Withdrawal from Georgian Bases will deprive Presence in ROA of Sense

`WITHDRAWAL OF MILITARY STATIONS FROM GEORGIA WILL DEPRIVE RUSSIA’S MILITARY
PRESENCE IN ARMENIA IN A SENSE’

Azg/arm
15 March 05

The Moscow based Commersant newspaper expressed the idea that the
withdrawal of Russian military stations from Georgia will deprive
Russia’s military presence in Armenia in a sense. The loss of Russia’s
influence in Georgia will inevitably weaken Russia’s position in all
South Caucasus, the newspaper underscored.

“The road leading to the Russian military station in Armenia stretches
through the territory of Georgia. That is why the presence of the
Russian military stations in Georgia is a guarantee for Moscow that
the road will not be blocked. If we have to communicate with the
Russian military station in Armenia through air, this communication
will be instable,” the Liberty Radio Station cited Commersant.

From: Emil Lazarian | Ararat NewsPress

Int’l Workshop in Ankara To Sap Genocide Commemoration Efforts

INTERNATIONAL WORKSHOP IN ANKARA TO SAP GENOCIDE COMMEMORATION EFFORTS

Azg/arm
15 March 05

In a March 11 article entitled “Armenian Genocide Claims to Be
Discussed In Ankara” Turkish Miliet newspaper informs about Turkey’s
counter-attack on the Armenian Genocide’s 90th anniversary this
year. The paper reports that the Ankara Park Hotel is hosting an
international workshop “1915-16: genocide, jurisprudence, psychology
and history” on May 28-29.

The Foreign Affairs’ Ministry and the National Security Council of the
country will finance the seminar and the Armenian Studies’ Institute
of Eurasian Strategic Research Center will coordinate the meeting.
Numerous specialistsand journalists from all over the world were
invited to the workshop. Hrant Dinq, editor-in-chief of Akos newspaper
in Istanbul, and Etienne Mahtchupian, Zaman daily columnist, are among
the invited to make speeches together with famous Turkish journalists
Taha Aqyol, Ali Bayramoglu, Jan Dyundar and others.

Miliet published the list of those participants who will lecture at
the workshop. The following names should be singled out: the head of
Eurasian Strategic Research Center, former ambassador, Gyunduz Aqtan,
Turkish History Foundation president, Yusuph Halacoglu, dean of
Ataturk University History Chair, Enver Qonuqcu, and foreign scholars
Justin McCarty, Norman Stone, Stanford Shaw- all known for supporting
Turkey’s denialist policy.

Jair Auro from Israel and Richard Hovhannisian, head of the Modern
Armenian History chair at the California University, were also invited
to take part. Meanwhile Miliet notes that Turkish scientist, Halil
Berktay, was not invited. Turkish paper’s reasoning is interesting:
“Halil Berktay claims that the law of deportation designed for
Armenians in 1915 aimed at `ethnic cleansing’. So, they were deported
not only from the eastern regions of the country but also from cities
like Izniq, Izmir and Corlu. He expressed an opinion that `this is
enough today to label events as genocide’. For that reason he was not
invited”.

By Hakob Chakrian

From: Emil Lazarian | Ararat NewsPress

Over 400 complaints filed with Armenian ombudsman in two months

Over 400 complaints filed with Armenian ombudsman in two months

Arminfo
14 Mar 05

YEREVAN

Armenian ombudsman Larisa Alaverdyan received over 400 complaints in
two months of this year, among them 239 in writing, the press service
of the Armenian ombudsman’s office has told Arminfo.

Over this period, 110 complaints were received from the rural part of
the country, including 94 in writing. A total of 78 complaints were
accepted and 59 rejected, while in 15 cases applicants were consulted
on ways and methods of protecting human rights. Twelve complaints were
forwarded for consideration to relevant agencies with the consent of
the complainants.

[Passage omitted: minor details]

Most of the complaints concerned the work of local governments and
courts – 31 and 30 complaints respectively. A significant number of
complaints had to do with the work of the ministry of labour and
social security and the police, as 26 complaints concerned either of
these areas. Eighteen complaints concerned the prosecutor’s office, 13
the state committee for the registration of immovable property, 11 the
Ministry of Education, 10 the defence and justice ministries.

Only one person complained about the government.

From: Emil Lazarian | Ararat NewsPress

Georgian daily says old elite losing influence in Abkhazia

Georgian daily says old elite losing influence in Abkhazia

24 Saati, Tbilisi
14 Mar 05

Georgian newspaper 24 Saati believes that recent cabinet appointments
in Abkhazia show the old political elite is losing its influence.
Although vice-president Raul Khadzhimba officially nominates
candidates for several key posts, president Sergey Bagapsh has seen no
need to approve them, the paper says. The following is the text of a
report published on 14 March:

The formation of the [Abkhaz] government has already been completed.
[Abkhaz president Sergey] Bagapsh’s two decrees on the appointment of
the culture and education ministers were published over the weekend
although the foreign and justice ministers have not been appointed
yet. It has proved to be quite difficult to resolve personnel issues
in the “disputable” departments. Legally, vice-president Raul
Khadzhimba should submit nominations for the heads of these
departments, but it has become quite clear that Bagapsh will not
accept these nominations.

This is why the search for a consensus is continuing and this is
happening at the expense of violating the constitution, according to
which all government appointments should be made within two weeks of
the new president’s inauguration.

There was no doubt that there would be difficulties in appointing the
foreign and justice ministers. However, it is surprising that
difficulties emerged in the appointment of the culture and education
ministers. However, prime minister [Aleksandr] Ankvab said later that
they had to choose from a large number of people who could “work
professionally” in these posts.

Finally, Nugzar Logua, a member of Aytayra [a sociopolitical
movement], was appointed culture minister and Indira Vardania
education minister. Irrespective of how the struggle for the foreign
and justice ministries ends, it is already possible to draw certain
conclusions about the new government.

It is clear that the Aytayra movement has been given priority in the
new government. Four of its representatives have already occupied
posts in the c abinet. They are prime minister Aleksandr Ankvab,
deputy prime minister Leonid Lakerbaia who is in charge of social
issues, and the newly appointed education and culture ministers who
are also Aytayra members.

Correspondingly, Aytayra can justly claim to have the role of a
political organization that is able to form a ruling party in the
future. This advantage is especially interesting as the two other
major forces – Amtsakhara [a sociopolitical movement] and Yedinaya
Abkhaziya [United Abkhazia] – that formed an alliance and defeated the
opposition have failed to receive significant personnel dividends in
the new government. Amtsakhara has been left without any post at all
in the government, while Yedinaya Abkhaziya received only one post –
its chairman Beslan Kubrava is deputy prime minister and finance
minister.

Although Vladimir Nachach-ogly, a member of the Amtsakhara political
council and chairman of the parliamentary committee for legislation,
was offered the post of prosecutor-general, he refused.

Another striking fact is that a coalition government was not
formed. Neither Bagapsh nor Ankvab seemed to feel the need to satisfy
the demands for posts from the old elite, demands made via
Khadzhimba. He was “tricked”. No-one listened to his proposals during
the formation of the power departments and other ministries. The only
exception is the agriculture ministry where Vitali Smyr was appointed
minister. He participated in the first [3 October 2004 presidential]
election as Raul Khadzhimba’s running mate.

The presence of the old elite, now the new opposition, in the new
government would have been surprising in light of Amtsakhara’s
absence. The fact that a coalition government was not formed allows us
to presume that the new opposition’s activity will grow significantly,
especially ahead of the forthcoming parliamentary elections.

The administrative reforms that were widely advertised during the
election campaign have not been implemented. Not only has the number
of ministries not been reduced, it has even grown by one. The ministry
of health and social welfare was divided into two different
ministries. The closure of the emergencies ministry that was created
by [former Abkhaz prime minister] Nodar Khashba [shortly after the 3
October 2004 election] and existed for only two months can hardly be
regarded as a reduction in the number of ministries.

So far, the new cabinet’s leaders have refrained from commenting on
the reasons for “boycotting” the promised administrative reforms.

The last striking fact is that there are no Armenians, Georgians,
Russians or others in the new government. The active involvement of
ethnic minorities in the government was one of their election
promises, but authorities are now complaining that there is no-one
among them [ethnic minorities] who would like to work in the
government. Only one minister is not Abkhaz, the social welfare
minister Olga Koltukova. There is one Armenian, Nerses Nersesyan,
among the heads of state committees. He is the head of the state
committee for metrology and standardization. There is also one
Georgian, Aleksandr Nebadze, among the leaders of state
administrations. Although a Georgian is the acting justice minister,
this does not mean at all that he will definitely become minister.

In short, on the one hand, the new government has broken election
promises during the formation of the government and, on the other,
they have managed to minimize the influence on the new government of
the old elite that was trying to participate in the process of the
cabinet’s formation through Khadzhimba.

From: Emil Lazarian | Ararat NewsPress

Gonzalo Guarcha’s `Armenian Family Tree’ depicts The Genocide

GONZALO GUARCHA’S ARMENIAN FAMILY TREE’ TO BE REPRESENTED TO ARMENIANS ON
DAYS OF COMMEMORATING ARMENIAN GENOCIDE

Azg/arm
15 March 05

Gonzalo Guarcha, Spanish writer, architect, author of many books on
struggle and suffering, war and peace, lives and creates in city of
Almeria in Spain. His book “The Armenian Family Tree” depicts the
Armenian Genocide.

Guarcha visited Armenia thanks to the efforts of Eduard Khojoyan, RA
Ambassador to Spain and Portugal. He was warmly received by RA
President Robert Kocharian, Levon Ananian, chairman of RA Writers’
Union. Robert Sharoyan, former RA culture minister, awarded the writer
with a medal. “The Armenian Family Tree” was published by Rosetta
Yusufian, an honored Argentinean-Armenian.

The Writers Union of Armenia and Armenian revolutionary Party are
going to pay the expenses for the Armenian translation of the
book. “The Armenian Family Tree” will be represented to the readers on
April 24, on the day of commemorating the 90th anniversary of the
Armenian Genocide.

The writer promised to write another book for the Armenians and
dedicate it to the memory of Soghomon Tehlerian, the avenger of the
genocide.

By Hamo Moskofian in Almeria

From: Emil Lazarian | Ararat NewsPress

ANKARA: Edelman: US Prefer To Leave The 1915 Incidents to Historians

Turkish Press
March 15 2005

Edelman: Traditionally U.S. Administrations Prefer To Leave The
Incidents Of 1915-1916 To Historians

BURSA – U.S. Ambassador in Ankara Eric Edelman stated that
”traditionally U.S. administrations prefer to leave the incidents of
1915-1916 –regarding Armenians– to historians”.

Answering questions in a press conference after lunch at the Bursa
Industrialists & Businessmen Association, Edelman said that, ”in the
event a resolution on the so-called Armenian genocide comes to the
U.S. Congress in April, the American administration will not change
its decades old stance (on the incidents of 1915-1916) and prefers to
leave this matter to historians”.

Asked if the Armenian lobby is putting pressure on the U.S.
administration, Edelman replied that all ethnic minorities in the
States can express their thoughts freely. ”Yet the American
administration’s stance is, as I have indicated…”

In response to a question on rumors of deteriorating Turkish-U.S.
ties, ambassador Edelman stressed that ”relations between Turkey and
the U.S. are strong, and multi-faceted, including political, economic
and social topics”.

Eric Edelman paid a visit to the University of Uludag after meeting
the press corps.

From: Emil Lazarian | Ararat NewsPress

Samtskhe Javakheti Armenians urge Georgia Parl to recognize Genocide

PanArmenian News
March 14 2005

ARMENIANS OF SAMTSKHE JAVAKHETIA URGE GEORGIAN PARLIAMENT TO
RECOGNIZE ARMENIAN GENOCIDE

14.03.2005 04:35

/PanARMENIAN.Net/ About 10 thousand people took part a rally in
Akhalkalaki (Georgia) on March 13, IA Regnum reports. On the
initiative of United Javakhk public union signatures under the
request to Mikhail Saakashvili and Georgian parliament to acknowledge
the Armenian Genocide of 1915 have been collected. The rally
participants also urged to lift the ban on teaching History of
Armenia in the Armenian schools of Georgia; to lift the ban on
conducting excursions in Armenia for the pupils of the Armenian
schools; to adopt a law on national minorities’ rights protection and
recover the authority on providing administrative services. The
ralliers also protested against the withdrawal of Russian military
base from Akhalkalaki, since it appears the guarantor of stability
and economic welfare of the residents of the region. According to the
source, the rally initiators are awaiting the response on the
above-mentioned issues till March 31, 2005.

From: Emil Lazarian | Ararat NewsPress

In past 2 days, 3 earthquakes recorded in South Caucasus

PanArmenian News
March 14 2005

DURING RECENT TWO DAYS 3 EARTHQUAKES RECORDED IN SOUTH CAUCASUS

14.03.2005 05:11

/PanARMENIAN.Net/ During the recent two days three earthquakes were
recorded in the South Caucasian region, Arminfo agency reports. On
March 13 morning at the Armenian-Azeri border, 25 km to the south of
the Armenian town of Vardenis earthquake with magnitude of 4 on the
Richter scale took place. The earthquake was felt in a number of
inhabited localities of Armenia – Sotk, Tretak, Azet, Norabak – where
some constructions were slightly damaged. This morning an earthquake,
recorded 65 km to the north-east of the town of Bingel, Turkey, had a
magnitude of 5.5. There is no information on victims yet. Another
earthquake shocked Turkey today 63 km to the north-east from Bingel.
The tremor force was fixed at 5 on the Richter scale.

From: Emil Lazarian | Ararat NewsPress

Azeri President says no room for compromise on NK

ArmenPress
March 14 2005

AZERI PRESIDENT SAYS NO ROOM FOR COMPROMISE ON NAGORNO KARABAGH

BAKU, MARCH 14, ARMENPRESS: Azerbaijani president Ilham Aliyev
said Saturday that his country is not ready for any compromise with
Armenia over Nagorno-Karabagh, and reiterated accusations that
Armenia has occupied its lands, which he said “cannot be the subject
of bargaining.”
Aliyev said Azerbaijan will not change its position on the
conflict. “There can be no talk of mutual compromises. That was a
mistaken thesis,” Aliyev told journalists, referring to international
mediators’ statements that compromise is necessary to settle the
dispute.
“The only thing we can do is discuss security guarantees for
ethnic Armenians who would be allowed to live in Nagorno Karabakh if
it were placed under Azerbaijani control,” he said.
“We do not want a new war, we know that it would be a catastrophe,
but everyone should know that we have to be prepared for it. We have
to liberate our lands, we are not going to cede them to anyone and
will restore our territorial integrity at whatever the price is,” he
said.
Aliyev said he would not oppose a new meeting with Armenian
President Robert Kocharian to discuss the dispute, but said that the
countries’ foreign ministers would have to make progress toward a
potential solution before a meeting can be held. Progress is
contingent on Armenia taking a “constructive position,” he said.

From: Emil Lazarian | Ararat NewsPress

Ukraine: The Crouching Tiger

Global Politician, NY

Ukraine: The Crouching Tiger

3/15/2005

By Sam Vaknin, Ph.D.

Reading the Western media, one would think that Ukraine’s main products are
grotesquely corrupt politicians, grey hued, drab, and polluted cities, and
mysteriously deceased investigative journalists and erstwhile state
functionaries.

When another journalist was found dead in Odessa on New Year’s Eve 2002,
both the Prosecutor General and the Ukrainian Parliamentary Committee for
Fighting Organized Crime and Corruption have accused the entire Ukrainian
Cabinet of Ministers of collusion in shady dealings with Kazakhoil, the
Kazakh national oil monopoly.

The “Orange Revolution” in October-November 2004 the disorderly, though
popular, transfer of power from one group within the “Dniepropetrovsk
family”, headed by Leonid Kuchma and his henchman to another faction, headed
by the volatile and incompatible Viktor Yushchenko and Yulia Timoshenko led
to more deaths in unexplained circumstances.

Both Yushchenko and Timoshenko had served in senior positions (as prime
minister, for instance) in the ancien regime and, therefore, may have
skeletons in their cupboards. The spate of “suicides” committed by former
and knowledgeable functionaries came as no surprise – both parties, outgoing
and incoming, have a vested interest in suppressing embarrassing
revelations.

>From December 2001 onwards, the Legsi (the Lehman Brothers Eurasia Group
Stability Index) kept warning against a deterioration in Ukraine’s social
stability, owing to fiercely resisted austerity measures.

Until recently, things were not auspicious on the international front as
well. During the Balkan hostilities between Macedonians and Albanians in
2001, Ukraine supplied Macedonia with attack helicopters and other weaponry
over the strident objections of the State Department. Its strategy of ever
closer union with Russia and China was in ruins following the sudden shift
in Putin’s geopolitical predilections after the September 11 attacks. And to
spite the EU (which forced Poland to impose strict controls on its porous
border with Ukraine) – “starting from 1 January 2002, Kyrgyz citizens, like
the citizens of Azerbaijan, Armenia, Kazakhstan, Tajikistan and Uzbekistan,
may enter, leave and pass through Ukraine without visas” as the Kyiv based
UNIAN news agency jubilantly announced on January 4th, 2002.

Its parliament having failed to pass a government sponsored law against the
unlicensed production of CD ROM’s (piracy) – the Ukraine was subjected on
January 2, 2002 to much postponed US imposed stiff trade sanctions
(estimated to cost it $500 million per year). The employees of Ukraine’s
largest CD maker, Rostock Records, demonstrated opposite the US embassy
against the sanctions, denouncing them as “economic terrorism”. The
International Federation of Phonographic Industry (IFPI) countered by saying
that “Ukraine is the largest exporter of pirated CDs to Europe, with tens of
millions of high quality illegal copies shipped each year to markets
throughout Europe and as far away as South America.”

At any rate, following its blatant intervention in the political
machinations which led to the Orange Revolution in October-November 2004,
anti-American sentiments are running higher than usual in the eastern,
Russophile parts of the country.

Ukrainian discontent is further exacerbated by the American continued threat
to slap tariffs on steel imports despite a last minute agreement signed in
2001 with the EU and other major steel manufacturing countries to curb
worldwide production. Ukraine has agreed to cut its output by 11 million
tons annually (out of a total reduction of 97.5 million tons). Depressed
prices for gallium (used mainly in the recession-struck mobile phones
industry) have gravely affected Ukraine’s only alumina producer (Mykolaevsky
Hlynozyomny Zavod) which has just quintupled its capacity to 10 tons.

Ukraine is optimally located between Central Europe and Russia. It is the
largest polity in East Europe and the second largest country is Europe
(almost the size of Texas). It is rich in natural endowments, though
hopelessly polluted (Chernobyl is in the Ukraine) and deforested. In the
former USSR, it provided 25% of all agricultural produce. The Soviet mining
and oil industries relied on Ukrainian heavy industry for their equipment.
The literacy rate in Ukraine is 100% and many are polyglot.

Yet, these Ukrainian riches were squandered in the decade following
independence. Dependence on energy and a reform effort thwarted by
entrenched Communist era stalwarts led to a 60% drop in GDP compared to 1991
(the year of its independence). Frenetic money printing resulted in
hyperinflation in 1993. Inflation has still not been subdued and has topped
26% as late as 2000.

More than 50% of the population are under the official, starvation level,
poverty line. Though only 5.3% are registered as unemployed, both
underemployment and hidden unemployment are rampant. Mercurial and default
prone Russia is still Ukraine’s main trade partner (c. 30% of its
international trade). Each of Ukraine’s 49 million citizens owes $200 to
foreign creditors – the equivalent of 30% of GDP per capita. Public debt has
doubled to c. 50% of GDP in the four years to 2000. Worse still, Ukraine is
increasingly used as a drug smuggling route and drugs growing area for the
CIS. Synthetic drugs are manufactured in the Ukraine and smuggled to the
countries of Western Europe.

Ukraine is a major target for Russian investors, especially from the energy
sector. Putin appointed Victor Chernomyrdin, a political heavyweight – a
former Prime Minister and, more importantly, a former chairman of Gazprom,
the Russian energy behemoth – as Russia’s ambassador in Kyiv. Ukrainians are
not against Russian investment – but they are averse to the political
strings it comes attached to. They also resent the bargain basement prices
at which their most valued assets are “privatized” to these old-new
“foreign” investors. Inevitably, they ask themselves “cui bono” – who
benefits personally from these questionable transactions. The answer is not
too hard to guess – but guessing has proven to be a dangerous occupation. At
least one muck-raking journalist has been (literally) beheaded and a senior
politician (now prime minister in the new regime) jailed for trying to
reform the energy sector.

Inevitably, Ukraine is socially and politically strained. Its western parts
are fiercely nationalistic and West oriented. Its eastern parts lean more
towards Russia and are USSR-nostalgic. But this apparent schism is no bad
thing. It provides Ukrainians with a secure foothold in both worlds – and no
one seriously considers secession.

Unnoticed by many, Ukraine is undergoing a seismic shift which may result in
an economic revival of Chinese proportions.

When Viktor Yushchenko, the popular Prime Minister and darling of the West
was brutally ousted in May 2001 by the authoritarian President, Kuchma
(himself hailed as a daring reformer by the IMF when elected in 1994),
everyone predicted a calamity. Yet, Yushchenko moved since then to the
centre in what appears to be an implicit reconciliation with the president.

His replacement, Anatoly Kinakh, surprised everyone by proving to be an
efficient and modernizing technocrat. Ukrainian bonds returned to investors
more than 60% net in 2001-2, making them the best emerging markets
investment by far. Its capital markets are gradually being
internationalized. The much maligned Kuchma introduced a sweeping anti-money
laundering decree (later to become law). Ukraine (since its 1998-2000 series
of de facto defaults following the financial meltdown in Russia) is now a
model debtor. In August 2000 it has even re-paid the IMF $100 million.

Possibly emboldened by his re-election in 1999, Kuchma seemed to be making
real efforts to streamline the government (which anyhow consumes a mere 18%
of GDP), cut red tape, consolidate the government’s fiscal stance (Ukraine
had small budget deficits, excluding privatization receipts, in 1999-2001),
become a WTO member, and create a legal environment conducive to private
enterprise and entrepreneurship.

A new Land Code – passed by a surprising ad hoc parliamentary alliance and
providing for the (limited) private ownership of land – took effect on
January 2, 2002. Payment discipline in the critical energy sector was
enforced, the agriculture sector was revamped, non cash revenue offsets and
cronyist tax exemptions were entirely eliminated, government arrears
(including pensions) were substantially reduced (though new arrears have
again accumulated thereafter), a privatization law was finally introduced,
and municipal finance was rationalized.

The government’s contractionary fiscal rectitude (a new Budget Code was
enacted and tax collection improved) was balanced by the central bank’s
(NBU) expansionary monetary policy aimed at increasing its dangerously
dilapidated foreign exchange reserves (c. $2.4 billion in 2001) and spurring
growth in the real sector. Rising demand for money and the propitious
existence of a thriving informal (cash) economy prevented the resurgence of
inflationary pressures – though inflation has picked up in December 2001,
forcing the central bank to tighten in 2002 (it disputes the government’s
official figure of 6.1% inflation for 2001).

In 2000 the economy grew for the first time (by 6%). Growth was export
driven and industrial output increased by 13%. The global recession has hurt
Ukraine’s export prospects but even so, it grew by 4-5% in 2001. It
continued to expand by 2-4% each year in 2002-2004.

With a labour cost of 30 cents per hour, Ukraine attracts the interest of
manufacturers in the US, in Central Europe, and even in Russia. Strong
import growth may swing it back to a current account deficit (in a surplus
of c. 5% of GDP in 2001, as it has been in the previous 2 years). Fiscal
shenanigans ahead of the March 2002 and October 2004 elections (and the
horse trading which inevitably followed) had ratcheted up the predicted
inflation rate of 9-12% – but the appreciation of the hryvna is set to
continue.

The economy is surprisingly modern. Only 24% are employed in agriculture
(and they produce a mere 12% of GDP). More than double that is produced by
industry (26% of GDP) and a whopping 62% of GDP is generated in services (in
which only 44% of the labour force are employed).

On December 2001, S&P upgraded Ukraine’s currency risk rating (both foreign
and domestic) to “B” with a “Stable” long term outlook. On the pro side, S&P
cited financial stability, partly the result of a rationalized and
rescheduled foreign debt structure. On the con side, it cited the usual
litany of corruption, weak legislature, problems with privatization and with
structural reform and malignant oligarchs. These flaws being noted, it did
upgrade Ukraine’s rating – as did Fitch, Moody’s and Japan’s Rating and
Investment Information Agency. The price of Ukraine’s (mainly dollar
denominated) Eurobonds appreciated dramatically on institutional buying
immediately following the announcement.

Ukraine’s image as bereft of Foreign Direct Investment is false. Moreover,
c. 80% of all FDI in Ukraine is Western – not Russian. USA investors compete
with Russian (cum “Cypriot”) investors – each holding 17% of the total stock
of FDI (c. $4.5 billion in early 2002).

Moreover, Ukraine is now in good standing with the IMF (after a difficult
2001 in which the IMF virtually suspended all communication with Ukraine due
to falsified data provided by the NBU). It has signed in 1998 a $2.6 billion
arrangement (of which $1.6 billion are used). Another tranche of c. $380
million was approved in September 2001. The IMF singled out the banking,
energy, and agriculture sectors as in need of continued, pervasive, reforms.

The World Bank has committed close to $3 billion (and disbursed $2.2
billion) to projects in Ukraine (mostly in the energy, mining, agriculture,
finance, and private sectors) since 1992. The latest Country Assistance
Strategy documents for Ukraine (2001-2003 and 2004-6) are unusual in that
they seek to circumvent the hopelessly venal and discredited administration
and work directly with the public, business, and NGO’s towards building a
civil society and its attendant institutions. “The strategy seeks to move
Ukraine closer to the European Union standards, fostering
environmentally-sustainable development” – says the Bank. though it hastens
to emphasize the success the government had in implementing its reforms.

As of June 2001, the EBRD (which has a mixed track record in Ukraine) has
approved 45 projects in Ukraine (34 of which in the private sector) worth
1.2 billion euro. This excludes the construction of a highly controversial
and politically inspired nuclear power plant.

Ukraine has gone so low in the world that its fortunes can only improve. It
is poised for a modest economic comeback as its mediating geographic
position between centre and east comes into play with EU enlargement. Kuchma
was eased out by the very oligarchs he nurtured. They now constitute an
element in a broad based coalition for reform. Having sated their appetite
for loot they now seek respectability and access to capital markets and
credits in the West. They want a functioning country and a larger cake.
Kuchma is a figurehead of a disfigured past. In the long run, a Putin style
robotic reformer is likely to succeed him. When it happens, Ukraine may yet
become the region’s first economic tiger.

Sam Vaknin, Ph.D. is the author of Malignant Self Love – Narcissism
Revisited and After the Rain – How the West Lost the East. He served as a
columnist for Central Europe Review, PopMatters, Bellaonline, and eBookWeb,
a United Press International (UPI) Senior Business Correspondent, and the
editor of mental health and Central East Europe categories in The Open
Directory and Suite101.

Until recently, he served as the Economic Advisor to the Government of
Macedonia. Sam Vaknin’s Web site is at

From: Emil Lazarian | Ararat NewsPress

http://samvak.tripod.com