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State Department Documents and Publications
February 15, 2008
Background Notes : Armenia (02/08)
Background Notes : Armenia (02/08) Fri, 15 Feb 2008 11:13:34 -0600
Flag of Armenia is three equal horizontal bands of red (top), blue,
and orange.
PROFILE
OFFICIAL NAME: Republic of Armenia
Geography Area: 29,800 sq. km. (11,500 sq. mi.); slightly larger than
Maryland. Cities: Capital--Yerevan. Terrain: High plateau with
mountains, little forest land. Climate: Highland continental, hot
summers, cold winters.
People Nationality: Noun--Armenian(s). Adjective--Armenian.
Population (official est.): 3,213,011 de jure (3,002,594 de facto).
These figures represent the final results of the October 2001 census,
as announced in January 2003. Ethnic groups: Armenian 98%; Yezidi
1.2%; Russian, Greek, and other 0.8%. Religion: Armenian Apostolic
Church (more than 90% nominally affiliated). Languages: Armenian
(96%), Russian, other. Education: Literacy--99%. Health: Infant
mortality rate--20/1,000. Life expectancy--66.6 years. Work force
(1.24 million; 10.5% unemployed): Industry and construction--24.5%;
agriculture and forestry--24.6%; trade--17.3%; education--13.4%;
other--22.2%.
Government Type: Republic. Constitution: Approved in November 2005
referendum. Independence: 1918 (First Armenian Republic); 1991 (from
Soviet Union). Branches: Executive--president (head of state) with
wider powers relative to other branches, prime minister (head of
cabinet), Council of Ministers (cabinet). Legislative--unicameral
National Assembly (parliament). Judicial--Constitutional Court.
Administrative subdivisions: 10 marzes (provinces) in addition to the
city of Yerevan, which has the status of a province. A reform of
Yerevan's status, to that of a community as required by the 2005
constitutional referendum, is currently underway and expected to
occur in 2008. Once the parliament enacts legislation to change the
capital's status, the mayor will no longer be appointed by the
president but instead be chosen by elected city councilors. Political
parties represented in the National Assembly: Republican Party of
Armenia, Prosperous Armenia, Armenian Revolutionary Federation (ARF)
Dashnaktsutyun, Country of Law (Orinats Yerkir), and the Heritage
Party. Other parties include: People's Party of Armenia, National
Accord Party, Republic Party, New Times Party, United Labor Party,
Dashink Party, National Democratic Union, and the Armenian National
Movement. In addition, there are dozens of other registered parties,
many of which become active only during national campaigns, if at
all. Suffrage: Universal at 18.
Economy (2007) GDP: $9.18 billion. GDP growth rate: 13.8%. Per capita
GDP (2006): $1,989. Inflation: 6.6%. Natural resources: Copper,
molybdenum, zinc, gold, silver, lead, marble, granite, mineral spring
water. Agriculture: Products--fruits and vegetables, wines, dairy,
some livestock. Industry: Types--mining, information technology (IT),
processed food, chemicals, synthetic rubber, textiles. Trade:
Exports--$1,218.5 million: precious and semi-precious stones and
metals, mining products, foodstuffs, brandy. Export partners
(2006)--Germany 14.7%, Netherlands 12.6%, Russia 12.1%, Israel 10.6%,
Switzerland 7.2%, U.S. 6.5%. Imports--$3,281.8 million: natural gas,
petroleum, precious stones and metals, tobacco products, foodstuffs,
textiles. Import partners (2006)--Russia 13.9%, Ukraine 7.5%,
Turkmenistan 7.7%, Germany 6.6%, Belgium 5.5%, Iran 5.2%.
PEOPLE AND HISTORICAL HIGHLIGHTS Ethnic groups in Armenia include
Armenians (95%), Kurds, Russians, Greeks, and others. More than 90%
of the population is nominally affiliated with the Armenian Apostolic
Church, which is considered to be the national church of Armenia.
Languages are Armenian (96%), Russian, and others.
Armenia first emerged around 800 BC as part of the Kingdom of Urartu
or Van, which flourished in the Caucasus and eastern Asia Minor until
600 BC. After the destruction of the Seleucid Empire, the first
Armenian state was founded in 190 BC. At its zenith, from 95 to 65
BC, Armenia extended its rule over the entire Caucasus and the area
that is now eastern Turkey, Syria, and Lebanon. For a time, Armenia
was the strongest state in the Roman East. It became part of the
Roman Empire in 64 BC and adopted a Western political, philosophical,
and religious orientation.
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 Roman 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 it was 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 became an independent
republic. In late 1920, local communists came to power following an
invasion of Armenia by the Soviet 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 Armenians voted overwhelmingly
for independence in a September 1991 referendum, followed by a
presidential election in October 1991 that gave 83% of the vote to
Levon Ter-Petrossian. Ter-Petrossian had been elected head of
government in 1990, when the Armenian National Movement defeated the
Communist Party. Ter-Petrossian was re-elected in 1996 in a disputed
election. Following public demonstrations against Ter-Petrossian's
policies on the predominantly ethnic Armenian enclave of
Nagorno-Karabakh that is located within Azerbaijan, the President
resigned under pressure in January 1998 and was replaced by Prime
Minister Robert Kocharian, who was subsequently elected President in
March 1998. Following the October 27, 1999 assassination in
Parliament of Prime Minister Vazgen Sargsian, Parliament Speaker
Karen Demirchian, and six other officials, a period of political
instability ensued during which an opposition headed by elements of
the former Armenian National Movement government attempted
unsuccessfully to force Kocharian to resign. Riding out the unrest,
Kocharian was later reelected in March 2003 in a contentious election
that the Organization for Security and Cooperation in Europe (OSCE)
and the U.S. Government deemed to have fallen short of international
standards.
As a result of the May 2007 parliamentary elections, 103 seats out of
the 131 in the National Assembly (90 are elected on a proportional
basis and 41 on a district-by-district majoritarian basis) are
members of pro-government parties. The Republican Party and
Prosperous Armenia formed a coalition with which the ARF
Dashnaksutyun Party signed a cooperation agreement. The Heritage and
Country of Law parties remain opposition parties. While in the past
opposition parties tended to vote together on key legislative issues
despite their philosophical differences, there has been no formal
agreement among the opposition parties to date to do so.
Armenia is set to elect a new president on February 19, 2008, who
will assume office in April 2008. After serving two consecutive
5-year terms, President Kocharian is constitutionally barred from
seeking office a third term, and is stepping down. His hand-picked
successor, Prime Minister Serge Sargsyan of the Republican Party, is
widely viewed as the frontrunner in the presidential race. Former
president Levon Ter-Petrossian is also a candidate. During the
presidential election campaign, some opposition parties and
presidential candidates have accused the government of harassing
their supporters and denying them equal access to TV media.
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 during each of
the previous nationwide elections (1995, 1999, and 2003) as well as
during the 2005 constitutional referendum, citing polling
deficiencies, lack of cooperation by the electoral commission, poor
maintenance of electoral lists, and access to polling places. The
2007 parliamentary elections, however, demonstrated an improvement
over previous elections, though shortcoming remained in the
procedural conduct of the elections campaign and the performance of
election commissions during the vote count and tabulation. The new
constitution in 2005 increased the power of the legislative branch
and allows for more independence of the judiciary; in practice,
however, both branches remain subject to political pressure from the
executive branch, which retains considerably greater power than its
counterparts in most European countries.
The government's human rights record remained poor in 2007; while
there were some improvements in a few areas, serious problems
remained. Security forces beat pretrial detainees. Impunity and
corruption remained a problem. There were reports of arbitrary arrest
and detention, and incarceration of individuals for political
reasons. Lengthy pretrial detention remained a problem. There were
limits on press freedom, as well as incidents of violence,
intimidation, and self-censorship in the press. The law places some
restrictions on religious freedom. Societal violence against women
continued to be a problem. Trafficking of persons was a problem,
which the government took only limited measures to address.
Principal Government Officials President--Robert Kocharian Prime
Minister--Serge Sargsyan Foreign Minister--Vartan Oskanian Defense
Minister--Mikhael Harutyunian Ambassador to the U.S.--Tatoul
Markarian Ambassador to the UN--Armen Martirossian
Armenia's embassy is located at 2225 R Street, NW, Washington, DC,
20008; tel: 202-319-1976; fax: 202-319-2984.
ECONOMY Armenia is the second most densely populated of the former
Soviet republics. It is a landlocked country between the Black and
the Caspian Seas, bordered on the north by Georgia, to the east by
Azerbaijan, on the south by Iran, and to the west by Turkey. Up until
independence, Armenia's economy was based largely on
industry--chemicals, electronic products, machinery, processed food,
synthetic rubber, and textiles--and highly dependent on outside
resources. Agriculture accounted for only 20% of net material product
and 10% of employment before the breakup of the Soviet Union in 1991.
In recent years, the construction sector has taken off, fueled by an
ambitious government-backed construction project in the capital, and
remittances to relatives by ethnic Armenians living in Russia and the
United States.
Like other New Independent States of the former Soviet Union,
Armenia's economy still suffers from the legacy of a centrally
planned economy and the breakdown of former Soviet trading networks.
While investment from these states in support of Armenian industry
has virtually disappeared, and few major enterprises are still able
to function, Russian entities have nevertheless increased their
exposure in the mining, energy, telecommunications, and
transportation sectors. In addition, the effects of the 1988
earthquake, which killed more than 25,000 people and made 500,000
homeless, are still being felt, though international donors and
diaspora Armenian groups continue to fund reconstruction efforts in
the earthquake zone. Although a cease-fire has held since 1994, the
20-year-old conflict with Azerbaijan over Nagorno-Karabakh has not
been resolved, in spite of intensive efforts by the OSCE Minsk group
to reach a settlement. The consequent closure of both the Azerbaijani
and Turkish borders resulting from the war has prevented Armenian
from realizing its economic potential, because of Armenia's
dependence on outside supplies of energy and most raw materials. Land
routes through Azerbaijan and Turkey are closed, though air
connections to Turkey exist; land 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. Since 2005,
however, the dram has continued to appreciate versus the dollar,
going from an annual average of 458 drams in 2005 to 342 in 2007. The
currency's appreciation stems largely from growing remittances by
diaspora Armenians in Russia and the United States, a weakening
dollar, and gradual increase in the productivity of Armenian
industry.
In spite of the Nagorno-Karabakh conflict, where a cease-fire has
been in effect since 1994, the Government of Armenia has been able to
carry out wide-ranging economic reforms that have paid off in
dramatically lower inflation and steady growth. Armenia has
registered strong economic growth since 1995, with double-digit
growth rates in the past 6 years.
The structure of Armenia's economy has changed substantially since
1991, with sectors such as construction and services replacing
agriculture and industry as the main contributors to the economic
growth. The diamond processing industry, which was one of the leading
export sectors in 2000-2004 and also a major recipient of foreign
investment, faced a dramatic decrease in output since 2005 due to raw
material supply problems with Russia and overall decline in
international diamond markets. Other industrial sectors driving
industrial growth include energy, metallurgy, and food processing.
Armenia maintains a floating exchange rate regime with no explicit
exchange rate target. The nominal exchange rate of the Armenian dram
with major currencies was fairly stable between 1998 and 2003;
however, it has strengthened sharply starting in 2004, recording
around 46% nominal appreciation against the U.S. dollar compared to
January 2004. The main causes of the appreciation of the dram are the
global weakening of the U.S. dollar, a large inflow of foreign
currency to Armenia from remittances, as well as increases in
domestic productivity and incomes. The sharp appreciation of the dram
has already affected negatively the external competitiveness of the
Armenian products.
Armenia is highly dependent on import of energy fuel, mainly from
Russia. The Armenia Nuclear Power Plant (ANPP) provides around 40% of
electricity generation for the country, and hydro and thermal plants
provide roughly 30% each.
Steady economic progress has earned Armenia increasing support from
international institutions. The International Monetary Fund (IMF),
World Bank, European Bank for Reconstruction and Development (EBRD),
as well as other international financial institutions (IFIs) and
foreign countries are extending considerable grants and loans. 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. In December 2005, the U.S. Millennium Challenge
Corporation approved a 5-year $235 million Compact with the
Government of Armenia, which focuses on rehabilitation of irrigation
networks and upgrading of rural transport infrastructure.
Continued progress will depend on the ability of the government to
strengthen its macroeconomic management, including increasing revenue
collection, improving the investment climate, and making strides
against corruption. 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 joined the
World Trade Organization on February 5, 2003.
Environmental Issues Armenia is trying to address its environmental
problems. It has established a Ministry of Nature Protection and has
introduced a pollution fee system by which taxes are levied on air
and water emissions and solid waste disposal, with the resulting
revenues used for environmental protection activities. Deforestation
by mining concerns in certain parts of the country have resulted in
periodic protests by environmental non-governmental organizations
(NGOs), and stirred controversy over government policies to support
investment in the mining sector. Armenia is interested in cooperating
with other members of the Commonwealth of Independent States (CIS--a
group of 12 former Soviet republics) and with members of the
international community on environmental issues. Despite strong
pressure from the international community, the Armenian Government
has often reiterated its reluctance to decommission the existing
nuclear power plant unless there is a reliable alternative source of
energy which could become a decent substitute for Metsamor. Armenia
has signed a statement of cooperation with the U.S. to conduct a
preliminary Environmental Impact Assessment (EIA) and Feasibility
Study for a new nuclear power generation unit in Armenia.
DEFENSE AND MILITARY ISSUES Armenia established a Ministry of Defense
in 1992. Border guards subject to the National Security Service
patrol Armenia's borders with Georgia and Azerbaijan, while Russian
Border Guards continue to monitor its borders with Iran and Turkey.
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 in spite of
concerns they have about Azerbaijan exceeding that country's treaty
limits. Armenia has provided data on armaments as required under the
CFE Treaty and is receptive to CFE inspections. 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 ethnic Armenian separatists in the
disputed enclave of Nagorno-Karabakh located within Azerbaijan's
borders.
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 continue to discuss efforts and initiatives to establish
effective nuclear export control systems with Armenia.
FOREIGN RELATIONS Armenia is a member of the United Nations, the
Council of Europe, the Organization for Security and Cooperation in
Europe (OSCE), the Commonwealth of Independent States, NATO's
Partnership for Peace, the Collective Security Treaty Organization
(CSTO), the Organization of the Black Sea Economic Cooperation
organization (BSEC), the Euro-Atlantic Partnership Council, the
International Monetary Fund, the International Bank for
Reconstruction and Development, and the World Trade Organization.
Nagorno-Karabakh In 1988, the territory of Nagorno-Karabakh, a
predominantly ethnic Armenian enclave within Azerbaijan, voted to
secede and join Armenia. This act was the catalyst that led Armenia
and Azerbaijan into a full-scale armed conflict that claimed the
lives of over 30,000 on both sides. Armenian support for the
separatists led to an economic embargo by Azerbaijan, which has had a
negative impact on Armenia's foreign trade and made imports of food
and fuel more expensive, three-quarters of which previously transited
Azerbaijan under Soviet rule.
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/Nagorno-Karabakh
forces in 1994 and has been maintained by both sides since then in
spite of occasional shooting along the line of contact. 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. Approximately
526,000 of the estimated 800,000 ethnic Azeris who fled during the
Karabakhi offensives still live as internally displaced persons in
Azerbaijan, while roughly 235,000 of 360,000 ethnic Armenians who
fled Azerbaijan since 1988 remain refugees.
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.
Negotiations have intensified since 2004.
According to Armenia's Office of the Geographer, Karabakhi Armenians,
supported by the Republic of Armenia, now hold about 9% of Azerbaijan
and have refused to withdraw from Azeri territories they control
until an agreement on the status of Nagorno-Karabakh is reached.
Armenia and Azerbaijan continue to observe the cease-fire that 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.
U.S.-ARMENIAN RELATIONS The dissolution of the Soviet Union in
December 1991 brought an end to the Cold War and created the
opportunity for bilateral relations with the New Independent States
(NIS) as they began a political and economic transformation. The U.S.
recognized the independence of Armenia on December 25, 1991, and
opened an Embassy in Yerevan in February 1992.
The United States has made a concerted effort to help Armenia and
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 this and other programs, the U.S. to
date has provided nearly $2 billion in humanitarian and technical
assistance for Armenia. U.S. assistance programs in Armenia are
described in depth on the website at:
http://www.usaid.am/main/en/129/.
On March 27, 2006 Armenia signed a Millennium Challenge Compact with
the United States; the agreement entered into force on September 29,
2006. Provided the Armenian Government makes progress on mutually
agreed-upon policy performance criteria (corruption, ruling justly,
and investing in people), the agreement will provide $235 million to
Armenia over five years to reduce rural poverty through the
improvement of rural roads and irrigation networks.
U.S.-Armenian Economic Relations In 1992 Armenia signed three
agreements with the U.S. affecting trade between the two countries.
The agreements were ratified by the Armenian parliament in September
1995 and entered into force in the beginning of 1996. They include an
"Agreement on Trade Relations," an "Investment Incentive Agreement,"
and a treaty on the "Reciprocal Encouragement and Protection of
Investment" (generally referred to as the Bilateral Investment
Treaty, or BIT). Armenia does not have a bilateral taxation treaty
with the U.S. The 1994 Law on Foreign Investment governs all direct
investments in Armenia, including those from the U.S.
Approximately 70 U.S.-owned firms currently do business in Armenia,
including Dell, Microsoft, and IBM. Recent major U.S. investment
projects include the Hotel Armenia/Marriott; the Hotel Ani Plaza;
Tufenkian Holdings (carpet and furnishing production, hotels, and
construction); several subsidiaries of U.S.-based information
technology firms, including Viasphere Technopark, an IT incubator;
Synopsys; a Greek-owned Coca-Cola bottling plant; jewelry and textile
production facilities; several copper and molybdenum mining
companies; and the Hovnanian International Construction Company.
U.S. Support To Build A Stable Market Democracy The U.S. continues to
work closely with international financial institutions like the
International Monetary Fund and the World Bank to help Armenia in its
transition to a free-market economy. Armenia has embarked upon an
ambitious reform program, which has resulted in a double-digit GDP
growth for the last 6 years. U.S. economic assistance programs,
primarily under the administration of the U.S. Agency for
International Development (USAID), have three objectives: to promote
sustainable private sector economic growth; to strengthen
non-executive governmental systems and civil society to build a more
robust democracy; and to ensure a smooth transition towards primary
healthcare and the rationalization of social support systems of the
government. Other agencies, including the Departments of State,
Agriculture, Treasury, Defense, Commerce, Energy, Justice, and the
Peace Corps sponsor various assistance projects. The U.S.-Armenia
Task Force, established in 2000, is a bilateral commission that meets
every 6 months to review the progress and objectives of U.S.
assistance to Armenia. The last meeting was held in Washington, DC,
in October 2007.
Specific USAID programs focus on private sector competitiveness and
workforce development in selected industries, including information
technology and tourism; development of the financial sector and
fiscal authorities to achieve an enabling environment for businesses;
and reforms promoting the efficient and safe use of energy and water;
democracy and good governance programs, including the promotion of a
well-informed and active civil society, support to decentralization
of authority, independent justice sector and the parliament to ensure
the separation of power; social sector reform, including benefits and
public services administration for vulnerable populations; health
sector reform, including improvement of primary healthcare (PHC)
services with an emphasis on preventive care; strengthening of
reproductive, maternal, and child healthcare countrywide to ensure
access to quality PHC services in rural areas; public education
programs; and training for PHC providers.
The U.S. Department of Agriculture's (USDA) Caucasus Agricultural
Development Initiative provides targeted and sustained technical and
marketing assistance to small and medium-sized agribusinesses,
farmer-marketing associations, and the Government of Armenia. USDA's
goal is to sustain the productivity of the agricultural sector by
expanding access to markets and credit, increasing efficiency, and
modernizing agriculture systems. USDA's priority assistance areas
are: Farm Credit, Food Safety and Animal Health, support to the
Armenian private sector through the NGO CARD, Agricultural Statistics
and Agricultural Education. Also, as a training component of USDA
projects in Armenia, the U.S. Department of Agriculture's Cochran
Fellowship Program provides training to Armenian agriculturists in
the United States.
U.S. Humanitarian Assistance Over the past 16 years, the U.S. has
provided nearly $2 billion in assistance to Armenia, the highest per
capita amount in the NIS. Humanitarian aid originally accounted for
up to 85% of this total, reflecting the economic paralysis caused by
closed borders with Turkey and Azerbaijan related to the
Nagorno-Karabakh conflict, destruction in northern Armenia left from
the devastating 1988 earthquake, and the closure of most of the
country's factories.
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 near the capital--U.S. assistance
programs have progressed from humanitarian priorities to longer-term
development goals.
U.S. Support To Achieve Democracy Technical assistance and training
programs have been provided in municipal administration,
intergovernmental relations, public affairs, foreign policy,
diplomatic training, rule of law, and development of a constitution.
Specific programs are targeted at promoting elections that meet
international standards, strengthening political parties, and
promoting the establishment of an independent judiciary and
independent media. This includes financing for programs that support
civil society organizations, local non-governmental organizations
(NGO) capacity building, National Assembly professional development,
and local and community-level governance.
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 also has funded programs to educate voters
and to strengthen the role of an array of civic organizations in the
democratic process.
[Also see fact sheet on FY 2006 U.S. Assistance to Armenia.]
Principal U.S. Embassy Officials Ambassador--vacant Charge d'Affaires
a.i.--Joseph Pennington Political/Economic Chief--Steve Banks
Assistance Coordinator--Daniel Renna Consular Officer--Robin Busse
Management Officer--Robert Frazier Regional Security Officer--Gordon
Goetz USDA Marketing Assistance Project Director--Sean Carmody USAID
Director--Cynthia Pruett Public Affairs Officer--Thomas Mittnacht
The U.S. Embassy in Yerevan, Armenia is at 1 American Avenue; tel:
374-10-46-47-00; fax: 374-10-46-47-42.
TRAVEL AND BUSINESS INFORMATION The U.S. Department of State's
Consular Information Program advises Americans traveling and residing
abroad through Country Specific Information, Travel Alerts, and
Travel Warnings. Country Specific Information exists for all
countries and includes information on entry and exit requirements,
currency regulations, health conditions, safety and security, crime,
political disturbances, and the addresses of the U.S. embassies and
consulates abroad. Travel Alerts are issued to disseminate
information quickly about terrorist threats and other relatively
short-term conditions overseas that pose significant risks to the
security of American travelers. Travel Warnings are issued when the
State Department recommends that Americans avoid travel to a certain
country because the situation is dangerous or unstable.
For the latest security information, Americans living and traveling
abroad should regularly monitor the Department's Bureau of Consular
Affairs Internet web site at http://www.travel.state.gov, where the
current Worldwide Caution, Travel Alerts, and Travel Warnings can be
found. Consular Affairs Publications, which contain information on
obtaining passports and planning a safe trip abroad, are also
available at http://www.travel.state.gov. For additional information
on international travel, see
http://www.usa.gov/Citizen/Topics/Travel/Inter national.shtml.
The Department of State encourages all U.S citizens traveling or
residing abroad to register via the State Department's travel
registration website or at the nearest U.S. embassy or consulate
abroad. Registration will make your presence and whereabouts known in
case it is necessary to contact you in an emergency and will enable
you to receive up-to-date information on security conditions.
Emergency information concerning Americans traveling abroad may be
obtained by calling 1-888-407-4747 toll free in the U.S. and Canada
or the regular toll line 1-202-501-4444 for callers outside the U.S.
and Canada.
The National Passport Information Center (NPIC) is the U.S.
Department of State's single, centralized public contact center for
U.S. passport information. Telephone: 1-877-4USA-PPT
(1-877-487-2778). Customer service representatives and operators for
TDD/TTY are available Monday-Friday, 7:00 a.m. to 12:00 midnight,
Eastern Time, excluding federal holidays.
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://wwwn.cdc.gov/travel/default.aspx 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.
Export.gov provides a portal to all export-related assistance and
market information offered by the federal government and provides
trade leads, free export counseling, help with the export process,
and more.
STAT-USA/Internet, a service of the U.S. Department of Commerce,
provides authoritative economic, business, and international trade
information from the Federal government. The site includes current
and historical trade-related releases, international market research,
trade opportunities, and country analysis and provides access to the
National Trade Data
February 15, 2008
Background Notes : Armenia (02/08)
Background Notes : Armenia (02/08) Fri, 15 Feb 2008 11:13:34 -0600
Flag of Armenia is three equal horizontal bands of red (top), blue,
and orange.
PROFILE
OFFICIAL NAME: Republic of Armenia
Geography Area: 29,800 sq. km. (11,500 sq. mi.); slightly larger than
Maryland. Cities: Capital--Yerevan. Terrain: High plateau with
mountains, little forest land. Climate: Highland continental, hot
summers, cold winters.
People Nationality: Noun--Armenian(s). Adjective--Armenian.
Population (official est.): 3,213,011 de jure (3,002,594 de facto).
These figures represent the final results of the October 2001 census,
as announced in January 2003. Ethnic groups: Armenian 98%; Yezidi
1.2%; Russian, Greek, and other 0.8%. Religion: Armenian Apostolic
Church (more than 90% nominally affiliated). Languages: Armenian
(96%), Russian, other. Education: Literacy--99%. Health: Infant
mortality rate--20/1,000. Life expectancy--66.6 years. Work force
(1.24 million; 10.5% unemployed): Industry and construction--24.5%;
agriculture and forestry--24.6%; trade--17.3%; education--13.4%;
other--22.2%.
Government Type: Republic. Constitution: Approved in November 2005
referendum. Independence: 1918 (First Armenian Republic); 1991 (from
Soviet Union). Branches: Executive--president (head of state) with
wider powers relative to other branches, prime minister (head of
cabinet), Council of Ministers (cabinet). Legislative--unicameral
National Assembly (parliament). Judicial--Constitutional Court.
Administrative subdivisions: 10 marzes (provinces) in addition to the
city of Yerevan, which has the status of a province. A reform of
Yerevan's status, to that of a community as required by the 2005
constitutional referendum, is currently underway and expected to
occur in 2008. Once the parliament enacts legislation to change the
capital's status, the mayor will no longer be appointed by the
president but instead be chosen by elected city councilors. Political
parties represented in the National Assembly: Republican Party of
Armenia, Prosperous Armenia, Armenian Revolutionary Federation (ARF)
Dashnaktsutyun, Country of Law (Orinats Yerkir), and the Heritage
Party. Other parties include: People's Party of Armenia, National
Accord Party, Republic Party, New Times Party, United Labor Party,
Dashink Party, National Democratic Union, and the Armenian National
Movement. In addition, there are dozens of other registered parties,
many of which become active only during national campaigns, if at
all. Suffrage: Universal at 18.
Economy (2007) GDP: $9.18 billion. GDP growth rate: 13.8%. Per capita
GDP (2006): $1,989. Inflation: 6.6%. Natural resources: Copper,
molybdenum, zinc, gold, silver, lead, marble, granite, mineral spring
water. Agriculture: Products--fruits and vegetables, wines, dairy,
some livestock. Industry: Types--mining, information technology (IT),
processed food, chemicals, synthetic rubber, textiles. Trade:
Exports--$1,218.5 million: precious and semi-precious stones and
metals, mining products, foodstuffs, brandy. Export partners
(2006)--Germany 14.7%, Netherlands 12.6%, Russia 12.1%, Israel 10.6%,
Switzerland 7.2%, U.S. 6.5%. Imports--$3,281.8 million: natural gas,
petroleum, precious stones and metals, tobacco products, foodstuffs,
textiles. Import partners (2006)--Russia 13.9%, Ukraine 7.5%,
Turkmenistan 7.7%, Germany 6.6%, Belgium 5.5%, Iran 5.2%.
PEOPLE AND HISTORICAL HIGHLIGHTS Ethnic groups in Armenia include
Armenians (95%), Kurds, Russians, Greeks, and others. More than 90%
of the population is nominally affiliated with the Armenian Apostolic
Church, which is considered to be the national church of Armenia.
Languages are Armenian (96%), Russian, and others.
Armenia first emerged around 800 BC as part of the Kingdom of Urartu
or Van, which flourished in the Caucasus and eastern Asia Minor until
600 BC. After the destruction of the Seleucid Empire, the first
Armenian state was founded in 190 BC. At its zenith, from 95 to 65
BC, Armenia extended its rule over the entire Caucasus and the area
that is now eastern Turkey, Syria, and Lebanon. For a time, Armenia
was the strongest state in the Roman East. It became part of the
Roman Empire in 64 BC and adopted a Western political, philosophical,
and religious orientation.
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 Roman 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 it was 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 became an independent
republic. In late 1920, local communists came to power following an
invasion of Armenia by the Soviet 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 Armenians voted overwhelmingly
for independence in a September 1991 referendum, followed by a
presidential election in October 1991 that gave 83% of the vote to
Levon Ter-Petrossian. Ter-Petrossian had been elected head of
government in 1990, when the Armenian National Movement defeated the
Communist Party. Ter-Petrossian was re-elected in 1996 in a disputed
election. Following public demonstrations against Ter-Petrossian's
policies on the predominantly ethnic Armenian enclave of
Nagorno-Karabakh that is located within Azerbaijan, the President
resigned under pressure in January 1998 and was replaced by Prime
Minister Robert Kocharian, who was subsequently elected President in
March 1998. Following the October 27, 1999 assassination in
Parliament of Prime Minister Vazgen Sargsian, Parliament Speaker
Karen Demirchian, and six other officials, a period of political
instability ensued during which an opposition headed by elements of
the former Armenian National Movement government attempted
unsuccessfully to force Kocharian to resign. Riding out the unrest,
Kocharian was later reelected in March 2003 in a contentious election
that the Organization for Security and Cooperation in Europe (OSCE)
and the U.S. Government deemed to have fallen short of international
standards.
As a result of the May 2007 parliamentary elections, 103 seats out of
the 131 in the National Assembly (90 are elected on a proportional
basis and 41 on a district-by-district majoritarian basis) are
members of pro-government parties. The Republican Party and
Prosperous Armenia formed a coalition with which the ARF
Dashnaksutyun Party signed a cooperation agreement. The Heritage and
Country of Law parties remain opposition parties. While in the past
opposition parties tended to vote together on key legislative issues
despite their philosophical differences, there has been no formal
agreement among the opposition parties to date to do so.
Armenia is set to elect a new president on February 19, 2008, who
will assume office in April 2008. After serving two consecutive
5-year terms, President Kocharian is constitutionally barred from
seeking office a third term, and is stepping down. His hand-picked
successor, Prime Minister Serge Sargsyan of the Republican Party, is
widely viewed as the frontrunner in the presidential race. Former
president Levon Ter-Petrossian is also a candidate. During the
presidential election campaign, some opposition parties and
presidential candidates have accused the government of harassing
their supporters and denying them equal access to TV media.
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 during each of
the previous nationwide elections (1995, 1999, and 2003) as well as
during the 2005 constitutional referendum, citing polling
deficiencies, lack of cooperation by the electoral commission, poor
maintenance of electoral lists, and access to polling places. The
2007 parliamentary elections, however, demonstrated an improvement
over previous elections, though shortcoming remained in the
procedural conduct of the elections campaign and the performance of
election commissions during the vote count and tabulation. The new
constitution in 2005 increased the power of the legislative branch
and allows for more independence of the judiciary; in practice,
however, both branches remain subject to political pressure from the
executive branch, which retains considerably greater power than its
counterparts in most European countries.
The government's human rights record remained poor in 2007; while
there were some improvements in a few areas, serious problems
remained. Security forces beat pretrial detainees. Impunity and
corruption remained a problem. There were reports of arbitrary arrest
and detention, and incarceration of individuals for political
reasons. Lengthy pretrial detention remained a problem. There were
limits on press freedom, as well as incidents of violence,
intimidation, and self-censorship in the press. The law places some
restrictions on religious freedom. Societal violence against women
continued to be a problem. Trafficking of persons was a problem,
which the government took only limited measures to address.
Principal Government Officials President--Robert Kocharian Prime
Minister--Serge Sargsyan Foreign Minister--Vartan Oskanian Defense
Minister--Mikhael Harutyunian Ambassador to the U.S.--Tatoul
Markarian Ambassador to the UN--Armen Martirossian
Armenia's embassy is located at 2225 R Street, NW, Washington, DC,
20008; tel: 202-319-1976; fax: 202-319-2984.
ECONOMY Armenia is the second most densely populated of the former
Soviet republics. It is a landlocked country between the Black and
the Caspian Seas, bordered on the north by Georgia, to the east by
Azerbaijan, on the south by Iran, and to the west by Turkey. Up until
independence, Armenia's economy was based largely on
industry--chemicals, electronic products, machinery, processed food,
synthetic rubber, and textiles--and highly dependent on outside
resources. Agriculture accounted for only 20% of net material product
and 10% of employment before the breakup of the Soviet Union in 1991.
In recent years, the construction sector has taken off, fueled by an
ambitious government-backed construction project in the capital, and
remittances to relatives by ethnic Armenians living in Russia and the
United States.
Like other New Independent States of the former Soviet Union,
Armenia's economy still suffers from the legacy of a centrally
planned economy and the breakdown of former Soviet trading networks.
While investment from these states in support of Armenian industry
has virtually disappeared, and few major enterprises are still able
to function, Russian entities have nevertheless increased their
exposure in the mining, energy, telecommunications, and
transportation sectors. In addition, the effects of the 1988
earthquake, which killed more than 25,000 people and made 500,000
homeless, are still being felt, though international donors and
diaspora Armenian groups continue to fund reconstruction efforts in
the earthquake zone. Although a cease-fire has held since 1994, the
20-year-old conflict with Azerbaijan over Nagorno-Karabakh has not
been resolved, in spite of intensive efforts by the OSCE Minsk group
to reach a settlement. The consequent closure of both the Azerbaijani
and Turkish borders resulting from the war has prevented Armenian
from realizing its economic potential, because of Armenia's
dependence on outside supplies of energy and most raw materials. Land
routes through Azerbaijan and Turkey are closed, though air
connections to Turkey exist; land 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. Since 2005,
however, the dram has continued to appreciate versus the dollar,
going from an annual average of 458 drams in 2005 to 342 in 2007. The
currency's appreciation stems largely from growing remittances by
diaspora Armenians in Russia and the United States, a weakening
dollar, and gradual increase in the productivity of Armenian
industry.
In spite of the Nagorno-Karabakh conflict, where a cease-fire has
been in effect since 1994, the Government of Armenia has been able to
carry out wide-ranging economic reforms that have paid off in
dramatically lower inflation and steady growth. Armenia has
registered strong economic growth since 1995, with double-digit
growth rates in the past 6 years.
The structure of Armenia's economy has changed substantially since
1991, with sectors such as construction and services replacing
agriculture and industry as the main contributors to the economic
growth. The diamond processing industry, which was one of the leading
export sectors in 2000-2004 and also a major recipient of foreign
investment, faced a dramatic decrease in output since 2005 due to raw
material supply problems with Russia and overall decline in
international diamond markets. Other industrial sectors driving
industrial growth include energy, metallurgy, and food processing.
Armenia maintains a floating exchange rate regime with no explicit
exchange rate target. The nominal exchange rate of the Armenian dram
with major currencies was fairly stable between 1998 and 2003;
however, it has strengthened sharply starting in 2004, recording
around 46% nominal appreciation against the U.S. dollar compared to
January 2004. The main causes of the appreciation of the dram are the
global weakening of the U.S. dollar, a large inflow of foreign
currency to Armenia from remittances, as well as increases in
domestic productivity and incomes. The sharp appreciation of the dram
has already affected negatively the external competitiveness of the
Armenian products.
Armenia is highly dependent on import of energy fuel, mainly from
Russia. The Armenia Nuclear Power Plant (ANPP) provides around 40% of
electricity generation for the country, and hydro and thermal plants
provide roughly 30% each.
Steady economic progress has earned Armenia increasing support from
international institutions. The International Monetary Fund (IMF),
World Bank, European Bank for Reconstruction and Development (EBRD),
as well as other international financial institutions (IFIs) and
foreign countries are extending considerable grants and loans. 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. In December 2005, the U.S. Millennium Challenge
Corporation approved a 5-year $235 million Compact with the
Government of Armenia, which focuses on rehabilitation of irrigation
networks and upgrading of rural transport infrastructure.
Continued progress will depend on the ability of the government to
strengthen its macroeconomic management, including increasing revenue
collection, improving the investment climate, and making strides
against corruption. 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 joined the
World Trade Organization on February 5, 2003.
Environmental Issues Armenia is trying to address its environmental
problems. It has established a Ministry of Nature Protection and has
introduced a pollution fee system by which taxes are levied on air
and water emissions and solid waste disposal, with the resulting
revenues used for environmental protection activities. Deforestation
by mining concerns in certain parts of the country have resulted in
periodic protests by environmental non-governmental organizations
(NGOs), and stirred controversy over government policies to support
investment in the mining sector. Armenia is interested in cooperating
with other members of the Commonwealth of Independent States (CIS--a
group of 12 former Soviet republics) and with members of the
international community on environmental issues. Despite strong
pressure from the international community, the Armenian Government
has often reiterated its reluctance to decommission the existing
nuclear power plant unless there is a reliable alternative source of
energy which could become a decent substitute for Metsamor. Armenia
has signed a statement of cooperation with the U.S. to conduct a
preliminary Environmental Impact Assessment (EIA) and Feasibility
Study for a new nuclear power generation unit in Armenia.
DEFENSE AND MILITARY ISSUES Armenia established a Ministry of Defense
in 1992. Border guards subject to the National Security Service
patrol Armenia's borders with Georgia and Azerbaijan, while Russian
Border Guards continue to monitor its borders with Iran and Turkey.
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 in spite of
concerns they have about Azerbaijan exceeding that country's treaty
limits. Armenia has provided data on armaments as required under the
CFE Treaty and is receptive to CFE inspections. 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 ethnic Armenian separatists in the
disputed enclave of Nagorno-Karabakh located within Azerbaijan's
borders.
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 continue to discuss efforts and initiatives to establish
effective nuclear export control systems with Armenia.
FOREIGN RELATIONS Armenia is a member of the United Nations, the
Council of Europe, the Organization for Security and Cooperation in
Europe (OSCE), the Commonwealth of Independent States, NATO's
Partnership for Peace, the Collective Security Treaty Organization
(CSTO), the Organization of the Black Sea Economic Cooperation
organization (BSEC), the Euro-Atlantic Partnership Council, the
International Monetary Fund, the International Bank for
Reconstruction and Development, and the World Trade Organization.
Nagorno-Karabakh In 1988, the territory of Nagorno-Karabakh, a
predominantly ethnic Armenian enclave within Azerbaijan, voted to
secede and join Armenia. This act was the catalyst that led Armenia
and Azerbaijan into a full-scale armed conflict that claimed the
lives of over 30,000 on both sides. Armenian support for the
separatists led to an economic embargo by Azerbaijan, which has had a
negative impact on Armenia's foreign trade and made imports of food
and fuel more expensive, three-quarters of which previously transited
Azerbaijan under Soviet rule.
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/Nagorno-Karabakh
forces in 1994 and has been maintained by both sides since then in
spite of occasional shooting along the line of contact. 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. Approximately
526,000 of the estimated 800,000 ethnic Azeris who fled during the
Karabakhi offensives still live as internally displaced persons in
Azerbaijan, while roughly 235,000 of 360,000 ethnic Armenians who
fled Azerbaijan since 1988 remain refugees.
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.
Negotiations have intensified since 2004.
According to Armenia's Office of the Geographer, Karabakhi Armenians,
supported by the Republic of Armenia, now hold about 9% of Azerbaijan
and have refused to withdraw from Azeri territories they control
until an agreement on the status of Nagorno-Karabakh is reached.
Armenia and Azerbaijan continue to observe the cease-fire that 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.
U.S.-ARMENIAN RELATIONS The dissolution of the Soviet Union in
December 1991 brought an end to the Cold War and created the
opportunity for bilateral relations with the New Independent States
(NIS) as they began a political and economic transformation. The U.S.
recognized the independence of Armenia on December 25, 1991, and
opened an Embassy in Yerevan in February 1992.
The United States has made a concerted effort to help Armenia and
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 this and other programs, the U.S. to
date has provided nearly $2 billion in humanitarian and technical
assistance for Armenia. U.S. assistance programs in Armenia are
described in depth on the website at:
http://www.usaid.am/main/en/129/.
On March 27, 2006 Armenia signed a Millennium Challenge Compact with
the United States; the agreement entered into force on September 29,
2006. Provided the Armenian Government makes progress on mutually
agreed-upon policy performance criteria (corruption, ruling justly,
and investing in people), the agreement will provide $235 million to
Armenia over five years to reduce rural poverty through the
improvement of rural roads and irrigation networks.
U.S.-Armenian Economic Relations In 1992 Armenia signed three
agreements with the U.S. affecting trade between the two countries.
The agreements were ratified by the Armenian parliament in September
1995 and entered into force in the beginning of 1996. They include an
"Agreement on Trade Relations," an "Investment Incentive Agreement,"
and a treaty on the "Reciprocal Encouragement and Protection of
Investment" (generally referred to as the Bilateral Investment
Treaty, or BIT). Armenia does not have a bilateral taxation treaty
with the U.S. The 1994 Law on Foreign Investment governs all direct
investments in Armenia, including those from the U.S.
Approximately 70 U.S.-owned firms currently do business in Armenia,
including Dell, Microsoft, and IBM. Recent major U.S. investment
projects include the Hotel Armenia/Marriott; the Hotel Ani Plaza;
Tufenkian Holdings (carpet and furnishing production, hotels, and
construction); several subsidiaries of U.S.-based information
technology firms, including Viasphere Technopark, an IT incubator;
Synopsys; a Greek-owned Coca-Cola bottling plant; jewelry and textile
production facilities; several copper and molybdenum mining
companies; and the Hovnanian International Construction Company.
U.S. Support To Build A Stable Market Democracy The U.S. continues to
work closely with international financial institutions like the
International Monetary Fund and the World Bank to help Armenia in its
transition to a free-market economy. Armenia has embarked upon an
ambitious reform program, which has resulted in a double-digit GDP
growth for the last 6 years. U.S. economic assistance programs,
primarily under the administration of the U.S. Agency for
International Development (USAID), have three objectives: to promote
sustainable private sector economic growth; to strengthen
non-executive governmental systems and civil society to build a more
robust democracy; and to ensure a smooth transition towards primary
healthcare and the rationalization of social support systems of the
government. Other agencies, including the Departments of State,
Agriculture, Treasury, Defense, Commerce, Energy, Justice, and the
Peace Corps sponsor various assistance projects. The U.S.-Armenia
Task Force, established in 2000, is a bilateral commission that meets
every 6 months to review the progress and objectives of U.S.
assistance to Armenia. The last meeting was held in Washington, DC,
in October 2007.
Specific USAID programs focus on private sector competitiveness and
workforce development in selected industries, including information
technology and tourism; development of the financial sector and
fiscal authorities to achieve an enabling environment for businesses;
and reforms promoting the efficient and safe use of energy and water;
democracy and good governance programs, including the promotion of a
well-informed and active civil society, support to decentralization
of authority, independent justice sector and the parliament to ensure
the separation of power; social sector reform, including benefits and
public services administration for vulnerable populations; health
sector reform, including improvement of primary healthcare (PHC)
services with an emphasis on preventive care; strengthening of
reproductive, maternal, and child healthcare countrywide to ensure
access to quality PHC services in rural areas; public education
programs; and training for PHC providers.
The U.S. Department of Agriculture's (USDA) Caucasus Agricultural
Development Initiative provides targeted and sustained technical and
marketing assistance to small and medium-sized agribusinesses,
farmer-marketing associations, and the Government of Armenia. USDA's
goal is to sustain the productivity of the agricultural sector by
expanding access to markets and credit, increasing efficiency, and
modernizing agriculture systems. USDA's priority assistance areas
are: Farm Credit, Food Safety and Animal Health, support to the
Armenian private sector through the NGO CARD, Agricultural Statistics
and Agricultural Education. Also, as a training component of USDA
projects in Armenia, the U.S. Department of Agriculture's Cochran
Fellowship Program provides training to Armenian agriculturists in
the United States.
U.S. Humanitarian Assistance Over the past 16 years, the U.S. has
provided nearly $2 billion in assistance to Armenia, the highest per
capita amount in the NIS. Humanitarian aid originally accounted for
up to 85% of this total, reflecting the economic paralysis caused by
closed borders with Turkey and Azerbaijan related to the
Nagorno-Karabakh conflict, destruction in northern Armenia left from
the devastating 1988 earthquake, and the closure of most of the
country's factories.
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 near the capital--U.S. assistance
programs have progressed from humanitarian priorities to longer-term
development goals.
U.S. Support To Achieve Democracy Technical assistance and training
programs have been provided in municipal administration,
intergovernmental relations, public affairs, foreign policy,
diplomatic training, rule of law, and development of a constitution.
Specific programs are targeted at promoting elections that meet
international standards, strengthening political parties, and
promoting the establishment of an independent judiciary and
independent media. This includes financing for programs that support
civil society organizations, local non-governmental organizations
(NGO) capacity building, National Assembly professional development,
and local and community-level governance.
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 also has funded programs to educate voters
and to strengthen the role of an array of civic organizations in the
democratic process.
[Also see fact sheet on FY 2006 U.S. Assistance to Armenia.]
Principal U.S. Embassy Officials Ambassador--vacant Charge d'Affaires
a.i.--Joseph Pennington Political/Economic Chief--Steve Banks
Assistance Coordinator--Daniel Renna Consular Officer--Robin Busse
Management Officer--Robert Frazier Regional Security Officer--Gordon
Goetz USDA Marketing Assistance Project Director--Sean Carmody USAID
Director--Cynthia Pruett Public Affairs Officer--Thomas Mittnacht
The U.S. Embassy in Yerevan, Armenia is at 1 American Avenue; tel:
374-10-46-47-00; fax: 374-10-46-47-42.
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Printing Office, Washington, DC 20402, tel. (202) 512-1800.
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