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STATE DEPARTMENT BACKGROUND NOTES : ARMENIA (10/09)
State Department Documents and Publications
October 9, 2009
US
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: Estimates range from 2,967,004 (CIA World Factbook,
July 2009 est.) to 3,235,000 (Armenia National Statistical Service,
October 1, 2008 est.).
Ethnic groups: Armenian 97.9%; Yezidi 1.3%; 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--20.21/1,000. Life expectancy--72.68
years.
Work force (1.481 million; 7.1% unemployed): Industry and
construction--15.6%; agriculture and forestry--46.2%; services--38.2%.
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).
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: the Armenian National Congress, 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 (2008)
GDP: $11.93 billion.
GDP growth rate (CIA World Factbook, 2008 estimate): 6.8%.
Per capita GDP PPP (2008): $6,310.
Inflation (CIA World Factbook, 2008 estimate): 9%.
Natural resources: Copper, molybdenum, zinc, gold, silver, lead,
marble, granite, mineral spring water.
Agriculture: Products--fruits and vegetables, wines, dairy, some
livestock.
Industry: Types--diamond-processing, metal-cutting machine tools,
forging- pressing machines, electric motors, tires, knitted wear,
hosiery, shoes, silk fabric, chemicals, trucks, instruments,
microelectronics, jewelry manufacturing, software development, food
processing, brandy.
Trade: Exports--$1.124 billion: pig iron, unwrought copper, nonferrous
metals, diamonds, mineral products, foodstuffs, energy. Export partners
(2008)--Russia 20.2%, Germany 17.2%, Netherlands 12.2%, Belgium 8.5%,
Georgia 7.7%, Bulgaria 5.7%, U.S. 4.9%. Imports (2008)--$3.763 billion:
natural gas, petroleum, tobacco products, foodstuffs, diamonds. Import
partners (2008)--Russia 19.3%, China 8.7%, Ukraine 7%, Turkey 6.1%,
Germany 5.8%, U.S. 4.9%, Iran 4.6%.
PEOPLE AND HISTORICAL HIGHLIGHTS
Ethnic groups in Armenia include Armenians (98%), 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, and with
the February 2008 decision by the Country of Law Party to join the
governing coalition, 113 seats out of the 131 in the National Assembly
are held by pro-government parties. The sole opposition faction in
parliament, the Heritage Party, holds seven seats. The remaining
members of parliament are independent, although most of these are
aligned de facto with the pro-government parties. The unicameral
National Assembly has 90 seats which are elected by proportional
representation (party list), and 41 are single mandate districts.
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 been critical of
the conduct of national elections in 1995, 1999, and 2003, as well as
the constitutional referendum of 2005. 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.
Armenia held presidential elections on February 19, 2008. The
elections, while originally deemed by the OSCE's Office for Democratic
Institutions and Human Rights (ODIHR) to be "mostly in line" with OSCE
standards, were later seen to be marred by credible claims of ballot
stuffing, intimidation (and even beatings) of poll workers and proxies,
vote buying, and other irregularities. Recounts were requested,
but ODIHR observers noted "shortcomings in the recount process,
including discrepancies and mistakes, some of which raise questions
over the impartiality of the [electoral commissions] concerned."
Mass protests followed the disputed vote. For 10 days, large crowds of
pro- opposition demonstrators gathered in Yerevan's downtown Freedom
Square. Police and security forces entered Freedom Square early in
the morning on March 1, 2008, ostensibly to investigate reports of
hidden weapons caches. This operation turned into a forced dispersal
of demonstrators from Freedom Square by massed riot police. Following
the clearing of Freedom Square, clashes erupted in the afternoon
between massed demonstrators and security personnel, and continued
throughout the day and evening, leading to ten deaths and hundreds of
injuries. President Kocharian decreed a 20-day state of emergency in
Yerevan late on March 1, which sharply curtailed freedom of media and
assembly. Dozens of opposition supporters were jailed in the wake of
the violence, in proceedings that many international watchdog groups
have criticized as politically motivated. Armenia's media freedom
climate and freedom of assembly remained poor overall, though somewhat
improved after the state of emergency was lifted. Serzh Sargsian took
office as President in April 2008.
The National Assembly launched a parliamentary ad hoc commission
tasked with an inquiry into the events of March 1-2. The ad
hoc commission showed early promise, despite concerns about its
pro-government composition. The commission members summoned senior
government officials to testify in public hearings, and subjected
them to probing questions. This effort was expanded by a presidential
directive on October 23, 2008 that formed an independent fact- finding
group tasked to support and report to the ad hoc commission. It
was composed of members appointed in equal numbers by ruling and
opposition parties. These initiatives to uncover the truth about the
March 1 events have been welcome, albeit imperfect, steps to provide
public accountability.
Principal Government Officials
President--Serzh Sargsian
Prime Minister--Tigran Sargsian
Foreign Minister--Edward Nalbandian
Defense Minister--Seyran Ohanian
Ambassador to the U.S.--Tatoul Markarian
Ambassador to the UN--Armen Martirosyan
Armenia's embassy is located at 2225 R Street, NW, Washington, DC,
20008; tel: 202-319-1976; fax: 202-319-2982.
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 Armenia 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,
and 300 for most of 2008. 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, 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
GDP growth rates every year from 2002 to 2007.
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 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 Armenian products as
well as the value of remittances from abroad, most of which are
dollar-denominated.
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. Armenia imports all of its natural gas from
Russia at a significant discount from world market rates, though a
new contract signed with GazProm in late 2008 calls for significant
price increases in 2009 and 2010, and in succeeding years the price
is expected to converge with the market price. A gas pipeline from
Iran to Armenia will help to diversity Armenia's gas supply, and is
expected to become fully operational during 2009. Armenia imports
nearly all of its refined petroleum products through Georgia. The
recent conflict between Russia and Georgia resulted in periodic
disruptions of fuel and food imports, and highlighted Armenia's
vulnerability to this single transit corridor.
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
was to focus 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. Armenia 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. Armenia is under strong pressure
from the international community to close its aging nuclear power
plant (ANPP) at Metsamor by 2016. Given that Armenia depends on the
ANPP for over 40% of its electricity, the Armenian Government sees no
alternative to construction of a new nuclear plant. A U.S. Agency for
International Development (USAID)-funded initial planning study was
completed in September 2008, and concluded that a new nuclear plant is
the least-cost option to replace the existing facility. The Armenian
Government is continuing with the planning process for a new plant.
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 (CIS), 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. Armenia re- assumed the chairmanship of
the CSTO for one year in September 2008 and assumed BSEC's six-month
chairmanship in November 2008.
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 572,000
of the estimated 800,000 ethnic Azeris who fled during the Karabakhi
offensives still live as internally displaced persons in Azerbaijan
(according to the Internal Displacement Monitoring Centre, quoting
Azeri Government statistics, June 2008), while roughly 4,700 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. Robert Bradtke became U.S. Co-Chair in 2009.
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://armenia.usaid.gov/.
On March 27, 2006 Armenia signed a Millennium Challenge Corporation
(MCC) Compact with the United States; the agreement entered into
force on September 29, 2006. As of May 2008, due to concerns about the
status of democratic governance, MCC assistance was on hold for the
construction contract for the rehabilitation of rural roads, while
continuing to provide assistance for irrigation infrastructure. In
June 2009, the MCC announced that it would not resume funding for
any further road construction and rehabilitation.
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 at 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 resulted in
double-digit GDP growth for 2002-2007. 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 toward primary
healthcare and the rationalization of social support systems of
the government. Other agencies, including the Departments of State,
Agriculture, 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 May 2009 meeting was held in Yerevan.
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, diplomacy, 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 U.S. Assistance to Armenia.]
Principal U.S. Embassy Officials
Ambassador--Marie L. Yovanovitch
Deputy Chief of Mission--Joseph Pennington
Political/Economic Chief--Barton Putney
Assistance Coordinator--Charles Lobdell
Consular Officer--Robert Farquhar
Management Officer--Veronica Hons-Olivier
Regional Security Officer--Gordon Goetz
USDA Marketing Assistance Project Director--Frederic Johnston
USAID Director--Jatinder Cheema
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: 1-877-4-USA-PPT (1-877-487-2778); TDD/TTY:
1- 888-874-7793. Passport information is available 24 hours, 7 days
a week. You may speak with a representative Monday-Friday, 8 a.m. to
10 p.m., 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 800-CDC-INFO (800-232-4636) 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. The
CDC publication "Health Information for International Travel" can be
found at http://wwwn.cdc.gov/travel/contentYellowBook.aspx.
Further Electronic Information
Department of State Web Site. Available on the Internet at
http://www.state.gov, the Department of State web site provides timely,
global access to official U.S. foreign policy information, including
Background Notes and daily press briefings along with the directory
of key officers of Foreign Service posts and more. The Overseas
Security Advisory Council (OSAC) provides security information and
regional news that impact U.S. companies working abroad through its
website http://www.osac.gov
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 Bank.
State Department Documents and Publications
October 9, 2009
US
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: Estimates range from 2,967,004 (CIA World Factbook,
July 2009 est.) to 3,235,000 (Armenia National Statistical Service,
October 1, 2008 est.).
Ethnic groups: Armenian 97.9%; Yezidi 1.3%; 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--20.21/1,000. Life expectancy--72.68
years.
Work force (1.481 million; 7.1% unemployed): Industry and
construction--15.6%; agriculture and forestry--46.2%; services--38.2%.
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).
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: the Armenian National Congress, 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 (2008)
GDP: $11.93 billion.
GDP growth rate (CIA World Factbook, 2008 estimate): 6.8%.
Per capita GDP PPP (2008): $6,310.
Inflation (CIA World Factbook, 2008 estimate): 9%.
Natural resources: Copper, molybdenum, zinc, gold, silver, lead,
marble, granite, mineral spring water.
Agriculture: Products--fruits and vegetables, wines, dairy, some
livestock.
Industry: Types--diamond-processing, metal-cutting machine tools,
forging- pressing machines, electric motors, tires, knitted wear,
hosiery, shoes, silk fabric, chemicals, trucks, instruments,
microelectronics, jewelry manufacturing, software development, food
processing, brandy.
Trade: Exports--$1.124 billion: pig iron, unwrought copper, nonferrous
metals, diamonds, mineral products, foodstuffs, energy. Export partners
(2008)--Russia 20.2%, Germany 17.2%, Netherlands 12.2%, Belgium 8.5%,
Georgia 7.7%, Bulgaria 5.7%, U.S. 4.9%. Imports (2008)--$3.763 billion:
natural gas, petroleum, tobacco products, foodstuffs, diamonds. Import
partners (2008)--Russia 19.3%, China 8.7%, Ukraine 7%, Turkey 6.1%,
Germany 5.8%, U.S. 4.9%, Iran 4.6%.
PEOPLE AND HISTORICAL HIGHLIGHTS
Ethnic groups in Armenia include Armenians (98%), 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, and with
the February 2008 decision by the Country of Law Party to join the
governing coalition, 113 seats out of the 131 in the National Assembly
are held by pro-government parties. The sole opposition faction in
parliament, the Heritage Party, holds seven seats. The remaining
members of parliament are independent, although most of these are
aligned de facto with the pro-government parties. The unicameral
National Assembly has 90 seats which are elected by proportional
representation (party list), and 41 are single mandate districts.
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 been critical of
the conduct of national elections in 1995, 1999, and 2003, as well as
the constitutional referendum of 2005. 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.
Armenia held presidential elections on February 19, 2008. The
elections, while originally deemed by the OSCE's Office for Democratic
Institutions and Human Rights (ODIHR) to be "mostly in line" with OSCE
standards, were later seen to be marred by credible claims of ballot
stuffing, intimidation (and even beatings) of poll workers and proxies,
vote buying, and other irregularities. Recounts were requested,
but ODIHR observers noted "shortcomings in the recount process,
including discrepancies and mistakes, some of which raise questions
over the impartiality of the [electoral commissions] concerned."
Mass protests followed the disputed vote. For 10 days, large crowds of
pro- opposition demonstrators gathered in Yerevan's downtown Freedom
Square. Police and security forces entered Freedom Square early in
the morning on March 1, 2008, ostensibly to investigate reports of
hidden weapons caches. This operation turned into a forced dispersal
of demonstrators from Freedom Square by massed riot police. Following
the clearing of Freedom Square, clashes erupted in the afternoon
between massed demonstrators and security personnel, and continued
throughout the day and evening, leading to ten deaths and hundreds of
injuries. President Kocharian decreed a 20-day state of emergency in
Yerevan late on March 1, which sharply curtailed freedom of media and
assembly. Dozens of opposition supporters were jailed in the wake of
the violence, in proceedings that many international watchdog groups
have criticized as politically motivated. Armenia's media freedom
climate and freedom of assembly remained poor overall, though somewhat
improved after the state of emergency was lifted. Serzh Sargsian took
office as President in April 2008.
The National Assembly launched a parliamentary ad hoc commission
tasked with an inquiry into the events of March 1-2. The ad
hoc commission showed early promise, despite concerns about its
pro-government composition. The commission members summoned senior
government officials to testify in public hearings, and subjected
them to probing questions. This effort was expanded by a presidential
directive on October 23, 2008 that formed an independent fact- finding
group tasked to support and report to the ad hoc commission. It
was composed of members appointed in equal numbers by ruling and
opposition parties. These initiatives to uncover the truth about the
March 1 events have been welcome, albeit imperfect, steps to provide
public accountability.
Principal Government Officials
President--Serzh Sargsian
Prime Minister--Tigran Sargsian
Foreign Minister--Edward Nalbandian
Defense Minister--Seyran Ohanian
Ambassador to the U.S.--Tatoul Markarian
Ambassador to the UN--Armen Martirosyan
Armenia's embassy is located at 2225 R Street, NW, Washington, DC,
20008; tel: 202-319-1976; fax: 202-319-2982.
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 Armenia 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,
and 300 for most of 2008. 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, 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
GDP growth rates every year from 2002 to 2007.
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 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 Armenian products as
well as the value of remittances from abroad, most of which are
dollar-denominated.
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. Armenia imports all of its natural gas from
Russia at a significant discount from world market rates, though a
new contract signed with GazProm in late 2008 calls for significant
price increases in 2009 and 2010, and in succeeding years the price
is expected to converge with the market price. A gas pipeline from
Iran to Armenia will help to diversity Armenia's gas supply, and is
expected to become fully operational during 2009. Armenia imports
nearly all of its refined petroleum products through Georgia. The
recent conflict between Russia and Georgia resulted in periodic
disruptions of fuel and food imports, and highlighted Armenia's
vulnerability to this single transit corridor.
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
was to focus 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. Armenia 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. Armenia is under strong pressure
from the international community to close its aging nuclear power
plant (ANPP) at Metsamor by 2016. Given that Armenia depends on the
ANPP for over 40% of its electricity, the Armenian Government sees no
alternative to construction of a new nuclear plant. A U.S. Agency for
International Development (USAID)-funded initial planning study was
completed in September 2008, and concluded that a new nuclear plant is
the least-cost option to replace the existing facility. The Armenian
Government is continuing with the planning process for a new plant.
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 (CIS), 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. Armenia re- assumed the chairmanship of
the CSTO for one year in September 2008 and assumed BSEC's six-month
chairmanship in November 2008.
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 572,000
of the estimated 800,000 ethnic Azeris who fled during the Karabakhi
offensives still live as internally displaced persons in Azerbaijan
(according to the Internal Displacement Monitoring Centre, quoting
Azeri Government statistics, June 2008), while roughly 4,700 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. Robert Bradtke became U.S. Co-Chair in 2009.
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://armenia.usaid.gov/.
On March 27, 2006 Armenia signed a Millennium Challenge Corporation
(MCC) Compact with the United States; the agreement entered into
force on September 29, 2006. As of May 2008, due to concerns about the
status of democratic governance, MCC assistance was on hold for the
construction contract for the rehabilitation of rural roads, while
continuing to provide assistance for irrigation infrastructure. In
June 2009, the MCC announced that it would not resume funding for
any further road construction and rehabilitation.
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 at 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 resulted in
double-digit GDP growth for 2002-2007. 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 toward primary
healthcare and the rationalization of social support systems of
the government. Other agencies, including the Departments of State,
Agriculture, 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 May 2009 meeting was held in Yerevan.
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, diplomacy, 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 U.S. Assistance to Armenia.]
Principal U.S. Embassy Officials
Ambassador--Marie L. Yovanovitch
Deputy Chief of Mission--Joseph Pennington
Political/Economic Chief--Barton Putney
Assistance Coordinator--Charles Lobdell
Consular Officer--Robert Farquhar
Management Officer--Veronica Hons-Olivier
Regional Security Officer--Gordon Goetz
USDA Marketing Assistance Project Director--Frederic Johnston
USAID Director--Jatinder Cheema
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: 1-877-4-USA-PPT (1-877-487-2778); TDD/TTY:
1- 888-874-7793. Passport information is available 24 hours, 7 days
a week. You may speak with a representative Monday-Friday, 8 a.m. to
10 p.m., 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 800-CDC-INFO (800-232-4636) 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. The
CDC publication "Health Information for International Travel" can be
found at http://wwwn.cdc.gov/travel/contentYellowBook.aspx.
Further Electronic Information
Department of State Web Site. Available on the Internet at
http://www.state.gov, the Department of State web site provides timely,
global access to official U.S. foreign policy information, including
Background Notes and daily press briefings along with the directory
of key officers of Foreign Service posts and more. The Overseas
Security Advisory Council (OSAC) provides security information and
regional news that impact U.S. companies working abroad through its
website http://www.osac.gov
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 Bank.