High Stakes, High Anxiety: Campaigning in Lebanon

Washington Institute for Near East Policy
PolicyWatch #1488
March 12 2009

High Stakes, High Anxiety: Campaigning in Lebanon

By David Schenker
March 12, 2009

This Saturday, Lebanon’s pro-West March 14 coalition officially kicks
off its election campaign in Beirut. Two weeks ago, the Hizballah-led
opposition — backed by Syria and Iran — started campaigning in its
stronghold in the Beqa Valley. With less than three months until
Lebanon’s parliamentary election, the contest, which pits March 14
against Hizballah’s so-called March 8 coalition, promises to be
extremely close. Four years ago, March 14 won a thin majority in the
parliamentary elections, but it is unclear whether the coalition will
return to power this June. Should the opposition prevail, the impact
on Lebanese and regional politics — as well as on Washington’s
relations with Beirut — could be profound. Background

Just four months after the February 2005 assassination of former
Lebanese premier Rafiq Hariri, Lebanon went to the polls to elect a
new 128-member parliament. The resulting legislature broke down into
essentially three blocs: first, the March 14 alliance, a coalition of
Sunnis, Druze, and some Christians led by Saad Hariri (the slain
premier’s son), Walid Jumblatt, and Samir Geagea, which took 72 seats;
second, the Shiite Hizballah-Amal bloc, led by Hassan Nasrallah and
Nabih Berri, which secured 35 seats; and third, the Free Patriotic
Movement (FPM), an overwhelmingly Christian bloc led by General Michel
Aoun, which garnered 21 seats.

In February 2006, Hizballah and Aoun’s FPM joined forces, providing
the opposition with a formidable 56-seat bloc. This development was
followed by a series of political assassinations allegedly perpetrated
by Syria and its Lebanese allies. The killings depleted the majority
bloc from 72 to 68 out of 128 seats, raising concerns that further
attrition would culminate in an opposition takeover. Since then,
although tensions have remained high, the status quo has not changed
dramatically.

The most significant change to the election dynamic since 2005 was the
June 2008 election of former Lebanese Armed Forces chief of staff
Michel Sulaiman as president. Sulaiman, who is widely viewed as
neutral in spite of his past close ties to Damascus, has lent his
support to the establishment of a "centrist bloc" to compete for
parliamentary seats, a move that could potentially siphon off
Christian votes from Aoun’s FPM in key districts.

March 14 Preparations

For months, March 14 has been working behind the scenes to broker a
complicated compromise to the contentious issue of seat allocation —
coordinating which coalition partner will stand for seats in each
district. At the same time, March 14 has worked to forge electoral
alliances in key districts to improve the coalition’s electoral
chances. To this end, the coalition has courted former Lebanese prime
minister Najib Mikati and the small but significant Armenian Tashnaq
party, which has proved pivotal in recent elections, particularly the
2007 by-election in Metn to fill the seat of assassinated March 14
parliamentarian Pierre Gemayel. (Former Lebanese president Amin
Gemayel ran for the seat but was defeated by a previously unknown
Aounist by a margin of 418 Tashnaq votes.)

There are some tentative indications that March 14’s strategy might
bear fruit. In the crucial district of Metn, an alliance appears to
have been struck between the March 14-affilated Phalange Party and
longtime political operator Michel Murr. Murr backs the idea of a
centrist bloc, but his list is closely affiliated with March 14,
effectively undermining opposition inroads in Metn and other
districts. Importantly, Murr is also expected to deliver a significant
portion of the Tashnaq constituency to March 14.

Meanwhile, March 14 has been honing its campaign platform, focusing on
state legitimacy and sovereignty — in particular, the need for all
weapons to be under the control of the state — and a commitment to
implement UN Security Council resolutions toward Lebanon.

Hizballah and the Free Patriotic Movement

In early March, Hizballah deputy secretary general and general
observer for elections Naim Qassem held a campaign rally in the Beqa,
reportedly attended by ten thousand supporters from the Baalbak-Hermel
and Zahle districts. Under the slogan of "Together we will resist,
together we will build Lebanon," Qassem presented the broad outlines
of the Resistance and Development bloc.

During his speech, Qassem discussed the traditional Hizballah concept
of "resistance," boasting that in addition to countering the "Israeli
threat," the opposition had also demonstrated its bona fides in recent
years by "clip[ping] America’s fingernails in Lebanon." On the topic
of development, Qassem touted a kinder and gentler side of Hizballah,
which he said believes that it is "unacceptable to deal with people as
numbers." In this context, he pledged his party’s support for
"universal social and health insurance" and claimed his party would be
a "model for fighting corruption."

The FPM also launched its campaign in the beginning of March, with
Aoun framing the election as a choice between "Change and Reform" —
the name of his bloc — and the alleged corruption of March 14. Since
then, Aoun has been narrowly focused on attacking President Suleiman,
Michel Murr, the idea of a centrist bloc, and the Maronite patriarch
who has come out strongly in the bloc’s favor. Aoun has also spent
time fending off rumors that he might be excommunicated for allegedly
slandering Lebanese patriarch Nasrallah Sfair, who earlier this month
stated that it would be a "historic mistake" if March 8 won a majority
in parliament.

Key Questions and Imperfect Polls

In Lebanon, where polling is largely a subjective matter, it is
difficult to ascertain the relative support for March 14 vis-a-vis the
opposition. According to the calculations of prominent March 8
pollster Kamal Feghali, the opposition has 53 secure seats while March
14 has 41, leaving 34 to be contested. Meanwhile, a poll released by
the opposition-aligned Lebanese daily al-Akhbar on March 9 predicts 47
percent (60 seats) for the opposition and 38 percent (49 seats) for
March 14, with 19 seats up for grabs. Earlier this week, Hizballah’s
Naim Qassem predicted a majority of 67 or 68 seats.

Not surprisingly, March 14 polling provides an entirely different
picture. March 14 has performed strongly in recent union and student
body elections, and according to the ruling coalition’s numbers, if
the centrist bloc with Michel Murr remains a serious and robust
factor, March 14 will secure 66 seats — and a continued majority —
while the opposition will take 58. On February 17, Murr announced that
his electoral alliance with Gemayel in Metn was "final," but Syria and
its allies will surely continue to press Murr to move away from March
14. A 2005 assassination attempt against Murr’s son, March 14 defense
minister Elias Murr, may have permanently soured Murr on
Damascus. Should Murr succumb, however, the overall electoral balance
could shift in favor of March 8.

Conclusion

Hizballah and Syria have said that regardless of who wins in June,
Beirut should establish a government of national unity where the
minority possesses a "blocking third" — the ability to veto all major
government initiatives. March 14, which currently governs under this
constraint, has made no such reciprocal offer, and majority leader
Saad Hariri has announced that his Future Movement would not
participate in a Hizballah-led government. While a boycott might
undermine the local and regional legitimacy of the government, as Naim
Qassem notes, a Hizballah victory would confer upon the organization
the benefits of greater global acceptance.

For Washington, the loss of Lebanon would represent a significant
setback on many fronts. In the aftermath of Britain’s recent
ill-advised decision to diplomatically engage Hizballah, the prospect
of the organization making increased inroads into Europe would be
particularly troubling. At the same time, the region would perceive
the reversal of the Cedar Revolution as a victory for Tehran and
Damascus and a defeat for Washington — a dynamic that could further
complicate U.S. efforts to end Iran’s nuclear program and convince
Syria to modify its unhelpful policies. Assuredly, a Hizballah
government in Beirut would also undermine the bilateral relationship
with Washington.

Fortunately, while this scenario is troubling, it is far from
ordained. Against all odds, with three months to go, March 14 stands a
decent chance of squeaking out another narrow victory. In the
sensitive context of Lebanese elections, the most productive action
Washington can take is to help guarantee a level playing field. While
little can be done to stem Tehran’s considerable funding for
Hizballah, the Obama administration can curtail, if not prevent, some
of the more egregious foreign interference at the polls. In this
regard, it is essential that Washington take full advantage of its
renewed diplomatic engagement with Syria to ensure that its new
interlocutors in Damascus do not meddle in the elections.

David Schenker is a Washington Institute senior fellow and director of
its Program on Arab Politics.

Areximbank to serve ArCa plastic cards

Areximbank to serve ArCa plastic cards

2009-03-13 11:29:00

ArmInfo. Areximbank plans to serve local plastic cards ArCa, Ruben
Khachatryan, Deputy Director General of ArCa told ArmInfo.

He said the exchange of testing channels has been completed and final
communication has been established between ArCa processing center and
the own processing center ‘GasCardService’. Software modernization of
ATMs will make it possible for cardholders to pay for communal services
and make card- to-card transfers. He said the bank will offer services
through telecards.

R. Khachatryan said that since 2002 Areximbank has issued over 46,000
plastic cards. Over 12,000 of these cards are active including 10% are
MasterCard and the remaining are Visa cards. The bank joined VISA
International in 2002 and MaterCard in 2005.

The former shareholders of the company closely dealing with Moscow
Impexbank preferred creating own processing center to joining ArCa
national payment system and ArCa processing center. After Gazprombank
assumed control over the bank in late 2007, it has become necessary to
combine the processing centers GazCardServcie and ArCa to serve local
cards.

By data of Armenian Card as of Feb 1 2009 the number of active plastic
cards in Armenia is 353114, which is by 46% for than for the same
period of 2008. The share of local cards MasterCard was 12.8%
(45495) and Visa – 29% (102113).

VivaCell-MTS presents a new service – Internet Night

VivaCell-MTS presents a new service – Internet Night

2009-03-13 11:24:00

ArmInfo. VivaCell-MTS, a subsidiary of Mobile TeleSystems OJSC (NYSE:
MBT) presents a new service – Internet Night, especially for those
prepaid subscribers who prefer surfing the Internet at night.

After activating the Internet Night, during the night hours
(01:00-09:00) prepaid subscribers can use Internet paying only 55 AMD
per MB. To activate the service dial *145#. Activation fee is 300 AMD
(including VAT).

VivaCell-MTS (K-Telecom CJSC) is the leading Armenian mobile operator,
providing a wide range of Voice and Data services. Since its launch on
1st July 2005, in a short period of time VivaCell-MTS
has managed to build a nationwide network and a considerable customer
base. VivaCell-MTS drives the development and offering of innovative
mobile communications products, services and features in the Armenian
mobile communications market.

Mobile TeleSystems OJSC ("MTS") is the largest mobile phone operator in
Russia and the CIS. Together with its subsidiaries, the Company
services over 91.4 million subscribers. The regions of Russia, as well
as Armenia, Belarus, Turkmenistan, Ukraine, and Uzbekistan, in which
MTS and its associates and subsidiaries are licensed to provide GSM
services, have a total population of more than 230 million. Since June
2000, MTS’ Level 3 ADRs have been listed on the New York Stock Exchange
(ticker symbol MBT).

BAKU: Armenian army deserter Paruyur Stepanyan leaves Azerbaijan

Trend, Azerbaijan
March 12 2009

Armenian army deserter Paruyur Stepanyan leaves Azerbaijan: state
commission head
12.03.09 13:10

Azerbaijan, Baku, March 12 /Trend News, K. Zarbaliyeva/

Armenian soldier Paruyur Stepanyan who deserted his army and crossed
into Azerbaijan to protest violence in the military left Azerbaijan on
March 12, State Commission on Hostages, POWs and Missing People
Secretary Shahin Sailov told Trend News.

Sailov said Stepanyan left for a third country whose name cannot be
revealed according to international legal norms.

Stepanyan has also refused Armenian citizenship.

Two other soldiers who crossed into Azerbaijan on Feb. 28 also want to
leave for a third country.

Sailov said it is early to say anything about the soldiers.

Armenian soldiers crossed the border into Azerbaijan in Evciduzu in
Agdam at noon on Feb. 28. They asked Khojali IDP Zumrud Aliyeva to
give them food in Russian.

The soldiers said the situation in the Armenian army is
intolerable. The soldiers are not provided with clothing. The army
lacks heating, and soldiers catch diseases due to the cold. Soldiers
said they are not provided with food. There have pneumonia and other
serious diseases. The army also has a shortage of medicine. Infectious
diseases have left many dead. Officers misappropriate funds sent by
parents to buy medicine.

ANTELIAS: Catholicosate Attends Int’l Day of Prayer in Lebanon

PRESS RELEASE
Catholicosate of Cilicia
Communication and Information Department
Contact: V.Rev.Fr.Krikor Chiftjian, Communications Officer
Tel: (04) 410001, 410003
Fax: (04) 419724
E- mail: [email protected]
Web:

PO Box 70 317
Antelias-Lebanon

Armenian version: nian.htm

THE ARMENIAN CATHOLICOSATE OF CILICIA ATTENDS THE "INTERNATIONAL DAY OF
PRAYER"
CELEBRATION BY FRANCOPHONE CHURCHES IN LEBANON

On the occasion of the "International Day of Prayer", on March 8 the French
Speaking Evangelical Church in Lebanon organized a service at the
Evangelical Church in Koraytem. Reverend Robert Sarkissian, the pastor of
the community had also invited the Armenian Orthodox Church to join them in
their prayers. Bishop Nareg Alemezian the Ecumenical Officer of the
Catholicosate attended the service on behalf of His Holiness Aram I.

Bishop Alemezian offered an intercessory prayer on behalf of those suffering
from injustice, and thanked Pastor Sarkissian and the organizers of the Day.

##
The Armenian Catholicosate of Cilicia is one of the two Catholicosates of
the Armenian Orthodox Church. For detailed information about the Ecumenical
activities of the Cilician Catholicosate, you may refer to the web page of
the Catholicosate, The Cilician
Catholicosate, the administrative center of the church is located in
Antelias, Lebanon.

http://www.ArmenianOrthodoxChurch.org/
http://www.ArmenianOrthodoxChurch.org/v04/doc/Arme
http://www.ArmenianOrthodoxChurch.org

Tufenkian Foundation Crisis Relief Initiative

Tufenkian Foundation
Rick Barry
212.475.2475 x384
[email protected]

###

HELPING ARMENIA’S DESPERATE POOR
Tufenkian Foundation sets up emergency fund for neediest cases

Dear Friends,

The new economic chaos in the world has already caused rising poverty
in Armenia. Our staff now regularly reports shocking situations where
people lack decent shelter, are unable to make utility payments, or
can’t meet basic food and health needs. Due to rising prices and
growing unemployment, the TF-supported Zankagatun NGO is now flooded
with urgent calls for help as alcoholism, abandonment, and starvation
spread.

Just two weeks ago, our staff met a woman named Armine. Unemployment
had driven her husband to alcoholism, which led to abuse. She fled
with two young children and began living in a barn. While trying to
work, Armine left her five-year-old alone each day to care for her
two-year-old. The only food Armine could afford was sweetened water,
so both children quickly reached advanced stages of malnutrition. What
little money she had scraped together cleaning neighbors’ toilets was
not enough to avoid being evicted from the barn.

Cases like Armine’s are no longer rare. Families that used to be able
to afford the bare minimum are now often left in the streets. To make
matters worse, Armenia’s government is denying how bad the problem
is-so far, they have largely ignored or covered up, rather than risk
admitting any failure to protect the people. At this point, most
emergency protection is coming from NGOs and informal support
networks.

With this in mind, the Tufenkian Foundation has set up an emergency
fund for the neediest cases. The fund will disburse small amounts for
occasional help to people with terrible problems. Amounts can vary
from $30 for a utility payment, to $100 to repair someone’s roof, to
$300 for emergency health care.

To kick things off, James Tufenkian has contributed $25,000 over and
above the larger funds he gives toward our budget each year. We hope
that you, our friends and supporters, will collectively match and
surpass James’s contribution, offering the direct assistance that will
help keep Armenians on their feet until this crisis subsides.

Checks marked as being for the Emergency Relief Fund can be made
payable to the Tufenkian Foundation, 20 Capitol Drive, Moonachie, NJ
07074.

All donations are tax-deductable, and every dollar of your support,
without exception, will go directly to Armenia’s neediest. The
Tufenkian Foundation’s existing staff and resources will make sure
this is done, and fast.

Thank you all for your continuing support. We appreciate it, and never
more than right now.

Sincerely,

Antranig Kasbarian
Director of Development

Armenian Bicyclists To Participate In Tastan Tour International Tour

ARMENIAN BICYCLISTS TO PARTICIPATE IN TASTAN TOUR INTERNATIONAL TOURNAMENT

PanARMENIAN.Net
05.03.2009 17:59 GMT+04:00

/PanARMENIAN.Net/ Armenian bicyclists will participate in Tastan
Tour International Tournament due Apr. 4-11 in Iran. Armenia will
be represented by 6 riders: Sergey Sarkisov, Edgar Gevorgyan, Gevorg
Arakelyan, Aram Melikyan, Suren Petrosyan and Arman Kharatyan, the Head
of RA Cycling Federation Karen Grigoryan told PanARMENIAN.Net reporter.

"We’re leaving for Iran on Apr.2. The tournament is very important
to us, as we’re planning to participate in a number of international
tournaments including Europe and Italy Cycling Championships in July
and World championship to be held in Moscow in September.

So we need international experience."

"Yerevan-Echmiadzin race to be launched around Mar. 14-17 will start
a Bicycle touring season in Armenia. Individual race is scheduled in
the first day of a 3-day race and group quick-marches for the second
and third day," Grigoryan reported.

Armenia And Azerbaijan In The Same Stadium

ARMENIA AND AZERBAIJAN IN THE SAME STADIUM

A1+
[01:36 pm] 06 March, 2009

"Kadir Has" Stadium opens in Turkey on March 8. On October, 2009,
Turkey intends to host Armenians in the stadium within the framework
of the World Cup qualifiers.

Turkey’s Prime Minister Rejep Taip Erdoghan has already visited the
stadium and tested the grass.

Turkey’s Football Federation has decided to hold two meetings in the
stadium in 2009. On June 2 Turkey will hold a friendly match with
Azerebaijan and on October 14 with Armenia.

$ 40 million were spent on the construction. The stadium has seats
for 32000 spectators. According to the FIFA Regulations Turkey is
to allot 5 % of the seats (about 1600) to the guest side. The modern
stadium holds 52 VIP seats with the capacity of holding 8 people in
each. Turkey’s footballers annually have to pay 50-60 000 dollars a
year for the VIP seats.

The stadium has halls for handball, volleyball and basketball, as
well as a restaurant, cafe and a nearby park.

At Travel Agencies And Offices Selling Air Tickets In Armenia Exchan

AT TRAVEL AGENCIES AND OFFICES SELLING AIR TICKETS IN ARMENIA EXCHANGE RATE RISES TO 490 AMD/ 1 EUR

ArmInfo
2009-03-03 18:51:00

ArmInfo. At travel agencies and offices selling air tickets in Armenia
the exchange rate has risen to 490 AMD/ 1 EUR. As employees of a
number of travel agencies told ArmInfo correspondent, the abrupt rise
of the EUR exchange rate is connected with today’s fall of the AMD
exchange rate and uncertain situation. "Despite the average exchange
rate of AMD against EUR 460 AMD/ 1 EUR, we make calculations taking
into account the possible rise of the EUR exchange rate to 490-500
AMD in the near future",- they said.

According to the monitoring conducted by ArmInfo experts, in connection
with the March 3 fall in the exchange rate, the trade actually is
suspended, shops are closed, and the operating retail networks have
increased the prices by 30-45% at the mean.

March 3 morning the AMD/ EUR exchange rate was 385,71 AMD/ 1 EUR, and
AMD/USD exchange rate was 308 AMD/ 1 USD. By 11 am, by the decision
of the Central Bank of Armenia and intensification of the panic,
the AMD exchange rate fell by 30% within an hour.

ProCredit Bank Decreases Interest Rates For Business Loans

PROCREDIT BANK DECREASES INTEREST RATES FOR BUSINESS LOANS

PanARMENIAN.Net
02.03.2009 14:46 GMT+04:00

/PanARMENIAN.Net/ From March 2 to April 30, 2009 ProCredit
Bank announces an action about USD loan products, staying true
to its traditions in helping to develop small and medium sized
businesses. During that term for loans from USD 50 000 to USD 500 000
the interest rate will range between 13% and 15%. This will be a new
step for stabilizing and developing small and medium sized businesses,
ProCredit Bank’s press office told PanARMENIAN.Net

ProCredit Bank in Armenia believes that very small, small, and
medium sized businesses create the largest number of jobs and make
an important contribution to the economy.

ProCredit bank view its mission as creating financial institutions for
"ordinary people," ProCredit bank is seen as friendly and professional
trendsetters in transparent and prudent banking.

On December 7, 2007 ProCredit Bank was licensed by the Central Bank
of the Republic of Armenia (License N 85) and opened for clients on
February 5, 2008.

ProCredit bank is a development-oriented full service bank focusing
on lending to very small, small, and medium-sized enterprises.

The Shareholders of ProCredit Bank in Armenia are: – ProCredit Holding
– with 66.66% of shares – KfW – with 16.67% of shares – EBRD – with
16.67% of shares

ProCredit Bank Armenia is a member of ProCredit Group. ProCredit
Group consists of 22 banks operating in Eastern Europe, Africa and
Latin America, which are led and supervised by ProCredit Holding AG,
based in Frankfurt am Main, Germany.

The bank is a member of the Union of Banks of Armenia and Deposit
Guarantee Fund of Armenia.

The bank also cooperates with "ACRA Credit Reporting" CJSC. As of 30
Junе 2008 the number of employees of ProCredit bank in Armenia was
206 people.

As of 30 September 2008: total capital – 5 193 674 dram, the assets –
10 883 070 dram, the liabilities – 5 689 396 dram.