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AAA: Armenia This Week - 05/07/2004

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  • AAA: Armenia This Week - 05/07/2004

    ARMENIA THIS WEEK
    Friday, May 7, 2004

    ARMENIA DEEMED ELIGIBLE FOR MILLENNIUM CHALLENGE AID
    The United States this week found Armenia and fifteen other countries
    eligible for new U.S. assistance from the Millennium Challenge Account
    (MCA), an initiative launched two years ago by President George W. Bush and
    chaired by Secretary of State Colin Powell. In a congratulatory statement to
    the selected countries, President Bush noted that "these countries have met
    the high standard of this groundbreaking program by governing justly,
    investing in their people, and promoting economic freedom."

    Congress has appropriated $1 billion in MCA assistance in Fiscal Year 2004.
    The Bush Administration requested an additional $2.5 billion for the same
    purpose in Fiscal Year 2005 and hopes the funding will reach $5 billion by
    2006. To receive the funds the eligible countries will first have to present
    sound project proposals to the U.S. and negotiate a "Compact" on how the
    money will be spent.

    Armenia's proposal is likely to center on the Poverty Reduction Strategy
    approved last year by the country's coalition government that aims to reduce
    the number of people who are living below the poverty line from the 49
    percent estimated in 2002 to under 35 percent in 2007 through job creation
    and higher spending on social programs. In 1996, 55 percent of Armenia's
    population was estimated to live in poverty, but there has been some
    improvement as a result of strong economic growth of recent years.

    The MCA program initially considered 63 countries with good political ties
    with the U.S. and with the gross domestic product (GDP) per capita of under
    $1,415. Following the review, Armenia and Georgia were the only two former
    Soviet Republics that were deemed eligible for the MCA funding on the basis
    of data provided by the World Bank, the International Monetary Fund,
    Washington-based Freedom House and the Heritage Foundation and others.

    Armenia scored above the median in 14 out of 16 performance indicators, with
    investments in health and education being the two exceptions. Armenia scored
    highest on quality of economic regulation and trade policy (both 100%),
    government effectiveness (80%) and on how many days on average it takes to
    start a business in Armenia - 25, compared to 30 in Georgia, 106 in
    Azerbaijan and the average of 61.

    Azerbaijan, which was also a candidate, failed to meet the eligibility
    requirements because of worse than average scores on political rights, civil
    liberties, corruption, government effectiveness, rule of law, voice and
    accountability and quality of economic regulations. (Sources: www.mcc.gov;
    Armenia This Week 7-25-03, 2-6, 3-12; Reuters 5-3)

    KARABAKH MARKS TENTH ANNIVERSARY OF CEASE-FIRE
    This week marks the tenth anniversary of what may be the longest-running
    self-regulated cease-fire in the world. The agreement, signed by Parliament
    Speakers and Defense Ministers of Armenia, Azerbaijan and Nagorno Karabakh
    in May 1994, with mediation by Russia and Kyrgyzstan, has marked a watershed
    in the conflict that broke out in 1988. While no peacekeepers have been
    deployed between Armenian and Azeri forces, and shooting occasionally
    occurs, the parties have largely adhered to the 1994 agreement despite the
    lack of progress on a comprehensive settlement.

    Presidents of Armenia and Azerbaijan, Robert Kocharian and Ilham Aliyev,
    resumed their consultations last week during a European forum in Warsaw,
    Poland. This was their second tête-à-tête meeting since Aliyev took over the
    presidency from his dying father Heydar Aliyev last October. The two
    countries' foreign ministers are expected to meet next week. But the sides
    are seen as pursuing divergent goals and no progress is expected any time
    soon.

    Armenia and Nagorno Karabakh are seeking Azerbaijan's recognition of
    Karabakh's separation and eventual reunification with Armenia, in exchange
    for most of the Azeri districts Armenian forces control outside Nagorno
    Karabakh. The late Heydar Aliyev gave a tentative agreement to such a
    resolution at talks in France and the United States in 2001, before backing
    off. In addition, Armenia has long argued for confidence-building measures,
    including joint economic and humanitarian projects to lessen tensions, which
    Azerbaijan continues to oppose.

    The new Azerbaijani President Ilham Aliyev appears averse to risking
    possible political backlash at home and has said publicly that he is "not in
    a hurry" to settle the conflict. Instead, Azerbaijan is trying to revitalize
    the 1997 proposal for the so-called "step-by-step" settlement: unilateral
    Armenian withdrawals from areas adjacent to Karabakh in exchange for
    reopening communications and no commitments on Karabakh status. (Last month,
    Aliyev got Turkish support for the proposal and, as a return favor, pledged
    to recognize the Turkish-occupied northern Cyprus as an independent state.
    Aliyev then backed away from the pledge drawing the ire of Turkish
    nationalists.)

    Azeri officials make no secret of their hope to use such unilateral
    concession to put more pressure on Armenia. It is not surprising, therefore,
    that Armenia is strongly opposed to such a plan. Most Armenian experts
    believe that territorial concessions are possible only in return for similar
    Azeri withdrawal from parts of Karabakh or in a package with determination
    of its status. (Sources: Arminfo 4-29, 30, 5-5, 6; Zerkalo 5-3)

    ARMENIA WELCOMES END TO AJARIA CRISIS
    The Armenian government this week welcomed a swift and largely bloodless end
    to the standoff between Georgian authorities and the local leader in
    Georgia's Ajarian autonomy, which threatened to undermine Armenia's access
    to a key Black Sea port. Ajaria's long-time leader Aslan Abashidze resigned
    under popular and apparent Russian pressure, and left Georgia for Russia. A
    spokesman for the Armenian Foreign Ministry Hamlet Gasparian praised
    Georgian President Mikhail Saakashvili's handling of the crisis and called
    the outcome "another important step towards establishing peace and stability
    in Georgia and therefore in the entire South Caucasus." Chairman of the
    Parliament's Foreign Relations Committee Armen Rustamian also welcomed the
    resolution as "the best solution."

    Abashidze wielded great influence in Ajaria, a traditionally Muslim but
    ethnically Georgian autonomous republic, striking a power sharing agreement
    with Georgia's former President Eduard Shevardnadze. Last year, Saakashvili
    led popular protests that resulted in the ouster of Shevardnadze. Following
    his election as Georgian President, Saakashvili has been at loggerheads with
    Abashidze, threatening prosecution against him. In the end, Abashidze and
    his family were allowed to leave Georgia unimpeded in exchange for ordering
    his security forces to disperse and not to oppose the government forces. New
    elections in Ajaria are due next month.

    Speaking at a Johns Hopkins University conference in Washington, DC this
    week, regional expert Richard Giragossian noted that the Georgian
    leadership's strategy in the crisis had been to mobilize the local Ajarian
    discontent with Abashidze, and realization that a military intervention and
    resultant bloodshed could in fact empower him. In the end, the strategy had
    paid off with tens of thousands of locals holding continuous protests
    calling for Abashidze's resignation. Russian President's National Security
    Advisor Igor Ivanov arrived in Ajaria to seal the Saakashvili-Abashidze
    compromise deal. (Sources: Armenia This Week 1-16, 3-19; BBC 5-3, 6; Civil
    Georgia 5-5, 6; R&I Report 5-5; RFE/RL Armenia Report 5-6)

    A WEEKLY NEWSLETTER PUBLISHED BY THE ARMENIAN ASSEMBLY OF AMERICA
    122 C Street, N.W., Suite 350, Washington, D.C. 20001 (202) 393-3434 FAX
    (202) 638-4904
    E-Mail [email protected] WEB http://www.aaainc.org


    AAA Note: On May 6, 2004 President George W. Bush announced his intention to
    nominate John Marshall Evans, of Virginia, to be Ambassador Extraordinary
    and Plenipotentiary of the United States of America to the Republic of
    Armenia. The nomination is to be confirmed by the Senate.

    John Evans will take over from Ambassador John M. Ordway, who has worked in
    Armenia since June 2001 and will next serve as U.S. Ambassador to
    Kazakhstan. Below is John Evans' biography as posted on the web site of the
    Mississippi State University's Radvanyi Chair in International Security
    Studies in February 2002 (please note that since 2002 to date Evans has
    served as Director, Office of Russian Affairs in the Bureau of European and
    Eurasian Affairs with the rank of Minister-Counselor):

    John M. Evans, Director, Office of Analysis for Russia and Eurasia, Bureau
    of Intelligence and Research, U.S. Department of State

    A native of Williamsburg, Virginia, and a graduate of Yale College, with
    study toward the Ph.D. at Columbia, Evans joined the U.S. Foreign Service as
    a political officer in 1971. He has served in diplomatic missions in Iran
    (1971-74), Czechoslovakia (1975-78), the Soviet Union (Moscow, 1981-83), at
    NATO Headquarters, 1983-86), the Czech Republic (as Deputy Chief of Mission,
    1991-97). He has also represented the United States as deputy head of
    delegation to a number of experts meetings of the Conference on Security and
    Cooperation in Europe, and headed the OSCE Mission to Moldova, an
    international mediation and peacekeeping operation, 1997-99. In the State
    Department, he has served as a special assistant to Secretaries Vance and
    Muskie, as Deputy Director of the Soviet Desk, and, since July 1999, as
    Director of the Office of Analysis for Russia and Eurasia.

    Evans is married to the former Donna Chamberlain, executive director of the
    World Affairs Council of Washington. They have a daughter who lives in New
    York City.

    Source: http://www.msstate.edu/chair/radvanyi/2002/bio-evans.html
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