NKR: Only Investments Are Not Sufficient

ONLY INVESTMENTS ARE NOT SUFFICIENT
Norair Hovsepian

Azat Artsakh Daily, Republic of Nagorno Karabakh [NKR]
20 March 07

Along with the development of the economy, different organizations are
set up to foster this development. Besides the government agencies, the
public sector is gradually becoming engaged in this process, which is
evidence to changes in the economy and the approach of the society. The
Regional Business Center NGO was set up in NKR in August 2006, after
the International Alert launched the Business and Conflict program in
2002 with the three recognized and three unrecognized countries of the
South Caucasus (Armenia, Georgia, Azerbaijan, Abkhazia, Ossetia, NKR)
and Turkey, said the director of the NGO Valery Balayan in an interview
with the Azat Artsakh. "The British organization included Turkey
because they think the important routes connecting the South Caucasian
states with Europe run across Turkey. And they found it important to
include Turkey as well. We offered to include Russia as well because
this country has major interests and influence in the region, however,
this effort failed, which was partly due to the indifference of the
Russian party." Valery Balayan says one of the goals of the NGO is to
support small and medium-sized businesses. "In some developed countries
the small and medium-sized businesses provide 60-70 percent of the GDP,
and employ 50-60 percent of the labor pool of these countries. It
means we have a lot to do yet. Our organization intends to mediate
dialogue between the NKR government and enterprises. I think there is
need for this dialogue today. We have problems with taxation, this
sphere needs to be improved. Considering this, the collaboration
of the government with the businesses will produce only positive
results." The Regional Business Center and the International Alert
are partners on the Business and Conflict Program. In answer to our
question how business and conflict are related, Valery Balayan said:
"The idea of the initiators is that business relations, two-party
and multi-party relations may relieve the atmosphere of intolerance.

We will not exaggerate if we say that even with the
Armenian-Azerbaijani tensions and the absence of relations between
Armenia and Turkey there are businessmen from both sides who seek for
cooperation. However, the government policies affect this. The Armenian
environment is more tolerant and ready for a itizens do not wish and
have no opportunities to become involved in this dialogue. We have
foreseen dialogue. In Azerbaijan, where the government carries on
anti-Armenian propaganda, ordinary c joint activities, efforts for
cooperation. However, presently there are no ways of implementing
them. Besides, a developed economy necessitates the search for ways
of cooperation. In this sense, every step towards the development of
our economy indirectly increases possibilities. As to the choice of
small and medium-sized enterprises, it was not made at random. Small
and medium-sized enterprises develop only at peace, unlike major
enterprises which can operate at war as well." Valery Balayan said
in late February the NGO held the first photo exhibition headlined
"Small and Medium-Sized Business in Karabakh". "We wanted to show
that besides mere investments and government support a continuous
and clear-cut policy is required, including from production of raw
materials to processing and sale."

According to Valery Balayan, another program is underway. "We intend
to do a research on the NKR small and medium-sized business, the
legislation and tax policy to figure out the factors which hinder
the development of small and medium-sized enterprises."