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Background Note:
Armenia PROFILE
OFFICIAL NAME: Geography People Government Economy (2000) U.S.-ARMENIAN RELATIONS The United States has made a concerted effort to help Armenia and the other NIS during their difficult transition from totalitarianism and a command economy to democracy and open markets. The cornerstone of this continuing partnership has been the Freedom for Russia and Emerging Eurasian Democracies and Open Markets (FREEDOM) Support Act, enacted in October 1992, under which the U.S. to date has provided nearly $1.2 billion in humanitarian and technical assistance for Armenia.
In addition, the U.S. has played a leading role in the Minsk Group, which was created in 1992 by the Conference of Security and Cooperation in Europe--now the Organization for Security and Cooperation in Europe (OSCE)--to encourage a peaceful, negotiated resolution to the conflict over the Nagorno-Karabakh region. That conflict has cost several thousand lives, created nearly one million refugees and displaced persons, and caused economic hardships for Armenia.
U.S.-Armenian Economic Relations Approximately 70 U.S.-owned firms currently do business in Armenia, including such multinationals as Procter & Gamble, M&M-Mars, Xerox, Dell, and IBM. Recent major U.S. investment projects include the Hotel Armenia, the Hotel Ani; a Greek-owned Coca-Cola bottling plant; petroleum exploration by the American-Armenian Exploration Company; upgrading of the wine and brandy production at Ararat winery; a large perlite mining and processing plant; and the joint venture Jermuk, which produces one of the more popular brands of mineral water in Armenia.
U.S. Support To Build A Market Economy Specific USAID programs focus on the development of a private sector and small and medium-size enterprises, including microcredit programs; energy sector reform, including preparation for privatization of energy distribution companies; democracy and good governance programs, including the promotion of a well-informed and active civil society; social sector reform, including funding for medical partnerships and social insurance programs; and earthquake zone assistance, which provides housing and economic reactivation for victims of the 1988 earthquake.
The U.S. Department of Agriculture Marketing Assistance Project (MAP) provides advisory services and support to private farmers in all Armenian provinces, facilitates the formation of farmer associations and marketing initiatives, provides micro-credits for agricultural producers, and has laid the groundwork for several agribusiness associations. The U.S. Department of Agriculture's (USDA) Cochran Fellowship Program provides training to Armenian agriculturists. USDA and USAID also have launched efforts to revive production and export of Armenian vegetables, fruits, and other agricultural products.
U.S. Humanitarian Assistance As conditions in Armenia have improved, with the stabilization of the economy and increased energy production--including the restarting of the Armenian Nuclear Power Plant at Metsamor--U.S. assistance programs have moved away from humanitarian goals to longer term development ones. Nevertheless, humanitarian programs, which make up approximately 15% of total assistance in fiscal year 2001, still provide an important source of food, medical supplies, and other necessary items to needy Armenians.
U.S. Support To Achieve Democracy State Department and USAID educational exchange programs play an important role in supporting democratic and free-market reforms. Assistance in the translation and publication of printed information also has been provided. Exchange programs in the U.S. for Armenian lawyers, judges, political party members, business people, government officials, NGO activists, journalists, and other public figures focus on a range of topics, including the American judicial and political system, privatization, specific business sectors, the media, and civil society. The State Department has funded an ongoing project to provide Internet connectivity to schools at various levels throughout the country; these centers provide both educational and community-building opportunities.
USAID has funded international and domestic groups to monitor national elections. USAID has also funded programs to educate voters and to strengthen the role of an array of civic organizations in the democratic process.
Principal U.S. Embassy Officials The U.S. embassy in Yerevan, Armenia is at 18 Marshal Bagramyan; tel: 3741-54-3900 or 3741-52-4661; fax: 3741-52-0800.
HISTORICAL HIGHLIGHTS In 301 AD, Armenia became the first nation to adopt Christianity as a state religion, establishing a church that still exists independently of both the Catholic and the Eastern Orthodox churches. During its later political eclipses, Armenia depended on the church to preserve and protect its unique identity. From around 1100 to 1350, the focus of Armenian nationalism moved south, as the Armenian Kingdom of Cilicia, which had close ties to European Crusader states, flourished in southeastern Asia Minor until conquered by Muslim states.
Between the 4th and 19th centuries, Armenia was conquered and ruled by, among others, Persians, Byzantines, Arabs, Mongols, and Turks. For a brief period from 1918 to 1920, it was an independent republic. In late 1920, the communists came to power following an invasion of Armenia by the Red Army, and in 1922, Armenia became part of the Trans-Caucasian Soviet Socialist Republic. In 1936, it became the Armenian Soviet Socialist Republic. Armenia declared its independence from the Soviet Union on September 21, 1991.
GOVERNMENT AND POLITICAL CONDITIONS The unicameral parliament (also called the National Assembly) is dominated by a coalition, called "Unity" (Miasnutyun), between the Republican and Peoples Parties and the Agro-Technical Peoples Union, aided by numerous independents. Dashnaksutyun, which was outlawed by Ter-Petrossian in 1995-96 but legalized again after Ter-Petrossian resigned, also usually supports the government. A new party, the Republic Party, is headed by ex-Prime Minister Aram Sargsian, brother of the late Vazgen Sargsian, and has become the primary voice of the opposition, which also includes the communists, the National Accord Party of Artashes Geghamian, and elements of the former Ter-Petrossian government.
The Government of Armenia's stated aim is to build a Western-style parliamentary democracy as the basis of its form of government. However, international observers have questioned the inherent fairness of parliamentary and presidential elections and constitutional referenda since 1995, citing polling deficiencies, lack of cooperation by the electoral commission, and poor maintenance of electoral lists and polling places. Observers noted, though, that opposition parties and candidates have been able to mount credible campaigns and proper polling procedures have been generally followed. Elections since 1998 have represented an improvement in terms of both fairness and efficiency, although they have not met international standards. The new constitution of 1995 greatly expanded the powers of the executive branch and gives it much more influence over the judiciary and municipal officials.
The observance of human rights in Armenia is uneven and is marked by serious shortcomings. Police brutality still goes largely unreported, while observers note that defendants are often beaten to extract confessions and are denied visits from relatives and lawyers. Public demonstrations usually take place without government interference, though one rally in November 2000 by an opposition party was followed by the arrest and imprisonment for a month of its organizer. Freedom of religion is not always protected under existing law. Nontraditional churches, especially the Jehovah's Witnesses, have been subjected to harassment, sometimes violently. All churches apart from the Armenian Apostolic Church must register with the government, and proselytizing is forbidden by law. The government's policy toward conscientious objection is in transition, as part of Armenia's accession to the Council of Europe. Most of Armenia's ethnic Azeri population was deported in 1988-89 and remain refugees, largely in Azerbaijan. Armenia's record on discrimination toward the few remaining national minorities is generally good. The government does not restrict internal or international travel. Although freedom of the press and speech are guaranteed, the government maintains its monopoly over television and radio broadcasting.
Principal Government Officials Armenia's embassy in the U.S. is at 2225 R Street, NW, Washington, DC, 20008; tel: 202-319-1976 or 202-319-2983; fax: 202-319-2984.
ECONOMY Like other New Independent States, Armenia's economy suffers from the legacy of a centrally planned economy and the breakdown of former Soviet trading patterns. Soviet investment in and support of Armenian industry has virtually disappeared, so that few major enterprises are still able to function. In addition, the effects of the 1988 earthquake, which killed more than 25,000 people and made 500,000 homeless, are still being felt. Although a cease-fire has held since 1994, the conflict with Azerbaijan over Nagorno-Karabakh has not been resolved. The consequent blockade along both the Azerbaijani and Turkish borders has devastated the economy, because of Armenia's dependence on outside supplies of energy and most raw materials. Land routes through Azerbaijan and Turkey are closed; routes through Georgia and Iran are inadequate or unreliable. In 1992-93, GDP fell nearly 60% from its 1989 level. The national currency, the dram, suffered hyperinflation for the first few years after its introduction in 1993.
Nevertheless, the Government of Armenia, helped by the cease-fire that has been in effect in Nagorno-Karabakh since 1994, has been able to carry out wideranging economic reforms which paid off in dramatically lower inflation and steady growth. Armenia has registered strong economic growth since 1995, building on the turnaround that began the previous year, and inflation has been negligible for the past several years. New sectors, such as precious stone processing and jewelry making, information and communication technology, and even tourism are beginning to supplement more traditional sectors such as agriculture in the economy.
This steady economic progress has earned Armenia increasing support from international institutions. The IMF, World Bank, EBRD, as well as other IFIs and foreign countries are extending considerable grants and loans. Total loans extended to Armenia since 1993 exceed $800 million. These loans are targeted at reducing the budget deficit, stabilizing the local currency; developing private businesses; energy; the agriculture, food processing, transportation, and health and education sectors; and ongoing rehabilitation work in the earthquake zone.
Continued progress will depend on the ability of the government to strengthen its macroeconomic management, including increasing revenue collection, improve the investment climate, and accelerate the privatization process. A liberal foreign investment law was approved in June 1994, and a Law on Privatization was adopted in 1997, as well as a program on state property privatization. The government has made major strides toward joining the World Trade Organization.
Environmental Issues DEFENSE AND MILITARY ISSUES The Conventional Armed Forces in Europe (CFE) Treaty was ratified by the Armenian parliament in July 1992. The treaty establishes comprehensive limits on key categories of military equipment, such as tanks, artillery, armored combat vehicles, combat aircraft, and combat helicopters, and provides for the destruction of weaponry in excess of those limits. Armenian officials have consistently expressed determination to comply with its provisions. Armenia has provided data on armaments as required under the CFE Treaty. There are indications that Armenia is trying to establish mechanisms to ensure fulfillment of its arms control obligations. Armenia is not a significant exporter of conventional weapons, but it has provided substantial support, including materiel, to separatists in Nagorno-Karabakh.
In March 1993, Armenia signed the multilateral Chemical Weapons Convention, which calls for the eventual elimination of chemical weapons. Armenia acceded to the nuclear Non-Proliferation Treaty as a non-nuclear weapons state in July 1993. The U.S. and other Western governments have discussed efforts to establish effective nuclear export control systems with Armenia.
FOREIGN RELATIONS Nagorno-Karabakh Peace talks in early 1993 were disrupted by the seizure of Azerbaijan's Kelbajar district by Nagorno-Karabakh Armenian forces and the forced evacuation of thousands of ethnic Azeris. Turkey in protest then followed with an embargo of its own against Armenia. A cease-fire was declared between Azeri and Armenian/N-K forces in 1994 and has been maintained by both sides since then in spite of occasional shooting along the line of contact between the two. All Armenian governments have thus far resisted domestic pressure to recognize the self-proclaimed independence of the "Nagorno-Karabakh Republic," while at the same time announcing they would not accept any peace accords that returned the enclave to Azerbaijani rule. Some 750,000 ethnic Azeris who fled during the Karabakhi offensives still live as internally displaced persons in Azerbaijan, while roughly 400,000 ethnic Armenians who fled Azerbaijan since 1988 remain refugees, although around 35,000 have accepted Armenian citizenship since 1998.
Negotiations to peacefully resolve the conflict have been ongoing since 1992 under the aegis of the Minsk Group of the OSCE. The Minsk Group is currently co-chaired by the U.S., France, and Russia and comprises Armenia, Azerbaijan, Turkey, the U.S., several western European nations, and representatives of the Armenian and Azeri communities of Nagorno-Karabakh. The talks have focused on the status of Nagorno-Karabakh, the return of refugees, the lifting of blockades, the withdrawal from occupied territories, and the status of the Lachin corridor, which connects Nagorno-Karabakh to Armenia.
Karabakhi Armenians, supported by the Republic of Armenia, now hold about 15% of Azerbaijan and have refused to withdraw from occupied territories until an agreement on the status of Nagorno-Karabakh is reached. Armenia and Azerbaijan continue to observe the cease-fire which has been in effect since May 1994, and in late 1995 both also agreed to OSCE field representatives being based in Tbilisi, Georgia, to monitor the cease-fire and facilitate the peace process.
TRAVEL AND BUSINESS INFORMATION Emergency information concerning Americans traveling abroad may be obtained from the Office of Overseas Citizens Services at (202) 647-5225. For after-hours emergencies, Sundays and holidays, call 202-647-4000. Passport information can be obtained by calling the National Passport Information Center's automated system ($.35 per minute) or live operators 8 a.m. to 8 p.m. (EST) Monday-Friday ($1.05 per minute). The number is 1-900-225-5674 (TDD: 1-900-225-7778). Major credit card users (for a flat rate of $4.95) may call 1-888-362-8668 (TDD: 1-888-498-3648). It also is available on the internet. Travelers can check the latest health information with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at 877-FYI-TRIP (877-394-8747) and a web site at http://www.cdc.gov/travel/index.htm give the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled Health Information for International Travel (HHS publication number CDC-95-8280) is available from the U.S. Government Printing Office, Washington, DC 20402, tel. (202) 512-1800. Information on travel conditions, visa requirements, currency and customs regulations, legal holidays, and other items of interest to travelers also may be obtained before your departure from a country's embassy and/or consulates in the U.S. (for this country, see "Principal Government Officials" listing in this publication). U.S. citizens who are long-term visitors or traveling in dangerous areas are encouraged to register at the U.S. embassy upon arrival in a country (see "Principal U.S. Embassy Officials" listing in this publication). This may help family members contact you in case of an emergency. Further Electronic Information National Trade Data Bank (NTDB). Operated by the U.S. Department of Commerce, the NTDB contains a wealth of trade-related information. It is available on the Internet (www.stat-usa.gov) and on CD-ROM. Call the NTDB Help-Line at (202) 482-1986 for more information. |