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Mensoian: Sarkisian's Faustian Bargain

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  • Mensoian: Sarkisian's Faustian Bargain

    MENSOIAN: SARKISIAN'S FAUSTIAN BARGAIN
    By Michael Mensoian

    http://www.hairenik.com/weekly/2009/10/1 7/mensoian-sarkisians-faustian-bargain/
    October 17, 2009

    It would be fair to say that the protocols Nalbandian recently signed
    in Zurich contains absolutely nothing that benefits Armenia's economic
    and political interests or its longterm security needs. The protocols
    are Turkish documents, under the guise of having been mediated by
    Switzerland. They are documents that strengthen Turkey's position
    within the region and essentially reduce Armenia to a vassal state,
    whose president is no better than a satrap.

    No one will argue that Yerevan is on par with Ankara in terms of raw
    power and influence. However, President Sarkisian had taken a sacred
    oath to protect the interests of Armenia (and the Armenian nation).

    Signing the protocols as a basis for continued negotiations not only
    represents a complete denial of that solemn oath, but a repudiation
    of everything that Hai Tahd represents.

    Paradoxically, it may be the Turkish Parliament that may save Armenia
    from the protocols. Ankara will not abandon Azeri President Ilhem
    Aliyev and he, in turn, will not voluntarily relinquish Azerbaijan's
    claim to Karabagh (Artsakh). Azerbaijan is Turkey's link to Central
    Asia and its vast energy resources. The Baku-Ceyhan pipeline is
    a major supplier of oil to the West. That pipeline, supplemented
    by the projected Nabucco gas pipeline from Baku through Turkey
    to its terminus in Baumgarten, Austria, will rival Gazprom in its
    capacity to deliver energy resources to Europe. With that in mind,
    it's questionable if the protocols will be ratified by the Turkish
    Parliament without the Karabagh issue being part of the negotiations
    leading to the normalization of diplomatic relations and the opening
    of the border. This is possibly more wishful thinking than a rational
    assessment as to what the Turkish Parliament will do. As it is, the
    protocols essentially prevent Armenia from supporting any defensive
    effort by the Karabaghtsis against future Azeri aggression. Any hope
    of de jure independence that our brothers and sisters in Artsakh had,
    has been effectively eliminated.

    Any benefits that Armenia believes it will receive with opening the
    border are illusory at best. Obviously marginal gains will be made.

    That fact is not being ignored. However, any palpable gains associated
    with an open border will come at an exorbitant price for Armenia. It
    is incredulous that the government has not commissioned a study whose
    findings would support its determination to have an open border with
    Turkey. Could it be because none exist?

    First and foremost, normalization based on the protocols will yield
    Turkish gains that will far exceed anything that Armenia may hope to
    achieve under the most favorable of circumstances. Ankara will become
    the dominant power in the south Caucasus, able to challenge Russia
    and Iran in a region both these countries consider important to their
    national interests. In addition, normalization will revitalize the
    dormant Pan-Turanian movement that would expand Turkish influence
    through Azerbaijan into Central Asia and possibly further east to
    include the Chinese province of Xinjiang (Sinkiang), home of the
    Muslim Uighurs. (Only recently, Turkish Prime Minister Erdogan
    chastised Chinese officials for engaging in genocide in putting
    down nationalist demonstrations by the Uighurs.) And finally, it
    will burnish Turkey's image as a conciliator as its candidacy for
    ascension to the European Union is considered.

    If these are not sufficient benefits for Armenia to bestow upon
    Turkey, consider that Turkey will not have to acknowledge the murder
    of 1.5 million Armenians as genocide, nor will any attempt be made
    by Yerevan to lay claim to the Turkish-occupied western provinces of
    Armenia (eastern provinces of Turkey) promised in the Treaty of Sevres
    (Wilsonian Armenia). In return for all this, Turkey will allow its
    border with Armenia to be reopened (and subject to closure on the
    slightest pretext based on Ankara's interpretation of the protocols).

    What political message does this send to the Kurdish nationalists who
    continue to confront Turkey for their independence? What confidence
    does this inspire on the part of Armenians, especially those in the
    diaspora, in Yerevan's continued leadership?

    Since there is no definitive study available, let's consider what
    might logically be expected with the opening of the border. It will
    not be a panacea for what ails the Armenian economy, as its proponents
    claim. On one side of the open border is Armenia, with a population
    less than five percent of Turkey's population (75 million). In terms
    of Gross Domestic Product (GDP), there can be no comparability between
    Armenia and Turkey in the value of their respective GDPs, range of
    goods produced, or per unit costs of specific products. The volume
    of cross-border trade that will take place will obviously favor Turkey.

    The Armenian market would soon be saturated with goods marked "Made
    in Turkey" that will compete with domestically produced goods to
    the detriment of their local producers. A possible benefit to the
    Armenian consumer might be a greater quantity and variety of goods
    at possibly lower prices. Before long, however, the Armenian consumer
    would become more dependent on Turkish imports than locally produced
    goods, and prices may not remain as low as initially experienced. In
    return, what is it that Armenia can export in sufficient quantities to
    pay for this invasion of Turkish products? Given this very plausible
    scenario, how does one envision that the Armenian economy can benefit
    from an open border? On what premise would it be based?

    In a relatively short span of time, Turkish entrepreneurs guided by
    Turkish government regulations would become the significant players,
    as compared to their Armenian counterparts, in determining the rate
    and direction of Armenia's economic development. Given the anticipated
    imbalance in the value of trade between the two countries, Armenia
    would eventually become a debtor nation to Turkey. This situation could
    lead to greater financial control by Turkish interests of Armenian
    industry and whatever improved or newly developed infrastructure that
    may result. Profits generated by Turkish-controlled interests might
    be used for further economic expansion in Armenia or just as easily
    flow to Turkey. This transference of funds would further exacerbate
    Armenia's balance of payment situation. Not a very encouraging
    situation to contemplate.

    With high rates of unemployment in both countries, does it seem
    reasonable that Turkish entrepreneurs, guided by their government's
    regulations, will invest heavily in Armenia to create a robust economy
    generating a higher level of employment? Both nations are presently
    exporting labor in response to high levels of unemployment. If
    investments are made, some industries that immediately come to mind
    are the manufacturing of cement, copper mining, and the lumber industry
    (it doesn't matter that Armenia is not heavily forested).

    These are mentioned because they tend to despoil the environment
    without effective mitigating controls in place. Who will rise in
    protest if people are employed? What a sad trade-off to envision
    for Armenia.

    Whatever other economic activities are generated will be based on
    harnessing the low end of worker skills and wages, although it must
    be conceded that the Armenian labor force may, overall, experience a
    slight increase in its take-home pay. The better educated members of
    the workforce-engineers, research scientists, technicians, etc.-would
    be siphoned off to accept positions in Turkey rather than use their
    productive and creative capabilities within Armenia. This "brain drain"
    would benefit Turkey and weaken Armenia in the long term. This could
    lead to a demographic shift of the better educated families to Turkey.

    The tourist trade, which is a principal growth industry in Armenia,
    could well be taken over by Turkish interests. Armenia has great
    potential as a destination for tourists especially from Europe and
    the diaspora (assuming there is a continuing desire to connect with
    Armenia). The return on investment in the tourist industry is high.

    The expansion of this industry has a high multiplier effect in terms
    of job creation. However, most tend to be at the lower end of the
    wage scale. The Turkish tourist industry has attracted international
    investment and is at a more sophisticated level of operation compared
    to Armenia's. It would seem logical for the Turkish tourist industry
    to expand its operations to include Armenia.

    It would not be surprising that within three to five years, Armenians
    would prefer the Turkish lira to the Armenian dram as the currency of
    choice. In time, it can be expected that the Armenian economy would
    become an integral part of the Turkish economic system with the lira
    as the only currency.

    The oft-repeated benefit that Armenia would have another outlet to
    the world has no basis in fact. There are no Turkish Black Sea ports
    comparable to Batumi or Poti in Georgia, and those that do exist
    (from Trabzon eastward) are neither easily nor economically accessible.

    Armenia would still be dependent on Georgia as its principal
    transportation route. Given Armenia's weakened political position, why
    would the Tbilisi government view her neighbor's transit requirements
    in a more favorable light? Also, how would this "capitulation" affect
    the future of the Javakhk Armenians? As it is, they are under constant
    and pernicious pressure by the Georgian government to acculturate.

    Another thought concerning the protocols is why the Ministry of
    Diaspora, created by the Sarkisian government as a liaison between
    Armenia and the diaspora, was never given a meaningful role as a
    sounding board with the diasporan communities and the leadership of
    the political and humanitarian relief organizations for their input.

    Here was an opportunity to utilize the diaspora beyond its value
    simply as a source of humanitarian and economic aid.

    However, many in the diaspora have taken a "Let's wait to see what
    happens" attitude. Unfortunately, this attitude can be interpreted as
    tacit approval of the dangerous path of conciliation that Sarkisian
    is traveling. These chezoks (neutrals), by failing to take a definite
    position, are welcomed by the proponents of the protocols because
    they provide no opposition to what is taking place. In essence,
    they are supporting Yerevan's capitulation to Turkey.

    There are no economic concessions that Turkey can offer
    Armenia-including the unlikely routing of a spur line connecting
    Armenia to the Baku-Ceyhan pipeline or having the projected Nabucco
    gas pipeline transit Armenia-that can justify Sarkisian's signing of
    the protocols. He has not only failed in his sacred duty to protect
    Armenia from its enemies, but has committed mer Hairenik to a Faustian
    Bargain that must be annulled at all costs. These Turkish documents
    are contemptuous of Armenia's sovereignty and undermine its future
    as a viable political entity.
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