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American Taxpayers and Armenian Oligarchy

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  • American Taxpayers and Armenian Oligarchy

    American Taxpayers and Armenian Oligarchy

    The U.S. ambassador John Heffern stated that American investments are
    expected in the regions of Armenia which will foster tourism and food
    processing and create jobs.

    The United States is dealing with something which is the duty of the
    Armenian government to create jobs in the regions and reduce
    emigration. Instead, the representative of the government states that
    emigration and migrant workers existed in Soviet Armenia as well.

    This is how the Armenian government attends to this complicated issue.
    It is clear that emigration is not a problem for the RPA whereas the
    population is which demands a better quality of life and protection of
    rights. If they go away, the RPA will rule quietly.

    American investments may change the balance. In fact, they are a
    challenge to the RPA, the philosophy with which this party rules
    Armenia, particularly the regions. The RPA ensures investments only in
    the mines, exploiting ruthlessly the nature and placing people before
    the choice to leave the country or to work as a miner.

    Investments in tourism and food processing may change the state of
    affairs, the balance in economy which is presently against the future
    of Armenia. A change of this correlation may provide a competitive
    environment which will force mine owners to focus on environmental
    requirements.

    But what investments does the U.S. ambassador mean? Are those private
    companies or government assistance under Millennium Challenge? Armenia
    qualified for MC in 2006 but following 2008 disbursement of part of 70
    million dollars was cancelled, and the program was discontinued, and
    unlike Georgia, Armenia did not qualify for MC for the second time.

    However, in December 2012 Prime Minister Tigran Sargsyan visiting the
    United States met with the director of MCC. This meeting was not
    planned, like the meeting with Joe Biden. At least, the meetings were
    not announced earlier.

    This meeting seemed to prompt that the United States is likely to
    start cooperating with Armenia. And the congratulatory message by the
    U.S. president let hope that MC may turn the green light for Armenia.
    It is possible that the U.S. ambassador meant resumption of the
    Millennium Challenge.

    There is a key issue to address before the second phase of MC. During
    the first phase investments were made in those communities where some
    Armenian capitalists had interests, as well as high-ranking posts in
    government. In other words, American investments were made the
    beneficiaries of which were the oligarchy, not the community people.

    The second program must be designed on the basis of regions where the
    infrastructures will genuinely benefit the local people, not the
    oligarchy for who the local people are just labor. As an investor, the
    United States government must make sure that the American taxpayers
    will not unintentionally feed the Armenian oligarchy which squeezes
    the Armenian taxpayers.

    James Hakobyan
    16:23 14/05/2013
    Story from Lragir.am News:
    http://www.lragir.am/index/eng/0/comments/view/29876

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