Central Bank law aims to strengthen Armenian dram

CENTRAL BANK LAW AIMS TO STRENGTHEN ARMENIAN DRAM

Armenpress

YEREVAN, JUNE 29, ARMENPRESS: A Central-Bank developed law on Hard
Currency Regulation and Hard Currency Supervision enacted on July
28, seeks to strengthen the position and significance of Armenia’s
national currency-dram.

Under the new law all prices for all types of goods and services
must be fixed in Armenian dram. It also demands that commercial
banks and lending organizations which have the right to carry out
hard currency transactions fix the prices of their services for
clientele exclusively in drams. The law extends to all physical and
juridical persons, regardless of whether they are citizens of Armenia
or not. Failure to observe the law will be punished by administrative
sanctions and penalties.

Armenia edges closer to NATO

Ara Tadevosian: Armenia edges closer to NATO

Providence Journal , RI
June 28 2005

YEREVAN, Armenia – ARMENIA’S defense minister, Sarah Sarkisian,
and the secretary general of the North Atlantic Treaty Organiztion,
Jalap de Hoop Schaffer, have come to an agreement that many see as
proof of a strategic shift by Armenia toward the West.

At a meeting in Brussels this month, Sarkisian presented de Hoop
Schaffer with a so-called Individual Partnership Action Plan
from Armenia, as well as a letter from Armenian President Robert
Kocharian. Such action plans submitted to NATO detail the political
and military steps that a country will take to deepen its relations
with the alliance; they’re considered the first step toward applying
for membership.

The event marked a breakthrough in relations between Armenia and
NATO, which were once quite frosty. Since gaining independence from
the former Soviet Union, in 1991, Armenia has been a close military
ally of Russia’s. Moscow still maintains a large military base in
Yuri, Armenia.

But a slight cooling of relations with Russia — coupled with overtures
from the West and indications that neighboring Georgia and Azerbaijan
might soon also seek NATO membership — have changed the strategic
picture in the region.

Earlier this year, Armenian Defense Minister Sarkisian clearly
signaled his country’s growing orientation toward the West. “After
we set ourselves the goal of joining the European family,” he said,
“we must have close relations with NATO and be responsible for
guaranteeing security in Europe.”

In fact, Armenia and NATO have been developing closer relations for
several years. In 2003, Armenia played host to NATO military exercises,
and in 2004 it sent peacekeeping troops to join the international
presence in Kosovo.

Moscow has made clear that it still considers Armenia a vital ally.
It recently began moving military equipment out of its bases in
Georgia to its large facility in northern Armenia.

But, in a sign of how the political atmosphere is changing in
Armenia, the leading official in the opposition Republic Party, Suren
Sureniants, criticized the move. He said that it “only reinforced the
prevailing opinion in the West that Armenia is Russia’s forward post
in the Caucasus.” Sureniants also said that “the Armenian political
elite ought to raise the issue of the withdrawal of Russian bases
from the territory of our country.”

Still, many Armenians remain deeply suspicious of NATO. Some continue
to regard Russia as a more reliable ally. Others are troubled that
Turkey, longtime enemy of Armenia, is a key NATO member.

“If NATO needs us so badly,” said Yeravan resident Misak Alexanian,
“why doesn’t it force Turkey to open its border with Armenia?”

Armenian President Kocharian refused to attend a NATO summit in
Istanbul last year, because of Turkey’s refusal to begin diplomatic
relations with Armenia and to open their shared border.

Yet Armenians have welcomed NATO’s position on Azerbaijan. Last
September, the alliance canceled a planned military exercise there
after Azerbaijan refused to let Armenian officers participate in
the maneuvers.

For now, Armenia finds itself in two worlds: It remains a key member
of the Russian-led Collective Security Pact of the Commonwealth
of Independent States even as it develops a growing relationship
with NATO.

Ronald D. Asmus, a senior transatlantic fellow at the German Marshall
Fund of the United States and a senior adjunct fellow at the Council
on Foreign Relations, in Washington, says that Armenia “needs to
try to pursue a dual-track strategy, where it expands its outreach
to this region and tries to deepen its cooperation with Moscow in
parallel. It is clearly in our, as well as Armenia’s, interest that
we succeed in doing so.”

Armenia will also have to bring its armed forces under civilian
control — not an easy task in a country where the military is a
major political force.

The country now has two years to implement its Individual Partnership
Action Plan for entry into NATO. After that, it will be up to Armenia’s
next president — due to be elected in 2008 — to decide whether to
pursue formal NATO membership.

Ara Tadevosian is a journalist in Armenia who writes for The Institute
for War & Peace Reporting, a London-based nonprofit organization that
trains journalists in regions of conflict ().

www.iwpr.net

Turkey-EU negotiations – Process with open date without guarantees

TURKEY-EU NEGOTIATIONS – PROCESS WITH OPEN DATE WITHOUT GUARANTEES

Pan Armenian News
27.06.2005 05:01

/PanARMENIAN.Net/ The EU enlargement is directly connected with
the results of the referenda on the EU Constitution, die Welt
reported. After the financial debate in Brussels, Europe is likely
to face a debate on enlargement. Thus, Wednesday the European
Commission is to set the terms for the negotiations on Turkey’s
accession. Formally all the 25 EU-member states agree on Turkey’s
EU membership, but the backstage developments in Brussels and in
the majority of the capitals of the EU member-states are directed
to contain the rate of EU enlargement. Despite the fact that Turkey
has met almost all the commitments undertaken to the EU, Germany
and France have recently refrained from active support to Turkey,
what was fortified by Ankara’s violent reaction to the adoption of
the Armenian Genocide resolution by the Bundestag. At the same time,
the EU decision of December 2004 notes that the negotiations are a
process with open date with no outcome guaranteed.

Man, Verse, Woman: Sally Potter’s “Yes”

Indie Wire
June 21 2005

Man, Verse, Woman: Sally Potter’s “Yes”

by Jeannette Catsoulis with responses by James Crawford and Michael
Joshua Rowin

Sam Abkarian as “He” and Joan Allen as “She” in Sally Potter’s “Yes.”
Photo by Nicola Dove, provided by Sony Pictures Classics.

[ indieWIRE’s weekly reviews are written by critics from Reverse
Shot. ]

A meeting of soulmates secreted deep inside an attraction of
opposites, Sally Potter’s “Yes” is also a supremely sensitive
observation of racism, classism, imperialism, and fundamentalism. And
if that sounds like a lot of ‘isms,’ they’re only the tip of Potter’s
narrative iceberg, which also encompasses aging, alienation, and the
precarious relationship between identity and sexual power. Yet,
amazingly for a film so teeming with ideas, “Yes” unspools inclean,
lucid scenes of near-spartan simplicity-proving definitively that
complexity of message need not require an equivalence of execution.

Conceived in response to the post-9/11 treatment of those of Middle
Eastern descent, Yes begins in London and follows the love affair of
two exiles — one actual, one figurative — known simply as He (Simon
Abkarian) and She (Joan Allen). He is a Lebanese surgeon who has fled
Beirut and now works unhappily as a hotel chef; She is an
Irish-American biologist trapped in an icy marriage to a faithless
English politician (Sam Neill). “Each cell knows its destiny,” she
muses enviously, hovering over a petri dish. But it will take almost
the length of the movie before she surrenders to her own.

Until that point, “Yes” is immersed in the desperate passion of two
people grasping the lifeline of erotic love as a placebo for much
deeper emotional needs, and it’s in this section of the film that
Potter’s flair for movement fully surfaces. Her absolute faith in the
expressiveness of the physical body infects the normally cool Allen
with a libidinous grace, making her scenes with Abkarian wickedly
earthy (most notably during a bout of heated restaurant foreplay).
For his part, the sensual Abkarian-best known to American audiences
as the Armenian painter Arshile Gorky in Atom Egoyan’s “Ararat” — is
the perfectfoil for Allen’s pale elegance.

While Potter’s eloquent script highlights the sexual charge of racial
and religious difference, production designer Carlos Conti’s
meticulous sets emphasize their emotional and temperamental
dissimilarities. She lives and works in white, sterile surroundings,
all glass and metal and reflective surfaces; His workplace is noisy,
steamy, and chaotic, his home a cave of spicy color and womb-like
comfort. Accenting the illicitness of the affair, Potter spies on the
couple via surveillance camera, their conversation mute. A stroll in
the park is furtively documented by a camera stalking them from the
cover of trees and shrubbery. Russian cinematographer Alexei Rodionov
(who also shot Potter’s “Orlando”) evokes the fragility of the
relationship with an impressive array of techniques, often tilting
the frame beyond stability. Every time these two are together, in
fact, the film swoons with an undercurrent of uncertainty.

Always a suggestive visualist, Potter (like fellow Brits John Boorman
and Michael Winterbottom) is also fascinated by language. “Yes “is
written almost entirely in iambic pentameter (10 syllables to a
line), delivered so fluidly and unaffectedly audiences may not even
notice. Potter admits to being influenced by her background as a
lyricist and composing the script as if she were writing a song. Her
actors were instructed to ignore the verse and concentrate on
meaning, and the result is a potent, rhythmic dialogue that invests
key scenes with near-operatic power. Most crucial of these is an
argument staged in the echoing anonymity of a parking garage, which
serves as the film’s turning point. He has begun to rebel against the
secrecy of the relationship, and his pride has made him long for the
familiar sexual dynamics of his homeland. “Love distracts us,” He
complains, as the appeal of the exotic transforms into
claustrophobia. “I have remembered who I am.”

Easing the intensity is the delightful Shirley Henderson, playing a
philosophical maid who’s fond of delivering humorously pungent,
direct-to-camera soliloquies on the ubiquity of dirt and what it
reveals about us. Functioning on one level as Greek chorus (“They
leave each other notes, but rarely speak,” she whispers as She and
her husband move silently behind her), the character also symbolizes
the tide of service people-usually ethnic, always invisible-who swirl
around us. Throughout, “Yes” portrays life from the particular to the
universal, from duelling organisms in a petri dish (and sloughed
cells on a bedsheet) to the enormity of war itself.

Moving from London to Belfast to Beirut to Havana, “Yes” is an
ambitious and lyrical argument for tolerance and self-awareness.
Rarely has a cinematic love affair benefited from such insight and
intelligence; but ultimately we shouldn’t be surprised that the
first- ever recipient of the Satyajit Ray Award — for the director
with the most “uncompromised aesthetic vision” — continues to prove
those judges right.

[ Jeannette Catsoulis is a frequent contributor to Reverse Shot who
has also written for the Independent, DC One Magazine, and regularly
writes for the New York Times. ]

Sam Neill and Joan Allen in “Yes.” Photo by Nicola Dove, provided by
Sony Pictures Classics.

Take 2

By James Crawford

The best modern interpretations of Elizabethan theater run roughshod
over meter, obliterating it to fit dramatic exigency. Sally Potter,
by contrast, forces her actors in “Yes” to obey strict Shakespearean
rhythm and couplet rhyme, meticulously penned in rhyming iambic
pentameter, scuttling much of the tension. When Joan Allen’s and Sam
Neill’s strained yet acutely decorous marriage finally comes to the
boiling point, I found myself wanting for the pregnant pauses and
strained silences indicative of a relationship on the rocks. Because
the actors are corseted into the metronomically regimented stress and
release of iambic feet, the scene fizzles-and Allen’s teetering-on-
hysterical tirade falls embarrassingly flat. As one lover says to
another, “conversation” may be “like an aphrodisiac/Because it flowed
like a nectar or a juice,” but in the unending, perpetual tumble of
words and images, shouted epithets lack punch, and emotional states
struggle to find resonance.

Despite any emotional failings, Potter’s dialogue is undeniably
beautiful, it allows her to explore Big Ideas like death, love, and
fidelity, so attuned are our ears to the confluence of sophisticated
themes and finely-worded poetry. Yet Potter’s lofty rhetoric cannot
hide the fact that her approach to these subjects is awfully
schematic. The break-up between Allen’s Irish-American “She” and
Simon Abkarian’s Lebanese “He” is deployed as an excuse to sermonize
at length on the antipathies between East and West (read: Christian
and Muslim ideology); her and Neill’s disintegrating marriage is
portrayed through a set of awkward (and unnecessary) canted angles;
the random intrusion of a terminally ill aunt functions as a weak
segue so that Potter can muse on the nature of mortality (though her
deathbed epic poem it is positively riveting). And most maddeningly
of all, a dryly comic book by Shirley Henderson — a wise-fool
cleaning lady delivering her morals to the audience in direct address
— is squandered because it’s only loosely connected to the rest of
the drama.

Oftentimes, critics decry the fact that so much money is funnelled
into computerized special effects, to the detriment of story, plot,
and everything else. So much, we proclaim, could be ameliorated by
putting more effort into the words being said. Sally Potter’s cross-
cultural sept-à-cinq affaire, just might disprove that claim; the
script is paramount, while everything else-directing, narrative
suspense, and cinematography — falls by the wayside.

[ James Crawford is a frequent contributor to Reverse Shot. ]

Take 3

By Michael Joshua Rowin

Sam Abkarian and Joan Allen in Sally Potter’s “Yes.” Photo by Nicola
Dove, provided by Sony Pictures Classics.

Thankfully, Sally Potter’s original screenplay for “Yes” is available
in paperback, for I can think of no other recent film that has made
me want to re-experience its dialogue, in this case written in the
form of a poetic iambic pentameter that never becomes contrived or
showy. The classical makes a surprisingly fitting vessel for the
modern as characters’ interior monologues, asides, direct addresses,
rambling confessions, frustrated accusations, and deeply felt
pronunciations try to make sense of a very confusing, divisive
post-9/11 reality. Unfortunately, like the other few cinematic
responses to 9/11 (most notably “I Heart Huckabees”), “Yes” fails to
be a complete success by trying to say a little about everything-it’s
a shame to watch certain issues, like Western society’s obsession
with youth and bodily perfection, brought up only to be relegated to
the back-burner. Nonetheless, Joan Allen and Simon Abkarian’s
conversations on science, love, religion, and the cultural barriers
that complicated and fuel their affair-executed in Potter’s
well-crafted, witty pentameter-are the heart of a film that is at its
best when working through language to express its limits
(miscommunication, anger) and epiphanies (communication, love).

Beyond the verbal, however, “Yes”‘s errors are a bit disconcerting.
How could the same director who made the sumptuous “Orlando” allow
her latest project to look so shoddy? Various scenes shot with a low
shutter-speed give the film the look of a cheap music video trying to
be flashy. Then there’s the rushed, seize-the-day/love-conquers-all
ending, a disappointing capper for a film that deserves a more
complex and thoughtful conclusion. These would be taken for rookie
mistakes if Potter wasn’t so damn masterful in other areas. Anyway,
aren’t mistakes part of art? The ubiquitous house-cleaner/chorus of
the film ponders life’s imperfections: “For, everything you do or say
is there, forever. It leaves evidence.” Even with flaws, “Yes” is art
as evidence: evidence of Potter’s talent and courage.

[ Michael Joshua Rowin is a staff writer at Reverse Shot. He has
written for the Independent, Film Comment, and runs the blog Hopeless
Abandon. ]

http://www.indiewire.com/movies/movies_050621yes.html

In Issue Of Widening Ties Between Two Countries,RA President and Amb

IN ISSUE OF WIDENING TIES BETWEEN TWO COUNTRIES, RA PRESIDENT AND
AMBASSADOR OF INDONESIA CONSIDER CREATION OF LEGAL CONTRACTUAL FIELD
FIRST AND FOREMOST

YEREVAN, JUNE 17, NOYAN TAPAN. Alexander Laturiuw, the newly appointed
Ambassador Extraordinary and Plenipotentiary of Indonesia to Armenia
(residence in Kiev) handed his credentials to RA President Robert
Kocharian on June 17. The President of the Republic expressed
satisfaction with the active cooperation between the two countries
within the framework of international organizations. As Noyan Tapan
was informed by the RA President’s Press Office, touching upon the
possibilities of widening the Armenian-Indonesian ties, the parties
mentioned the creation of a corresponding legal contractual field
as an immediate task. Information exchange and active contacts were
attached importance in the sense of business ties. Robert Kocharian
wished success to Indonesia in liquidation of consequences of the
destroying tsunami shocked the world few months ago.

Disonancias entre Alemania y Turquia por resolucion sobre armenios

Disonancias entre Alemania y Turquia por resolucion sobre armenios

Deutsche Presse-Agentur
June 17, 2005, Friday

Berlin/Ankara, 17 jun

La resolucion del Parlamento aleman refiriendose a la masacre de
armenios hace 90 anos en el Imperio Otomano motivo serias disonancias
entre Alemania y Turquia.

En una declaracion emitida en Ankara, el primer ministro turco
Recep Tayyip Erdogan califico hoy la resolucion de “fea accion” y la
comunidad turca en Alemania reprocho al Bundestag haber sucumbido a
la propaganda “odiosa” de ciertos circulos armenios.

El gobierno aleman califico la resolucion de “equilibrada”, que ademas
fue recibida con satisfaccion en Armenia.

Sin bien Erdogan dijo que en el texto no aparecia la palabra
“genocidio”, si figuraba el termino “masacre”, y senalo que considera
erroneo que el Parlamento aleman ceda a los intereses de ciertos
grupos sin haber discutido o negociado el tema. “Eso lo considero
muy feo”, dijo.

El Parlamento aleman aprobo ayer una resolucion presentada en forma
conjunta por todas las fracciones politicas, en la que se pide al
actual gobierno turco un dialogo abierto sobre los acontecimientos
de hace 90 anos, cuando en el Imperio Otomano hubo masacres y
deportaciones de armenios, de los que fueron victima aproximadamente
un millon de personas, acciones en que tambien tuvieron participacion
alemanes, ya que el pais era un estrecho aliado militar del Imperio
Otomano.

Los criticos senalan que esta actitud del gobierno turco de no aclarar
debidamente la cuestion es contraria al espiritu de reconiciliacion
que es guia de la Union Europea (UE). El 3 de octubre es la fecha
fijada para que comiencen las negociaciones para el ingreso de Turquia
a la UE.

En la misma resolucion se exhorta al gobierno aleman a ayudar a lograr
un equilibrio entre Turquia y Armenia mediante un tratamiento de la
cuestion y la reconciliacion entre ambos pueblos.

ANKARA: Schroeder defends Turkey’s full EU membership track

Turkish Press
June 17 2005

Press Review

AKSAM

SCHROEDER DEFENDS TURKEY~RS FULL EU MEMBERSHIP TRACK

German Chancellor Gerhard Schroeder yesterday argued that a Muslim but
secular country like Turkey should absolutely join the camp of the
Western Enlightenment. Addressing Germany’s Parliament, Schroeder
underscored the importance of Turkey’s membership, arguing that
concerns about Turkey’s upcoming membership talks are baseless.
“Turkey might become a full EU member if it fulfills all of the
required criteria and overcomes the Cyprus problem,” he added. “Risks
pertaining to Ankara’s talks might be controlled, and negotiations
might be suspended whenever necessary.” For her part, opposition
Christian Democratic Union head Angela Merker reiterated her party’s
well-known position that Turkey should be offered a “privileged
partnership” rather full membership. Merkel called on Turkey to
solve its problems concerning Cyprus and Armenia by Oct. 3, when the
country’s membership negotiations are expected to begin. In addition,
Ulrike Hauer, head of the Delegation of the European Commission to
Turkey for the Economy, said that Turkey had recently shown great
progress both in its macro-economic stability program and structural
reforms. /Aksam/

Bundestag Unanimously Adopts Draft Resolution On Armenian Genocide

BUNDESTAG UNANIMOUSLY ADOPTS DRAFT RESOLUTION ON ARMENIAN GENOCIDE

YEREVAN, JUNE 16. ARMINFO. Today German Bundestag has unanimously
adopted the draft resolution “Commemoration Day of Armenians on
occasion of the 90th anniversary of the massacre of April 24 1915 –
Germany should contribute to reconciliation of Turks and Armenians”
elaborated by the faction of the bloc CDU/CSU.

Talking to ARMINFO, the co-author of the resolution, Chairman of the
German Caucasian Parliamentary Group of Bundestag Christoph Bergner
says that the resolution was unanimously adopted by all the parties
in the course of voting without any preliminary discussion.

The document does not characterize the events of 1915 as Genocide,
but it contains a passage saying that international historians call it
“Armenian Genocide.” Earlier Armenian Ambassador to Germany Karine
Ghazinyan said that a relevant decision of Bundestag was equal to
recognition of the Armenian Genocide by Germany.

Armenian Defense Minister met with Moscow Deputy Mayor

ARMENIAN DEFENSE MINISTER MET WITH MOSCOW DEPUTY MAYOR

Pan Armenian News
16.06.2005 03:42

/PanARMENIAN.Net/ Secretary of the National Security Council at the
Armenian President, Co-Chair of the Armenian-Russian Intergovernmental
Commission for Economic Cooperation, Defense Minister Serge Sargsyan
met with Moscow First Vice-Mayor Vladimir Resin, reported Ministry of
Defense (MOD) Press Secretary, colonel Seyran Shahsuvaryan. In the
course of the meeting Resin noted positive changes in Armenia. He
emphasized that seeing the country’s continuous development pleases
him. At the instance of the guest S. Sargsyan presented the current
process of works over the building of the MOD new building. Russian
Ambassador to Armenia Nikolay Pavlov and Yerevan Mayor Yervand
Zakharyan also participated in the meeting.

In disputed Caucasus enclave,a tense cease-fire holds but region’s d

In disputed Caucasus enclave, a tense cease-fire holds but region’s development is stymied
By MIKE ECKEL

AP Worldstream; Jun 16, 2005

The front line is visible from the decrepit, tottering Ferris wheel
in Martakert. The crackle of gunfire can be heard almost daily in
the battered apartments along the town’s dusty main road.

More than 10 years after a cease-fire was declared, thousands of
troops face off along 900 heavily mined, heavily armored kilometers
(560 miles) _ remnants of the war fought over Nagorno-Karabakh,
an ethnic Armenian enclave within Azerbaijan.

Across the so-called “line of control” separating the Armenian forces
that control the enclave and Azerbaijani soldiers that want it back,
gunfire breaks out, sometimes nightly, and each side accuses the
other of incursions.

Troops on both sides are still dying. In March, three soldiers from
each side were said to have been killed. Firefights early this month
reportedly left two Azerbaijani soldiers dead, and Nagorno-Karabakh
defense chief Lt. Gen. Seyran Oganyan said the exchanges of fire have
become heavier.

The frozen conflict looms over economic development throughout the
Caucasus, a strategic region lying between the Caspian and Black
seas and sitting astride important East-West trade routes. The
Armenia-Azerbaijan border is closed, as is Armenia’s border with
Turkey, which backs Azerbaijan. Investors are leery of putting money
into the region.

Nagorno-Karabakh, an area of soaring mountains, now is run by a
self-declared government recognized only by Armenia, and ethnic
Armenian Karabakh forces occupy a wide swath of Azerbaijani territory
outside the enclave proper.

Armenia insists it will never abandon Nagorno-Karabakh. Azerbaijan
proclaims the same. The feelings are so bitter that the ethnic
Armenians, who are Christians, compare the Muslim Azeris to the Ottoman
Turks who massacred hundreds of thousands of Armenians early in the
20th century.

Last month, Armenia’s and Azerbaijan’s presidents met in Warsaw in
the most recent effort to spur a resolution. It’s unclear what was
decided, but the two countries’ foreign ministers are scheduled to
meet Friday for further talks.

Few expect a breakthrough, however, and as the stalemate over the
enclave drags on, patience wears thin.

Azerbaijani President Ilham Aliev repeatedly has said his country is
ready to resume fighting if a settlement isn’t reached. In Martakert,
people are just as adamant.

“Let it be frightening here so long as it’s our land,” said Rima
Movsiyan, 73, standing outside a ramshackle clothing store not far
from the town’s long-abandoned Ferris wheel. “We don’t need the
Azerbaijanis here. They know what they did. They’ll never return.”

The Nagorno-Karabakh war was the first conflict that broke out as
the Soviet Union collapsed and ended up one of the bloodiest: as many
as 50,000 people died. It was accompanied by pogroms against ethnic
Armenians in Azerbaijani cities and by massive deportations by both
sides; as many as 1 million people were displaced, either forcibly
or by fleeing violence.

The bloodshed began after the enclave’s legislature in 1988 called for
the region to be incorporated into Armenia, which like Azerbaijan was
then still a Soviet republic. Full-scale military offensives broke
out in 1991.

Genrikh Akopian, 52, bitterly remembers the day that Armenian women
and children fled the city of Shusha, one of the few majority-Azeri
towns within Nagorno-Karabakh and once a prosperous community with
a silk mill and a renowned sanatorium. Azeris threw rocks at the
refugees buses and cursed them, he said.

Ethnic Armenian forces later drove Azeris from the town in one of
the war’s pivotal battles. Azeris homes were looted of belongings,
and the buildings and apartment were turned over to Armenian refugees
from elsewhere in Azerbaijan.

Shusha has deteriorated into a dismal backwater, its streets strewn
with garbage and cloaked with smoke from makeshift wood stoves. Wind
whistles threw holes chewed into its two mosques by artillery shells,
and rows of blown-out windows line the once famous sanatorium.

The prospect for a resolution that could bring prosperity to the
region appears dim. The so-called Minsk Group of the Organization for
Security and Cooperation in Europe, led by U.S., French and Russian
envoys, has sought a solution for years, but with no visible progress.

Envoys have said little about their work, mindful of the storm of
controversy in 2001 after OSCE proposals were reported in Armenian and
Azerbaijani newspapers. The proposals, including a call for “joint
governance” of the enclave, angered nationalists on both sides, and
the two country’s leaders appeared to distance themselves from the
peace process.

“There can be no talk of mutual compromises. That was a mistaken
thesis,” Azerbaijani President Aliev said in March.

“They don’t want to risk anything. They don’t want to take
responsibility. They just want to convince the international community
that Armenia is the aggressor,” Arkady Ghukassian, Karabakh’s
president, said in an interview.

Nagorno-Karabakh’s troubles have hampered development for the entire
Caucasus. Cross-border trade is stymied, trade routes via road and
rail are complicated and major regional infrastructure projects _
like the landmark 1,760-kilometer (1,100-mile) Baku-Tbilisi-Ceyhan
oil pipeline _ are made more expensive.

Last month, outside of the Azerbaijani capital Baku, officials and
executives inaugurated the first section of the BTC pipeline that
transverses the Caucasus en route to the Turkish Mediterranean coast.
The project entirely skirts Nagorno-Karabakh and Armenia.

The World Bank has estimated that resolving the conflict and
normalizing relations could yield as much as a 30 percent jump in
gross domestic product for Armenia and up to a 5 percent jump in GDP
for Azerbaijan.

Politics in both countries retain a nationalistic hue to this day.

In Azerbaijan, the loss of thousands of kilometers (miles) of territory
at the hands of ethnic Armenians hardens positions of the ruling clans,
including Ilham Aliev and his father, who came to power amid the fierce
fighting of the early 1990s. In Armenia, the emotional intensity over
the conflict is underlined by President Robert Kocharian’s having
formerly been president of Nagorno-Karabakh and a fighter in the war.

David Shahnazaryan, a former national security minister and opposition
lawmaker, said leaders in both countries use the unresolved conflict
to stifle dissent and strengthen their rule.

“What’s bad for Azerbaijan is good for Armenia. What’s bad for Armenia
is good for Azerbaijan. That’s all they understand,” Shahnazaryan
said. “Our societies are closer to peaceful resolution than our
regimes are.”