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Armenia: The Eastern Partnership's Unrequited Suitor - Analysis

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  • Armenia: The Eastern Partnership's Unrequited Suitor - Analysis

    ARMENIA: THE EASTERN PARTNERSHIP'S UNREQUITED SUITOR - ANALYSIS

    Eurasia Review
    http://www.eurasiareview.com/15092011-armenia-the-eastern-partnerships-unrequited-suitor-analysis/
    Sept 15 2011

    By Nelli Babayan and Natalia Shapovalova for FRIDE

    Armenia came to the EU's attention relatively late in comparison to
    other Eastern European countries predominantly due to its lack of
    energy resources. The EU's diplomatic efforts in the South Caucasus
    have been mainly focused on revolutionary Georgia, energy-rich
    Azerbaijan, and the fear that conflicts in the region may endanger
    the EU's energy diversification plans. However, under the EU's all-
    encompassing approach Armenia also appeared on the EU's radar, and in
    2004 along with Georgia and Azerbaijan was included in the European
    Neighbourhood Policy (ENP). Since a bloody political crisis in 2008,
    democratisation has stalled and the country remains brittle.

    While voicing its EU aspirations, Armenia has not been as outspoken
    as its Western neighbours, Georgia, Moldova and Ukraine. The conflict
    with Azerbaijan over Nagorno-Karabakh, the closed border with Turkey
    and the negative economic effect of Georgia's conflicts have put
    Armenia in a difficult geopolitical situation. These factors have
    encouraged its Russian-oriented foreign and security policies.

    Moscow's role as a security guarantor is evidenced by Armenia's
    membership in the Moscow-led Collective Security Treaty Organisation.

    Armenia Nevertheless, Armenia's interest in the EU has grown since
    the launch of the Eastern Partnership (EaP) in 2009. Unlike other
    EaP partner countries Armenia's government, opposition and civil
    society have been more optimistic about the EaP's potential to generate
    substantial benefits for their country. Ahead of the EaP summit at the
    end of September, Armenia's government hopes its progress in reform
    will be positively assessed and rewarded by greater EU assistance,
    and that the issue of conflict resolution in the neighbourhood will
    receive more attention.

    ARMENIAN VIEWS ON EUROPEAN INTEGRATION At least publicly, the
    government, opposition parties and society are united around
    the idea of European integration. All main political parties in
    Armenia support European integration, though they frame the issue
    differently. The opposition parties are more outspoken in their
    support. The Heritage party declared that accession to the EU should
    become the principal orientation of Armenia's foreign and domestic
    policies. The Armenian Revolutionary Federation Dashnaktsutyun claims
    there is no alternative to EU integration as it is Armenia's path
    to internal and economic development. Although the ruling coalition
    parties do not mention full integration as an end goal, they agree
    on the need to focus on deepening relations with the EU and getting
    closer to EU standards. However, the constant floor-crossing of
    Armenian political parties and the lack of comprehensive political
    manifestos makes them unreliable partners in EU integration.

    The government speaks of EU integration as an economic opportunity
    in terms of trade, investment and aid, as well as improving Armenia's
    position in the region. As one observer put it: the ruling elite wants
    to belong to a good club. However, despite popular support for EU
    integration, the government cautiously avoids talking of membership
    so as to safeguard its relationship with its strategic Russian partner.

    In addition, the membership goal is seen as unrealistic, and the
    government does not want to raise people's expectations.

    Armenia's foreign policy is based on the principle of complementarity,
    which entails positive relations with all states in the region as well
    as those with regional interests. As an Armenian diplomat put it,
    Armenia has tried not to exploit the differences between Russia and
    the West, a strategy unsuccessfully employed by Georgia.

    The National Security Strategy of 2007 names the development of
    Armenia's relations with the European structures and with the EU
    as a foreign policy priority. Armenia's participation in European
    integration, along with other post- Soviet states, is the focus of the
    international component of the country's external security strategy.

    Within this, European integration and the EU are mentioned in several
    contexts: adoption of a European model of development, participation
    in the regional transport and energy cooperation programmes supported
    by the EU, reform of the education system, and the reform experience
    of Eastern European countries.

    In 2007, the Parliamentary Standing Committee on European Integration
    was created to promote links with the EU and the Council of Europe
    and to harmonise Armenian laws with European legislation. The national
    programme for the approximation of Armenia's legislation with the EU
    acquis was adopted in 2006, though never implemented. In addition,
    the three parties forming the ruling coalition - the Republican Party,
    Prosperous Armenia and Rule of Law - are seeking membership in the
    European People's Party.

    While the government focuses on the pragmatic gains of EU integration,
    the opposition and civil society view EU integration as a process of
    internal transformation based on the EU's democratic values. Thus,
    the normative ideals often advocated by the EU seem to find greater
    resonance with civil society than the govern- ment. For Armenia's
    government European integration is only a political process, while for
    civil society it means domestic recovery, a revival of moral values,
    a change to people's mentality, the establishment of the rule of law
    and democratisation.

    The Armenian people expect European integration to bring about improved
    living standards and ease travel procedures. In addition, opinion polls
    emphasise the general expectation that the EU will be more active in
    the resolution of the Nagorno-Karabakh issue, economic development,
    and the strengthening of democratic institutions. Despite reportedly
    poor awareness about the EU's functioning, these expectations are
    confirmed by a strong support for EU integration (86 per cent in the
    capital Yerevan) and high confidence in EU institutions (2.5 times
    higher than in the national ones).

    FORM BEFORE SUBSTANCE Many observers in Yerevan say that though
    the EaP is a continuation of the ENP it provides a new impetus for
    reforms in Armenia. The inclusion of civil society in the EaP process
    is one of the most frequently mentioned positive aspects of the
    partnership. Despite differences between Armenian NGOs on a strategy
    for civil society relations with the government (cooperation versus
    opposition), many NGOs are actively involved in the work of the EaP
    Civil Society Forum.

    In addition, the Natio- nal Platform tries to establish contacts
    with government ministries dealing with European integration and the
    parliamentary delegation to EURONEST.

    According to civil society representatives, most of the EaP's
    achievements in Armenia are mainly procedural. These include quick
    progress on the EU-Armenia Association Agreement (AA) talks that
    started a year ago, preparation for free trade area negotiations,
    a visa facilitation agreement and a mobility partnership. Meanwhile,
    many note a lack of internal discussion about the consequences of
    these agreements for Armenia. The talks are led by a narrow group
    within the government without parliamentary or public scrutiny. This
    raises fears within society, for instance about increased emigration
    as visas become easier to obtain, even if the future agreement will
    merely lessen the bureaucratic burden of the visa application process
    and lower the visa fee.

    The European Commission and World Bank reports note that Armenia
    has improved customs administration, increased transparency of the
    judiciary and conditions for doing business. However, Transparency
    International's (TI) assessment of the ENP Action Plan imple-
    mentation in judicial reform, the fight against corruption and
    reform of public administration shows that compliance is far from
    being achieved. Compliance is higher in judicial reform (46 out of
    64 Action Plan objectives have been accomplished) and implementation
    of the 'Group of States against Corruption' recommendations in the
    fight against corruption (19 out 26 implemented). But it is still low
    in civil service reform (25 out of 50 measures fulfilled). In fact,
    according to Transparency International popular perception was that
    corruption increased in Armenia in 2010, with the judiciary, police
    and public service seen as the most corrupt institutions.

    Much of civil society credits Western pressure on Armenia with the
    amnesty offered to political prisoners in May 2011. Western funding
    has also contributed to positive developments such as the creation of
    the national ombudsperson institute, changes in the media legislation,
    and dialogue between the government and opposition. Nevertheless,
    according to Freedom House, Armenia has not improved its democratic
    performance since the political crisis of 2008, in which ten
    people were killed by state forces during the violent dispersal
    of post-election protests. For many democratic elections remain a
    failed test in Armenia and so will be a key indicator of the success
    or failure of European integration.

    The multilateral platform of the EaP is seen to have very
    limited effectiveness in Armenia due to the unresolved conflict in
    Nagorno-Karabakh. Thus, regional cooperation in the South Caucasus
    takes bilateral forms. For example, the South Caucasus integrated
    border management programme launched in 2010 focuses on cooperation
    between Georgia and Armenia, and Georgia and Azerbaijan. There is
    also a risk that parliamentary cooperation within EURONEST will be
    threatened by politicisation of the conflict resolution issues.

    EU RESPONSES Despite the apparent need for democratic reforms,
    democracy promotion has not been high on the EU's agenda in
    Armenia. Unlike in the case of Ukraine in 2004, there was no strong
    reaction by the EU to the post-election political crisis in 2008, which
    resulted in ten deaths and governmental harassment of oppositional
    businesses and media. The EU limited itself to procedural steps
    such as the establishment of human rights dialogue with the Armenian
    authorities. Unlike in the case of Ukraine and Moldova, the EU started
    the AA negotiations with Armenia as well as other South Caucasus
    countries without a precondition of free and fair elections.

    Furthermore, EU funding to Armenia does not prioritise the reform of
    democratic institutions. In 2007-2010 Armenia received ~@98 million
    from ENPI funds, most of which went to support vocational education
    and training, justice reform, and to prepare Armenia for the AA and
    a Deep and Comprehensive Free Trade Area (DCFTA). Smaller amounts
    went to civil society and to support media freedom, human rights,
    parliamentary practices and the electoral process. Though the ENPI
    funding has increased to ~@157 million for 2011-2013, it has also
    focused primarily on effective governance, trade liberalisation,
    and border and migration control in the context of future AA and
    DCFTA talks.

    While EU-Armenia cooperation will proceed smoothly in areas of mutual
    interest, such as trade and economic cooperation, an implementation
    of DCFTA will depend on Yerevan's adoption of European standards
    of governance. Here the EU's support cannot be limited to technical
    issues. There will be no gain from DCFTA for Armenia if there is no
    rule of law, respect for private property, free economic competition
    and market.

    These changes are seen as part of a broader political reform that would
    dismantle the ruling regime's monopoly over the country's economy.

    The EU still needs to offer more to Armenia in the field of energy.

    Armenia's energy interests are generally overlooked by the EU. While
    the EU focuses on nuclear safety, it does not make any offers to
    enhance Armenia's energy security, which is dependent on Russian
    fossil fuels and bypassed by projected pipelines promoted by the EU.

    For example, the EU could assist state and non-state actors
    (local communities, local governments) in introducing energy saving
    technologies and help with attracting investment in renewable energy
    production.

    Unlike in the case of other post-Soviet conflicts, the EU is not
    actively involved in the resolution of the Armenia-Azerbaijan
    conflict over Nagorno-Karabakh. In the period 2003-2011, the EU
    Special Representative (EUSR) was tasked to contribute to the conflict
    settlement facilitated by other actors, namely the OSCE Minsk group.

    His work was supported by several members of a border support team
    based in Tbilisi with advisers from the EU Delegations in Yerevan and
    Baku. Facing Baku's opposition to his every effort Peter Semneby, the
    last EUSR, never visited the conflict region. In February 2011 the EUSR
    mandate was discontinued, raising doubts over the importance of the
    region for the EU. However, in late August 2011 Brussels appointed
    a new EUSR for the South Caucasus and the crisis in Georgia, who
    would also deal with the Nagorno-Karabakh issue. Since last year,
    the EU has cautiously supported confidence-building efforts at civil
    society level by funding a project of European NGOs in the region.

    Armenia has not invited the EU to participate in the Minsk Group
    settlement mechanism. However, the EU's long-term involvement in the
    conflict's resolution is generally welcome in Armenia. Long term
    resolution of the conflict is expected to rely on the EU's soft
    power, assistance on environmental issues, civil society support,
    and continuous encouragement of regional cooperation. In the short
    term Armenia envisions the EU's involvement in conflict prevention
    measures. The new EUSR should have more political support and
    resources to fulfil this role. So far, the opposite is the case:
    the budget of the new EUSR is about half what was available for the
    two former special representatives to the region.

    CONCLUSION Despite broad political support across party lines
    and societal support for European integration, there is little
    understanding of what European integration means in practice. Armenia's
    government views it through a prism of economic cooperation that
    improves the country's chances for prosperity and increases both its
    and the country's international weight. Opposition and civil society
    view European integration as an asymmetrical relationship with the EU
    applying pressure on Armenia to promote democratic reform. Finally,
    though Armenia's public is largely supportive of European integration,
    it is poorly informed.

    There is also a gap between the EU's desired and actual role in the
    South Caucasus. While the EU is seen as a key player in Armenia's
    democratisation, it is clear that its interest in the region is
    primarily energy driven. If, in the public's perception, the EU fails
    to deliver as a normative actor currently high public confidence in
    EU institutions may wane.

    The test posed by parliamentary and presidential elections in 2012
    will be very important. Many in Armenia agree that the progress
    of European integration can be measured by Armenia's willingness
    to hold free and fair elections for the first time since the early
    1990s. This is also an opportunity for the EU to take advantage of
    its leverage over Armenia and make a difference through cooperation
    with other Western actors. Armenia's progress in democratisation is
    important for the success of the Eastern Partnership policy.

    The EU needs to pay greater attention to the visibility of its
    activities, which remain largely unknown to the general public. This
    can be done through regular meetings with civil society organisations,
    students, and civic activists. Building on its positive image among
    Armenia's population as a soft power, the EU needs to invest more
    into the development of a genuinely vibrant civil society, which
    will finally assume its function as a watchdog. Straying slightly
    away from its usual top-down approach, the EU should endeavour to
    reconcile civil society with the political sphere.

    While the EU has been more involved in conflict resolution in Georgia,
    the new EUSR should pay equal attention to the Nagorno-Karabakh
    conflict. Given the fact that Russia is perceived as a biased actor
    in the region, the EU's increased involvement is likely to be welcomed
    by local stakeholders.

    Authors:

    Nelli Babayan is a researcher at the University of Trento. She was
    visiting researcher at FRIDE in 2010.

    Natalia Shapovalova is a researcher at FRIDE.

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