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Understanding Armenia: Translating Independence Into Development

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  • Understanding Armenia: Translating Independence Into Development

    UNDERSTANDING ARMENIA: TRANSLATING INDEPENDENCE INTO DEVELOPMENT
    Michael Santo

    HULIQ.com, SC
    Oct 10 2011

    Armenia recently celebrated its 20 anniversary of independencebut
    good words and wishes have already been toasted, the professional
    community should pass the hangover and make assessments about the
    two decades of sovereign political existence of the Third Republic.

    As in all other post-Soviet entities, Armenia has had a revolutionary
    path of crafting both independence and laying sustainable grounds for
    development, in the words of the UN Charter --- through "the scourge
    of war" imposed by neighboring Azerbaijan. As a matter of fact, all
    three acting administrations, being equally criticized and cheered,
    met different and difficult challenges in their service.

    A brief analysis of three presidencies, hardly ever made so far,
    shall give proper understanding about the modern history and current
    political trends of this tiny mountainous country in South Caucasus.

    In sum, we will argue that all three presidential administrations
    and first 20 years of independence gave birth to three different
    ideological perspectives of development. Despite the fact that some
    experts, mostly due to partisan affiliations, are charmed by their
    "own idol" and ignorant of others, I will maintain that past 20 years
    should be assessed as an integrated whole. Though citizens have the
    final vote, it should be firmly established that all three presidents
    of Armenia, as in any country, contributed to its development at the
    extremes of their mind and abilities.

    First presidency (1991-1998)

    The first President - Levon Ter-Petrossian - is widely believed to be
    elected in the only and truly democratic election of 1991, affected
    by the nation-wide euphoria of independence. In fact, the nation voted
    not for Ter-Petrossian as a politician, but instead voted for the man
    who, as a leader himself, represented independence with his struggle.

    The epoch of President Ter-Petrossian showed that the newly emerging
    Armenian statehood was able to win a war and was strong enough to
    meet the challenge of regime transformation - from command economy
    to emerging liberalism. However, neither the nation itself nor
    the leaders were prepared to live in democracy and very soon the
    euphoria was replaced with the first seeds of "command liberalism",
    resulting in an illegitimate privatization process as elsewhere in
    post Soviet republics.

    Firstly, Ter-Petrossian was advocating a liberal statehood and
    "democratic island" in South Caucasus - with various degrees
    of practical success. During his first term until 1996, despite
    galvanizing de facto confrontation withs neighboring Azerbaijan and
    imposed blockade, his administration indeed demonstrated certain
    progress. But in the mid-1990s the so-called Vietnam syndrome
    broke grounds in the Armenian political landscape, as those
    freedom-fighters returning from Karabakh war fields "demanded" own
    place in the political and economic landscape. Having no other option
    to reintegrate these mighty individuals into civil life, the ruling
    regime surrendered at the expense of democratic development.

    This was well demonstrated at an interview by former almighty "minister
    of everything" (now on Interpol's "most wanted" list) Vano Siradeghyan,
    where he shared memoirs about 1996 presidential campaign.

    Despite public pressure and street rallies, Siradeghyan testified,
    together with Defense minister Vazgen Sargsyan (a hero of Karabakh
    war, later prime-minister, killed in the 1999 Parliament shootings)
    a decision was made not to go for a second tour of elections, as "the
    president was tired and not ready to contest". Hence, the second term
    of President Ter-Petrossian may be well portrayed as a "rule of power",
    which would in two years time (early 1998) abandon him and crown
    newly appointed prime-minister Robert Kocharian as a next President.

    This moment of early 1998 should be now named as a turning focal
    point, where the development ideology of Ter-Petrossian was rejected
    by the ruling elite and, by and large, within the society. As a wise
    politician, he decided to step down without further adieu.

    Second presidency (1998-2008)

    The decade of second President Robert Kocharian proved that Armenia
    can recover its economy through systematic convergence with the
    Diaspora. President Kocharian, being erected by same power circles,
    was heavily dependent on them up to late 2000. At some point in 2001,
    Kocharian started to advocate a new wisdom: Armenia should become
    the "most organized state" in South Caucasus, which was a nice way
    to say that financial and major economic influence in the country
    must be put under strict controls of the executive. The elections
    of 2003 reestablished this system. At that moment there had been
    certain illusions that "an organized state" was gradually becoming
    a successful and uncontested political reality. With no serious
    opposition on the ground, sky-rocketing hydrocarbon prices in the
    international market and, based on this, huge Diaspora remittances
    (mainly from Russia, also from France and US) and investment boom
    into real economy contributed to the illusion that the society is
    fond of the much-advertised "stability".

    However, the "lifeblood injections" of Diaspora-generated remittances
    --- the hidden success story of past decade --- dramatically fell with
    the first signs of the global economic downturn which day-for-day
    practically coincided with the inauguration of the third, incumbent
    President Serzh Sargsyan. On another side, the re-birth of charismatic
    and, in the words of Wikileaks cables -the "willy" Ter-Petrossian as
    a so-called radical opposition leader accelerated a process of public
    resentment and protest. The aftermath of strong political struggle
    between the ruling elite and Ter-Petrossian camp had been the endless
    street rallies and unfortunate death of ten people in after-election
    street clashes of March 2008.

    Undoubtedly, as a strong politician and a leader, it should have been
    hard (not to say a personal tragedy) for President Kocharian to pass
    on his legacy through a "state of emergency", but he assured he was
    not going to stay as a youngest "pensioner". Accordingly, his unfading
    political activism ever since raises unanswered questions.

    Third presidency (since April 2008)

    Although the third Presidency was a product of power-transfer within
    same ruling elite, but the new president Serzh Sargsyan from Day
    One initialed a different development ideology. Just to mention
    the rapprochement initiative with neighboring Turkey. Confronting
    an uneasy situation, the chief challenge of third Presidency has
    been to show whether or not Armenia (as a state) is fundamentally
    and sustainably able to develop. Troubled by an economic recession
    period, this will by no means become a hotspot discourse for 2012
    parliamentary election campaign.

    Indeed, President Sargsyan used to face tremendous challenges, both
    internally and externally. The opposition is much more consolidated
    than even before the 2007 general elections, largely due to political
    hyper-activism of ex-president Ter-Petrossian. Externally, the August
    war of 2008 was a "stress test" for the heavily import-dependent
    Armenian economy. However, the incumbent administration has managed
    to develop full-range support from all major power centers -
    from Washington to Brussels and Moscow, mainly for proactive
    and ground-breaking foreign policy endeavors. Substantially, on
    Nagrono-Karabakh his team enjoys empathy of foreign partners, while
    in Armenian-Turkish rapprochement track Sargsyan managed to handle
    both domestic unhappiness and the opposition of Diaspora groups.

    The newly emerging President Sargsyan demonstrated that he is a man
    of political compromise. Still in 2008, even the forgotten political
    figures, who did have no public influence, were organized in somewhat
    uncertain Public Chamber - a localization of Russian experience
    itself. In the year of 2011 an unprecedented move shook the grounds
    of domestic politics, aimed at "consolidating the peace". The main
    opposition suddenly agreed to establish a civilized dialogue channel
    with the government, which for the most observers, perhaps, once
    more illustrated the fundamental difference of the current regime in
    contrast of its predecessors.

    However, unlike the situation in foreign policy, President Sargsyan is
    still unable to solicit support of a common citizen in domestic economy
    endeavors. For the latter, the inflation and economic downturn are
    still a daily challenge with only two possible scenarios - either the
    acting team of economists, largely known as a team of intellectuals,
    should be dismissed as an oblation to the public opinion, or a miracle
    should be prayed for.

    What next?

    In his 3rd year, President Sargsyan is unalternatively tasked to
    perform another major and necessarily legitimate reshuffle in the
    system of power. But this would be only the "means" of his alleged
    paradigm shift, not the "ends". The "ends" should yet be a gradual
    evolution of the quality of public authority.

    Being the leader of the acting parliament majority - the Republican
    party - President Sargsyan firmly advocates that the next parliament
    (elections scheduled for May 2012) should only include "bright
    minds" and well educated individuals, never mentioned in publicly
    teased unlawful behavior. To make this a reality, a law on lobbying
    activities shall be adopted by February 2012 the latest - in order
    to calm down initial stress from local business tycoons.

    The recent surprise has been the establishment of presidential
    Economic Reform Chamber, headed by prime-minister Tigran Sargsian
    (no relation to the president), to reform and implement better
    state regulation laws and strategy that so far hinders sustainable
    economic development. Re-emerging from a political crisis of 2008,
    the current administration now has the most challenging alternative -
    "win new hearts" or surrender to main adversaries as a natural flow of
    alleged political inconsistency. The Economic Reform Chamber seems to
    be a last chance to the acting government to show performance before
    accelerating 2012 political campaign.

    But for these days, the streets of this tiny country in Southern
    Caucasus are filled with festive atmosphere, and hardly anyone thinks
    of politics. The hard times are yet to come in late October, when
    the 2012 parliamentary elections campaign will kick off by inertia.

    Written by Hovhannes Nikoghosyan, PhD, the Chair of Political
    Processes and Technologies Dep't at Russian-Armenian (Slavonic)
    University, Yerevan.

    http://www.huliq.com/3257/understanding-armenia-translating-independence-development

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