Russian Duma deputy speaker Zhirinovskiy condemns Armenian genocide
Public Television of Armenia, Yerevan,
27 Apr 04
[Presenter] Deputy speaker of the lower house of the Russian
parliament, the State Duma, Vladimir Zhirinovskiy announced that
history is moving towards the international recognition of the
Armenian genocide. The deputy speaker of the State Duma said that
Turkey not only must recognize the Ottoman’s crime but also to
apologize before the Armenian people and to compensate for the killing
and loss of more than a million Armenians.
[Vladimir Zhirinovskiy, captioned, in Russian with Armenian voice
over] This was the first severe lesson for all the world. After 10
years we shall mark the 100th anniversary of this bloody events. Many
parliaments have already adopted the laws and condemned the Armenian
genocide. Our State Duma also has already adopted this and we are
always with Armenia.
I am sure that the time will come when all the parliaments of the
world, also the UN, NATO, the European Parliament will recognize this
barbaric act committed by the Turkish government against the Armenian
people. Germany is paying about 3bn dollars annually to the
Jews. Turkey’s turn will also come to pay for the killing of more than
million of Armenians and their loss. The world will condemn Turkey’s
action, will recognize it as a genocide and demand Turkey to pay
compensation to Armenia, which lost more than a million people in the
1915 genocide.
Author: Jagharian Tania
BAKU: Armenia Holds Military Exercises on Occupied Territories
ARMENIA HOLDS MILITARY EXERCISES ON OCCUPIED TERRITORIES
Lider TV, Baku
29 Apr 04
Armenians today held military exercises on the occupied Azerbaijani
territories. Lider TV’s special correspondent in the Karabakh region
reports that shooting from cannons, tanks and heavy-caliber weapons
was heard this morning in the occupied area of Agdam
(District). Azerbaijani military confirmed that the Armenians were
holding the exercises. Truce violation was not registered during the
exercises.
According to the head of the Azerbaijani Defence Ministry press
service, Ramiz Malikov, these exercises have been monitored.
Russia as Armenia’s #1 strategic partner…
ARKA News Agency – Interview
April 26 2004
RUSSIA AS ARMENIA’S NUMBER ONE STRATEGIC PARTNER ABLE TO SECURE
DYNAMIC DEVELOPMENT OF ARMENIAN ECONOMY
Exclusive interview of the Chairman of Union of Manufacturers &
Businessmen (Employers) of Armenia Arsen Ghazaryan to ARKA News
Agency.
ARKA – Mr. Ghazaryan, what is the current state of the Armenian-
Russian economic relations?
A. Ghazaryan – I should say that after the collapse of the Soviet
Union Russia remained a key partner to Armenia. We import raw
materials and energetic carriers from Russia.. On the other hand, the
Russian market is the largest and the most available for the Armenian
goods. During the recent 3-4 years the volume of bilateral
trade-economic relations has considerably grown as compared with the
previous period. This was achieved due to the fact that the Armenian
companies adjust the quality of their products to the international
standards, which Russia, naturally, adheres. Besides, our companies
gain experience of being involved in the Russian market. In case of
existing of normal transport communication between our countries, the
bilateral turnover of goods would have surpassed today’s indicator
three-, four-fold as a minimum. For instance, at present, there are
many imported construction materials from Ukraine in Armenia, if the
railway would have functioned normally, such goods could have been
purchased from Russia as well. Bilateral economic co-operation
received new dynamics after the mutual visits of the President of RF
and RA Vladimir Putin and Robert Kocharian in 2001. So called ethnic
capital was moved to the first view; Russian businessmen with
Armenian background became more active. Today they make rather
considerable investments in their motherland, particularly, in
construction sector, banking system and other spheres. As one of the
best examples of the kind I can name the International Business
Centre, which, in fact, rescued one of our leading banks,
particularly Ardshinbank, as well as several industrial plants such
as Syrius, Arax, Basalt, Almast. As far as I know, IBC, headed by
Karen Safaryan, a famous Moscow businessman, is going to make new
investments in Armenia, which I can only welcome. The activities of
Ara Abrahamyan, Chairman of Union the Armenians of Russia, must be
highly appreciated, who except social initiatives, unfolds
considerable business activities. We count on the fact that our
compatriots having effective business in Russia, will join the
Property for Debts joint program and will attract new Armenian
businessmen in the program. Recently the Russian side displays
interests in the Armenian plants, which were a part of a single
powerful military-industrial complex. We are preparing a detailed
database on these companies and are going to present it to our
Russian partners by the late February. It is of utmost importance to
receive new offers for them, especially if they have preserved their
productive and sci- tech potential, professional specialists that can
and wish to work. I should especially mention the steps taken by RAO
UES. A number of leading energetic objects of Armenia were
transferred under the management or became the property of this
powerful company. New and very good possibilities for exporting
energy to the third countries are opening for the Russian power
engineers. At the same time, the issue of import of the fuel for the
Armenian NPP, which guarantees its normal functioning, was solved.
The Russian capital enlivens ALSO the Armenian construction sector.
For instance, due to it was possible to begin the construction of
Northern Avenue in Yerevan, construction of which was planned already
in 1930 by the great Armenian architect Alexander Tamanyan. The
Russian investors, being confident in perspectives of Armenia’s
economic development, decided to make investments in the real estate
sector as well. By the way, it isn’t accidental that the prices of
apartments on the Northern Avenue increased very quickly reaching
almost the prices of Moscow (today 1 sq. meter of the elite
apartments under construction cost $1000, while the ready ones cost
$1600 and more. Lately, promising results were recorded in the
engineering tools and mechanical engineering sectors. I would like to
mention Mshak CJSC, headed by Levon Poghosyan, who recently became
Deputy Director of Stankoimport Russian company on scientific issues.
At present joint projects on Armenian companies participation in
technical renovation of Russian Tool engineering and machinery
engineering industry are being developed. ABM Soft company attracted
Russian capital for purchasing the control packet of shares of
Yerevan’s Armstanok plant and it is going to implement Digital
Program Installments projects, which are expected to be exported to
Russia. We can bring many such examples. It’s worth mentioning that
they witness an important constructive step forward. Russia doesn’t
treat Armenia as a `junior brother’, who needs assistance
permanently. Armenia is the equal partner for Russia. Armenian market
becomes more attractive for the Russian investors, as a convenient
transit point and a gateway to Iran, countries of the Middle East and
the Persian Gulf too. All these activities contribute to the
formation of joint economic space. That’s why it’s a good example for
the other CIS member countries, as the level of the economic
integration within the framework of CIS, notwithstanding numerous
declarations on that occasion, is still is not satisfactory.
ARKA – Thus, considerable growth of the Russian investments in
Armenia is evident now. But is there any opposite process?
A. Ghazaryan – Yes, there is. Today the volume of the investments
made by the Armenians in Russia is increasing as well. This is
connected with the traditional labour migration. The matter is, that
if we objectively evaluate the given phenomenon, it should be
considered as the least evil, as, in fact, it is an investment too, a
technical, financial, intellectual , etc. On the other hand, our
compatriots leaving for Russia to work, aren’t separated from their
families and don’t lose the sense of obligations to their country.
The new migration regime, regulating the communication between our
countries, helps to be confident about receiving Russian citizenship
or the permanent residence right. They can peacefully work. That is
why it is very important that the Armenian businessmen began
establishing joint companies in Russia. Kasnodar and Stavropol,
Rostov and other regions of the Southern Russia can be examples. The
number of our compatriots living compactly here is traditionally
enormous. The businessmen living here are our `agents’ in Russain
market in the best meaning of the word. I wouldn’t like to be
trivial, but the successful advancement of the Armenian brandy can be
explained not only by the investments and professionalism, but also
by the skilful management of French company `Piernod Ricard’, which
is today’s Yerevan Brandy Company, but also by Russian market. At
present, both YBC and Great Valley, Yerevan Wine-Vodka Factory Ararat
and many other companies are effectively working there. The problem
is not the realisation but the production in the necessary volume:
more and more offers are being received. The same thing concerns the
production of Armenian canned fruits and concentrates, over 50 % of
which is exported to RF.
Thus, Russia is our strategic partner # 1, which can secure logical
continuation and dynamic development for the Armenian economy.
Armenian businessmen working there never face communicative and
psychological problems there.
ARKA – Then what’s the matter?
A. Ghazaryan – The matter is, that we have to define the spheres in
which the realisation of the joint projects is the most optimal and
prospective, where Armenia is a very convenient transi corridor and a
market for Russia. The researches should be madin this very
direction. The UIEA, as NGO, in which many leading Armenian
businessmen are included, also the entrepreneurs working with the
Russian partners, try to do their best to strenghten these relations.
Naturally, we will continue the cooperation with our Russian
partners. First of all with the Russian Union of Industrialists and
Entrepreneurs, led by A. I. Wolsky. We regularly hold joint forums,
`round tables’, conferences. We are meeting each year. Th e regular
dialogue took place in end February in Moscow, within the framework
of the meeting of Yuri Lugzkov and Yervand Zakharyan, Mayors of
Moscow and Yerevan. Anopther our big partner is the International
Congress of the Industriallsits’ and Entrepeniours’ Unions, led by W.
K. Glukhikh. This congress unites the businesmen from the 22
countries of the former Soviet Union and Western Europe. The
cooperation with such authority organizations help operatively
exchange valuable information and find partners for our businessmen.
ARKA – But the transportation problems still make the work more
difficult, don’t they?
A. Ghazaryan – Unfortunately, they really do. The lack of land
borders with Russia makes the matter more difficult. But, it doesn’t
hinder to organize exporting goods and row materials. Armenia isn’t
in transport blockade, as it was in the early 1990-es. But today the
expenditures for the transportations are extremely high, which
increases the first cost of the goods. It is a paradoxes, but today
to sent a container to Moscow will be more expensive that to send it
to Rotterdam or Marseille. As it is cheaper to send it by the sea
directly, than to do it by the railroad or by tracking.
ARKA – What can you say about the legal field?
A. Ghazaryan – There are no problems here. The agreement- legal base,
regulating the bilateral economic relations, has been elaborated,
discussed and signed long ago.
We merely shouldn’t forget that in CIS Armenia and Russia are
different countries. And today, our managing objects increase the
advalorem tax not here but, when exporting them to Russia, in Russia.
The import is built according to the same principle. At the same
time, Armenia can have preferences when importing some row materials,
based on the deals signed within the framework of CIS. I think, if
Armenia joins the Custom’s Union, it will make export to Russia
easier. Many things will be specified also after the RF’s statement
in the World Trade Organization. Armenia joined the WTO in the
September of 2003, and in this respect, the normative base was rather
improved. Wee have become quite experienced here.
ARKA – Does it seem that this experience could be useful for Russia?
A. Ghazaryan – In current job Russia, of course, follows the
experience of the governments wich are friendly to it, also including
Armenia. Really, we have something to tell and explain.
ARKA – What do the Russian-Armenian economic links think about
three-sided co-operation between Armenia, Russia and Iran?
A. Ghazaryan – Great importance is given to this co-operation like
before. Iranian businessmen are very interested in establishing
contacts with Russian colleagues, and here they don’t frequently see
any trusty `lighthouses’ among the Armenian entrepreneurs for gaining
that aim. The Russians are also interested in Iranian market. From
our side we assure the business circle of Russia and Iran that
Armenia is able to serve as a real transit corridor. For example, for
solving lots of problems it is convenient the rout of
Meghri-Yerevan-Poti-Novorosisk, because such kind of cargo
transportation for West Russian is not usually cheaper than ferry
announcements on Caspian Sea between Iranian port Enzeli and Russian
Astrakhan. –0–
An Expanding Europe, in Decline
The Washington Post
April 25, 2004 Sunday
Final Edition
An Expanding Europe, in Decline;
The EU Is an Economic Laggard. If You Want Growth, Kazakhstan’s the
Ticket
by Anders Aslund
Next Saturday, the European Union (EU) will admit 10 states, eight of
them former communist countries. This is a moment to celebrate: In
the 12 years since the fall of the Soviet Union, these countries have
become fully democratic and are now, to varying degrees, integrated
into the West.
But it is also a moment of economic concern. For the past five years,
the new Central European members — Poland, the Czech Republic,
Slovakia and Hungary — have had a mediocre economic growth rate of 3
percent a year. Those four countries constitute almost 90 percent of
the population of the entering states. (The other six — Estonia,
Latvia, Lithuania, Slovenia, Malta and Cyprus — are mini-states,
with only 10 million people among them.)
The EU has many advantages, but economic dynamism is no longer one of
them. In order to qualify, the applicant countries had to adopt all
the bureaucratic EU regulations, including the most moribund of them,
known as the Common Agricultural Policy — a system of subsidies paid
to EU farmers. As a result, the Central Europeans should expect their
growth to slow: This year, the 15 preexpansion EU members were
expected to post an economic growth rate of less than 2 percent. By
contrast, the U.S. economy and that of the world as a whole are set
to expand by 4.5 percent.
Admittedly, the new Central European members have benefited from
generous access to EU markets. The entering states already trade more
with the EU than the old members did with one another. But the
Central Europeans have achieved everything they can gain from EU
membership, and they will stagnate if they do not liberate themselves
from the petrifying EU model.
Meanwhile, in a development that has gotten little notice amid the EU
expansion hoopla, the post-Soviet countries further to the east have
been booming since 1999. The nine market economies in the former
Soviet Union (Russia, Ukraine, Kazakhstan, Moldova, Georgia, Armenia,
Azerbaijan, Kyrgyzstan and Tajikistan) have on average grown annually
by no less than 7 percent for the last five years. The new tigers are
Kazakhstan, Russia and Ukraine — far more so than Poland, Hungary or
the Czech Republic. The three Baltic countries are doing
significantly better than the Central Europeans, but not as well as
their eastern neighbors.
This is a dramatic turnaround.
During the first decade of economic transformation after communism,
Poland, Hungary and the Czech Republic seemed to do everything right
— swiftly building normal market economies, privatizing state
enterprises and establishing proper democracies — and sound economic
growth ensued. Most of the former Soviet Union, by contrast,
undertook only gradual reform, privatized slowly and did little to
develop democracy or the rule of law. Output slumped until 1998, when
the Russian financial crash passed a severe judgment on partial
reforms.
To be sure, Russia has benefited from high oil prices and
devaluation. Yet growth in the post-Soviet region is accelerating,
while only Russia, Kazakhstan and Azerbaijan are oil exporters.
Clearly, something else is going on. The post-Soviet countries have
returned to growth because their market reforms are finally
succeeding. They have privatized most state enterprises and put their
public finances in order.
Why are the post-Soviet market economies doing so much better than
the Central European ones? Part of the explanation is that the
post-Soviet countries were poorer and far less developed in the first
place, and poorer countries tend to grow faster than rich ones if all
else is equal. But this explains only a small part of the difference.
The truth, which may shock you, is that the post-Soviet countries
have a more efficient economic model than the Central European ones
because they are free from the harmful influences of the EU. This is
most evident in public finances.
In Central Europe, public expenditures amount to no less than 46
percent of GDP, as in Western Europe. Consequently, taxes are high
and social transfers excessive. The Hungarian economist Janos Kornai
has labeled the Central European countries “premature welfare
states.” Worse still, the Central European countries have maintained
an unsustainable average budget deficit of 7 percent of GDP for the
last three years. They seem reassured that the EU will bail them out.
By contrast, the Russian financial crash forced the former Soviet
republics to cut public expenditures sharply, to no more than 26
percent of GDP — that is, just over half the level in Central
Europe. Taxes also have been slashed. Russia and Ukraine have adopted
a 13 percent flat personal income tax. Kazakhstan has undertaken a
Chilean-style pension reform, privatizing its social security system.
Even so, these countries have nearly balanced budgets.
Low public expenditures and high growth go together in most former
communist countries. Communism bred corruption, and the longer it
lasted, the worse the corruption, so the post-Soviet countries were
and are more corrupt than the Central European states. The best cure
for a pervasively corrupt state is naturally to cut public
expenditures and revenues.
Another major difference between the Central European and former
Soviet countries is that the Central Europeans have much more
regulated labor markets and higher taxes on labor, because Central
Europe has adopted Western Europe’s strict regulations. As a result,
Poland has an unemployment rate of more than 20 percent compared with
Russia’s 8 percent. Regulations might be intimidating also in the
former Soviet countries as well, but most are circumvented.
Thus, the economic dynamism in Kazakhstan, Russia and Ukraine is in
no way sheer luck. Their new economic model is reminiscent of East
Asia’s. Japan took off after World War II, and it was imitated by
four East Asian tigers: Taiwan, Hong Kong, Singapore and South Korea.
China, Thailand, Malaysia and Indonesia followed suit two decades
ago. India has risen in the last decade, and now the nine former
Soviet economies mentioned above have benefited from the same model
of open markets and limited state intervention. Kazakhstan’s
President Nursultan Nazarbayev and Russia’s President Vladimir Putin
seem to see Singapore or South Korea as their economic ideals. The
post-Soviet countries are facing stiff protectionism in Europe, so
they export the steel and chemicals that the EU does not want to East
Asia instead, notably to China’s insatiable market.
Nor is the poor economic performance of Central Europe an accident.
Slovakia’s Minister of Finance Ivan Miklos put it bluntly: “Europe is
hindered by labor market inflexibility, heavy tax burdens, bloated
public sectors and other competitive constraints, and the gap between
the United States and Europe continues to widen rather than shrink.”
This is not to whitewash the post-Soviet countries. They are both
corrupt and authoritarian, while Central Europe is eminently
democratic and richer. Some draw the dubious conclusion that
democracy is bad for economic development, but this holds true for
Central Europe as much as it does for the rest of the world, which is
to say not at all.
The point, rather, is that the EU model generates stable democracy
but little economic growth. Today, Russian economists no longer look
to Poland for a desirable model but to the thriving free markets of
Kazakhstan, Singapore, South Korea and Chile. To them, Europe is both
inhospitable and stagnant.
Democracy advocates face the new challenge of clarifying that Central
Europe’s sluggish growth is an effect not of democracy but of EU
regulations. The EU needs to liberalize its economy and reduce its
fiscal profligacy, not only for its own benefit, but also for the
reputation of democracy. Countries such as Ukraine should not have to
choose between democracy and growth.
Rather than requiring its new members to adopt every regulation in
its 80,000 pages of common economic legislation, the EU should have
used this opportunity to do away with its most harmful regulations,
such as the Common Agricultural Policy. With 25 members and no
effective political institutions, the new EU appears set to be stuck
in economic stagnation for the foreseeable future.
Author’s e-mail: mailto:[email protected]