Author: Nahapetian Zhanna

PRESS RELEASE
UCLA AEF Chair in Armenian History
Contact: Prof. Richard Hovannisian
Tel: 310-825-3375
Email: [email protected]

UCLA CONFERENCE ON SUSTAINABLE DEVELOPMENT IN ARMENIA
(MAY 6, 2006)

Los Angeles-`Armenia: Challenges of Sustainable Development’ is the theme
of an international conference to be held at the University of California,
Los Angeles (UCLA), on Saturday, May 6, from 9:30 AM to 4:00 PM. in the
Court of Sciences 50 (Young Hall). The conference featuring specialists in
economics, finance, and governance is dedicated to UCLA Professor Emeritus
of Economics, Armen A. Alchian, a world-renowned economist and teacher who
was born in Fresno in 1914 and joined the UCLA faculty in 1946.

The conference is organized by the Armenian Educational
Foundation Chair in Modern Armenian History at UCLA and the Armenian
International Policy Research Group (AIPRG), with support from the UCLA Von
Grunebaum Center for Near Eastern Studies and the Department of Economics.
AEF Chair Holder Richard Hovannisian will open the morning session with
introductory comments on `The Economic Factor,’ followed by the
presentation of Professor Alchian and his contributions to economic theory
by a similarly distinguished Professor of Economics, Harold Demsetz.

Enrique Gelband, Deputy Division Chief and former Mission Chief
to Armenia of the International Monetary Fund (IMF), will give the keynote
address on `Growth and Poverty Reduction in Armenia: Achievements and
Challenges,’ the title of his recent book published by the IMF. A panel
discussion on the subject will be moderated by UCLA Professor of Economics
Michael Intriligator and include William Ascher, McKenna Professor of
Government and Economics at Claremont McKenna College; Daniel Mazmanian,
Director of the Judith and John Bedrosian Center on Governance and the
Public Enterprise at the University of Southern California; and Ara
Khanjian, Professor of Economics at Ventura College.

The Saturday afternoon session moderated by Professor Lee
Ohanian of the UCLA Department of Economics focuses on specific topics
relating to Armenia’s economic development. David Grigorian of the IMF will
speak on `Tax Potential versus Tax Effort: Factors behind the Stubbornly
Low Tax Collection in Armenia’; Bryan Roberts of the Department of Homeland
Security, `Remittances, Poverty, and Growth in Armenia’; and Nerses
Yeritsyan, Central Bank of Armenia, `Financial Sector Development in
Armenia: Problems and Challenges.’ A discussion period will conclude the
afternoon session.

Richard Hovannisian stated: `I am pleased that after sixteen
wonderful semi-annual conferences on Historic Armenian Cities and
Provinces, we shifted the focus to contemporary issues in 2005 with `The
Enduring Legacy of the Armenian Genocide’ and `Three Turkish Voices on the
Armenian Question.’ Now, for the first conference of 2006, the economic and
fiscal challenges facing the Republic of Armenia will be addressed. I am
thankful to David Grigorian for arranging much of the program, especially
as Ascher, Khanjian, Roberts, Yeritsyan, and Grigorian are also associated
with AIPRG. The subject of this conference is of critical importance to
Armenia and all those concerned with the welfare of its people.’

The conference is open to the public and free of charge.
Parking is available in Structure 2 at the Hilgard and Westholme Avenue
entrance to UCLA, where a one-day parking permit ($8.00) may be obtained at
the parking kiosk. A map of the UCLA campus can be found at the web site:
<; /map/ or the UCLA Armenian Studies
web site at

For additional information, e-mail:

Richard Hovannisian:
<mailto:[email protected]& gt;[email protected]
or
David Grigorian: [email protected]

THE PROGRAM IS AS FOLLOWS:

Armenia: Challenges of Sustainable Development

Sponsored by the UCLA
Armenian Educational Foundation Chair in Modern Armenian History,
Department of Economics,
Von Grunebaum Center for Near Eastern Studies,
and
Armenian International Policy Research Group (AIPRG)

In Honor of Professor Armen Alchian

Saturday, May 6, 2006
50 Court of Sciences, UCLA
9:30 A.M.-4:00 P.M.

9:30-10:00 Introduction

The Economic Factor
Richard G. Hovannisian, AEF Chair, UCLA

The Contributions of Armen Alchian to Economic Theory
Harold Demsetz, Department of Economics, UCLA

10:00-12:30 Growth and Poverty Reduction in Armenia: Achievements and
Challenges-IMF Book Presentation

Moderator: Michael Intriligator, Department of Economics, UCLA

Presenter: Enrique Gelbard, Deputy Division Chief, and former Mission Chief to
Armenia, International Monetary Fund

Discussants:
William Ascher, Donald C. McKenna Professor of Government and Economics,
Claremont McKenna College, and AIPRG Advisory Board

Daniel A. Mazmanian, Bedrosian Chair in Governance, and Director, Judith
and John Bedrosian Center on Governance and the Public Enterprise, School
of Policy, Planning, and Development, University of Southern California

Ara Khanjian, Department of Economics, Ventura College and AIPRG

12:30-1:30 PM

Lunch Recess

1:30-4:00 PM Selected Topics on Armenia’s Economic Development

Moderator: Lee Ohanian, Department of Economics, UCLA

Tax Potential vs. Tax Effort: Factors behind the Stubbornly Low Tax
Collection in Armenia
David Grigorian, International Monetary Fund and AIPRG

Remittances, Poverty, and Growth in Armenia
Bryan Roberts, Department of Homeland Security and AIPRG

Financial Sector Development in Armenia: Problems and Challenges
Nerses Yeritsyan, Central Bank of Armenia and AIPRG

RA NA SPEAKER RECEIVES OFFICIAL INVITATION TO VISIT POLAND

Noyan Tapan
Armenians Today
Apr 11 2006

YEREVAN, APRIL 11, NOYAN TAPAN – ARMENIANS TODAY. Ambassador of
Poland to Armenia Tomasz Knothe conveyed an official invitation
to visit Poland to RA NA Speaker Artur Baghdasarian during the
April 11 meeting with him. As Noyan Tapan was informed from NA
Public Relations Department, the interlocutors attached importance
to development of Armenian-Polish interparliamentary relations,
cooperation and assistance to Armenia within the framework of the
EU New Neighborhood program, establishment of contacts between the
regions of the two countries. Issues regarding the official visit of
Polish Senate Chairman to Armenia were also discussed.

ARMENIAN MILITARY SAYS HUNDREDS STILL KEPT IN AZERI CAPTIVITY
By Ruzanna Stepanian

Radio Liberty, Czech Rep.
April 11 2006

Hundreds of Armenian prisoners of war and civilians remain in
Azerbaijani captivity nearly twelve years after the end of large-scale
fighting in Nagorno-Karabakh, a senior Armenian Defense Ministry
official claimed on Tuesday.

“We have information that they are used as slave labor in Azerbaijan,”
Colonel Ashot Balian, a member of a ministry commission dealing
missing Armenian soldiers and civilian hostages, told RFE/RL.

“The Azerbaijani authorities keep moving them around and leaving no
traces of them.”

“I therefore can’t name any specific locations, but we are convinced
that they are in Azerbaijan. Some are even said to have been relocated
to Turkey,” he said. “We still hope that our missing sons will return
to their families one day.”

The Azerbaijani authorities have denied holding any Armenian prisoners
in the past and allege, for their part, that thousands of missing
Azerbaijani soldiers and civilians are being held in Armenia and
Nagorno-Karabakh.

Defense Minister Serzh Sarkisian dismissed such claims as “unfounded”
during a meeting on Friday with the visiting chairman of the
International Committee of the Red Cross (ICRC), Jacob Kellenberger.

Sarkisian said he hopes ICRC will certify “the absence of hostages
in Armenia” in its future reports.

The Red Cross, which has offices in both Baku and Yerevan, is the main
international institution that arranges Armenian-Azerbaijani prisoner
exchanges and repatriations. Both conflicting armies continue to turn
to it for assistance after reporting soldier disappearances.

AZERBAIJANI PRESIDENT TO HOLD TALKS WITH US LEADER ON APRIL 28

EurasiaNet, NY
April 10 2006

In what some American analysts see as a US response to recent Russian
moves that strengthened Moscow’s Caspian Basin energy position, the
White House has announced that US President George W. Bush will hold
talks with Azerbaijani leader Ilham Aliyev on April 28 in Washington.

“Azerbaijan is a key ally in a region of great importance and a
valued partner,” said a White House statement issued April 10. The
statement added that Bush and Aliyev “will discuss a range of issues
including democracy promotion and cooperation in the Caucasus, energy
diversification, and our common commitment to working together to
advance freedom and security.”

Despite the Bush administration’s characterization of Baku as a “key
ally,” US officials had been resisting the idea of a face-to-face
meeting between Bush and Aliyev, in large measure due to the tainted
elections held in Azerbaijan in recent years. [For background see
the Eurasia Insight archive].

US concerns about Azerbaijan’s spotty record on democratization,
however, appeared to diminish significantly following the early April
announcement that Kazakhstan would enhance energy cooperation with
Russia, the main US economic and political rival in Central Asia.

[For background see the Eurasia Insight archive]. Kazakhstan’s
agreements with Russia heightened concern about Astana’s participation
in the US-backed Baku-Tbilisi-Ceyhan pipeline. [For background see
the Eurasia Insight archive]. US officials are also trying to arrange
a summit meeting, or potentially two, between Bush and Kazakhstani
President Nursultan Nazarbayev.

Details of the Bush-Aliyev summit were reportedly discussed during an
April 7 meeting between Azerbaijani Foreign Minister Elmar Mammadyarov
and US Secretary of State Condoleezza Rice in Washington.

Earlier the same day Mammadyarov outlined Azerbaijan’s policy goals
and concerns during an appearance at the Heritage Foundation.

Mammadyarov sought to dispel the country’s poor democratization
image. He insisted that democratization, the rule of law and the
protection of human rights are priorities now, in stark contrast to
the Soviet era when Azerbaijan was the subject of the Communist command
economy. However, he cautioned that the transformation would be slow,
citing the country’s lack of experience in democratization.

He also said that improving Azerbaijan’s “human capital,” would be
a gradual process, in part because it is a “generational issue.”

The Asian Development Bank recently projected Azerbaijani GDP
growth to total 30.5 percent in 2006 and over 27 percent next
year. But Mammadyarov acknowledged that relatively high inflation
rates, caused by the massive and rapid rise in oil and gas revenues,
posed a problem. To avoid the advent of so-called Dutch Disease, the
foreign minister said that the Azerbaijani government was promoting
agricultural ventures, particularly cotton and winemaking.

Azerbaijan is also investing heavily in infrastructure improvements.

A top priority, Mammadyarov stated, was the expansion of the country’s
road and rail network. Plans are focusing on a $320-million rail route
that would stretch from Azerbaijan, via Georgia, to Turkey and beyond
to Western Europe.

Mammadyarov additionally indicated that he would strive to call
increasing international attention to Azerbaijan’s position on the
Nagorno-Karabakh issue. [For background see the Eurasia Insight
archive]. “We cannot now live with such 20th century phenomena as
forced border and ethnic changes,” he said. At the same time, he
stressed that a durable solution to the Karabakh conflict should be
based on negotiations. In recent weeks, some Azerbaijani officials,
including President Aliyev, have spoken of the possibility of resuming
armed hostilities if a political deal isn’t reached soon.

Editor’s Note: Washington-based writer Alex van Oss contributed
reporting for this article.

ARMENIAN GOV’T TO SELL IRANIAN-ARMENIAN GAS PIPELINE

RosBusinessConsulting, Russia
April 6 2006

RBC, 06.04.2006, Moscow 14:35:30.Gazprom and the Armenian government
have signed an agreement under which Armrosgazprom is to buy the
40-kilometer section of the Iranian-Armenian gas pipeline under
construction and the fifth energy generating unit of the Razdan Thermal
Power Plant (Razdan-5) from the republic’s government, Gazprom’s press
service reported. A preliminary purchase agreement is to be signed by
April 14 while the transfer of ownership should be completed by January
1, 2007. The Armenian government will also entitle Armrosgazprom to
act as the Customer for construction of the second section of the
Iranian-Armenian gas pipeline, which is 197 kilometers long.

To secure efficient gas conversion into electric power, the parties
will join efforts to recover and hook up the Razdan-5 assets under a
unified control center, and to launch construction of a gas turbine
unit with a capacity of 140 megawatts.

Further operation of these facilities will allow decreasing fuel
costs related to energy production. The agreement makes provisions
for export of the energy generated at Razdan-5. As soon as the deal is
completed, Gazprom will obtain qualified majority in Armrosgazprom’s
authorized capital.

OSCE TO MONITOR ARMENIA-AZERBAIJAN FRONTLINE

Assa-Irada, Azerbaijan
April 6 2006

Baku, April 5, AssA-Irada
The OSCE will hold monitoring on the Armenia-Azerbaijan frontline near
the Mazam village of the northwestern Gazakh District on Thursday. The
procedure will be overseen by the OSCE chairman’s special envoy
Andzhei Kaspshik and his field assistants.

Mazam has come under Armenian fire on many occasions in the past.

A frontline monitoring held in the western Terter District last
Wednesday failed after Armenia breached ceasefire, according to the
Azeri Defense Ministry.

INCREASE OF GAS PRICE FOR ARMENIAN CONSUMERS WILL NOT EXCEED 10-15%

PanARMENIAN.Net
06.04.2006 20:09 GMT+04:00

/PanARMENIAN.Net/ After a working meeting at ArmRosGazprom Armenian
President Robert Kocharian stated, “along with Russia Armenia is
going to implement a large investment program to modernize the 5th
energy block of the Hrazdan thermal plant.”

“Within past 2-3 months we actively worked with Russia to find
solutions to mitigate increase of gas prices,” the Armenian leader
said. Beginning on April 1 ArmRosGazprom buys Russian gas as $110
for 1 thousand cubic meters instead of the previous $54.

“I think we found a decision, the Government is charged to formulate
the final decision in the coming few days. Along with Russia Armenia
is going to implement a large investment program to modernize the 5th
energy block of the Hrazdan thermal plant. Thus the Armenian Government
will acquire funds to compensate for the rise in the gas price in
the coming three years both for the population and business. By
implementing the program we will get electric power, using less
gas,” the Armenian President said. “The population need not worry,
the increase of the gas price for consumers will not exceed 10-15%,”
Kocharian said.

The Armenian President indicated the importance of modernization of
Abovyan underground gas-holder. “If we increase the capacity of the
gas-holder 2-3 times, we will be protected against any surprises,”
Robert Kocharian remarked, Mediamax reports.

AZERI LEADER PRAISES TIES WITH TURKEY

Turan news agency
4 Apr 06

Baku, 4 April: “Relations between Azerbaijan and Turkey are at the
highest level,” Azerbaijani President Ilham Aliyev told journalists
after the completion of talks with Turkish President Ahmet Necdet
Sezer.

Aliyev said that during their talks they had discussed the development
of bilateral ties in the political, economic and humanitarian areas.

Aliyev noted that economic growth in both countries makes it possible
to actively develop trade and economic cooperation. Entrepreneurs of
the two countries should use opening opportunities for cooperation,
he said.

The presidents also discussed topical international problems and
regional cooperation, Aliyev noted. He said that Turkey and Azerbaijan
are successfully implementing energy projects of international
significance.

“The energy corridor which will start operating with the launch
this year of the Baku-Tbilisi-Ceyhan oil pipeline and the
Baku-Tbilisi-Erzurum gas pipeline will bring us even closer and
increase the importance of our countries,” Aliyev said.

He said that they had also discussed the construction of the
Baku-Tbilisi-Kars railway. Aliyev said that there are no disagreements
on the issue. “Azerbaijan, Turkey and Georgia are fully determined
to achieve the successful implementation of this project,” he noted.

Aliyev and Sezer also exchanged opinions on the Karabakh settlement.

Aliyev thanked Turkey for its “fair” position on the issue. Aliyev
confirmed that Azerbaijan’s position on this problem is the same: the
conflict must be resolved on the basis of norms of international law,
within the framework of Azerbaijan’s territorial integrity, provided
that Azerbaijani refugees return to their native lands.

Sezer said that Azerbaijani-Turkish ties have a firm foundation and are
based on common interests. Turkey fully supports all of Azerbaijan’s
aspirations towards revival. During the talks, they discussed possible
joint steps to settle the Karabakh conflict and other problems in the
South Caucasus. Turkey favours a peaceful solution to the Karabakh
conflict within the framework of Azerbaijan’s territorial integrity and
in line with international law. He stressed Turkey’s readiness to do
its best for the establishment of lasting peace in the South Caucasus.

Sezer also expressed satisfaction with Azerbaijan’s support for
bringing [the self-declared Turkish Republic of] Northern Cyprus out
of international isolation.

[In a separate report, Turan news agency, Baku, in Russian 1423 gmt 4
Apr 06 quoted Sezer as saying that Turkey had invested in Azerbaijan
4.5bn dollars, including 2.2bn dollars in the non-oil sector.]

MAMMADOV PROPOSED TO DISCUSS THE ISSUE OF AZERBAIJANI TERRITORIES’ OCCUPATION BY ARMENIANS IN EUROPEAN PARLIAMENT

Azeri Press Agency, Azerbaijan
April 5 2006

Today ANIP leader Etibar Mammadov has held a press conference dedicated
to the results of his visit to Italy at the invitation of Europe
People’s Party (EPP). (APA)

Mr. Mammadov informing his being invited to Italy as ANIP leader and
deputy chairman of Europe people’s Party noted that he has participated
in the congress of EPP and held some meetings in Rome.

He has informed that Vilfred Martens was re- elected as chairman of
the party in the congress, and the party made a decision on support
of “Forward Italy”. Mr.Mammadov has stated that ANIP, ‘Our Ukraine’
bloc of Ukraine and National movement Organization headed by Georgian
president Mikhail Saakashvili has been selected as observation mission
in the congress. ANIP leader speaking of his other meetings added:
“Leadership of Europe People’s Party holds the main posts of European
Parliament. In European Parliament I met with Pottering -president
of EPP and Europe Democratic Group. I proposed to begin discussions
on liquidation of the issues adopted in European Parliament related
to Azerbaijan and the facts on occupying of Azerbaijani territories
by Armenians. Mr. Pottering instructed executive organ of the
organization to prepare appropriate documents related to the issues
together with ANIP. I had a meeting with ex-president of Litva and he
stated that investigations on January 20 events are not considered
to be completed. He explained it with the responsible persons’ not
being sentenced, and added that he intends to apply European Court
related to the matter.”

Mr.Mammadov has held meetings with leaders of different countries
while being in Italy, he has participated in the party arranged in
the house of prime minister of Italy Silvio Berlusconi.

ICRC PRESIDENT VISITS BAKU

Azeri Press Agency, Azerbaijan
April 3 2006

President of the International Committee of the Red Cross (ICRC)
Jakob Kellenberger has arrived in Baku for a two-day visit at the
invitation of the government of Azerbaijan. The ICRC representative
office in Azerbaijan informed APA that Mr.Kellenberger’s visit will
be followed by visits to Georgia and Armenia.

The ICRC president will have talks with Azerbaijan’s President
Ilham Aliyev, deputy Foreign Minister Mahmud Mammadguliyev and other
officials.

The talks are expected to focus on missing persons and their
families, the conditions of people detained in relation to the
unresolved conflicts of Nagorno Garabagh, and other humanitarian
issues. Training of the Armed Forces in international humanitarian
law and its application will also be discussed. In addition, the ICRC
president will make visits to ICRC-supported projects in the field.

During his visit, Mr.Kellenberger will meet the presidents of the
Azerbaijani Red Crescent Society.