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American Messages To Armenia

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  • American Messages To Armenia

    AMERICAN MESSAGES TO ARMENIA
    HAKOB BADALYAN

    Story from Lragir.am News:
    http://www.lragir.am/index.php/eng/0/comments/view/29085
    18:03 25/02/2013

    The United States of America will cut humanitarian assistance to
    Armenia, reducing 44.2 million to 36.6 million dollars. This decision
    does not concern Armenia only but the South Caucasus so it is hardly
    a specific expression of the attitude of the United States to Armenia.

    This is just part of budget saving.

    Interestingly, the United States changes the directions of spending.

    Formerly the bulk of this assistance was spent on economic development
    programs whereas now two thirds of this money will be spent on defense.

    First, economy. Recently, the United States has been taking interest
    in bilateral economic ties. The U.S. Ambassador John Heffern has
    stated his intention to attract American investments to Armenia. There
    is a contradiction when with such a priority the share of economic
    development is nullified in humanitarian assistance.

    However, it seems so at first sight. In fact, the picture is logical,
    there is no contradiction. The issue of economic development must be
    tackled with the help of investments, not humanitarian aid. Moreover,
    humanitarian programs seem to be psychological obstacles to economic
    development. A healthy economy is based on investment programs and
    strategy.

    The decision of the United States is a clear hint to the Armenian
    authorities not to rely on humanitarian aid but provide an attractive
    business environment for investments.

    The other side of the issue is that Prime Minister Tigran Sargsyan
    visited the United States last December together with the U.S.

    ambassador to meet with Armenian American organizations. The meeting
    with the head of MCC and Vice-President Biden were not planned.

    In 2006 MCC included Armenia in its program, granting 235 million
    for 5 years for rural infrastructures. However, the program set
    economic and political benchmarks, and in 2006 Armenia complied,
    whereas after the tragic post-electoral developments in 2008 the
    program was suspended, withdrawing a 70 million tranche. Armenia
    did not comply with the benchmarks and therefore lost the chance to
    participate in the program for the second time.

    Now if the post-electoral developments in Armenia do not escalate
    into clashes, Millennium Challenge may finance Armenia.

    Although, the United States will certainly follow the post-electoral
    developments. However, the nullified economic component of the
    humanitarian aid to Armenia may be evidence to the U.S. wish to
    compensate for MCC. As to the defense component which is two thirds
    of the assistance, it is a clear message. At the end of last year
    a group of high-ranking American defense officials visited Armenia
    and signed agreements on cooperation on military industry. Given the
    Memorandum of Cooperation by which the United States expressed its
    readiness to ensure the safety of the Armenian NPP and help prolong
    its service by another decade, these are practical steps by the United
    States towards its commitments.

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