Economy Of Armenia Remains "Competitive On The Whole"

ECONOMY OF ARMENIA REMAINS "COMPETITIVE ON THE WHOLE"
By Ara Martirosian

AZG Armenian Daily
04/07/2007

In order to preserve the competitiveness, the Government of Armenia
should invest additional efforts, according to the Head of IMF
delegation in Armenia

After the meeting with the representatives of RA Government, Central
Bank, International donors and Armenian businessmen, the Head of
International Monetary Fund (IMF) mission’s Armenian group Ms. Marta
Castello-Branco met with the reporters in Armenia, on July 2.

Summarizing the recorded indexes of Armenian economy of the first 5
months of 2007, she stated that the indexes remained "impressive",
as the growth of GDP exceeded the expectations and the inflation was
consonant with the purposeful index.

According to the representative of IMF, Armenia is notable for
its combination of high economic growth and low inflation in the
region. Armenia has recorded progress in tax-collecting sphere,
though there are more opportunities of progress in this sphere.

Ms. Marta Castello-Branco stressed the importance of preserving the
high rates of the economic growth and the urgency of further reducing
of poverty.

At the same time she expressed concern over the rapid rise of wheat in
international market, which might have an influence upon the economic
growth index of Armenia.

The economic growth index may be influenced also by Central Bank,
which buys dollar to reduce the rapid shakings of currency value.

The next possible factor on the economic growth index is that fewer
expenses are run up in the first half of this year and the increase
in the expenses of the second half of this year may record surplus
inflation.

There are three main issues in the economy of Armenia according to
IMF representative of Armenia: the amendments in pension system,
gas subsidization and competition of economy.

IMF welcomes the new project of the Armenian Government to improve the
pension system. The pensions are very low in Armenia at present. It’s
necessary to increase the subtractions for the pensions and to raise
the pensions. It may also influence the inflation index.

The next issue is the subsidization of gas, as the subsidization time
of the gas ends by the end of 2008, and after it the gas prices will
rise rapidly. There is a big threat that the consumer prices will also
have a rapid rise influenced by the gas prices. IMF representative
advised the Government to reduce the subsidization gradually. And
also to subsidize only socially not provided strata.

The issue of the competition of Armenian economy is connected with
the valuation of Armenian dram. In spite of a great number of inflows
of foreign currency, which have a negative influence on some export
spheres and the households that are dependent on private transfers,
the IMF records that the economy of Armenia remains "competitive on
the whole". In order to preserve the competitiveness, the Government
of Armenia should invest additional efforts to improve the business
environment and to increase the productivity.

Proposed Laws Would Curb Media Freedoms And Effectively Ban Regional

PROPOSED LAWS WOULD CURB MEDIA FREEDOMS AND EFFECTIVELY BAN REGIONAL RADIO STATION, SAYS HUMAN RIGHTS WATCH

IFEX, Canada
International Freedom of Expression eXpress
4542/
July 3 2007

Country/Topic: Armenia
Date: 03 July 2007
Source: Human Rights Watch
Person(s):
Target(s): radio station(s)
Type(s) of violation(s): legal action
Urgency: Bulletin
(HRW/IFEX) – The following is a 29 June 2007 Human Rights Watch press
release:

Armenia: Parliament Must Not Silence RFE/RL
Strike Down Proposed Laws Curbing Media Freedoms

(New York, June 29, 2007) – The Armenian parliament should not adopt
two draft laws that would effectively ban future broadcasts of Radio
Free Europe/Radio Liberty (RFE/RL), a key source of independent
information in that country, Human Rights Watch said today.

The first, an amendment to the law "On Television and Radio",
prohibits retransmission of foreign broadcasts on Armenian public
television and radio frequencies. The second, an amendment to the law
"On State Taxes", establishes heavy fees for private companies that
air foreign broadcasts.

Both draft laws passed a first reading on Friday in the National
Assembly of Armenia, but must undergo a second reading, expected on
Monday or Tuesday, before they become law.

"These new laws clearly restrict access to a crucial independent
news source for many Armenians and deal a serious blow to RFE/RL and
to freedom of the media in general," said Holly Cartner, Europe and
Central Asia director at Human Rights Watch. "The parliament should
under no circumstances pass this bill in the second reading."

The parliament’s actions appear to specifically target RFE/RL’s
Armenian service, the only foreign broadcaster that relies on Armenian
National Radio, the country’s public radio station, to reach the
majority of its audience.

RFE/RL is one of the only independent broadcast media outlets remaining
in Armenia. Although there is a vibrant print media, the government
maintains close control over the much more accessible broadcast media,
and recently closed the last independent television station, A1+,
in 2002.

RFE/RL is also occasionally broadcast via some private radio stations
in the country’s capital, Yerevan, and surrounding regions, but under
the proposed laws, private Armenian broadcasters would pay more
than US$200 in taxes each time they retransmit a program produced
by a foreign media organization. This fee is 70 times more than
broadcasters must pay for a locally made program.

The Organization for Security and Cooperation in Europe’s (OSCE)
representative on freedom of the media, Miklos Haraszti, criticized the
bills, saying that they infringed Armenia’s commitments to safeguard
media pluralism and access to information, and called on the Armenian
authorities to drop them. Opposition politicians in Armenia lamented
the parliament’s decision to pass the bills and charged the government
with trying to control the media.

The two bills are incompatible with Armenia’s obligations under
the European Convention on Human Rights (ECHR). Article 10 of the
ECHR guarantees the right "to receive and impart information and
ideas without interference by public authority and regardless of
frontiers." This right can only be restricted for limited and specific
reasons such as national security or public safety. The restrictions
placed on the rights of expression and imparting of information
by the bills do not meet these requirements. The importance of the
rights protected by Article 10 has been repeatedly emphasized by the
European Court of Human Rights. The court maintains that freedom of
expression is one of the essential foundations of a democratic society
and that the media plays a pre-eminent role in a state governed by
the rule of law. The court insists that any efforts by a government
to restrict freedom of expression be strictly scrutinized and the
reason convincingly established.

"By passing these laws, Armenia risks violating its international
commitments to freedom of expression and the media," said Cartner.

"As Armenia prepares for presidential elections in 2008, the world
will certainly be watching to see if the government respects freedom
of the media and other freedoms necessary for a free and fair vote."

The move is not the first effort by the Armenian government to limit
independent media. The independent television station A1+ lost its
broadcasting license in 2002, after regularly airing criticism of the
government, and lost 12 subsequent tenders for television and radio
frequencies. In June 2006, A1+, which produced a weekly newspaper and
maintains a website, was forced to vacate its offices, after losing
a court case in 2005 challenging a notice of eviction.

Human rights groups have reported violence against journalists in
retaliation for their work, and in September a court sentenced Arman
Babajanian, editor of the opposition newspaper Zhamanak Yerevan, to
four years in prison for failing to serve the compulsory two years of
military service. Although Babajanian admitted to forging documents
in 2002 in order to evade military service, the harsh sentence is
suspected to be retribution for the journalist’s persistent criticism
of government policies (draft evaders are usually sentenced to between
two and three years in prison).

http://www.ifex.org/en/content/view/full/8

Two European States To Give Shelter To Azeri Journalists

TWO EUROPEAN STATES TO GIVE SHELTER TO AZERI JOURNALISTS
By Aghavni Harountiunian

AZG Armenian Daily
04/07/2007

Two European states agreed to give shelter to the journalists who want
to leave Azerbaijan. "Azeri" press informed that these countries didn’t
want to announce about their responsibility and remained unknown.

It’s worth mentioning that over 20 Azeri journalists decided to leave
Azerbaijan, urging political shelter from the diplomatic offices of
European states, after some of the Azeri newspapers were closed. In
the beginning, it was announced that the Embassies of the Russian
federation and the United States of America didn’t respond the request
of the journalists.

TOL: Azerbaijan/Armenia: Karabakh Leaders Seek New Role In Talks

AZERBAIJAN/ARMENIA: KARABAKH LEADERS SEEK NEW ROLE IN TALKS
by Haroutiun Khachatrian

Transitions of Line, Czech Republic
July 3 2007

With talks on a resolution for the 19-year Nagorno-Karabakh conflict
on the skids once again, the breakaway region’s de facto authorities
are increasingly pushing for a new negotiating format, one that allows
them to directly participate in the process.

"The current format of negotiations, in which only Armenia and
Azerbaijan are involved, is unrealistic and destructive," Arkady
Ghukasian, the de facto president of the unrecognized Nagorno-Karabakh
Republic, told reporters on 7 June.

While the statement is not the first time the Karabakh leader has
called for direct talks with Azerbaijan, its timing underlines the
extent to which regional frustrations are growing with the peace
talks overseen by the Organization for Security and Cooperation in
Europe’s Minsk Group. Following a longstanding pattern, the latest
summit between Armenian President Robert Kocharian and Azerbaijani
President Ilham Aliyev ended on 10 June without results.

The failure of the two sides to hit on anything that can be termed
a "compromise" has prompted this fresh tact, Karabakh presidential
advisor Arman Melikian noted in an interview with EurasiaNet.

Particular concern in Armenia and Karabakh has been raised by recent
remarks by Aliyev that Azerbaijan would use "all means to pressure
Armenia" into the return of Nagorno-Karabakh. The declaration is
widely seen as a sign that Baku has abandoned an agreed resolution
framework reportedly reached last year.

DIFFERENCES WITH ARMENIA

Armenia, on which Karabakh relies for economic aid and military
assistance, has not yet publicly responded to Ghukasian’s assertion
that Karabakh should represent its own interests. In the past, however,
Kocharian, himself a former leader of Nagorno-Karabakh, has effectively
played both sides of the issue – stating that the current negotiations
format falls short of adequate, yet asserting that Armenia, as a
recognized state, is better able to negotiate a settlement.

The extent to which Ghukasian’s remarks are meant as a criticism of
Armenia’s representation of Nagorno-Karabakh’s interests has not been
publicly broached. Karabakh officials usually shy away from openly
criticizing Armenia, and have stated simply that they have "informed"
Yerevan of their concerns.

Yet Melikian acknowledged that some "differences" do exist between
Armenian and Karabakhi points of view.

The first issue is one of territory, according to Melikian. The
current talks define the territory of Nagorno-Karabakh as based on
the boundaries for the original Soviet-era autonomous region, then
part of the Azerbaijan Soviet Socialist Republic. Karabakh, however,
wants its territory to be defined as also including two additional
Armenian-populated regions to the north of the original Soviet-era
region – Shahumian and Getashen. Both districts were separated from
the Nagorno-Karabakh Autonomous Region in the early 1930s, and remain
under Azerbaijani control.

The second issue is one of compensation for losses suffered by ethnic
Armenians who fled Azerbaijan in the late 1980s in response to the
Karabakh conflict. The separatist government believes the current
negotiation process has largely ignored the question, Melikian said.

Echoing opinions already voiced by some Armenian parties, such as the
Armenian Revolutionary Federation, Karabakh leaders want compensation
to include the resettlement of ethnic Armenians in the seven occupied
territories that form a buffer zone between Karabakh and Azerbaijan.

Without consideration of these points, the separatist Karabakh
government’s acceptance of any finalized agreement is moot, Melikian
stressed.

>>From 1994 to 1997, Karabakh representatives took part in the
peace talks until Azerbaijan demanded their exclusion. Minsk Group
representatives have routinely affirmed that the current format is
sustainable, and requires no major overhaul. Azerbaijan refuses all
direct contact with the region’s separatist leadership.

FRUITLESS MEETING

Meanwhile, within Armenia itself, the fruitless 10 June meeting between
Aliyev and Kocharian has triggered a new wave of support for including
Karabakh in the negotiations. At the same time, opposition has deepened
to the possible withdrawal of Armenian forces from the seven occupied
Azerbaijani territories that surround the breakaway region.

At a 20 June press conference in Yerevan, however, Foreign Minister
Vartan Oskanian stated that the possibility of changing the Minsk Group
process is not under discussion, PanArmenian.Net reported. The question
of Nagorno-Karabakh participating in peace talks with Azerbaijan "has
always been… [on] the agenda," Oskanian said, but that participation
does "not mean [a] change or enlargement of [the] negotiation format."

The Favorite Is Known

THE FAVORITE IS KNOWN

AZG Armenian Daily
04/07/2007

On July 3 an article was published in RIA Novosti news agency’s
website titled "Elections in NKR: the favorite is known".

Various Gallup polls show that NKR former Head of National Security
Service Bako Sahakian is the indisputable favorite of the coming
presidential elections in Nagorno Karabakh, according to "RIA
Novosti". It mentioned that the overwhelming majority (75-80%) of
the questioned are the supporters of Bako Sahakian.

The second place may take the other candidate Deputy Foreign Minister
of NKR Masis Mayilian. According to the same Gallup poll Masis Mayilian
may have 10-17% of votes and is inferior to Bako Sahakian.

According to experts Bako Sahakian’s evident superiority can be
explained with several circumstances. The main of them is that,
first of all, all the powers in parliament (not only in office
but also in opposition) support the candidacy of the former Head
of National Security Service. Secondly, Bako Sahakian is a more
foreseeable political figure than his rivals. Thirdly, he is well
known in the political circles of Armenia. And lastly, Bako Sahakian
is distinguished by his clear and realistic pre-election plan. It
mainly refers to social sphere.

It is foreseen to build dwellings, to raise medium wages (about twice,
and it will be more than $300), the pensions and benefits (2.5 times,
and it will be more than $100), according to pre-election plan of
Bako Sahakian. He also promised to struggle against corruption in
all spheres. The candidate announced that his pre-election plan is
mainly directed to the creation of a state where democracy, freedom
and peace will be. It will also provide the state security and will
gather together the society. Conditions will be created for honorable
life of people.

Eviction-Threatened Residents Protest ‘Government Harassment’

EVICTION-THREATENED RESIDENTS PROTEST ‘GOVERNMENT HARASSMENT’
By Karine Kalantarian

Radio Liberty, Czech Republic
July 3 2007

More than a hundred people facing eviction from their Yerevan homes
slated for demolition gathered outside President Robert Kocharian’s
office on Tuesday to protest against their alleged harassment by a
powerful security agency.

The protesters reside in Yerevan’s few remaining old neighborhoods
that are due to be torn down as part of a massive government-approved
redevelopment going on in the city center. Unlike hundreds of other
families whose houses have already been demolished, many of those
residents do not officially own their houses and will not necessarily
be compensated for their loss.

They claim that municipal authorities demand huge fees in return for
granting them title to their properties. The Yerevan municipality
promised last year to do this free of charge in some of the
neighborhoods concerned.

Organizers of the protest said that the National Security Service
(NSS) rounded up and questioned on Monday more than two dozen
eviction-threatened residents. Lena Chilingarian, a middle-aged
resident of the Kozern neighborhood, claimed to be one of them. "I
got really scared when people from the National Security Service came
to take me away," she said.

Chilingarian and other protesters allegedly questioned by the NSS
said law-enforcement officers specifically tried to get them to
give incriminating testimony against Samvel Mkrtchian, head of the
non-governmental organization Community and Right championing their
cause. They said they refused to testify that he is doing so for money.

The NSS already arrested on controversial fraud charges in 2005 a
human rights lawyer who had helped other evicted families sue the
Armenian government at the European Court of Human Rights. The lawyer,
Vahe Grigorian, was released several months later.

The demonstrators feared that Mkrtchian, whose mobile phone was not
reachable for two days, was also arrested by the former KGB. However,
the activist denied this as he joined the protest later on.

Still, Mkrtchian claimed that municipality officials have told him
that the NSS is "dealing with you." He said he is constantly being
followed by unknown individuals and fears for the safety of his
wife and children. "Their goal is to sabotage activities of the
non-governmental organization Community and Right," he told RFE/RL.

The protesters, meanwhile, dispersed after receiving what organizers
described assurances by officials from Kocharian’s staff that the
NSS will not disturb them anymore.

"Liberty" Will Not Be Closed Down

"LIBERTY" WILL NOT BE CLOSED DOWN

A1+
[05:02 pm] 03 July, 2007

The draft law on impending "close down" of Radio Free Europe / Radio
Liberty failed for the absence of enough quorums. It failed with 63
for, 0 against and 2 abstention votes. The draft law on "Radio and
TV" was not adopted. At least 66 deputies were to participate in the
voting and the absence of even one voter played a vital role for Radio
Free Europe. The opposition boycotted the bill with the initiative
of Viktor Dallakyan and did not participate in the voting.

Thus, nothings threaten the broadcast of the Radio Liberty at least
at the present moment.

Bako Will Continue Ghukasyan’s Activities

BAKO WILL CONTINUE GUKASYAN’S ACTIVITIES

A1+
[06:34 pm] 03 July, 2007

According to the President of Nagorno-Karabakh Arkady Ghukasyan,
"ideal conditions are created for conducting elections in Karabakh".

"What is allowed to the recognized states, will not be tolerated in
case of unrecognized states", said Arkady Ghukasyan to the journalists,
prioritizing conduction of good elections in Nagorno-Karabakh.

By the way, Arkady Gukasyan favors the candidature of Bako Sahakyan,
former head of Nagorno-Karabakh Security Department, during the 19
July presidential elections.

"I link the future of Karabakh with this name. I am confident that
he will safeguard the path to democratization and the construction
of the country in line with the European values. He is the individual
who may bind together the Karabakh nation for solving primary issues",
said Arkady Ghukasyan.

The President of the NKR reflected on the statement of Terry Davis,
Secretary General of the Council of Europe, that the international
community would not recognize the elections in Karabakh.

"I do not blame Terry Davis for such statement, since it concerns
the Nagorno-Karabakh conflict", pointed Arkady Ghukasyan.

Answering to the question how dangerous the statement might be,
Arkady Gukasyan noted that international organizations had certain
standards and they could not breach their frames.

"I do not think that it will have vital impact on Karabakh. Terry
Davis’ position will hardly be dangerous for us and we are going by
the path we have chosen definitely", said the President of the NKR.

Armenian Surgeon Appointed Junior Minister Of Health In UK

ARMENIAN SURGEON APPOINTED JUNIOR MINISTER OF HEALTH IN UK

AZG Armenian Daily
04/07/2007

After the appointment of the new cabinet and the larger Government
by Gordon Brown, there is now an Armenian minister in the British
Government. Sir Ara Darzi was appointed as a junior minister of Health.

Sir Darzi is a famous surgeon and he was born in Armenia. Armine
Grigorian, press and public Affairs Officer at British embassy to
Armenia, informed "Azg" about this.

Professor Sir Ara Darzi, who is charged with improving patient
care, has been promoted from his previous role as National Advisor
on surgery.

Sir Ara, chair of surgery at Imperial College London, supports
government plans to reconfigure NHS services.

When he took over as prime minister, Mr Brown said he planned a
broad-based government of "all the talents".

"My working life has, is and will continue to be centred on patient
care,"said Sir Ara Darzi.

But the Conservatives have criticised the appointment, accusing Sir
Ara of having a poor record of supporting access to services for
patients and rubber-stamping the demands of the Department of Health.

In a report published earlier this year Sir Ara said 80% of operations
should be carried out on patients in their local area, with the
remaining complex cases undertaken at specialist centres by highly
skilled surgeons.

Ministers have already embarked on a policy of reconfiguring services
along these lines – leading to controversial decisions about individual
NHS units which have been bitterly opposed by critics.

Sir Ara will combine his ministerial duties with his research and
clinical commitments, including the supervision of students.

Sir Ara, 47, said: "It is a great honour and privilege to be asked
by the Prime Minister to continue that work for patients across
the country.

"I will be working closely with Alan Johnson to map out the next
steps of the reform agenda that has achieved so much in the last 10
years. But we can do better."

He said he would draw on his experience from the frontline to fulfil
his new responsibilities.

"I am not a politician by profession. My working life has, is and
will continue to be centred on patient care."

Sir Ara is internationally respected for his innovative work in the
advancement of minimal invasive surgery and in the development and
use of allied technologies including surgical robots and image-guided
surgery.

Dr Jonathan Fielden, chair of the BMA’s consultants’ committee, said:
"Having a focus on improving patient care is a positive step forward.

"We will be looking forward to him listening to our concerns and
working closely with him to ensure that the concerns of the profession
and the public are utilised to improve patient care."

Mr Bernard Ribeiro, President of the Royal College of Surgeons, said:
"I am delighted that a practising surgeon, who deals with patients
on a regular basis, has decided to take such a high position.

"It is an opportunity for government to engage directly with the
profession."

The prime minister’s spokesman said Professor Darzi would work Monday
to Thursday as a minister – being paid for three days – and continue
to work as an NHS surgeon, unpaid, on Fridays.

Any income from his international private practice will be paid direct
to Imperial College to fund research, the spokesman said.

Bangkok Festival To Screen Documentary On Tabriz

BANGKOK FESTIVAL TO SCREEN DOCUMENTARY ON TABRIZ

Mehr News Agency, Iran
July 3 2007

TEHRAN, July 3 (MNA) — Iranian documentary "Tabriz, Images from the
Forgotten World", directed by Mohammad Ehsani, will be competing in
the Bangkok International Film Festival (BIFF) which will run from
July 19 until 27.

The 36-minute documentary will be screened in the short films section
of the event. It features an Armenian photographer in Tabriz who wants
to depict in photos the last 100-years’ history of the city starting
with the Iranian Constitutional Revolution (1906-11).

"Tabriz, Images from the Forgotten World" was also entered at the
Busan International Film Festival.

BIFF has dropped the animated movie "Persepolis" from its line-up
following the request of Iran’s embassy in Thailand. This movie
tells the autobiographical story of Satrapi when she was growing up
in Tehran during the Islamic Revolution in the 1970s.