Category: News

FREEDOM HOUSE:
FREEDOM IN THE WORLD 2004
Armenia / Azerbaijan
NAGORNO-KARABAKH
Political Rights: 5
Civil Liberties: 5
Status: Partly Free
Population: 150,000
Religious Groups: Armenian Apostolic Church (majority)
Ethnic Groups: Armenian (95 percent), other (5 percent)
Ten Year Ratings Timeline [OMMITTED]
Overview
Internationally mediated efforts to find a political settlement to the
protracted Nagorno-Karabakh conflict made little progress in 2003. With
presidential elections scheduled for both Armenia and Azerbaijan during the
year, neither country’s leadership appeared willing to risk a public
backlash by agreeing to compromises over the disputed territory’s status.
Meanwhile, a mounting number of cease-fire violations led to concerns over a
possible threat of renewed larger-scale confrontations.
The Nagorno-Karabakh Autonomous Region, a territory largely populated by
ethnic Armenians inside the former Soviet republic of Azerbaijan, was
established in 1923. In February 1988, Nagorno-Karabakh’s regional
legislature adopted a resolution calling for union with Armenia. The
announcement triggered the first mass violence related to the conflict with
attacks against Armenians in the Azerbaijani city of Sumgait several days
later.
Successive battles and counteroffensives were fought over the next several
years between various Armenian, Azerbaijani, and Nagorno-Karabakh forces. At
its inaugural session in January 1992, Nagorno-Karabakh’s new legislature
adopted a declaration of independence, which was not recognized by the
international community. By the time a Russian-brokered cease-fire was
signed in May 1994, Karabakh Armenians, assisted by Armenia, had captured
essentially the entire territory, as well as six Azerbaijani districts
surrounding the enclave. Nearly all ethnic Azeris had fled or been forced
out of the enclave and its surrounding areas, and the fighting had resulted
in thousands of casualties and an estimated one million refugees.
In December 1994, the head of Nagorno-Karabakh’s state defense committee,
Robert Kocharian, was selected by the territory’s parliament for the newly
established post of president. Parliamentary elections were held in April
and May 1995, and Kocharian defeated two other candidates in a popular vote
for president in November of the following year.
In September 1997, Foreign Minister Arkady Ghukasian was elected to replace
Kocharian, who had been named prime minister of Armenia in March of that
year. In the territory’s June 2000 parliamentary vote, 123 candidates
representing five parties competed for the assembly’s 33 seats. The ruling
Democratic Union Artsakh (ZhAM), which supported Ghukasian, enjoyed a slim
victory, winning 13 seats. The Related Territories Reports 643 Armenian
Revolutionary Federation – Dashnaktsutiun won 9 seats, the Armenakan Party
captured 1 seat, and formally independent candidates, most of whom supported
Ghukasian, won 10. International observers described the electoral campaign
and voting process as calm and largely transparent, although problems were
noted with the accuracy of some voter lists.
In February 2001, former Defense Minister Samvel Babayan was found guilty of
organizing a March 2000 assassination attempt against Ghukasian and
sentenced to 14 years in prison. His supporters insisted that the arrest was
politically motivated, as Babayan had been involved in a power struggle with
Ghukasian. Others, however, welcomed the arrest and conviction of Babayan,
who had been accused of corruption and reportedly wielded considerable
political and economic power in the territory.
Ghukasian was reelected to a second term as president on August 11, 2002,
with 89 percent of the vote. His closest challenger, former parliament
speaker Artur Tovmasian, received just 8 percent. Voter turnout was close to
75 percent. Observers from countries including the United States, the United
Kingdom, and France reported no serious violations. While a number of
domestic and international nongovernmental organizations concluded that the
elections marked a further step in Nagorno-Karabakh’s democratization, they
did voice some criticisms, including the limited access for the opposition
to state-controlled media. Azerbaijan’s Foreign Ministry described the
election as a violation of international norms, insisting that a legitimate
vote could be held only after a peaceful resolution to the conflict.
With both Armenia’s president, Robert Kocharian, and Azerbaijan’s president,
Heydar Aliev, poised to seek reelection in 2003 – and the domestic political
risk associated with either leader’s making significant public concessions
over the territory during a campaign year – few observers expected any
breakthroughs in the conflict during 2003. An upsurge in shooting incidents
along the ceasefire line in the summer, which both Armenian and Azerbaijani
officials accused the other side of instigating, fueled concerns of a
further and more widespread escalation of violence. Meanwhile, speculation
grew over the impact of Aliev’s failing health and the October election of
his son, Ilham, to succeed him as president on prospects for a negotiated
settlement to the conflict.
Despite continued high-level discussions in the framework of the
Organization for Security and Cooperation in Europe’s Minsk Group – which
was established a decade earlier to facilitate dialogue on a political
settlement on Nagorno-Karabakh’s status – a resolution of the long-standing
dispute remained elusive at year’s end. While Yerevan insists that
Nagorno-Karabakh should be left outside Azeri jurisdiction, Baku maintains
that the territory may be granted broad autonomy while remaining a
constituent part of Azerbaijan. Azerbaijan also has refused to negotiate
with Ghukasian, who has demanded direct representation in the peace process.
Political Rights and Civil Liberties
A self-declared republic, Nagorno-Karabakh has enjoyed de facto
independence from Azerbaijan since 1994 while retaining close political,
economic, and military ties with Armenia. Parliamentary elections in 1995
and 2000 were regarded as generally free and fair, as were the 1996 and
1997 presidential votes. However, the elections were considered invalid by
most of the international community that does not recognize 644 Freedom in
the World – 2004 Nagorno-Karabakh’s independence. Nagorno-Karabakh’s
electoral law calls for a single-mandate system to be used in
parliamentary elections; lawmakers have rejected the opposition’s demands
for the inclusion of party-based lists.
The territory officially remains under martial law, which imposes
restrictions on civil liberties, including media censorship and the banning
of public demonstrations. However, the authorities maintain that these
provisions have not been enforced since 1995, a year after the cease-fire
was signed.
The government controls many of the territory’s broadcast media outlets, and
most journalists practice self-censorship, particularly on subjects dealing
with policies related to Azerbaijan and the peace process. Some observers
maintain that the government used the attempted murder of President Arkady
Ghukasian in 2000 as a pretext to intensify attacks against its critics.
The registration of religious groups is required under Nagorno-Karabakh’s
1997 law on religion. The Armenian Apostolic Church, which is the territory’
s predominant religion, is the only faith registered with the state.
According to Forum 18, a religious-freedom watchdog group based in Norway,
members of various minority faiths, including Pentecostals, Adventists,
Baptists, and Jehovah’s Witnesses, have faced restrictions on their
activities. In 2003, a local Baptist was beaten, was threatened with
mind-altering drugs, and had threats made against his wife by law
enforcement officials for distributing religious literature on the street,
Forum 18 reported; authorities denied that any threats were made against
him.
Freedom of assembly and association is limited, although political parties
and unions are allowed to organize.
The judiciary, which is not independent in practice, is influenced by the
executive branch and powerful political and clan forces. Former defense
minister Samvel Babayan alleged that he had been physically assaulted during
his interrogation and detention as a suspect in the failed assassination
attempt against President Ghukasian in March 2000. The presiding judge in
the case announced that the subsequent guilty verdict against Babayan was
based on pretrial testimony in which Babayan confessed to the charges,
although he later retracted his admission of guilt, claiming that it had
been obtained under duress. The republic’s government announced that it had
replaced the death penalty with life imprisonment as of August 1, 2003.
The majority of those who fled the fighting continue to live in squalid
conditions in refugee camps in Azerbaijan, while international aid
organizations are reducing direct assistance to the refugees. Landmine
explosions continue to result in casualties each year, with children and
teenagers among the most vulnerable groups. According to the International
Committee of the Red Cross, at least 50,000 anti-personnel mines were laid
during the war, although in many cases, records of minefield locations were
never created or were lost. The HALO Trust, a British nongovernmental
organization, is the major de-mining group operating in the territory.
Nagorno-Karabakh’s fragile peace has failed to bring significant improvement
to the economy, particularly in the countryside, and pensioners are
particularly hard hit. Widespread corruption, a lack of substantive economic
reforms, and the control of major economic activity by powerful elites limit
equality of opportunity for most residents.
—
From: Emil Lazarian | Ararat NewsPress

A1 Plus | 18:27:27 | 24-09-2004 | Social |
HUMANITARIAN ASSISTANCE APPROPRIATED
One of international organisations has sent 650 tons wheat seeds as
assistance to the republic’s six regions stricken by frost in 2002 and 2003.
It became known recently that 2,100 kg of that amount were distributed
wrongly.
Journalists without borders organisation discussed that incident Friday.
The thing is that Lyudvig Khlghatyan, the headman of Armavir region’s
Dimitrov village, pocketed the aid using his levers.
A suit was filed against him. Villagers say wrongdoer Khlghatyan is backed
by more senior officials. In particular, territorial regulation an
industrial infrastructures minister Hovik Abrahamyan had been named very
often in this connection.
Assyrians make the village population’s 30 percent. That’s why the villagers
view the incident as ethnic minorities’ rights discrimination. The minister’
s deputy Gagik Aslanyan says his chief can’t tolerate persons like Hovik
Abrahamyan.
He promised that things will be put right.
Armenian PM’s adviser on ethnic minorities issues Hranush Kharatyan says
minority tinge will help to solve the problem. If the village was completely
Armenian, there would be less chances for solving the issue through court.

A1 Plus | 18:59:43 | 24-09-2004 | Politics |
HIGH TIME TO SPECULATE HOW TO SAVE ARMENIA
Participants of the discussion held Friday by the National Citizen’s
Initiative compared current situation in Armenia with that of short period
of Armenia’s independence from 1918 to 1920. Political analyst Artsrun
Pepanyan said the then situation was even worse than one can imagine.
He said quoting one of the then governors “we had neither state mentality
nor state world vision”.
Lawyer Hrayr Tovmassyan joined him in criticizing the first republic by
saying election fraud and scandals of that time overdid today’s ones.
In his words, Dashnak party activists were forcing people to go to polling
stations by threatening them with guns.
These facts were remembered at the discussion to show on what legacy our
present republic is built. Thirteen years have already passed since
declaration of independence in 1991, but so far a majority of Declaration
provisions is not put into reality.
In Pepanyan’s opinion, very few intellectuals remain in Armenia today.
After his speech the event participants came to sad realization that Armenia
is badly in need of being saved. Time has come to speculate over the matter
to save the republic, they said.

Armenian defence minister sets three conditions for Karabakh settlement
Public Television of Armenia, Yerevan
24 Sep 04
Armenian Defence Minister Serzh Sarkisyan has received Marco Zacchera,
vice-president of the Assembly of the Western European Union. The
minister said that Yerevan had put forward three principles for the
Karabakh settlement. From now on, Nagornyy Karabakh cannot exist as an
integral part of Azerbaijan, it cannot be isolated from Armenia and it
should have land borders with Armenia.
As for ties with Turkey, the minister said that diplomatic relations
with Ankara should be established without preconditions. Sarkisyan
said that Turkey should recognize the Armenian genocide in order to
settle all other problems.
Zacchera promised to cover these issues in his upcoming report for the
Parliamentary Assembly of the European Union.

Armenian, British Defence Ministries sign cooperation memo
Mediamax news agency
24 Sep 04
YEREVAN
The Ministry of Defence of the United Kingdom and the Ministry of
Defence of the Republic of Armenia have agreed a memorandum of
understanding in defence contacts and cooperation.
Armenian Minister of Defence Serzh Sarkisyan and British ambassador to
Armenia Thorda Abbott-Watt signed the memorandum at a brief ceremony
at the Armenian Ministry of Defence in Yerevan today.
The aim of the memorandum is to further strengthen good relations
between the two ministries and to serve as a basis for increased
cooperation between them in the field of defence.
Over the last year the United Kingdom has sponsored a variety of
training courses outside Armenia for 16 members of the Armenian Armed
Forces, including the first Armenian cadet ever to attend the Royal
Military Academy, Sandhurst.
The British Ministry of Defence also funds English language training
within the framework of the Peacekeeping English Programme run by the
British Council Armenia at the Armenian Ministry of Defence.
The memorandum of understanding notes that stable and democratic
sovereign states contribute to confidence, stability and security in
Europe as a whole. It will put the existing cooperation programme on a
formal footing, and enable Britain and Armenia to develop further
contacts in areas such as defence management in democratic societies,
language training, peace support in humanitarian operations and arms
control.

Armenian official says Karabakh report meets British oil companies’ interests
Mediamax news agency
24 Sep 04
YEREVAN
The draft report on Nagornyy Karabakh prepared by PACE ex-rapporteur
Terry Davis, who is presently holding the post of secretary-general of
the Council of Europe, “is not impartial and reflects the interests of
British oil companies”, the deputy speaker of the Armenian parliament,
Vaan Ovanesyan, said at the National Press Club in Yerevan today.
According to him, “it should be taken into account that PACE’s new
rapporteur on Nagornyy Karabakh David Atkinson is also British and his
report will be most likely based on the documents prepared by his
predecessor”.

Armenia’s foreign debt totals over 1bn dollars
Yerkir web site
24 Sep 04

YEREVAN
As of 30 June 2004, Armenia’s foreign debt totalled 1.07bn dollars, of
which loans received under Armenia’s state guarantee amounted to
858.9m dollars (80.2 per cent). The Armenian Central Bank’s foreign
debt amounted to 211.4m dollars (19.8 per cent), Armenpress news
agency reports.
The Armenian Finance and Economy Ministry reports that Armenia’s state
debt has dropped by 0.8 per cent as against the same period in 2003
and by 2.5 per cent as against 31 December 2003.
As of 30 June 2004, 90.1 per cent of Armenia’s foreign debt are loans
from different creditors, and the remaining 9.9 per cent falls to the
share of loans from double sources.
[Passage omitted: minor details]

Azeri president meets Spanish foreign minister in New York
Lider TV, Baku
24 Sep 04

[Presenter] Azerbaijani President Ilham Aliyev is due to deliver a
speech at the 59th session of the UN General Assembly today. The
Armenian-Azerbaijani conflict will be the key topic of the president’s
speech. The president has already held a number of meetings.
[Correspondent over video of Ilham Aliyev meeting named officials]
President Ilham Aliyev, who is on a visit in New York, has received
Solomon Pasi, chairman of the OSCE [Organization for Security and
Cooperation in Europe]. The president called on the OSCE chairman to
boost the organization’s efforts in the settlement of the
Armenian-Azerbaijani Nagornyy Karabakh conflict. The sides exchanged
opinions on the OSCE’s future activities and its expansion. Pasi
informed President Ilham Aliyev of Bulgaria’s position on this issue.
Following this meeting, President Ilham Aliyev met the president of
Exxon Mobile. The Exxon Mobile president congratulated Ilham Aliyev on
the 10th anniversary of the Contract of the Century. He spoke about
successful projects of development of the Caspian natural
resources. The meeting also discussed the Exxon Mobile company’s
future activities in Azerbaijan.
President Ilham Aliyev also met Spanish Foreign Minister Miguel Angel
Moratinos. Extending greetings from Spanish King Juan Carlos I and
Spanish Prime Minister Jose Luis Rodriguez Zapatero to President Ilham
Aliyev, Moratinos said that the Spanish government was closely
observing processes in Azerbaijan and was of high opinion of President
Ilham Aliyev’s policy. The president noted great potential for the
development of relations between the countries. By exploiting this
potential, we should expand political, economic and other ties, the
president said, adding that our country was successfully integrating
into European structures. Since Azerbaijan joined the European Union’s
Wider Europe policy, we have been planning to bring our ties with this
body to a new stage, end quote.
One of the meetings President Ilham Aliyev held throughout the day was
with the president of the Open Society Institute, George
Soros. Stating that he is very keen on processes in Azerbaijan, Soros
said that our country is developing economically.
Mahsati Seyidzada for Lider TV.

Azeri opposition leader, French envoy discuss Karabakh, political situation
Yeni Musavat, Baku
24 Sep 04

Text of unattributed report by Azerbaijani newspaper Yeni Musavat on
24 September headlined “The French ambassador meets the Musavat
chairman”
The chairman of the Musavat Party, Isa Qambar, received the French
ambassador to Azerbaijan, Roland Blatmann, at the party headquarters
yesterday.
The parties discussed the public and political situation in the
country, Azerbaijan’s commitments before the Council of Europe,
democracy and human rights, political prisoners, the
Armenian-Azerbaijani conflict, EU-Azerbaijani and French-Azerbaijani
relations and prospects for the development of political contacts.
The meeting was also attended by the deputy chairman of the Musavat
Party, Sulhaddin Akbar.

LEDA DESIGN – “COMPANY’S DEVELOPMENT STRATEGY IS CONNECTED TO ARMENIA”- SAYS
VAHRAM MOURADIAN, PRESIDENT OF THE LEADING AMERICAN IT COMPANY
By Ruben Grdzelyan,
ARMINFO, 2004
LEDA Design, Inc., engaged in design and development of IP blocks for
digital, analog and mixed-signal Integrated Circuits, was established
in USA in 1995, and the Armenian Branch was founded in 2000. Late in
2003 a decision was made to transfer the main activities of the
company into Armenia. What are the reasons for that rather risky
decision and what is the result of its application, we managed to
clarify directly from the company’s President Dr. Vahram Mouradian.
– Dr. Mouradian, please describe the transition period and
difficulties connected with it.
– In November 2003 we decided to relocate our key engineering segment
into Armenia, and at the present moment it has been implemented –
engineering, marketing and production departments are located in
Armenia right now. In the beginning of 2004 we entered a risky stage
of operations, as this is the very first experience when a company
like ours expands its activity in Armenia only. In January 2004, with
the beginning of the transition period, LEDA Design’s shareholders
evaluated the task to be achieved and determined the deadline for
successful completion of the transition to Armenia based operations
using the existing manpower and engineering resources. In the first
three months of the year the company experienced losses, but in the
second quarter we succeeded in attracting engineering orders, and
their performance brought profitability. Forecasts for the third
quarter anticipate equal, if not better results compared to the second
quarter. Taking into consideration these positive development trends,
the company’s shareholders have made decisions to effect additional
investments. These investments will not only improve efficiency, but
will provide the basis for further development of our business. In the
near future we are planning to introduce new products on the world
chip design market with new types of interfaces, memory blocks for ICs
and EDA tools. Also, we are going to add IC testing in Armenia, a
function which previously was performed in the US.
On a related subject, LEDA has a taken a very strong stance in the
Armenian HR market against the practice of enticing employees from
other companies to “steal” technologies. From this point of view
Armenia has not yet spoiled its reputation, but the practice is
becoming a problem. The practice has spread into Armenia among
competing companies and it contradicts the principles of good business
practices and healthy competition, especially in the context of such a
narrow engineering market as the Armenian one. This kind of
dishonorable behavior shown by some, both foreign and local companies,
increases the cost of doing business in Armenia, making it less
attractive for potential investors. LEDA is actively working to
improve the situation, and we expect positive results.
In summary, however, I can confirm to you that Armenia is acknowledged
as a reliable partner in the international IC design market. Regarding
our plans for the future, our next task will be to firmly establish
our reputation, which requires positive dynamics of production growth,
development of new products, and expansion of supporting services.
– Actually, we can now consider the second stage in LEDA’s development
finished?
– The initial stage was raising the company itself, capable of develop
products and meeting demand. The next stage was opening of the
Armenian branch, and the transfer of the corporate operations into
Armenia.
– Well, about the third one, what will be the next stage, to your
mind?
– Our next step will be acquisition of strong brand recognition that
will allow us to start trading the company’s stock on international
stock exchanges. For an American-Armenian enterprise, it will be a
solid achievement.
– In the beginning of this year several employees of LEDA have been
dismissed. Taking into consideration the recent positive changes, do
you plan to restore the previous number of employees?
– Since the middle of July the number of LEDA employees has grown,
first of all, due to hiring the graduates of our educational
center. Moreover, we have increased salaries of many of our
engineers. In the near future we expect to announce new job openings,
as we continue to develop new products.
– Vast majority of the Armenia located IT-companies are branches of
the foreign firms. How can you explain your not traditional decision
to turn your branch into the Headquarters?
– First of all this decision is caused by my Armenian origin, next by
my sincere belief in the potential of my team and the bright future of
my home country. But the decision is still a risky one. Due to the
absence of a local market, the most challenging task in Armenia is
effective outbound sales. Another major obstacle for the conversion of
the foreign branches into Armenian companies is the lack of qualified
specialists. And it applies not only to marketing. The Armenian IT
labor market is very limited. For example, you can count on your
fingers the number of talented chip design engineers in Armenia. In
order to expand existing businesses and to create new businesses there
is no other way but to increase the number of engineers. The loss of
just a couple of experienced professionals by any Armenian IT company
or branch may lead to collapse. This problem will remain until
efficient models of labor market improvements are implemented. We are
working on it right now.
– Do you think it may be possible to smooth this problem by attracting
specialists of the Armenian origin from abroad?
– In order to do it, it is necessary to enhance the living standards
in Armenia, because salary is not the only decision factor for those
specialists – people desire high living standards. Besides that, let’s
not forget about the competition – the salary levels of the Armenian
specialists are getting close to the critical point, and compared to
some countries already exceed the limit, which means any further
increase will not allow the Armenian products to compete on the world
markets because of high net cost. The only way out is to make up for
the brain drain by training new specialists – and to educate two
specialists to replace each one lost, until Armenia becomes a location
of choice for highly qualified professionals. Otherwise stagnation is
unavoidable.
– Some time ago LEDA Design had got plans to place orders with two
Armenian plants: Scientific-Production Enterprise “Transistor” and
“MARS” plant. Do you have any news related to these plans?
– We could not engage with “Transistor”, as it was not possible to
bridge the gap between our technologies and the manufacturing
capacities of “Transistor”, but we still maintain certain hopes with
“Mars” in the field of placing manufacturing orders for some simple
printed circuits boards. But these are plans for the future.