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Armenia PROFILE
OFFICIAL NAME: Geography People Government Economy (2000) U.S.-ARMENIAN RELATIONS The United States has made a concerted effort to help Armenia and the other
NIS during their difficult transition from totalitarianism and a command economy
to democracy and open markets. The cornerstone of this continuing partnership
has been the Freedom for Russia and Emerging Eurasian Democracies and Open
Markets (FREEDOM) Support Act, enacted in October 1992, under which the U.S. to
date has provided nearly $1.2 billion in humanitarian and technical assistance
for Armenia.
In addition, the U.S. has played a leading role in the Minsk Group, which was
created in 1992 by the Conference of Security and Cooperation in Europe--now the
Organization for Security and Cooperation in Europe (OSCE)--to encourage a
peaceful, negotiated resolution to the conflict over the Nagorno-Karabakh
region. That conflict has cost several thousand lives, created nearly one
million refugees and displaced persons, and caused economic hardships for
Armenia.
U.S.-Armenian Economic Relations Approximately 70 U.S.-owned firms currently do business in Armenia, including
such multinationals as Procter & Gamble, M&M-Mars, Xerox, Dell, and IBM.
Recent major U.S. investment projects include the Hotel Armenia, the Hotel Ani;
a Greek-owned Coca-Cola bottling plant; petroleum exploration by the
American-Armenian Exploration Company; upgrading of the wine and brandy
production at Ararat winery; a large perlite mining and processing plant; and
the joint venture Jermuk, which produces one of the more popular brands of
mineral water in Armenia.
U.S. Support To Build A Market Economy Specific USAID programs focus on the development of a private sector and
small and medium-size enterprises, including microcredit programs; energy sector
reform, including preparation for privatization of energy distribution
companies; democracy and good governance programs, including the promotion of a
well-informed and active civil society; social sector reform, including funding
for medical partnerships and social insurance programs; and earthquake zone
assistance, which provides housing and economic reactivation for victims of the
1988 earthquake.
The U.S. Department of Agriculture Marketing Assistance Project (MAP)
provides advisory services and support to private farmers in all Armenian
provinces, facilitates the formation of farmer associations and marketing
initiatives, provides micro-credits for agricultural producers, and has laid the
groundwork for several agribusiness associations. The U.S. Department of
Agriculture's (USDA) Cochran Fellowship Program provides training to Armenian
agriculturists. USDA and USAID also have launched efforts to revive production
and export of Armenian vegetables, fruits, and other agricultural products.
U.S. Humanitarian Assistance As conditions in Armenia have improved, with the stabilization of the economy
and increased energy production--including the restarting of the Armenian
Nuclear Power Plant at Metsamor--U.S. assistance programs have moved away from
humanitarian goals to longer term development ones. Nevertheless, humanitarian
programs, which make up approximately 15% of total assistance in fiscal year
2001, still provide an important source of food, medical supplies, and other
necessary items to needy Armenians.
U.S. Support To Achieve Democracy State Department and USAID educational exchange programs play an important
role in supporting democratic and free-market reforms. Assistance in the
translation and publication of printed information also has been provided.
Exchange programs in the U.S. for Armenian lawyers, judges, political party
members, business people, government officials, NGO activists, journalists, and
other public figures focus on a range of topics, including the American judicial
and political system, privatization, specific business sectors, the media, and
civil society. The State Department has funded an ongoing project to provide
Internet connectivity to schools at various levels throughout the country; these
centers provide both educational and community-building opportunities.
USAID has funded international and domestic groups to monitor national
elections. USAID has also funded programs to educate voters and to strengthen
the role of an array of civic organizations in the democratic process.
Principal U.S. Embassy Officials The U.S. embassy in Yerevan, Armenia is at 18 Marshal Bagramyan; tel:
3741-54-3900 or 3741-52-4661; fax: 3741-52-0800.
HISTORICAL HIGHLIGHTS In 301 AD, Armenia became the first nation to adopt Christianity as a state
religion, establishing a church that still exists independently of both the
Catholic and the Eastern Orthodox churches. During its later political eclipses,
Armenia depended on the church to preserve and protect its unique identity. From
around 1100 to 1350, the focus of Armenian nationalism moved south, as the
Armenian Kingdom of Cilicia, which had close ties to European Crusader states,
flourished in southeastern Asia Minor until conquered by Muslim states.
Between the 4th and 19th centuries, Armenia was conquered and ruled by, among
others, Persians, Byzantines, Arabs, Mongols, and Turks. For a brief period from
1918 to 1920, it was an independent republic. In late 1920, the communists came
to power following an invasion of Armenia by the Red Army, and in 1922, Armenia
became part of the Trans-Caucasian Soviet Socialist Republic. In 1936, it became
the Armenian Soviet Socialist Republic. Armenia declared its independence from
the Soviet Union on September 21, 1991.
GOVERNMENT AND POLITICAL CONDITIONS The unicameral parliament (also called the National Assembly) is dominated by
a coalition, called "Unity" (Miasnutyun), between the Republican and
Peoples Parties and the Agro-Technical Peoples Union, aided by numerous
independents. Dashnaksutyun, which was outlawed by Ter-Petrossian in 1995-96 but
legalized again after Ter-Petrossian resigned, also usually supports the
government. A new party, the Republic Party, is headed by ex-Prime Minister Aram
Sargsian, brother of the late Vazgen Sargsian, and has become the primary voice
of the opposition, which also includes the communists, the National Accord Party
of Artashes Geghamian, and elements of the former Ter-Petrossian government.
The Government of Armenia's stated aim is to build a Western-style
parliamentary democracy as the basis of its form of government. However,
international observers have questioned the inherent fairness of parliamentary
and presidential elections and constitutional referenda since 1995, citing
polling deficiencies, lack of cooperation by the electoral commission, and poor
maintenance of electoral lists and polling places. Observers noted, though, that
opposition parties and candidates have been able to mount credible campaigns and
proper polling procedures have been generally followed. Elections since 1998
have represented an improvement in terms of both fairness and efficiency,
although they have not met international standards. The new constitution of 1995
greatly expanded the powers of the executive branch and gives it much more
influence over the judiciary and municipal officials.
The observance of human rights in Armenia is uneven and is marked by serious
shortcomings. Police brutality still goes largely unreported, while observers
note that defendants are often beaten to extract confessions and are denied
visits from relatives and lawyers. Public demonstrations usually take place
without government interference, though one rally in November 2000 by an
opposition party was followed by the arrest and imprisonment for a month of its
organizer. Freedom of religion is not always protected under existing law.
Nontraditional churches, especially the Jehovah's Witnesses, have been subjected
to harassment, sometimes violently. All churches apart from the Armenian
Apostolic Church must register with the government, and proselytizing is
forbidden by law. The government's policy toward conscientious objection is in
transition, as part of Armenia's accession to the Council of Europe. Most of
Armenia's ethnic Azeri population was deported in 1988-89 and remain refugees,
largely in Azerbaijan. Armenia's record on discrimination toward the few
remaining national minorities is generally good. The government does not
restrict internal or international travel. Although freedom of the press and
speech are guaranteed, the government maintains its monopoly over television and
radio broadcasting.
Principal Government Officials Armenia's embassy in the U.S. is at 2225 R Street, NW, Washington, DC, 20008;
tel: 202-319-1976 or 202-319-2983; fax: 202-319-2984.
ECONOMY Like other New Independent States, Armenia's economy suffers from the legacy
of a centrally planned economy and the breakdown of former Soviet trading
patterns. Soviet investment in and support of Armenian industry has virtually
disappeared, so that few major enterprises are still able to function. In
addition, the effects of the 1988 earthquake, which killed more than 25,000
people and made 500,000 homeless, are still being felt. Although a cease-fire
has held since 1994, the conflict with Azerbaijan over Nagorno-Karabakh has not
been resolved. The consequent blockade along both the Azerbaijani and Turkish
borders has devastated the economy, because of Armenia's dependence on outside
supplies of energy and most raw materials. Land routes through Azerbaijan and
Turkey are closed; routes through Georgia and Iran are inadequate or unreliable.
In 1992-93, GDP fell nearly 60% from its 1989 level. The national currency, the
dram, suffered hyperinflation for the first few years after its introduction in
1993.
Nevertheless, the Government of Armenia, helped by the cease-fire that has
been in effect in Nagorno-Karabakh since 1994, has been able to carry out
wideranging economic reforms which paid off in dramatically lower inflation and
steady growth. Armenia has registered strong economic growth since 1995,
building on the turnaround that began the previous year, and inflation has been
negligible for the past several years. New sectors, such as precious stone
processing and jewelry making, information and communication technology, and
even tourism are beginning to supplement more traditional sectors such as
agriculture in the economy.
This steady economic progress has earned Armenia increasing support from
international institutions. The IMF, World Bank, EBRD, as well as other IFIs and
foreign countries are extending considerable grants and loans. Total loans
extended to Armenia since 1993 exceed $800 million. These loans are targeted at
reducing the budget deficit, stabilizing the local currency; developing private
businesses; energy; the agriculture, food processing, transportation, and health
and education sectors; and ongoing rehabilitation work in the earthquake zone.
Continued progress will depend on the ability of the government to strengthen
its macroeconomic management, including increasing revenue collection, improve
the investment climate, and accelerate the privatization process. A liberal
foreign investment law was approved in June 1994, and a Law on Privatization was
adopted in 1997, as well as a program on state property privatization. The
government has made major strides toward joining the World Trade Organization.
Environmental Issues DEFENSE AND MILITARY ISSUES The Conventional Armed Forces in Europe (CFE) Treaty was ratified by the
Armenian parliament in July 1992. The treaty establishes comprehensive limits on
key categories of military equipment, such as tanks, artillery, armored combat
vehicles, combat aircraft, and combat helicopters, and provides for the
destruction of weaponry in excess of those limits. Armenian officials have
consistently expressed determination to comply with its provisions. Armenia has
provided data on armaments as required under the CFE Treaty. There are
indications that Armenia is trying to establish mechanisms to ensure fulfillment
of its arms control obligations. Armenia is not a significant exporter of
conventional weapons, but it has provided substantial support, including
materiel, to separatists in Nagorno-Karabakh.
In March 1993, Armenia signed the multilateral Chemical Weapons Convention,
which calls for the eventual elimination of chemical weapons. Armenia acceded to
the nuclear Non-Proliferation Treaty as a non-nuclear weapons state in July
1993. The U.S. and other Western governments have discussed efforts to establish
effective nuclear export control systems with Armenia.
FOREIGN RELATIONS Nagorno-Karabakh Peace talks in early 1993 were disrupted by the seizure of Azerbaijan's
Kelbajar district by Nagorno-Karabakh Armenian forces and the forced evacuation
of thousands of ethnic Azeris. Turkey in protest then followed with an embargo
of its own against Armenia. A cease-fire was declared between Azeri and
Armenian/N-K forces in 1994 and has been maintained by both sides since then in
spite of occasional shooting along the line of contact between the two. All
Armenian governments have thus far resisted domestic pressure to recognize the
self-proclaimed independence of the "Nagorno-Karabakh Republic," while
at the same time announcing they would not accept any peace accords that
returned the enclave to Azerbaijani rule. Some 750,000 ethnic Azeris who fled
during the Karabakhi offensives still live as internally displaced persons in
Azerbaijan, while roughly 400,000 ethnic Armenians who fled Azerbaijan since
1988 remain refugees, although around 35,000 have accepted Armenian citizenship
since 1998.
Negotiations to peacefully resolve the conflict have been ongoing since 1992
under the aegis of the Minsk Group of the OSCE. The Minsk Group is currently
co-chaired by the U.S., France, and Russia and comprises Armenia, Azerbaijan,
Turkey, the U.S., several western European nations, and representatives of the
Armenian and Azeri communities of Nagorno-Karabakh. The talks have focused on
the status of Nagorno-Karabakh, the return of refugees, the lifting of
blockades, the withdrawal from occupied territories, and the status of the
Lachin corridor, which connects Nagorno-Karabakh to Armenia.
Karabakhi Armenians, supported by the Republic of Armenia, now hold about 15%
of Azerbaijan and have refused to withdraw from occupied territories until an
agreement on the status of Nagorno-Karabakh is reached. Armenia and Azerbaijan
continue to observe the cease-fire which has been in effect since May 1994, and
in late 1995 both also agreed to OSCE field representatives being based in
Tbilisi, Georgia, to monitor the cease-fire and facilitate the peace process.
TRAVEL AND BUSINESS INFORMATION Emergency information concerning Americans traveling abroad may be obtained from the Office of Overseas Citizens Services at (202) 647-5225. For after-hours emergencies, Sundays and holidays, call 202-647-4000. Passport information can be obtained by calling the National Passport Information Center's automated system ($.35 per minute) or live operators 8 a.m. to 8 p.m. (EST) Monday-Friday ($1.05 per minute). The number is 1-900-225-5674 (TDD: 1-900-225-7778). Major credit card users (for a flat rate of $4.95) may call 1-888-362-8668 (TDD: 1-888-498-3648). It also is available on the internet. Travelers can check the latest health information with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at 877-FYI-TRIP (877-394-8747) and a web site at http://www.cdc.gov/travel/index.htm give the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled Health Information for International Travel (HHS publication number CDC-95-8280) is available from the U.S. Government Printing Office, Washington, DC 20402, tel. (202) 512-1800. Information on travel conditions, visa requirements, currency and customs regulations, legal holidays, and other items of interest to travelers also may be obtained before your departure from a country's embassy and/or consulates in the U.S. (for this country, see "Principal Government Officials" listing in this publication). U.S. citizens who are long-term visitors or traveling in dangerous areas are encouraged to register at the U.S. embassy upon arrival in a country (see "Principal U.S. Embassy Officials" listing in this publication). This may help family members contact you in case of an emergency. |
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