rehabilitation centre as “like gold”.

Previously, the women knew little about Karabakh, except that it went

through a terrible war, so they were surprised to see virtually no
traces of destruction left in Stepanakert. They are still optimistic
that Chechnya can revive and go back to a normal existence.

“There are many people in Chechnya who have suffered because of the
war,” said Dagieva with undisguised pain.

“Almost every day there are explosions, new victims and casualties,
and many disabled people. Of course, not all of them have an
opportunity to travel abroad for treatment, which is why it is
necessary to
help people in situ, so that they don’t feel they are a burden to
themselves and to those around them. That’s why our republic needs a
rehabilitation centre.”

The two nurses said they intend to begin work establishing such a
clinic in Chechnya immediately they return home.

“We ourselves have learnt a lot from these women,” said Tadevosian.
“We have much in common as well as many differences. We have enjoyed
getting to know their traditions and customs. I think our
collaboration will continue even after the end of the present
programme.”

Ashot Beglarian is a freelance journalist and regular IWPR
contributor in Stepanakert, Nagorny Karabakh.

Un camp terroriste du PKK démantelé; pays-bas
par Laure Mandeville

Le Figaro, France
13 novembre 2004

Encore sous le choc de l’assassinat du cinéaste Theo Van Gogh
par un Néerlandais d’origine marocaine apparemment lié à un réseau
terroriste international, les Pays-Bas ont assisté, hier, avec stupeur,
à l’interpellation de 29 personnes sur un camping situé à proximité
de la bourgade de Liempde dans le sud-est des Pays-Bas. Le village
de bungalows servait à «préparer à la lutte armée du PKK (Parti
des travailleurs du Kurdistan, rebaptisé Kongra-Gel) en Turquie,
en commettant des actions terroristes», a expliqué le Parquet
national, précisant que neuf autres suspects avaient été arrêtés dans
le pays. L’annonce a créé une véritable onde de choc au pays des
tulipes et de la tolérance, puisqu’il s’avère qu’il a été possible
de mener des activités paramilitaires illégales au beau milieu de
la campagne hollandaise, sans que les services de renseignement
ne s’émeuvent vraiment. Selon le journal du soir NRC Handelsblad,
les services de renseignement AIVD avaient toujours affirmé par le
passé qu’il n’existait pas de centres de formation à la guérilla du
PKK. Ils reconnaissaient seulement que des cours d’histoire étaient
donnés en différents points du territoire néerlandais, expliquant ne
pas avoir d’informations selon lesquelles le PKK aurait dévié de ces
activités pacifistes. «Nous avons des indications selon lesquelles
les participants (NDLR : au camp entraînement) auraient été envoyés
en Arménie à la fin de leur formation pour participer aux actions du
PKK», a pourtant indiqué le Parquet hier.

Le PKK étant sur la liste des organisations terroristes de l’Union
européenne, les personnes interpellées seront accusées de terrorisme,
a-t-on indiqué de même source. Par le passé, cette question du PKK
avait déjà créé des tensions entre la Turquie et les Pays-Bas, Ankara
accusant les Néerlandais d’être trop conciliants. Officiellement,
l’opération coup de poing menée par les forces de l’ordre néerlandaises
est l’aboutissement d’une enquête commencée il y a un an et n’est
donc pas liée à l’assassinat de Van Gogh. Mais ces nouvelles
informations ne manqueront pas d’alimenter la polémique sur les
faiblesses du système policier hollandais, qui fait rage depuis
quelques jours. Jeudi soir, l’affaire Van Gogh a donné lieu à un
débat parlementaire agité, au cours duquel nombre de députés se sont
interrogés sur les responsabilités du ministère de l’Intérieur. Le
ministre de l’Intérieur Remkes, issu du parti libéral VVD, a été pris
à partie par des membres de sa formation, soucieuse de présenter à
ses électeurs une image musclée sur le front de l’antiterrorisme. Une
réforme de l’action des services de renseignement néerlandais est de
plus en plus à l’ordre du jour alors que se multiplient les révélations
sur l’entrisme des cellules de l’islam radical aux Pays-Bas. Selon
le quotidien suisse Le Temps, qui cite le ministère de l’Intérieur
espagnol, l’assassin présumé de Theo van Gogh, Mohammed Bouyeri, un
Maroco-Néerlandais de 26 ans, aurait été en contact direct avec le
chef présumé d’une cellule terroriste en Espagne, Mohammad Achraf,
soupçonné d’avoir projeté un attentat à Madrid contre la principale
instance pénale espagnole. Le groupe de Bouyeri serait par ailleurs
lié au Marocain Abdelhamid Akoudad, détenu en Espagne et accusé d’être
impliqué dans l’attentat islamiste de Casablanca, en 2003.

–Boundary_(ID_FnpFD+EbroDj5RAk/FJ9Ug)–

WORLD INVESTMENT REPORT 2004 LAUNCHED IN ARMENIA

ArmenPress
Nov 12 2004

YEREVAN, NOVEMBER 12, ARMENPRESS: The Armenian Development Agency,
the Ministry of Trade and Economic Development of Armenia and
United Nations Development Program (UNDP) launched today the World
Investment Report 2004: The Shift Towards Services, a UNDP press
release said. Tigran Davtyan, Deputy Minister of Trade and Economic
Development, and Lise Grande, UN Resident Coordinator and UNDP Resident
Representative, presented the Report, which was prepared by the UN
Conference on Trade and Development (UNCTAD).

The Report examines the global shift towards services and discusses
the challenges and opportunities for development that arise from this
shift. The Report shows that for the third year in a row, global
flows of foreign direct investment (FDI) are declining, reaching
$560 billion – the lowest level since 1998. Behind the global picture
of declining investment flows, the performance of different regions
varied. Overall, out of a total of 193 economies, 111 experienced a
rise in FDI inflows, and 82 a decline. The largest declines occurred
in developed countries, with inflows to the European Union and North
America plummeting by USD130 billion. FDI in Armenia increased from
$88 million in 2001 to $155 million in 2003. In the south Caucasus,
significant foreign investment occurred in Azerbaijan’s oil industry
and Georgia’s oil transport sector.

The Report shows that the bulk of global FDI is channeled into service
sectors, which are the highest growth sectors in many economies. In
the early 1970s, 25 percent of FDI was directed into the service
sector compared to 60% now. The composition of foreign investment
within services is also changing: while trading and financial
services previously accounted for about half the inward stock of
FDI in services, services such as electricity, telecommunications,
and business services are becoming increasingly prominent.

The Report concludes that to benefit from an increasingly globalize
and interdependent world economy, countries need to strengthen their
competitive services. If conditions are right, FDI can help to achieve
this. FDI’s most important contribution is in bringing the skills,
capital and technology countries need to set up competitive service
industries. This applies not only to the new information technologies,
but also to such traditional services as infrastructure and tourism.

Lise Grande noted in her speech: “Countries need to improve their
service industries to stay or become competitive. This applies
particularly to Armenia where the transition is continuing. The Report
that we have launched today shows that foreign direct investment in
services can help to improve the quality of, and people’s accessibility
to, services. The Government, private sector and international
community need to work together to create the conditions that will
help promote investment in these services, which in turn, will help
to increase the country’s competitiveness in the region and the
global economy.”

A Libertarian Explanation of Genocide
by R.J. Rummel

Antiwar.com, CA
Nov 12 2004

Often it is said that we should understand genocide to prevent it.
This is wrong. Understanding is not the key. An explanation is:
specifically, explaining genocide as due to unlimited power.

Let’s first consider the Holocaust, which is the paradigm case
of genocide. Scholars and historians have tried to understand the
Holocaust in terms of Nazi racism, their hatred of the Jews and belief
that the Jews were “vermin”; their idea that the betterment and future
of German society demanded purifying it of these “bloodsuckers”;
traditional German submission to authority, even to their racist Nazi
rulers; and so on.

But to prevent genocide or mass murder generally, understanding
the Holocaust in this way is not enough, not if one wants to know
as well why Jews were murdered in earlier times by the Poles,
Romanians, Hungarians, Croatians, Ukrainians, Russians, etc. Nor
is this understanding of the Holocaust sufficient to have prevented
the Rwandan rulers’ murder of up to a million Tutsi; the Young Turks’
murder en masse of nearly 2 million Armenians; the Pakistani military’s
mass murder of over a million East Pakistan Bengalis and Hindus; the
Khmer Rouge’s murder of hundreds of thousands of Buddhist monks, Chams,
and Vietnamese-Cambodians; and so on. To deal with these genocides,
we need an explanation.

An explanation provides the basis for predicting a behavior will
occur. Understanding helps form an explanation, but also may inhibit
it. That is, understanding that the Nazis characterized the Jews as
vermin that they were eradicating does not help in predicting genocide
elsewhere. For example, the belief of top leaders that the Jews (or
some other minority group) are something like vermin would not have
forecast many other major genocides in the 20th century. For example,
some French and Polish political and military leaders held this view,
and yet did not try to promote a large-scale genocide of Jews in
their respective countries.

Many sociologists and political scientists have been searching for an
explanation of genocide and mass murder that would give us a warning of
when it might happen. The problem has been that what seems predictive
via understanding in one national/cultural context has not been in
another. Accordingly, some of us have taken a different approach. Can
we find a condition X, such that its presence or absence makes it more
likely for situationally unique factors to result in genocide and mass
murder? We have studied many such possible predisposing conditions,
such as education, ethnic/racial diversity, population density,
religion, ethnicity or race, regional location, and culture. For
example, is genocide more likely when there are many ethnic groups in
a country and when one particular ethnic group dominates others? The
answer is no, not generally.

But, one condition does stand out in all such research, and that is
the kind of political system that a nation has, and particularly,
the power at the center. Virtually all genocides and non-genocidal
mass murders obey the following social law:The more power those who
rule have, the less libertarian the government, the more likely the
rulers will commit genocide and mass murder.

Note that throughout contemporary Europe, including Germany, Rumania,
Hungary, Russia, and Ukraine, any repeat of a mass murder of Jews is
inconceivable at present. So it will be as long as these countries
remain free. For free countries commit no such murder of their
citizens; totalitarian regimes murder in the millions, and some
in the tens of millions, such as the Soviet Union, China, and Nazi
Germany. Power kills, absolute power kills absolutely.

This is the explanation of the Holocaust and almost all genocides. It
says that when any regime, such as the Nazis, can command their
subjects as they wish, then those unique elements, such as hatred,
economic envy, threats to power, etc., can have their lethal effects.
So understanding does have a crucial role. It provides insight into
why, given authoritarian or totalitarian rule, something like the
Holocaust can occur. But alone, this understanding will not provide
much help to prevent it or other genocides. The explanation in terms
of power does, however.

Therefore, how do we try to assure “never again”? Foster freedom –
reduce power at the center.

–Boundary_(ID_/TcSlYEz55SUckXXarJs2g)–

Armenian version and the photo of the church carving are attached.

PRESS RELEASE

REF: PR/04/11/013

Assembly of Armenians of Europe
Contact: Armine Grigoryan
Rue de Treves 10, 1050 Brussels
Tel: +32 2 647 08 01
Fax: +32 2 647 02 00

THE 10TH CENTURY ARMENIAN CHURCH IN TURKEY AS TARGET FOR SHOOTING PRACTICE

Brussels, 11/11/2007 – The correspondent of the Milliyet newspaper
(Turkey) alerts from Van (Eastern Turkey) that the marvelous carvings of
the 10th century church of Akhtamar (Lake Van, Eastern Turkey) are
regularly being used as targets for shooting practice by visitors. The
newspaper published also a photo where one can see the state of carvings
after such visits. The correspondent reports that the church is
protected by a guard in the summer time only during the working hours.
During the rest of the day the visitors entertain themselves by shooting
on the carvings of the Akhtamar Church, and some of them even try to
find some treasure. Pr. Veli Seçkin, professor at the archeology
department of the University of Van says that there are rumors among the
population that there is treasure cached in the island of Akhatamar.
Even the guard of the Church was arrested while he was ~Shunting for
treasure~T.

Already in May 2004 the newspaper Zaman alerted that the famous church
of the Holy Cross of the Akhtamar Island in Lake Van was almost in
ruins.

The church, which is visited by many foreign tourists, is badly negleted
and close to ruins. The church has been neglected and harmed by treasure
hunters and is at risk of collapsing. Both its foundation and ceiling
have cracks and holes.

The City of Van’s Culture and Tourism Province Director, Bilal Sonmez,
told Zaman that a project for the preservation of the historical
identity of the church is already being prepared. Sonmez said that the
issue has already been transferred to the Culture and Nature Assets
Council and that the directorate is waiting for a decision.

Unfortunately the above-mentioned project for the preservation of the
historical identity of the church was never carried out and the Church
is not protected by UNESCO, since each country decides which are the
monuments to be protected by UNESCO.

The Assembly of Armenians of Europe and upon its request many Armenians
all around the world sent alert letters to UNESCO, but they remained
without answer.

In order to raise the awareness of the European an exhibition ~SArmenian
Architectural Heritage in South Caucasus and Middle East~T, organized by
the Assembly of Armenians of Europe with the co-operation of the
Research on Armenian Architecture under the patronage of the MEP Jonas
Sjostedt (GUE,NGL, Sweden) took place in the European Parliament,
Brussels at the end of September 2004. The exhibition was composed of 4
parts ~V Armenia, Turkey, Iran, Azerbaijan. The photos in Azerbaijan and
Turkey show clearly the wanton and premeditated vandalism and
destruction of the Armenian Architectural monuments in those countries.
Indeed, such behavior is the direct consequence of the denial of the
Armenian Genocide committed by the Ottoman Empire in 1915 and which is
not recognized yet by the Republic of Turkey. We believe that such
attitude from the Republic of Turkey aspiring the EU full membership is
not acceptable and should not be tolerated.

Hereby we call upon the UNESCO, European Institutions and international
organizations to urge Turkey to stop destroying the Armenian
Architectural monuments which are located in the territory of the actual
Republic of Turley and instead to begin a genuine programme of
protection and preservation of this great cultural heritage that belongs
to the whole of Europe and the world.

***

Akhtamar Chruch

The Church of Holly Cross, the Akhtamar Church is situated in Lake Van,
Eastern Turkey. The Church was built during the reign of King Gakik I of
the Vaspurakan Dynasty during the years 915 – 921 B.C. This is one of
the finest jewels of Armenian architecture. In its design and conception
of volumes and surfaces, this sanctuary is an intellectually original
variation of the cruciform and central cupola’d churches of the high
Middle Ages. The church has a four leaved clover plan with a domed
center, and it is built from red colored cut tufa stone. All the
interior walls and even the cupola are covered with beautiful frescoes,
the best of which is the one painted on the high altar wall representing
the triumphal entry of Jesus into Jerusalem, sitting on a white donkey.
Because of its novel conception, its high reliefs and frescoes of rare
artistic value

–Boundary_(ID_ijIAagZacDnL+Z1lBgyRug)–

ARMENIA: REPORT SHOWS SIGNIFICANT DECLINE IN POVERTY
Haroutiun Khachatrian: 11/09/04

Eurasianet Organization, USA
Nov 10 2004

A recent economic survey in Armenia, showing a significant decline in
the number of citizens living in poverty, has placed President Robert
Kocharian’s administration in a somewhat awkward position. While
Kocharian has been eager to show Armenians that living standards
are improving, the report’s findings could complicate the Armenian
government’s efforts to secure international aid for poverty-reduction
programs.

The annual survey of household incomes by the National Statistical
Service, a non-governmental agency, contained a full range of startling
statistics. Among the most surprising: the percentage of Armenians
living below the poverty line fell from 50 percent in 2002 to 42.9
percent in 2003. Similarly, the number of poorest Armenians – those
who earn less than 7,742 drams (about $15) per month – also took a
surprising plunge — from 13.1 percent of the population in 2002 to
7.4 percent in 2003. At the same time, the survey indicated that the
country’s income gap between rich and poor narrowed slightly.

The statistics reveals that the poverty reduction rate in Armenia
far exceeds the government’s projections as outlined in its Poverty
Reduction Strategic Paper (PRSP) released earlier this year. In the
PRSP, for example, officials estimated that that it would take until
2012 before the so-called “very poor” could be reduced to less than 8
percent of the population. The NSS figures show that this benchmark has
been surpassed a full eight years ahead of the government’s schedule.

Given the NSS findings, questions are already being raised about the
accuracy and potential effectiveness of the government’s anti-poverty
blueprint. While officials have been happy to tout the reduction
in poverty, already one government minister has disputed the NSS
findings. At a recent news conference, Vardan Khachatrian, the minister
of finance and economy, described the results as difficult to trust
and too optimistic.

Some economic experts share Khachatrian’s doubts. “I cannot see the
reasons which could bring about such a drastic change in the percentage
of the population made up by the very poor,” said Ruben Yeganian, a
researcher at Yerevan’s Institute of Economic Problems. The decrease
was particularly improbable for 2003, when Armenia’s inflation rate
soared in response to an increase in foreign grain prices, Yeganian
asserted. That year, bread prices increased by 31 percent between
January and December, causing an overall 8.6 percent increase in the
consumer price index, compared with a 2-percent rise the previous year.

A recent report by the International Crisis Group (ICG) echoes
Yeganian’s assessment. The October 18 study, titled “Armenia:
Instability Ahead,” states that while the market reforms of the
1990s may mean Armenia is now enjoying a relative boom, relatively
few Armenians have seen a vast improvement in living standards. “The
benefits of economic recovery are not equally shared,” the report
found. “There is little sign of poverty decreasing.” [For additional
information see the Eurasia Insight archive].

Contradicting the NSS, the ICG report cited statistics that show 55
percent of the population lives in poverty, with wealth concentrated in
Yerevan and in “circles close to the government.” Meanwhile, the exodus
of educated, well-trained workers — one of the main obstacles to an
Armenian economic comeback — continues. Favored labor markets include
Russia, Central Europe, Ukraine and Turkey, where potential salaries
are higher than the $78 average monthly salary to be had in Armenia.

The poverty issue has figured prominently in the ongoing power struggle
between Kocharian and opposition political parties. [For background
see the Eurasia Insight archive]. In an attempt to outflank his
critics, Kocharian unveiled a 12-year plan for fighting poverty in
June. Yeganian speculated that the government may have cast doubt
on the NSS findings in order to prevent a decrease in foreign aid
programs. An additional factor feeding official concerns, Yeganian
suggested, is the decrease in value of the US dollar against the
Armenian dram over the last year. As a result, the incomes of
Armenians, when denominated in dollars, appear to have increased.

The Armenian government counts heavily on international aid to
promote economic stabilization efforts, including anti-poverty
programs. Armenia hopes to receive $100 million for various economic
development schemes in 2004 from the US Millennium Challenge Account
program, aid monies that are contingent the country’s record for
democratic reform and human rights. Also in support of Kocharian’s
agenda, the World Bank has pledged to deliver $250 million by November
2004 for work on rural schools, infrastructure and irrigation systems.

Some representatives of the NSS themselves have admitted to being
caught off guard by the survey’s results. Hovik Hohannisian, head of
Food Security Statistics, raised questions about the criteria used
to determine who is “very poor,” saying that the food basket used to
determine purchasing power was actually more like a “bread basket.”

Meanwhile, one of the country’s main creditors, the World Bank,
said it saw no reason to doubt the NSS data, the Bank’s Yerevan
spokesperson, Vigen Sargsian, told EurasiaNet. Aside from the World
Bank, the NSS’s data is routinely cited by international organizations,
including the International Monetary Fund. The NSS also receives
advice from representatives of the European Union and the US Agency
for International Development.

Editor’s Note: Haroutiun Khachatrian is a Yerevan-based writer
specializing in economic and political affairs.