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  • Eurasian Union May Become A Serious Threat To Rehabilitation Of The

    EURASIAN UNION MAY BECOME A SERIOUS THREAT TO REHABILITATION OF THE POLITICAL AND ECONOMIC SYSTEM IN ARMENIA
    by Ashot Safaryan

    arminfo
    Friday, September 7, 18:13

    ArmInfo's interview with Arthur Ghazinyan, Head of the Center for
    European Studies, Yerevan State Univeristy

    Mr. Ghazinyan, what is you assessment of the European integration
    policy of Armenia? Are there any rapprochement trends, considering
    the current negotiations for the Association Agreement and the Deep
    and Comprehensive Free Trade Agreement?

    Rapprochement with the EU may lead to development of the domestic
    reform models. We must chose a model: the closed political
    economic system characteristic to Russia, Belarus or Kazakhstan,
    the monopoly system or the open system with competitive economy and
    without domination in the market i.e. all the elements of liberal
    economy in the EU member-states. It would be perfect if Armenia
    could preserve the current peculiar 'status-quo' simultaneously
    developing cooperation with both Moscow and Brussels. But, such
    scenario is impossible. Armenia has got an opportunity to apply the
    western model of development by joining the EU Eastern Partnership
    Project in May 2009. It would be a serious mistake for Armenia to
    deviate from the launched pro-Western course. As for the DCFTA, is
    provides for facilitation of trade process, transboundary cooperation,
    customs clearance on preferential terms etc. All these reforms require
    internal reforms, first of all.

    May Moscow's idea of Eurasian Union become an obstacle to that
    liberation?

    Surely, the Eurasian Union is a serious threat to rehabilitation
    of the political and economic system of Armenia. Russian President
    Vladimir Putin's idea of the Eurasian Union is aimed at regional
    integration. Russia, Belarus and Kazakhstan have already achieved
    certain success in the given dimension by creating the Customs Union.

    For Armenia, if it is offered to join the project that is widely
    discussed by experts and politicians, the Eurasian Union implies
    specific isolation in the South Caucasus. I doubt very much that
    Azerbaijan will support the idea of the Eurasian Union. I rule out
    Tbilisi's joining it. In such situation, they use Armenia's economic
    blockade by Azerbaijan and Turkey and make it seek 'shelter' in
    Moscow, in the systems of military and economic security offered by
    the Kremlin.

    Should Armenia learn the experience of Georgia that has achieved
    economic and political successes due to rapprochement with the West,
    but has lost Abkhazia and South Ossetia after the August War of 2008?

    Georgia actually lost control of those two countries after the collapse
    of the Soviet Union, and the August War 2008 just confirmed that loss
    de-jure. At the same time, Georgia has got rid of a sore, which made
    it possible for the entire organism to live and develop.

    Russia annexed those territories, which is not favorable to it. It
    would be more reasonable for Moscow to leave the conflict unresolved
    in order to come out as an arbiter at any moment and use the conflict
    for its purposes. Occupying and recognizing the two countries Moscow
    lost its levers of influence on Georgia.

    Bringing the example of Georgia many experts, sure, hint at a danger
    of losing Karabakh in case of pro- Western orientation. However,
    I think that Azerbaijan is not ready and will hardly ever dare to
    launch military actions against pro-western Armenia and Karabvakh,
    as it has huge western oil and gas economic capital and is not sure
    in its success in that war.

    Any attempt to withdraw from the peace talks and unleash war will
    create real grounds for the USA and EU to recognize independence
    of Nagorno Karabakh on the basis of incompatibility of two nations
    forced to co-exist within one state. Such scenario has already been
    observed in Kosovo when Serbia decided to response to military force
    against the Kosovo Albans. Azerbaijan must realize and, I think,
    they have already understood that the West will now allow a new war
    and violence in the South Caucasus.

    Do you think that Armenia could preserve the current peculiar
    'status-quo' simultaneously developing cooperation with both Moscow
    and Brussels?

    I would be ideal, but such scenario is impossible. We have been trying
    to wage the notorious complementary policy for over 20 years.

    Now, the terms are being toughened and we are reluctant to make a
    choice. And these terms are toughened by Moscow, first of all.

    Brussels went on specific constructive cooperation offering funds,
    assistance in protection of the intellectual property rights, adoption
    of sanitary and phytosanitary measures, standardization procedures,
    certification, metrology, accreditation. In the case of the Eurasian
    Union, I expect no such assistance, for instance, in upgrade of
    food security.

    What do you think of the future of the big enterprises operating on
    the Russian capital in Armenia in case if the above negotiations with
    the EU are successfully completed?

    If Russian companies in Armenia can work in the conditions of the
    western management and in full line with legislation, if they have
    such a management system that meets new requirements, there will be
    no problem of their further activity in case of successful ending of
    talks with EU and serious economic reforms.

    Russian capital has been also presented at the European market and has
    no problem there. In case of successful ending of talks with the EU,
    using of new standards and effective reforms in Armenia, the situation
    will radically change. I mean reduction of corruption risks and, as
    a result, improvement of administration. One must not be scared that
    Russia will start sabotage against Armenia, as here it owns strategic
    facilities. Armenia has got enough levers and means not to let it.

    One should not forget that about 80% of capital in Armenia is the
    Russian capital, which is politically motivated and seriously limits
    attraction of the Western capital to the Armenian economy. Because of
    the way of its formation the Russian capital is not ready to work at
    the legal field within the frames of the law. It has serious management
    problems. All this supposes growth of corruption risks. It is no secret
    that the present economic system of Russia is fully corrupted and the
    Russian capital has been working in Armenia using the same vicious
    traditions. The availability of the western capital, that passed a
    rather serious way of formation and development for 150-200 years,
    will bring the western judicial companies which prefer to protect
    economic interests only in court basing on legislation...There is
    a problem of business environment improvement and diversification
    of the general system in Armenia. We remember what was happening at
    the Internet services market of Armenia before the Orange company
    coming. The presence of one European company in our country radically
    changed the entire telecommunications market. The same may and should
    happen in all the rest spheres of the Armenian economy.

    Western politicians often said that they would like to cooperate
    with the South Caucasus region like an integrated whole. However,
    many experts criticize the West for drifting away from its own
    positions from time to time in the context of the energy projects,
    in particular, Baku-Tbilisi-Ceyhan oil pipeline...

    The above mentioned energy project is an American but not a European
    one. The EU said earlier it does not want to take part in this project
    because of its discriminating nature, as in fact Armenia was forced
    out of it.

    What about Nabucco, which will not involve Armenia either?

    It is naive to speak about fulfillment of the project that costs 15
    bln EUR, in the conditions when the Karabakh conflict has not been
    settled and when there is no stability in the region. Nabucco has
    no problem linked with financing or gas supply. The only problem
    is a threat of the new war in the region. The pipeline cannot go
    around Nagornyy Karabakh and Armenia, as the route through these two
    Armenian republics is very much beneficial. Moreover, the Europeans
    do not want to force Armenia out of the regional programmes. The
    more isolated Armenia because of the Karabakh conflict, the less
    possible its participation in big programmes. In such conditions
    Yerevan has nothing else to do than to run into Moscow's arms. As
    for the Russians, they want just this, encouraging and stimulating
    the regional isolation of our country and offering an idea of the
    EurAsian Union. Moreover, unsettlement of the Karabakh conflict is
    a result of the fixed balance in our region. Any changing of the
    balance of forces towards this or that geo-political pole will lead
    to settlement of conflicts in the region. This will create favorable
    conditions for fulfillment of geo-political and economic programmes,
    which will involve all the countries of the South Caucasus.

    The CSTO CRRF exercises scheduled for early September were postponed
    simultaneously with the mass media reports on NATO Secretary General's
    visit to Armenia. Are there any links between those two events?

    I think that Rasmussen's visit to Armenia in the period of the
    exercises speaks volumes. The West has no intention to stay aside
    the processes in the South Caucasus, including in the security sphere.

    Given today's situation in the Middle East, the political crisis in
    Syria, the Iranian problem, the northern border with Iran is very
    important for the West and NATO, particularly. I thin that NATO
    Secretary General's visit to Armenia aims to verify all these issues.

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