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Armenia Beyond Crisis

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  • Armenia Beyond Crisis

    ARMENIA BEYOND CRISIS
    by Maria Tsvetkova, Aleksei Nikolsky, Denis Malkov

    WPS Agency
    What the Papers Say (Russia)
    December 26, 2008 Friday
    Russia

    POLITICAL CONSEQUENCES OF THE CRISIS UNDER WAY WILL DIFFER FOR
    INDIVIDUAL CIS COUNTRIES; Analysis of how CIS countries weather the
    economic and financial crisis.

    Authors of the review organized by Petersburg Politics Foundation
    point out that better developed and less isolated countries of the
    Commonwealth have more reasons to fear political destabilization as a
    corollary of the crisis than their less advanced neighbors. Analyzing
    the effect the crisis is having on CIS countries, experts divided
    them into several groups.

    "The CIS informal summit in Kazakhstan (December 19 - Vedomosti)
    resolved to set up a special trust and an advanced technologies
    center," President Dmitry Medvedev said yesterday. Judging by reports
    in the Kazakh media, Russia, Kazakhstan, Tajikistan, Kyrgyzstan, and
    Armenia will pool $10 billion into a special trust. Insiders say that
    Russia's and Kazakhstan's contributions will be the largest of all.

    Political and economic crisis has more or less spared Belarus,
    Turkmenistan, Kyrgyzstan, and Moldova so far.

    Kazakhstan, Georgia, Uzbekistan, and Azerbaijan are facing grave
    economic difficulties which fortunately have no discernible effect
    on these countries' political stability. As far as specialists are
    concerned, Georgia is the only representative of this group with a
    political crisis unfolding. Even this crisis, however, was fomented
    by the recently fought (and lost) war with Russia.

    Economic difficulties worsen political destabilization in Tajikistan
    and Ukraine. Following the principle "the worse, the better", Ukrainian
    politicians perceive the crisis under way as an opportunity to crush
    their political enemies. Tajikistan is even worse off. All but deprived
    of export revenues due to the crash in the global cotton and aluminium
    markets and seeing transactions from labor immigrants in Russia go
    steadily down, Tajikistan is in trouble. Experts warn that the prospect
    of serious social upheavals in this country is uncomfortably close.

    Armenia is different. Facing no economic problems fomented by the
    crisis under way, it only has to be on a lookout for potentially
    menacing foreign political factors in connection with the unsolved
    problem of Karabakh.

    Andrei Grozin, an expert with the Institute of CIS Countries,
    suspects that mass return of the so called Gastarbeiters from Russia
    and Kazakhstan might complicate things enormously in Tajikistan and
    Kyrgyzstan. "What I do not expect is a crisis-fomented destabilization
    in authoritarian Turkmenistan and Uzbekistan," Grozin said.

    Asked to estimate the possibility of crisis related mass disturbances
    in CIS countries, political scientist Boris Shmelev gauged it
    at 70% in Moldova, 65% in Tajikistan and Ukraine, and 30-35% in
    Kazakhstan. (When informed of these estimates, Grozin accepted them
    and attributed relative stability in Kazakhstan to the patience
    typical of Asian mentality.)

    Trying to cope, CIS countries seek assistance abroad. According
    to Sergei Mikhalev of the Political Techniques Center, Kyrgyzstan
    whose economy had always balanced on the edge of collapse chose the
    simple way and asked Russia to loan it $2 billion. Serious risks are
    perceived to exist for other countries where color revolutions took
    place. That means Ukraine and Georgia whose economies have survived
    so far only because of financial aid from international financial
    institutions and the Western community.
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