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  • ArmeniaNow-July 3/2009

    ARMENIANOW.COM
    Administration Address: 26 Parpetsi St., No 9
    Phone: +(374 1) 532422
    Email: [email protected]
    Internet: www.armenianow.com
    Technical Assistance: (For technical assistance please contact Babken
    Juharyan)
    Email: [email protected]



    ************************* ************************************************** *


    July 03, 2009



    1. In Defense of a Hero of Armenia: Step back before stepping up to
    crucify Postanjyan

    2.** Rally Reality: Armenia opposition mood moderates as released
    03/01 prisoners address crowd

    3. **Letter home: A Diaspora discovers Armenia and `Armenianness'

    **4.** Sport: Armenia Ice Hockey delight amid summer heat

    5. **Armenia, Karabakh, Azerbaijan: Communities of the three countries
    have to define a dialogue format suiting all sides **

    6.** **Armenia, Russia, Azerbaijan: Energy interests and state awards
    change geopolitical accents in the region

    7. Way for rail: Armenia getting back on commuter train track



    8. Freedom House Report Highlights Declines in Democratic Development

    9. Weathering the Storm: political democracy and economic development



    10. Released: Amnesty for Armenia protestors better late than never**

    ***************************************** ***********************************


    1. In Defense of a Hero of Armenia: Step back before stepping up to crucify
    Postanjyan

    Frankly stated: Armenia National Assembly Deputy Zaruhi Postanjyan's got
    balls.

    She represents the sort of fresh, youthful leadership that Armenia needs
    more of. Instead she has become a target for short-sighted `patriots' who
    still imagine that Armenia is the powerhouse of their distant ancestors'
    day, rather than the poorhouse it is in contemporary regional and
    international debate.

    While on diplomatic duty at the Parliamentary Assembly of the Council of
    Europe (PACE) last weekend, Postanjyan introduced a document calling on the
    CE to re-think its position on the cleanup of the post-03/01/08 mess that
    has hung over Armenia like summertime pollution in the capital.

    In getting her proposal to the floor (where it was defeated), Postanjyan
    secured the signatures of the Azeri and the Turkish delegation in support of
    her resolution that, among other things, called for the release of ALL
    `political prisoners' held in connection with 03/01.

    Since returning from Strasbourg, the first-term MP and representative of the
    opposition Heritage Party, has been called a traitor, has been chastised by
    colleagues for her `lack of experience' and, we suspect, has likely been
    mocked by chauvinists as an example of what happens when you `send a woman
    to do a man's job'. (A local rag referred to her as `a political whore'.)

    What a sorry reflection the controversy has been on the political community
    and the general public of Armenia, whose out-lash toward Postanjyan has only
    enforced perceptions of Armenia as an insecure tribal-oriented sufferer of
    victimization syndrome.

    Criticism of Postanjyan (including comments by readers of ArmeniaNow) has
    insinuated or stated bluntly that, by engaging the support of a Turk and an
    Azeri the deputy betrayed Armenian blood spilled in Karabakh. Blinded by
    tri-color, such misplaced nationalism dismisses the considerable fact that
    Karabakh war veterans would have been among those released, had Postanjyan's
    draft been realized. A Turk, and an Azeri voted in favor of releasing
    wrongly-held Armenian `warriors' (though we suspect they did not consider
    what their support implied). What other representative of this Armenia has
    achieved such a coup?

    The deputy should have come home to praise rather than castigation.
    Regrettably, however, her nay saying counterparts in Parliament have
    forgotten what it is like (if they ever knew) to perform their duties for
    reasons other than self interests or political preservation. Instead, they
    pander to the sort of myopic hysteria that Postanjyan's performance has
    elicited.

    For sake of relevance, let us consider what else happened in Armenian
    diplomacy during this time frame . . .

    President Serzh Sargsyan awarded Georgian President Mikhail Saakashvili the
    Order of Honor, the highest honor a non-Armenian can receive.

    The honored Saakashvili dictates anti-Armenian policy over 100,000 Armenians
    who are subjected to ethnic discrimination in the Georgian region of
    Javakhk. The same Saakashvili has favored Azerbaijan in regional matters,
    largely due to his enmity toward Russia.

    Has anybody called Sargsyan a traitor for cozying up to the Georgian? Like
    Postanjyan, Sargsyan's in his first term, too. Might such an arguable
    mis-step be seen as `inexperience'?

    Let us agree that, at 37, Postanjyan is young for state duty. For sake of
    argument let's stipulate that she made a youthful mistake. Like, perhaps,
    the mistake the faculty of Yerevan State University made when it bestowed
    upon Saakashvili a Gold Medal and Honorary Doctorate during his visit? Need
    we mention that President Sargsyan serves as president of the Board of
    Trustees at YSU?

    Also this week . . .

    Russian President Dmitry Medvedev visited Baku, where he implied that he
    supports a course of action regarding settling the Karabakh Problem that
    assures `territorial integrity'. In other words: Let the Armenians give back
    whatever they won, then things will be fine.

    Serzh Sargsyan has sucked up to Moscow like a Hoover to a dustball. Does
    that make him a `traitor'? No, it makes him a cagey politician who
    understands who holds the power when neither he nor his nation does.

    Why should Zaruhi Postanjyan be judged any differently?

    On grounds of political principle, Postanjyan was right because IN PRINCIPLE
    it is wrong to hold political prisoners, and getting Turkish and Azeri
    politicians to support that point means they'd also have to support that
    point at home. Democrats uphold human rights; demagogues don't.

    ****************************************** **********************************


    2. Rally Reality: Armenia opposition mood moderates as released 03/01
    prisoners address crowd

    By Karine Ionesyan

    As leaders of the opposition, including those who recently emerged from
    prison under a general amnesty declaration, were speaking on stage Thursday
    evening in front of Matenadaran, Armenia's ancient manuscripts museum, the
    public downstairs appeared to have found more reason to lend an ear to their
    passionate speeches.

    At its previous gathering in the middle of June, Armenia's opposition led by
    former president Levon Ter-Petrosyan announced a break in rallies for the
    rest of the summer (until September 18), but the release, under the June 19
    amnesty, of dozens of opposition activists jailed following last year's
    post-election unrest as well as the recent voluntary return of fugitive
    oppositionist Nikol Pashinyan (now in police custody) appeared to have given
    a fresh impetus to the opposition movement and lifted spirits among its
    supporters.

    Nonetheless, some who spoke to ArmeniaNow voiced disappointment that the
    movement has not achieved its early goals of substantive change.

    Opposition speeches at the rally did not much concern Nagorno-Karabakh,
    Armenian-Turkish relations or `bad elections' in Armenia as people seemed to
    have come to celebrate the release of their leaders.

    `This wasn't the good will of the authorities, but the result of our
    people's struggle,' was a popular sentiment.

    And the crowd of sympathizers was shouting the names of their released
    leaders when greeting them.

    `This success also brilliantly proved that the tactics of the [Armenian
    National] Congress is well-grounded, despite attempts by many to divert [us]
    from the lawful path by accusing us of lacking determination and not
    resorting to tougher steps,' said Ter-Petrosyan.

    The opposition leader described Pashinyan's return as a `courageous step',
    stressing that `people will support and continue its fight for the release
    of the remaining 19 political prisoners.'

    Opposition sympathizers, in the front ranks, mainly repeated the opinion of
    their leader, agreeing with every word.

    `I think that enthusiasm now will rise and we will make another step forward
    towards a power change,' said Anahit Bekyan, 20.

    The mood among citizens standing a little down the way was a little
    different. Many of them said they were just passing by and stopped for some
    time to listen to the speakers.

    `At first we had great belief that something would change, but everything
    calmed down and we understood that what they call unity does not work,' said
    Mariam Sargsyan, 38. `The opposition only speaks about a power change, about
    protecting the rights of people, but in reality nothing is being done.'

    Meanwhile, from the stage, Ter-Petrosyan was urging people not to feel
    tired, not to whine or feel desperate.

    `Everything else is a matter of time,' he added.

    ****************************************** **********************************

    3. Letter home: A Diaspora discovers Armenia and `Armenianness'

    By Danielle Hartounian

    Special to ArmeniaNow

    AGBU summer intern

    When I discovered AGBU's Yerevan Summer Internship Program, I immediately
    applied hoping to have the opportunity to challenge myself by learning to
    adapt and interact with another culture apart from the confines of my own.

    Seems I slightly overestimated my skills of acculturation. Notably, I was
    not prepared for the Armenian male response to a female - any female -
    on
    the streets. But, I suppose its best to seize these types of occurrences as
    learning opportunities and accept the cultural norms for what they are.

    With that in mind, I realize how much I actually love this country.

    Despite the cultural differences, I feel a sensational rush of passion from
    seeing something as simple as a group of Armenian children playing soccer in
    the middle of the street where I live, which strikes me as a dangerous
    practice considering the way the cab drivers operate their vehicles on the
    road, never looking right or left before they cross the street or not even
    bothering to stop before they turn.

    Regardless, I still feel a strange connection to this place that is slightly
    familiar, but: When I came to Armenia four years ago, I had cultivated this
    mentality that is common among the Diaspora, thinking I was going to find my
    roots and have this mysterious, metaphysical experience with the homeland of
    my ancestors.

    But now, having overcome that rather amateur and naïve mindset, I am eager
    to develop a new perspective. I have no doubt that this perception will be
    richer than my first in that I have overcome that romanticized idea.
    Evolution has replaced romanticism. Even the physical terrain is not the
    same, much less the social and political facets. Much like the inhabitants
    of the city, the region changes and grows, and it continues to do so to this
    day.

    Upon landing, I did not even recognize the Zvartnots airport. And right
    then I knew that although I felt so good to be back, things were not the
    same and my experience was going to be very different than before.

    Now, as opposed to searching for some fantasized ancestry, I am focusing
    more on adapting to the actual culture of this city and seeing if I can find
    myself within it, instead of finding it in me. I walk to and from work and
    take the marshrutka (minibus), and I make an effort to change my
    pronunciation to better suit that of the Eastern Armenian dialect. For me,
    that is what it takes in order to truly feel that I have tasted a new
    environment. I observe the people around me and follow their lead, very
    careful and conscious of seeming arrogant or ignorant, as the reputation of
    my nationality upholds. Understandably, five weeks is not nearly enough
    time to thoroughly assimilate, but for me the importance lies within the
    actual effort of adjusting my ideologies and being able to shift my
    paradigms, be it only for such a short period of time.

    So for now, I will continue to take it one day at a time, feeling humbled by
    the locals here and learning from even the slightest occurrences during my
    stay. I know that these next few weeks will fly and disappear right before
    my eyes - it already feels like I am running on vapors here - and although
    I
    know that it will feel so wrong leaving, I am determined to have an
    enriching experience that will leave me feeling like it was the right one
    for me.

    Danielle Hartounian, 19, is a student at Orange Coast College, in Southern
    California, where she majors in English and minors in studio arts. She is
    a
    participant of the Armenian General Benevolent Union's Yerevan Summer
    Internship Program, during which she is interning at ArmeniaNow.com.



    ******************************* *********************************************


    4. Sport: Armenia Ice Hockey delight amid summer heat

    By Suren Musayelyan

    Ice Hockey

    Yerevan will host World Division III Championships to be held next spring,
    according to the Ice Hockey Federation of Armenia.

    The Federation's Vice-President Hayk Jaghatspanyan told ArmeniaNow that
    preparations were being made for an official announcement of the details of
    the event scheduled for April 2010 in which the Armenian capital will for
    the first time play host to an international ice hockey tournament.

    (The main 16-nation IIHF league (including the world's leading ice-hockey
    nations) is followed by three divisions, Division III being the lowest. Each
    division is subdivided into two groups - A and B that have an equal status.
    In 2010, Armenia will be in Division III Group B.)

    Armenia has been a member of the International Ice Hockey Federation (IIHF)
    since 1999. Currently, its main men's team is officially ranked last among
    48 participating nations. (See full rankings here:
    http://www.iihf.com/channels/iihf-world-cham pionship-oc09/home/world-ranking.html).


    Last year Armenia was suspended from IIHF competitions for one year after
    being found at fault for entering numerous ineligible players during U-20
    and men's World Championship events.

    Armenia, according to the information available on the IIHF official
    website, boasts a total of 575 ice hockey players (180 at junior level),
    including 395 male players, as well as two indoor and three outdoor rinks.

    Armenian Ice Hockey Federation President Karen Khachatryan told ArmeniaNow
    that the figures posted on the IIHF website refer to the number of Armenia
    players of all times, including current and retired ones. He said that at
    present the total number of Armenian ice hockey players reaches 125 or more.


    Khachatryan confirmed that Armenia has three outdoor rinks -- one in
    Vardenis, one in Gyumri and one in Yerevan (Swan Lake near Opera House), and
    two indoor rinks in Yerevan - the Karen Demirchyan Sport and Concert Complex
    and the figure-skating arena in the Shengavit district where there is also
    an ice hockey section.

    `The rink at the Sport and Concert Complex is in excellent condition, meets
    international standards and is suitable for hosting an international ice
    hockey event,' Khachatryan said, adding that the rink in Shengavit still
    needs repairs.

    After a fiasco in the 2005 World Division III Championships, including a
    0-48 loss to Mexico, Armenia improved a little, achieving several victories,
    including over Ireland (6-0) and Luxemburg (10-6) in 2006. It was also that
    year that Armenia achieved its highest place in the Division, finishing
    third in the five-nation group, just outside the promotion spot.

    Armenia's rivals in 2010 IIHF Word Champion Division III (Group B) will be
    North Korea, South Africa and Mongolia. (Dates April 12-18, 2010)

    The tournament in Division III Group A will be held in Athens, Greece
    (Luxembourg, Greece, Ireland, the United Arab Emirates).

    For full schedules visit:
    www.iihf.com/home-of-hockey/championships/w orld-championships.html

    More information on this sport in Armenia is available on the Federation's
    website at www.armenianhockey.com

    Soccer

    Two soccer clubs representing Armenia have played their opening matches in
    a
    new Europa League competition that came to replace the old UEFA Cup this
    season.

    Banants and Mika were in action against Bosnian Shiroki Brieg and Sweden's
    Helsinborg, respectively on Thursday night.

    Playing at home Banants lost to the Bosnian club 0-2.

    Mika, playing away, lost to the Swedes 1-3.

    The second-leg games are scheduled for next Thursday, July 9.

    Meanwhile, the third Armenian club in Europa League, Gandzasar, as well as
    champion Pyunik in the 2009/2010 Champions League will start in the middle
    of July from the second qualifying rounds of their respective tournaments.
    Gandzasar's opponent is Dutch NAK Breda and Pyunik's opponent is Croatia's
    Dynamo Zagreb.

    Domestically, in Round 14 of Armenia's Premier League (completing the first
    half of the 28-round championship), Pyunik, in a home game, beat Mika 3-0
    and are now a point ahead with a game at hand. Elsewhere, Gandzasar beat
    Shirak 2-1, Banants beat Kilikia 2-0 and Ararat suffered their 13 defeat in
    as many games this season to Ulis - 0-3.

    The league will resume on July 25.

    (Source: Football Federation of Armenia)

    Boxing

    German-Armenian flyweight `Killer Queen' Susi Kentikian (24-0, 16 KOs)
    will
    defend her WBA and WIBF flyweight titles against WBA super flyweight
    belt-holder 32-year-old Carolina Marcela Gutierrez, `Chapita', Gaite (15-1,
    11 KOs), from Argentina, on Saturday, July 4.

    The fight is at Color Line Arena in Hamburg, Germany.

    Unbeaten Susi Kentikian, 21, last fought in March, overwhelming Elena `Baby
    Doll' Reid.

    `I was very sharp that day and left Elena Reid with no chance. Carolina
    Gaite is the current WBA world champion in the next higher weight class and
    is, of course, another big challenge. Against this opponent I must further
    develop to again satisfy the boxing fans with my determined fight style and
    win very clearly,' said double world champion Kentikian about her upcoming
    fight. (http://www.kentikian.de)

    Chess

    The Karen Asryan Memorial has taken place in the Armenian resort town of
    Jermuk (June 26-July 6) and has been running simultaneously with the
    traditional Jermuk-2009 tournament.

    Armenia's chess talent Karen Asryan died a year ago at the young age of 28.
    He helped Armenia win the 2006 Olympiad as part of its team and was also
    Armenia's reigning champion until a sudden heart attack claimed his life
    last June. (
    http://www.armenianow.com/?action=3DviewArticle& amp;AID=3D3109&CID=3D3008&IID=3D1190&l ng=3Deng
    )

    (Source: www.chessacademy.am)**

    ************************** **************************************************


    5. **Armenia**, Karabakh, Azerbaijan: Communities of the three countries
    have to define a dialogue format suiting all sides**

    Analysis by Naira Hairumyan

    Representatives of Azeri intelligentsia are planning a visit to Karabakh
    encouraged by the idea of the importance of public opinion stressed by the
    international community. However, the dates of the visit are indefinite
    because of a more important issue on the delegation's agenda - how to go to
    Karabakh: via Armenia or Azerbaijan?

    The first option is rejected by the Azeri side - a member of delegation,
    Azerbaijan's Ambassador to Russia Polad Byul-Byul-oghlu stated that he had
    no intention of going to Karabakh via Yerevan. The second option (crossing
    the Azerbaijan-Karabakh border), naturally, doesn't suit the Armenian side.


    The initiators of the visit - Ambassadors of Armenia and Azerbaijan to
    Russia - talked the options over and debated, but ended up deciding not to
    go to Karabakh and hold discussions in Baku and Yerevan. However, it is
    quite possible, that the visit to Karabakh will take place, after all. The
    delegation will cross Karabakh border by air, just like late in May of 2007.


    Despite the optimistic statements of international mediators the Karabakh
    settlement issue has not made any progress yet, and with the apparent
    activation of public opinion, the political decision-making might be
    postponed.

    Last March, French co-Chair of the Organization for Security and
    Cooperation in Europe (OSCE) Minsk group Bernard Fussier stated while in
    Yerevan that both `the Armenian and Azerbaijani' communities of Karabakh
    would be drawn into the negotiation process.

    Azerbaijan**'s reaction immediately followed Fussier's statement - Baku
    started forming an `Azeri community'.

    In early June, Baku hosted a funding convention of a new NGO named `Azeri
    Community of Nagorno Karabakh of the Republic of Azerbaijan'.

    The newly-formed management structure includes its own ministries of
    foreign affairs, domestic affairs, propaganda, culture and education. In
    early March of 2009, Azerbaijan's president Ilham Aliyev appointed Bayram
    Safarov as Chief Executive of Shushi region (in NKR).

    Safarov stated that `no referendum can take place until the 65 thousand
    Azeri community is returned to Nagorno Karabakh'. (According to the census
    of 1989, the Autonomous Region of Nagorno Karabakh had 35,000 Azeri
    residents -- 21 percent of ARNK's total population).



    Thanks to mediators and international organizations, the political
    negotiations are gradually taking a civil course, or rather, intercommunity
    discussions.

    Besides OSCE's attempts, there are at least 3 processes in the course of
    which international NGOs are trying to arrange meetings of `communities'.

    The oldest organization among them is Britain's International Alert, which
    is planning the 4th Armenian-Azeri Forum, with participation of a Karabakh
    delegation. And, although it is not publicized, the Azeri delegation
    includes representatives of `Karabakh community', hence, turning it into an
    intercommunity dialogue.

    Eurasia Project Coordinator at International Alert Dessislav Russanova said
    that the fourth Armenian and Azeri NGO Forum will take place in late July in
    Moscow.

    `The participants might be able to discuss - in conference and
    constructively - possible acts of good will capable of improving the
    relationship between the peoples,' stated Russanova.

    Meanwhile, as a result of the Second Forum of NKR NGOs, a declaration was
    adopted, which reads: ` We, NGO leaders and NKR experts, are declaring our
    principles of participation in international peacekeeping projects: we will
    not take part in intercommunity projects or those of any other format
    contradicting and infringing our self-identification as citizens of NKR'. The
    participants of the second forum arrived at the conclusion that `the
    peaceful civil dialogue has recently shown tendency of being politicized,
    which is, essentially, distorting the factual situation and anticipates the
    results of the official political settlement of the conflict.'

    Should Armenian NGOs take part in the dialogue with Azerbaijan on the
    Karabakh issue without Karabakh's participation? The question, probably,
    needs a joint discussion among the representatives of Armenian and Karabakhi
    NGOs.

    However, Heritage party sees a different way out of the situation stating
    that first of all Armenia has to recognize Nagorno Karabakh's independence
    as a member of the international community.

    `Armenia has to recognize the exclusive rights and responsibility of the
    authorities of the Republic of Nagorno Karabkh, and consider NKR's
    independent status and security as priority issues in negotiations with
    Azerbaijan,' the party statement says.


    The US Congress, which has been giving aid to Nagorno Karabakh for many
    years, shares that opinion. The Appropriations Subcommittee of US House of
    Representatives has recently passed the Foreign Operations Appropriations
    bill, providing for an increase in US humanitarian aid to NKR by $10
    million. The subcommittee also approved the bill on the cut of aid to
    Azerbaijan because of Armenia's and Nagorno Karabakh's blockade.

    *************************************** *************************************


    6. Armenia, Russia, Azerbaijan: Energy interests and state awards change
    geopolitical accents in the region

    Analysis by Aris Ghazinyan

    Russian President Dmitry Medvedev's visit to Azerbaijani capital Baku early
    this week took place amid warming relations between Azerbaijan and Russia on
    the one hand, and on the other, unprecedented criticism against Yerevan from
    many Russian politicians, including representatives of the ruling Yedinaya
    Rossia party. (The criticism was the reaction to the recent event in Armenia
    when President Serzh Sargsyan, last week, awarded his visiting Georgian
    counterpart Mikheil Saakashvili with Armenia's State Order of Honor - the
    highest Armenian award that a foreign citizen can be granted.)

    During the past year Russia-Azerbaijan relations have undergone tangible
    changes. Energy issues matter greatly to Russia in terms of positioning
    itself in the world as an energy power and that is why Russia is
    establishing connections with fuel countries, such as Azerbaijan,
    Kazakhstan, Turkmenistan.

    After the war in Georgia last August, the regional political map changed as
    well. Russia recognized the independence of Georgia's breakaway provinces of
    South Ossetia and Abkhazia thereby allowing the possibility of a political
    re-division of the region.

    That was a precedent Azerbaijan was especially concerned about in terms of
    the Karabakh issue.

    That is why, during the past year Azerbaijan took steps aimed at keeping
    confidential relations with Moscow, and Aliyev called the Nabucco gas
    pipeline project from Central Asia to Europe bypassing Russia a `very raw
    project', bringing Azerbaijan's participation in the project into question.
    By that step he, certainly, flattered Moscow, because initially Azerbaijan
    was supposed to take part in the project as well.

    Baku has long been trying to balance between Russia and the West, at crucial
    moments using its main weapon - energy resources. The agenda of the
    negotiations included issues of expanded cooperation in the energy field,
    and as a result two agreements were signed.

    One of the agreements signed is on cooperation between Russian Gazprom and
    Azerbaijan's State Oil Company. It envisages Azeri gas supply from the
    Shakh-Denis deposit to Russia starting in January. That is a truly historic
    agreement, since never before has Moscow bought Azeri gas.

    The second agreement refers to the use of water resources of the border
    river Samur. An agreement would accelerate the construction of a bridge
    across that river and considerably increase the commodity turnover between
    the two countries.

    Naturally, the Karabakh issue was in the central focus. `The Nagorno
    Karabakh conflict can be settled in quite a close historic perspective, and
    Russia will do its best to achieve that,' stated Russian President Medvedev.
    `That conflict has all the chances to be settled in the nearest future.'

    Meanwhile, some senior Russian politicians do not give unanimous assessments
    to the Armenian president's step of awarding his Georgian counterpart with
    the Order of Honor.

    `The decision of the Armenian president would hardly contribute to the peace
    and stability of the situation in the South Caucasus,' said member of the
    Russian State Duma's Foreign Affairs Committee, representative of the
    Yedinaya Rossia faction Valeri Bogomolov.

    `Every country is free to award anybody with anything, as well as praise
    or
    criticize,' stressed the deputy. `However, it is important to understand
    that one shouldn't foul the well, he may need its waters time and again.
    And
    it is from that viewpoint that the ambiguous event of awarding the Georgian
    president has to be considered. ' Obviously, by the `well' Bogomolov
    refers
    to Russia.

    Viktor Ilyukhin, deputy chair of the State Duma Committee on Constitutional
    Legislation and State Development, charged that `the demonstrative granting
    of Armenia's highest state award to the Georgian President is a tactless
    and
    unfriendly step towards Russia.'

    Russia holds Saakashvili responsible for deaths of hundreds of civilians in
    South Ossetia. Last August Tbilisi unsuccessfully attempted to regain
    control of its breakaway region, which prompted Russia to invade the region
    as well as mainland Georgia forcing Tbilisi to halt its offensive operations
    and retreat. Ever since then the Kremlin has sought the pro-western Georgian
    president's removal from power.

    The award to the Georgian president caused a large-scale social-political
    resonance also in Armenia - the highest award was given to the president
    of
    a country which always speaks against Armenia on the international arena,
    unambiguously supports Baku, positions itself as Turkey's strategic partner.


    It is noteworthy that when delivering a speech to faculty and students at
    Yerevan State University, Saakashvili publically declared that `Russia
    doesn't care a dime for Armenia'.

    However, the representatives of Armenian academic circles and YSU's
    administration not only failed to react to that provocative statement, but,
    moreover, after his speech, awarded him with the YSU gold medal and a
    doctor's title.

    The future will show what impact this will have on Russia's position in the
    Karabakh issue, especially that recently the American co-chair of the
    Organization for Security and Cooperation in Europe's (OSCE) Minsk Group
    Matthew Bryza and Russian President Medvedev have made statements on the
    presence of real prerequisites of settling the issue in the foreseeable
    future.

    ***************************** *********************************************

    7. Way for rail: Armenia getting back on commuter train track

    By Georg Khachaturyan

    The Russian managers of Armenia's rail network have announced an imminent
    launch of a major commuter train service from Yerevan westward that they say
    will potentially open up new prospects for domestic rail traveling. Another
    service, they said, will provide holidaymakers with weekend trips to Lake
    Sevan.

    A commuter train service between Armavir and Yerevan covering a distance of
    about 50 kilometers within 53 minutes will be inaugurated on July 10,
    according to a senior representative of the South Caucasus Railway (SCR)
    CJSC.

    `This service will attract passengers and create a healthy competition with
    motor transport,' Marat Khakov, the company's first Deputy Director General,
    said at a press conference on Thursday.

    Passengers traveling by the commuter train will be offered additional
    services for their money, such as newspapers, refreshments, and others, he
    said.

    A normal ticket price for the transport four times a day will be 300 drams
    (about 80 cents).

    SCR also offers a `weekend' train for holidaymakers to the lakeside.

    Yerevan-Shorzha will take passengers to the station on the eastern shore of
    Lake Sevan on Friday evenings and returns them on Sunday evenings (a one-way
    trip takes 3 h, 10 m).

    The ticket price per person will be 9,000 drams (or $25), which will include
    stay inside security-guarded carriages overnight.

    `This is a novelty. I think it will be in demand,' said Khakov.

    SCR is a subsidiary of Russia's state-run rail company, RZhD, that took over
    the Armenian network in early 2008 after signing a 30-year management
    contract with the Armenian government. The Russian company then pledged to
    invest a total of 74.5 billion drams (or about $206 million, according to
    the current exchange rate) into its Armenia operations, of which 59.3
    billion drams (about $165 million) during the first five years of work.

    In March, the Armenian government criticized the Russian operator over its
    failure to meet its investment obligations envisaged by the management
    contract prompting the latter's assurances that the investment shortfall
    for
    2008 would be eliminated in the course of 2009 in addition to the current
    year's planned capital investment.

    SCR's representative on Thursday also said that a train service between
    Yerevan and the Black Sea port of Batumi in Georgia, originally planned for
    launch on July 1, will become available beginning from July 15.

    `The delay is due to some problems existing today between SCR and the
    Georgian Railway company,' Khakov explained.

    He said that due to investments made into railway infrastructure and safety
    standards, the time of travel on Yerevan-Batumi will be reduced by 80
    minutes. Still the trip (leaving Yerevan at 10.00 p.m. and reaching Batumi
    at around 4.00 p.m. the next day) would take 18 hours. The same trip by bus
    takes about 11 hours.

    Tickets will be available from 10,000 drams (about $28) and range to 21,000
    drams (about $58). On board passengers will be offered meal, clean beddings,
    etc.

    Also, as announced, Gyumri-Vanadzor-Ayrum will become another direction that
    will be operated this year, and the travel time on several routes will be
    reduced.



    And Head of the SCR Directorate of Passenger Transportation Samvel
    Ghalechyan said that

    additional charges will be made for baggage transported on trains.

    `The company is currently conducting work on legalizing transportation of
    baggage, in particular there will be a compulsory payment for baggage on all
    commuter trains,' he said.

    Ghalechyan added that the SCR transported 368,400 passengers in the five
    months of this year, which is a 30-40 percent increase over the volume of
    passenger transportation in Armenia during the same period of 2008.

    ******************************************* *********************************

    8. Freedom House Report Highlights Declines in Democratic Development

    By Elizabeth Gemdjian

    Armenian Assembly of America intern

    Special to ArmeniaNow

    According to newly released report by the US based Freedom House human
    rights organization Armenia saw a worsening of its democratic development
    statistics, largely as a consequence of the violent political crisis
    following the presidential elections of 2008.

    Freedom House's Nations in Transit report on comparative democratic
    development released June 30 shows Armenia among countries that experienced
    setbacks in democratic development, however reports mentions that Armenia
    did not follow the drift of most non-Baltic former Soviet states toward
    consolidated authoritarian regimes.

    Ranking as a semi-consolidated authoritarian regime, Armenia's Democracy
    Score of 5.39 (with 1 being the highest possible score and 7 being the
    lowest) still calls attention to the weakness of its democratic institutions
    and practices and the failure of the government to encourage and foster
    democratic development. The report also highlights the pessimism and lack
    of trust that characterizes public opinion about politics and economics in
    the country as a block against democratic development.

    For the first time in the 13 editions of the Freedom House report, Russia
    (6.11) and Kyrgyzstan (6.04) ranked as consolidated authoritarian regimes
    and Azerbaijan (6.25) recorded the largest decline in democracy of all
    countries examined.

    The decline in Armenia's scores in the Nations in Transit report in large
    part stems from the controversy surrounding the 2008 elections and ensuing
    twenty-day state of emergency. According to the study the period of unrest
    exposed the immaturity and inadequacy of Armenia's democratic institutions.
    Leading to public mistrust in the electoral process, biased coverage of the
    election and de facto media censorship during the period of emergency rule,
    and irregular arrests, investigations, and trials in connection to March 1
    events, the election emerged as a major cause of Armenia's decline in the
    following categories: National Democratic Governance, Electoral Process,
    Independent Media, and Judicial Framework and Independence.

    Armenia also saw a worsening of its ratings for Democratic Civil
    Society. While
    the report notes the presence and favorable activities of NGOs in the
    country, government hostility toward and opposition against efforts of NGOs,
    as well as the lack of NGO activity outside urban centers led to worse
    ratings.

    The only categories in which Armenia's ratings did not decline were Local
    Democratic Governance, which remained stable from the previous year, and
    Corruption, in which Armenia's score improved slightly because of a newly
    launched government campaign to combat corruption. However, the report
    still highlights corruption as a major inhibitor of democratic development
    and public trust in government actions in Armenia and shows little
    confidence in the success of anti-corruption strategies.

    The study, conducted by the independent non-governmental organization which
    has been monitoring political rights and civil liberties worldwide since
    1972, was released on June 30 and found a general decline in democracy in
    the former communist European and Eurasian countries it examined, with
    scores for 18 of the 29 countries worsening in 2008.

    This year's decline represents an aggravation of negative trends from
    previous years and arrested development or backsliding of positive past
    trends. According to Freedom House Europe director Vladimir Shkolnikov,
    `2008 was a dark year for democracy in the region, in particular in the
    former Soviet states. With economic conditions worsening, the region is
    likely to see authoritarians resort to greater repression, rather than adopt
    needed reforms.'

    *************************************** *************************************


    9.** Weathering the Storm: political democracy and economic development

    By Richard Giragosian

    For a period of six years, Armenia posted an impressive rate of double-digit
    economic growth, with Armenia's Gross Domestic Product (GDP) expanding
    considerably (see chart below). But as a direct result of the global
    economic crisis, the growth in the Armenian economy slowed sharply in 2008.


    Most significantly, the onset of the global crisis has also sparked a
    further serious contraction of the economy, which is expected to decrease by
    almost 10 percent this year. Further economic projections also foresee a
    stagnant economy next year, with Armenia's Gross Domestic Product expected
    to remain flat with no growth whatsoever.

    Armenia: Economic Growth

    (Annual GDP)

    Year

    GDP

    (Percentage Change)

    2002

    13.2

    2003

    14.0

    2004

    10.5

    2005

    13.9

    2006

    13.2

    2007

    13.8

    2008

    6.8

    2009

    (p rojected)



    -9.5

    2010

    (projected)

    0.0





    Aga inst this dismal backdrop of a profound economic downturn, Armenia will
    no longer enjoy the `boom years' of double-digit economic expansion. Coupled
    with more destructive trends of declining investment and a dramatic cut in
    the amount of remittances coming into Armenia, warnings of underlying
    socioeconomic inequalities and disparities in wealth and income are now
    coming true.

    Democracy and Development

    Obviously, the current crisis raises many important concerns, ranging from
    the scale and scope of the government's response to the crisis to structural
    shortcomings in tax collection and anti-corruption efforts. But one of the
    more fundamental issues is the relationship between political democracy and
    economic development.

    More specifically for Armenia, economic growth has not only far outpaced the
    development of democracy, but it has also come at the expense of any degree
    of equity or balance in national economic development. In other words, while
    statistical economic growth has served to obscure the country's profound
    deficiencies in democracy, it has tended to only magnify the uneven
    development of the country. The division has solidified already serious
    disparities in urban-rural development and has consolidated the growing
    divide between a small wealth elite and a much larger and more impoverished
    population. At the same time, the rapid rate of economic growth has also
    left democratic development well behind.

    But the most important lesson for Armenia from this division between
    democracy and economic development is the fact that without a foundation of
    democratic institutions, which is supported by the rule of law and a vibrant
    civil society, economic growth has actually harmed overall economic
    development. Of course, this maxim is a rather surprising paradox because
    it views economic growth as a negative factor for sustainable development in
    countries that have not yet attained a minimum level of democracy. At the
    same time, this paradox can also be carried one step further, arguing that
    a
    record of economic growth over broader economic development is also damaging
    to democracy, especially as it tends to provide political legitimacy to
    authoritarian regimes. This can also be seen in Armenia's case, where the
    economic growth achieved during the years of the Kocharian government was
    used to justify the lack of democratic credentials.

    Even more revealing, the Armenian model also refutes the argument that
    economic growth inherently leads to democratic development. More broadly,
    this argument, more formally known as `modernization theory,' fails to
    recognize the essential prerequisites of democracy (including a civil
    society, free press, access to education, class mobility, industrialization,
    political participation, etc.) that must come before sustained economic
    growth.

    In cases like Armenia, where economic growth precedes democracy, sustainable
    development is unable to take root. Politically, it also encourages
    authoritarianism or dictatorship, with the economic growth used to merely
    maintain the power (and wealth) of the ruling elite. The lesson here is
    that economic growth can lead to sound economic development, but only after
    a minimum level of democratic development has been reached in the course of
    the transition to democracy. And now that the record of economic growth in
    Armenia has halted, the country is left with neither economic development
    nor democracy.

    Richard Giragosian is director of the Yerevan-based Armenian Center for
    National and International Studies (ACNIS). `Weathering the Storm" is a
    weekly column exclusively for ArmeniaNow.

    ************************************* *************************************

    10. Released: Amnesty for Armenia protestors better late than never

    C**ommentary by Jirair Haratunian

    (www.aaainc.org)

    The decision of President Serzh Sargsyan and the National Assembly of
    Armenia to grant amnesty to political opponents arrested and imprisoned
    following the tragic violence on March 1, 2008, is welcome news. While 28
    jailed members of the Armenian National Congress were released from prison,
    regrettably 18 others will remain in jail.

    Armenia was repeatedly told that it risked punitive sanctions in the Council
    of Europe Parliamentary Assembly (PACE), because of the political prisoners
    question and other acts deemed to be counter to the democratic standards
    demanded by PACE. Faced with possible embarrassment, Armenian authorities
    did reform problematic sections of its criminal code and months later
    finally granted amnesty to imprisoned opponents.

    The amnesty is probably sufficient to avoid the threatened sanctions when
    PACE next meets. However, the PACE demands for further democratic reforms
    in Armenia remain, and unfortunately, the mayoral election in Yerevan failed
    to achieve the promised degree of fairness and transparency.

    While it is true that the first response of a 12 person Council of Europe
    monitoring team said the voting in Yerevan was conducted largely in
    compliance with European standards, that assessment was subsequently
    disputed by the U.S. Embassy in Armenia, PACE, and most domestic elections
    monitor who found that there were numerous electoral violations.

    The most serious consequence of that failure was the suspension of $67
    million from the U.S. government funded Millennium Challenge Corporation
    (MCC), which halted much needed road construction in rural Armenia. This
    will impede the nation's agricultural economy and hurt scores of villages
    and their needy inhabitants.

    Democratic inexperience and a thirst for economic and political power have
    infected almost every republic of the former Soviet Union, and Armenia has
    been no exception. Armenia's closest neighbors Azerbaijan, Georgia, Turkey
    and Iran all share similar maladies.

    Azerbaijan has a president who was hand picked by his dying father to
    inherit the post. Ilham Aliyev holds tight rein over Azerbaijan's political
    and oil-rich economic sectors. He has imprisoned opponents, denied free
    expression by its citizens, spent billions of dollars on new armaments and
    continually threatens a new war to reclaim Nagorno Karabakh.

    Georgia was once hailed by the West as a democratic exception. However,
    Tbilisi involved itself in an ill-advised military adventure and lost two
    disputed provinces. And now, fearful of its other minorities, it is
    suppressing the civil rights of ethnic Armenian citizens in Javakh and
    illegally confiscating Armenian churches in Tbilisi.

    Electoral malfeasance is less apparent in Turkey, but the government's
    treatment of minorities is unconscionable. Ankara continues to threaten
    journalists and scholars with the infamous Section 301 of its Penal Code,
    which criminalizes criticism of the Turkish state and refuses to end its
    immoral denial campaign of the Armenian Genocide.

    As for Iran, the world has recently witnessed the crude manipulation and
    tampering of votes in its June presidential election and the massive protest
    marches and police violence that followed. Iran is now left with an unhappy
    citizenry and an uneasy and fearful political leadership.

    In the end, there is an historic truth that says that democratic progress is
    a bottom-to-top process. Armenia must reform itself from within and
    peaceful reform is evolutionary. I hope that a new generation of educated
    citizens, uncontaminated by old Soviet habits will lead in reforming the
    nation's political and economic structure. Armenia deserves free and
    transparent elections. It requires an independent judiciary and democratic
    governance led by skilled, honest and patriotic political leaders. These
    are goals worthy of political struggle and with luck, patience,
    determination, and a watchful citizenry, a secure and fully democratic
    Armenia will come to pass.
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