Mailyan: Morality and law stronger categories than oil & petrodollar

Masis Mailyan: “Morality and law are stronger categories than oil and
petrodollars”
Interview of Masis Mailyan, Head of the NKR Public Council for Foreign
Policy and Security, with ArmInfo News Agency

by David Stepanyan

arminfo
Tuesday, August 21, 12:49

On August 6, 2012, the House of Representatives of the State of
Massachusetts adopted a resolution submitted by State Representative
Jonathan Hecht urging “the President and Congress of the USA to
support the self-determination and democratic independence of Nagorno-
Karabakh”. Do you think this step may become a precedent and what are
the prospects of this process?

As early as on May 17, 2012, the Rhode Island House of Representatives
also adopted a resolution calling on the U.S. President and Congress
to recognize the independence of the Nagorno-Karabakh Republic. This
resolution became a precedent for adoption of a similar resolution by
the Massachusetts House of Representatives. This process is of great
importance to the Karabakh residents and should be continued. I’d like
to recall that on April 26, 2010, the Public Council for Foreign
Policy and Security of Artsakh applied to the Armenian Diaspora
organizations to initiate the process of international recognition of
the Nagorno-Karabakh Republic. We think the recognition of Artsakh,
even by the regional structures and self-government bodies of certain
countries will encourage our compatriots in Artsakh, give them more
firmness and will be serious moral and institutional support for them.
In addition, the process of recognition of the NKR will contribute to
softening of Azerbaijan’s positions in the talks.

Several months ago Foreign Minister of Uruguay Luis Almagro said that
his country was considering possible recognition of independence of
the Nagorno-Karabakh Republic. Afterwards the Azeri Foreign Minister
made a trip to the countries of Latin America to continue “conquering”
these countries to create a counterweight to the Armenian communities.
What steps should the Armenian republics and communities take to
create a counterweight to “Aliyev’s oil” and petrodollars?

I think that morality and law are stronger categories than oil and
petrodollars. Therefore, the diplomacy of the Armenian states and the
Armenian lobbying structures should continue their work in the
countries of Latin America. In early December 2010 the large states of
Latin America responded to the Palestinian leader’s request and
declared recognition of Palestine’s independence. The actions of the
countries of Latin America could not be considered a precedent, as
Palestine had been recognized as a state by dozens of countries
before. It is noteworthy that the countries of Latin America with
strong Armenian Diaspora seek to expand their role in international
affairs and support one of the parties to the protracted Middle East
conflict. The fact that some states of Latin America are conducting an
independent policy opens new prospects for us.

On August 8 Russian Deputy Foreign Minister Grigory Karasin said that
Russia sets a high value on the relations with both Yerevan and Baku,
which are Russia’s partners in the CIS, and that Russia does
everything possible to narrow the gap between the two sides’ positions
in the Karabakh peace process. How would you assess the prospects of
the peace process given the presidential elections in Armenia and
Azerbaijan in 2013?

As expected, the Karabakh peace process has paled into insignificance.
The formal explanation of that is the two-year electoral period in the
three co-chair countries of the OSCE Minsk Group and in the
conflicting parties – Karabakh, Armenia and Azerbaijan. The real
reason is not the elections, but a number of other factors, for
instance, the reluctance to change the current status quo, which has
tough internal and external parameters, the obsolete approaches, the
distorted negotiation format and other important factors.

The NKR Prime Minister Ara Haroutyunyan has recently expressed the
NKR’s willingness to put up the Armenians of Syria, provide them with
living conditions, and give them an opportunity to receive free
education in Artsakh. Afterwards, the Foreign Ministry of Azerbaijan
announced that the migration of Syrian Armenians to Karabakh was
illegal. Do you think the settlement of the liberated lands of Artsakh
with our compatriots may stimulate implementation of a global project
on settlement of Karabakh?

As the second Armenian state, Artsakh is also morally responsible for
their compatriots in need. The Nagorno-Karabakh authorities have an
opportunity to put up the Armenians from Syria, and it has been
declared. There are citizens in Artsakh, who are ready to provide the
Armenians from Syria with part of their housing. Such solidarity is
also very important and displays true patriotism. In case the work is
arranged correctly and the wishes of our compatriots are taken into
consideration, it is possible to solve both the problem of ensuring
the safety of the population evacuated from Syria and the problem of
proportional development of all the territories of Karabakh. We have
all the sound reasons for that.

Were the recent presidential elections in Artsakh one more step
towards establishment of democracy in the republic?

Due to the nomination of Vitaly Balasanyan’s candidacy for president,
the elections were alternative. The big number of votes obtained by
Balasanyan became a serious basis for the beginning of new democratic
processes in the NKR. A new political structure is being created. As
known, the NKR had lacked opposition since May 2007, and the political
field was unipolar. It is important that the NKR citizens once again
expressed their preferences, and the media reports on the passivity of
our society fell short.

From: A. Papazian

Security and conflict in the Caucasus region, not frozen

Foreign Policy: Security and conflict in the Caucasus region, not frozen

tert.am
09:50 – 21.08.12

By Lt. Gen. Mark P. Hertling, US Army
Best Defense guest columnist

The Caucasus – that historical causeway of conflict between Europe and
the Middle East – remains a complicated tangle of security concerns.
Ethnic tensions still affect long standing territorial disputes,
internally displaced indigenous people align with or oppose powerful
diasporas, and an increasing nouveau riche — an oil-fueled minority
upper class — is growing in an area once known only for desperate
poverty.

While the Minsk Group spearheads the OSCE’s efforts to find a
political solution to the conflict in and around Nagorno-Karabakh,
Armenia and Azerbaijan both remain frustrated with the lack of
political resolve; military leaders on both sides proudly and
unjustifiably claim they could “settle it” quickly. The recent
Georgian experience with Russia has left significant cross-border
scars that will likely not heal anytime soon, especially as Georgia
desperately seeks NATO membership and European acceptance. The
spider-web relations between Iran and Israel with many of those in
this region confuses even the experts; and the border between Turkey
and many of her allies – especially Armenia – are subject to political
resolution of multi-generational disputes between those two countries.

All of these factors exist in a crucible surrounded on three sides by
Turkey, Iran, and Russia. The potential for conflict is considered so
plausible and the issues related to the interaction so confusing that
a few years ago the U.S. Army’s Training and Doctrine Command
developed scenarios linked to the Caucasus to help prepare Majors for
military contingencies. The US Army’s Command and General Staff
College at Fort Leavenworth uses the “GAAT”
(Georgia-Armenia-Azerbaijan-Turkey) exercise as a thread of continuity
throughout the course. Understandably there is no right or wrong
answers to any of the questions posed to young field grade officers in
the course, but the underlying conflict scenarios meet the requirement
to analyze and exercise an extremely complex Joint, Interagency,
Intergovernmental and Multinational resolution.

During a recent US Army Europe (USAREUR) command visit to Georgia,
Armenia and Azerbaijan, my young aide de camp — a recent graduate of
Leavenworth — pronounced after accompanying me that she wished she
had visited these countries before participating in “the GAAT.” After
observing the meetings with the regions’ visionary political
leadership, and seeing the capabilities of the emerging non-conscript
militaries and the unique differences between the younger generation
of professional leaders and the older generation of Soviet-trained
generals, she proclaimed: “this is very different from what I learned
in the classrooms at Leavenworth, Kansas.”

There were some tensions, to be sure. But there was also reason for optimism.

European Command’s strategy of Theater Security Cooperation – and
USAREUR’s contribution as part of that strategy in training and
exercising with the militaries and engaging with military and
political leaders — is bearing significant results. The four nations
that make up “the GAAT” are integrating forces in NATO out of theater
and peacekeeping operations in places like Afghanistan and Kosovo, and
the potential for peaceful management of the region’s substantial
security challenges is improving.

Georgia has participated in ISAF since 2005 and has provided a
caveat-free battalion under U.S. command since 2010. This contribution
is set to double in October of this year. The Georgian military
leadership is now requesting USAREUR’s support to train a
brigade-sized command and control element for their increasingly
capable and dramatically more professional force. Armenia has recently
volunteered to send forces to the continuing Kosovo peacekeeping
operation under U.S. command, after their partnership deployment with
Greece ended due to the fiscal crisis in that country. Even while
engaged in the poorly-named “frozen conflict” of Nagorno-Karabakh
(N-K), both Armenia and Azerbaijan deploy company-sized elements to
Afghanistan, under German and Turkish commands, respectively. Indeed,
the fact that Azerbaijan and Armenia have both created brigade-sized
peacekeeping and NATO-compatible units is an extremely positive
development. Remarkably, both nations have developed these forces as a
distinct military branch for the express purpose of participating in
multinational operations. These units, which are specifically
non-aligned with operations in N-K conflict, are largely manned by
professional soldiers, not conscripts, and are led by
English-speaking, western-trained officers. At a glance during my
visit, they also appear better trained than line forces occupying
positions along the NK line-of-contact.

The infusion of values and the concept of a “profession of arms” are
taking hold in the younger elements of the Georgian, Armenian, and
Azerbaijani officer corps, who are often trained in the west through
the Individual Military Education and Training (IMET) program. The
differences between these younger leaders — many of whom have already
taken command in key positions — and the older Soviet-trained
generals are palpable. In Georgia, for example, the Chief of the Army
is exceedingly young, but in two years of engagement I have watched
him grow into a mature and dedicated leader of his relatively small
Army. The younger Battalion and Brigade Commanders in Armenia and
Azerbaijan — many of whom received education at the Army’s War
College at Carlisle or at Leavenworth — also exhibit a professional
character found in more advanced security forces. Several of these
Armies are also focusing on growing a professional NCO corps; this is
one of the more significant signs of emerging and quantifiable
progress. The younger, visionary political leaders know these aspects
of a professional force are critical for further democratization and
inclusion in European and NATO organizations.

As the world’s security focus shifts away from ISAF, and the National
Security Strategy of the U.S. “rebalances” toward the Pacific, USAREUR
continues to look at the Caucasus countries in the same way that we
view the others that make up the European Area of Responsibility; as
partners in future coalitions.

The forward presence of U.S. forces in various parts of the world is
critical to an expansion of security cooperation and partner capacity
building. Our forward presence in Europe eliminates the tyranny of
distance, and it significantly enables realistic training and
exercises with security forces of all different nations. But more than
that, our presence builds trust; something that rotational forces
cannot do to the same degree as those who share the continent. All
these factors are necessary elements in reassuring political and
military officials that there is a peaceful solution to regional
tensions, and that other security challenges are best met working
closely — and daily — with regional allies. Forward presence
reinforces the reality that the United States is a committed partner
in maintaining regional security.

Having seen the potential for conflict, and the continued methods of
resolving conflict, I am excited about the future of security and
conflict resolution in the Caucuses. That optimism is borne out by the
progress made by Georgian, Armenian and Azeri security forces. Each
country is, in different capacities, building a base of military
professionalism and reform, and is ensuring a more peaceful security
for their nations.

The Caucasus’ position as a geographical, cultural, and political
epicenter means that movements -positive and negative – in Georgia,
Armenia, and Azerbaijan reverberate well beyond the local region. With
America’s continued support, the Caucuses will remain a source of
stable, reliable, interoperable partners who are the foundation of
future regional and global security.

Lieutenant General Mark Hertling is the current Commanding General,
U.S. Army Europe and Seventh Army, where he is responsible for
training U.S. Army Soldiers and units for Contingency and Full
Spectrum Operations, enhancing Theater Security Cooperation, and
Building Partner Capacity with 51 allied nations that are part of the
European area of operation. Prior to this posting, he served as the
DCG for Initial Military Training at TRADOC and previous to that the
Commander of the 1st Armored Division, where the unit was deployed to
Northern Iraq as Task Force Iron.

From: A. Papazian

Victor Soghomonyan: "It’s a low-grade propaganda"

Mediamax, Armenia
Aug 20 2012

Victor Soghomonyan: “It’s a low-grade propaganda”

Yerevan/Mediamax/. Head of the Office of the Armenian second President
Victor Soghomonyan called the analytical article of “Regnum”
information agency which read that Robert Kocharyan maintains a shadow
economy in Armenia “low-grade propaganda”.

Commenting on the publication upon Mediamax’s request, Victor Soghomonyan said:

“Overall, I can only be sorry that “Regnum” information agency started
serve a mouthpiece of a low-grade propaganda from time to time. As for
the certain article, it’s funny not only due to the absurdity of the
content which isn’t inferior to the recent “information” according to
which Robert Kocharyan purchased either a Cyprus island or the whole
Cyprus (there was a more genial version – “an island on Cyprus”).

“If you know the author of the article and know some of his closest
relatives, his reflections on the shadow economy, robbery of the
country with the help of the administrative resource and “central
political clans” may only evoke one’s laughter”, noted the head of the
Office of the second Armenian President.

From: A. Papazian

Court rejects Civilitas Foundation petition against decision of the

Court rejects Civilitas Foundation’s petition against decision of
National Security Service of Armenia
X-Sender: Asbed Bedrossian
X-Listprocessor-Version: 8.1 — ListProcessor(tm) by CREN

arminfo
Monday, August 20, 20:31

General Court of the Yerevan Administrative Districts of Kentron and
Nork-Marash has rejected the petition of the Civilitas Foundation
against the decision of the National Security Service of Armenia dated
May 25 2012 on initiation of proceedings against the Foundation,
Civilitas Foundation told ArmInfo.

To recall, the founder of the Foundation is Vardan Oskanyan,
ex-foreign minister of Armenia, parliamentarian from Prosperous
Armenia Party.

On June 12 the National Security Service of the Republic of Armenia
submitted details of the criminal case against Civilitas Foundation
initiated on May 25 (article 190.3 of the Criminal Code of the RA
money laundering).

The criminal case against the Civilitas Foundation concerns the $2mln
transaction for the sale of Huntsman Building Products, an
Armenia-based company owned by US-based Polymer Materials and Huntsman
International, says the National Security Service of Armenia.

“As a result of some inaccuracies in the contract, the transaction was
not submitted to the tax authorities and therefore left untaxed. Of
the charity funds left in Armenia according to the wish of the
American side, as much as $1,135,000 was not spent for charity but was
transferred to accounts opened by the founder and president of the
Civilitas Foundation Vartan Oskanian and the Foundation’s trustee
Tigran Karapetyan, with part of the money used for personal needs. In
its turn, contrary to its own charter, the Civilitas Foundation failed
to report on the taxation of the $2mln provided to Polymer Materials
and Huntsman International for charity,” says the NSS, adding that the
case stipulates tax inspections, trade analyses, interrogations.

It is noteworthy that Vardan Oskanyan is a witness in the given case,
but he had already refused to give testimonies for several times. In
the meanwhile the Foundation underwent tax and other inspections.

From: A. Papazian

French FM deems Genocide bill discussion possible in Paris

French FM deems Genocide bill discussion possible in Paris

August 20, 2012 – 18:27 AMT

PanARMENIAN.Net – French Foreign Minister Laurent Fabius believes
another discussion of the bill criminalizing the Armenian Genocide
denial is possible in Paris.

In response to a journalist’s remarks, suggesting `French President
François Hollande’s post-election statement that the Genocide bill
will be back on parliament’s agenda runs counter to earlier pledges,’
Minister Fabius noted that both Sarkozy and Hollande issued such
statements during their election campaign.

`Hope further decisions will be devoid of emotion,’ he said.

On January 23, the French Senate passed the bill making it a crime to
deny the Armenian Genocide. The bill envisaged imposing a 45,000 euro
fine and a year in prison for anyone in France who denies this crime
against humanity committed by the Ottoman Empire.

Later, the French Constitutional Council ruled that the bill as
anti-constitutional. In a statement the Council said the document
represented an `unconstitutional breach of the practice of freedom of
expression and communication.’

From: A. Papazian

Syrian Armenian community’s decline in number in Turkey’s interest

Syrian Armenian community’s decline in number in Turkey’s interest – expert

August 20, 2012 – 18:42 AMT

PanARMENIAN.Net – Syrian Armenian community’s decline in number and
power is in Turkey’s interests, representative of the Institute of
Oriental Studies at the Armenian National Academy of Sciences said.

`Radical Islamists’ coming to power will significantly impair the
community’s condition, bringing about a security problem,’ Vahram
Ter-Matevosyan said.

The Syrian conflict has claimed between 14,000 and 20,000 lives since
March 2011, according to estimates by various opposition groups and
the UN. The West is pushing for Assad’s ouster, while Russia and China
are trying to prevent outside interference in the country, claiming
the Assad regime and the opposition are both to blame for the
bloodshed.

From: A. Papazian

Turkey’s ruling party has three approaches to Armenian-Turkish proto

Turkey’s ruling party has three approaches to Armenian-Turkish protocols

news.am
August 20, 2012 | 13:07

YEREVAN.- Turkey’s ruling Justice and Development Party is on the
threshold of change and the congress scheduled for September 30 will
be a historic event, Armenian political analyst said.

Vahram Ter-Matevosyan, senior researcher of the Armenian National
Academy of Sciences Institute of Oriental Studies, said during the
forthcoming congress the party will have to elect the hardcore
members. Under the restrictions imposed by the party, the chairman,
incumbent premier Recep Tayyip Erdogan, can be elected for the last
time, while other 70 MPs will not be able to participate in the 2015
parliamentary election.

As regards Armenian-Turkish protocols, Ter-Matevosyan said the ruling
party has three approaches. There are those supporting the status quo
and claiming non-ratified protocols are advantageous for Turkey. Some
members consider that non-ratified documents are Turkey’s shame and
the border must be open. Others share views of Foreign Minister Ahmet
Davutoglu saying public debate should be held ahead of 2015.

From: A. Papazian

Russian citizen is killed in Armenia’s Abovyan

Russian citizen is killed in Armenia’s Abovyan

news.am
August 20, 2012 | 11:09

YEREVAN. – Armenia’s Police received a call from a hospital, on Monday
at 2:10am, informing that Russian citizen Edgar Khojoyan, 30, who had
sustained gunshot wounds, was brought to the hospital in unconscious
state.

It was found out that an unidentified person had wounded Khojoyan,
with an unidentified weapon, at the entrance of an Abovyan city
building, on the same day at around 2am, the Police press service
informs.

Edgar Khojoyan did not regain consciousness and he died at hospital,
on the same day at 3am.

Circumstances of the death are being ascertained.

An investigation is underway.

From: A. Papazian

Le Fonds Hayastan achève les rénovations de Maison des enfants de Gy

ARMENIE
Le Fonds Hayastan achève les rénovations de Maison des enfants de Gyumri

Le 6 août le Fonds Hayastan a inauguré deux btiments nouvellement
rénovés de l’orphelinat de Gyumri en Arménie. Les rénovations ont été
rendus possibles par la filiale allemande du fonds, par des donations
de Bienfaiteurs du fonds M. et Mme. Hamo et Tamar Gregorian
d’Allemagne aussi bien que des contributions populaires du Phonethon
2011.

Le projet de rénovation comprenait une révision complète des chambres
à coucher, des pièces de thérapies diverses, de la salle de
gymnastique, de la cafétéria, de la cuisine, des pièces de
blanchisserie aussi bien que l’installation d’une climatisation et
d’un système de protection contre le feu. En tout, 900 mètres carrés
d’espace ont été remis à neuf.

Ruzanna Avagyan, directrice de la Maison des enfants de Gyumri a
transmis sa gratitude aux bienfaiteurs du projet et ajouté « ce que
vous avez accompli par cette initiative est une noble mission d’aide à
ces enfants avec la chaleur et le soin d’une famille ».

Construit en 1924, la Maison des enfants de Gyumri a été employée
comme un Jardin d’enfants jusqu’en 1972. Deux ailes complémentaires
ont été construites en 1946 et 1993, respectivement.

Actuellement plus de 120 enfants avec des désordres mentaux ou
physiques vivent et recoivent des soins dans la Maison des enfants.
Après qu’ils aient atteint l’ge de 6 ans les enfants sont placés dans
des orphelinats spécialisés, parmi eux l’Orphelinat de Kharberd et
l’Orphelinat de Marie Izmirlian à Erevan.

lundi 20 août 2012,
Stéphane ©armenews.com

From: A. Papazian

Big in Baku

The New York Times
August 19, 2012 Sunday
Late Edition – Final

Big in Baku

By JOSHUA LEVINE | August 15, 2012

The slim corridor that some Azeris call the Belt of Happiness starts
at Baku’s Heydar Aliyev International airport. The new road into town
is as black and shiny as the vast pools of oil that paid for it, as
well as for everything else in Azerbaijan. And what oil doesn’t pay to
fix, it pays to hide. Sand-colored concrete walls line the highway,
but through their latticed arabesques you can just make out the woeful
shacks behind them.

The Belt of Happiness widens out as it winds near the Caspian into
Baku. Big luxury hotels and massive apartment high-rises, many still
under construction, crowd the coastline. White 4×4’s career
erratically along the broad avenue. Police cars are everywhere, but
their idea of traffic control is to yammer belligerently through their
loudspeakers. This has virtually no effect.

You’d be crazy to try to cross the street, and few do. A series of
marble-lined subterranean walkways is the only prudent way to get
across. On one side of the passageways sits a leafy esplanade that
runs along Baku Bay, its kebab cafes and children’s parks scattered
among imported palm and olive trees. Out where the esplanade ends, an
immense 23,000-square-foot Azerbaijan flag flops from a 531-foot-high
flagpole; it was meant to set the world flagpole record, and it did
until Tajikistan topped it by about 10 feet last year. (The affront is
said to have caused the Azerbaijan president, Ilham Aliyev, to boycott
a scheduled conference in Tajikistan.)

On the other side of Neftchilar Avenue – it means Oil Workers’ Avenue
in Azeri – lies the heart of the happiness belt. Designer boutiques
stud the grand Beaux-Arts buildings, a reminder that Baku also had the
world’s first oil boom, over a century ago. High fashion is in full
flower, at least behind the glass vitrines. Tiffany, Gucci, Dior,
Bottega Veneta, Burberry, Etro, YSL – the global gang’s all here.

It seemed funny to stumble across this amalgam of the Avenue
Montaigne, Sloane Street and Fifth Avenue in a place where the
traditional fashion statement is a huge shaggy sheepskin hat. But Baku
is the fashion frontier: Azeris have seen fashion speeding across the
sky, and whatever it is, they want it. Yet globalization doesn’t just
standardize desire from place to place; it also makes it vaguer and
more diffuse. And so Neftchilar Avenue can look as if the country just
got an airlift of good taste, even if no one asks what those two words
– `good’ and `taste’ – mean. Indeed, fashion attitudes here are still
as narrow as the happiness belt. As my wife and I strolled down the
esplanade, we noticed groups of young Azeris – usually all girls or
all boys – tittering at us. Someone finally explained it: men in
shorts are homosexuals, and women smoking cigarettes in public are
prostitutes.

A store called Emporium, right next to the new Bentley dealership,
sells some 250 brands, along with art books, fashion magazines and
whatever music is popular in the hippest European dance clubs. It’s a
handsome store on three levels: clean, bright and agreeable to browse.
You could easily imagine yourself in Paris’s snazzy Colette shop – an
impression underscored by the complete absence of anything remotely
native to Azeri culture.

`We have no local fashion designers and we have no local fashion
customs,’ says Aziz Balayev, the business development manager for
Sinteks, the Azeri company that owns Emporium. `We even have to hire
international agencies to do our display windows. We just don’t have
anyone here at the taste level we need.’

What the Azeris do have is what they’ve always had since the time of
Zoroaster. Parts of the country almost float on oil, and you can smell
it in the air around the bay.

At the turn of the 20th century,

Baku was pumping half the world’s oil and foreign investors were
piling in, Sweden’s Nobel brothers the most notable.

Baku had a cosmopolitan flair even then. The national history museum
occupies what was once the majestic mansion of Zeynalabdin Taghiyev,
the son of a shoemaker who bought land near Baku, struck oil in 1878
and woke up the next morning one of the richest men in the world.

Taghiyev’s opulent but sober apartments, preserved in a wing of the
museum, belonged to a man with a strong sense of place – they were
decorated by foreign artisans, but also contained Islamic arches and
slender columns. `They used to call this Old Baku, but now everything
around here is new,’ said a museum guide named Nermin, looking out the
front door of Taghiyev’s mansion. `We don’t like it. It could be any
place.’

New Baku was born yesterday. The Soviets pretty much killed the oil
industry when they took over Azerbaijan in 1920, but now, the three
wavy Flame Towers flicker every night with the light of 10,000
L.E.D.’s, an emblem of the city and an electronic beacon to the world:
Baku is back and pumping again. In 2005, the first oil from its
7-billion-barrel reserves started flowing through the $4 billion
Baku-Tbilisi-Ceyhan pipeline to the West. Azerbaijan’s G.D.P. exploded
from $7 billion in 2000 to over $63 billion last year.

Some of that windfall has trickled down to what could be called the
haplessness belt, but not enough to make much of a difference. Many
Azeris remain terribly poor. `I would love to shop in Gucci, but then
I wouldn’t eat for several months,’ a waiter at a fancy kebab
restaurant told me wistfully.

The big money stays at the narrow top. It supports a system of crony
capitalism and payoffs to keep rival clans happy. Graft and corruption
are the norm. Azerbaijan ranks 143 out of 182 countries on
Transparency International’s perceived corruption index, with a score
of 2.4 out of 10.

Much of the nation’s income is off the books, some of it skimmed from
unreported imports – like shoes and handbags. Between 2003 and 2009,
for instance, Italy recorded exports to Azerbaijan of roughly $1.6
billion; during the same period, Azerbaijan recorded imports from
Italy of $857 million. Gubad Ibadoglu, a Baku economist who has
researched the phenomenon, figures that Azerbaijan’s shadow economy is
about two-thirds as big as its official economy.

The man in charge of passing out the chips here is Ilham Aliyev, who
succeeded his father Heydar as president in 2003. Ilham and his
well-groomed wife and daughters stage-manage a system that Murad
Gassanly, a member of Azerbaijan’s small, beleaguered opposition,
calls `consumer authoritarianism.’ Gassanly says he and his friends
used to play a game called I Bet It’s Ilham: you flip TV channels at
random and wager whether Aliyev’s photo will be on-screen.

Aliyev’s wife, Mehriban, a Caucasian Sophia Loren, uses her own
considerable airtime to set the nation’s dress code. `Lots of women
want to look like Mehriban, wear their hair like her, see what she’s
buying and buy things that look like them at the cheap Sadarak mall
outside town,’ says Khadija Ismailova, perhaps Azerbaijan’s most
outspoken journalist.

Aliyev’s daughter Leyla functions as a roving ambassador for Baku
cool, and if such a thing does not actually exist, it is not for want
of Leyla’s tireless stumping. She is the nominal editor for Baku
International, a glossy art and fashion quarterly produced under
contract by Condé Nast, and she sponsors traveling exhibits for
Azerbaijani artists. She sculptured a large painted heart on display
in downtown Baku and painted a straightforward rendering of zebras
that hangs in the state-owned modern art museum. Some people say she
also owns a good many of Neftchilar’s boutiques; others believe they
really belong to her Russian pop star husband.

Aliyev’s dream is to give Baku the surface sheen of a world capital
without passing through any of the stages normally required to be one.
`Azerbaijan wants to catch up very quickly by having the accouterments
that you find in Paris or New York,’ says Michael Ross, a U.C.L.A.
political science professor who recently wrote `The Oil Curse: How
Petroleum Wealth Shapes the Development of Nations.’ `They are still
worse off than Serbia or Belarus, but the more quickly they can
resemble New York, the more quickly they can feel like they’re for
real.’

Suddenly the designer boutiques along Neftchilar Avenue start to make
more sense. They aren’t really meant to be viable business concerns.
They’re more like the charms in Baku’s charm bracelet – fashion
accessories in their own right. Baku wants designer boutiques the same
way a woman might want the handbag for sale inside.

Baku isn’t the only place this is happening. Fashion retailing used to
follow local demographics. An educated elite was good, but a booming
middle class, like, say, in China or India, was even better. Now
natural resources alone are enough. Around the Caspian corner from
Azerbaijan lies Kazakhstan, an immense chunk of Central Asia with 17
million people and a great deal of oil. Gucci will soon be opening a
store in Astana, Kazakhstan’s capital. `You don’t have to motivate
them to shop,’ a Gucci executive wrote to me. `They’re just excited to
spend on iconic luxury brands.’

Whatever purposes the stores in Baku serve, shopping does not appear
to be among them. Kickbacks and monopoly licenses tend to make import
prices here much higher than they are elsewhere. Even the relatively
few Azeris who can afford them often use Baku’s boutiques just for
window shopping. They prefer to buy cheaper in Dubai or Milan.

`I monitored customers going in and out of these stores, and I never
saw more than one or two a day,’ says Khadija Ismailova. `They’re not
really concerned by how many clients they have. It’s all good for the
facade of the country.’

Lately, that facade is showing cracks. Thanks in part to stricter visa
laws for visitors, hotel occupancy has fallen from around 70 percent
in 2005 to around 45 percent in 2010 as Baku keeps adding beds that no
one is sleeping in. `It’s a statement and a nice way for the ministers
to demonstrate their wealth,’ says Marina Usenko, executive vice
president of Jones, Lang, Lasalle Hotels, a consulting firm. `But
while it may feel good to invite your friends to the Four Seasons, it
makes no economic sense whatsoever. We tried to warn them, but who can
you warn in Baku?’

The swanky new apartment complexes springing up everywhere are often
untouched on the far side of the front door. Many are empty shells. I
met a woman named Tamrika who told me that her ramshackle apartment in
Baku had recently acquired a new facade. It was built several feet out
from the building’s front wall. In the morning, she opens her window,
leans out, and opens her other window.

Much of this Potemkin-village construction was thrown together in the
months before the Eurovision Song Contest, which Azerbaijan hosted
last May. This was meant to be Baku’s big moment on the world media
stage, and Aliyev worked overtime to banish any unsightly reminders of
reality. Human-rights groups reported multiple forced evictions as old
residences were simply bulldozed out of existence.

As it happens, Eurovision turned out to be something of a
public-relations disaster. Western news media persisted in peeking
where they weren’t supposed to, despite the authorities’ Oz-like
injunctions to pay no attention to the country behind the curtain.
Loreen, who won the contest for Sweden, went so far as to meet with
opposition activists. My friend Margarita Antidze, a local Reuters
correspondent, asked Loreen about it at the post-contest press
conference. Antidze was accused of being an Armenian spy with a phony
Georgian surname. The next day, allegations that her son was
illegitimate were posted on the Internet.

On the other hand, all this stage trickery appears to work best on the
very people who know better – the Azeris themselves. Melanie Krebs is
doing her postdoctoral research on cosmopolitan attitudes in
Azerbaijan for Berlin’s Humboldt University. `When I first came two
years ago, I found a lot of people complaining about how rapidly the
city was changing,’ she says. `Now the same people are saying, `Our
city has become so beautiful! Our city is on top of the world, even if
we don’t know how to survive.’ ‘

I visited the empty Dior children’s store on Neftchilar Avenue and
asked the manager how things were going. Not so good, he allowed. `Our
people don’t have a lot of money.’ A child’s dress cost 895 manat –
about $1,140. The director of a kindergarten makes around 300 manat a
month. `But look here,’ he said, beaming. He was pointing at Baku on
the list of cities with Baby Dior outlets. `Right next to Barcelona.’

URL:

From: A. Papazian

http://www.nytimes.com/2012/08/15/t-magazine/big-in-baku.html