Footprints - Armenia » Economy

Many babies are the future

editor — Sun, 11 Dec 2011 13:37:25 +0000

I just read a poignant photo essay about the maternity drive in Nagorno-Karabagh published by the New York Times called The National Womb.

The NK government is encouraging young families to have babies by giving them incremental sums of money for each additional child they rear. After the sixth child has been born the family is given a home. Unfortunately there is no other way to keep the population there somewhat steady. As in Armenia, the youth are emigrating in search of better opportunities elsewhere. Lucrative business ventures to employ people are few there.

I was in Nagorno-Karabagh in July and couldn’t help but notice that areas of the countryside seemed bare of residents. The capital Stepanakert is a lively city but Shushi, which is far more picturesque, still seems neglected, despite all the work being done there to repair the infrastructure and open new hotels to attract visitors.

The entire region needs settlers and money so that society can advance. Compared with Armenia corruption is apparently very low, so I don’t understand why the willingness to invest in Nagorno-Karabagh more aggressively is not there. Perhaps daily flights between Yerevan and Stepanakert, hopefully to start next year, will entice that much-needed investment.

In the meantime, many babies are needed. But the question as to whether the parents of those families will be able to consistently provide remains to be answered.

Incidentally, I wanted to mention an excellent article published by Hetq last June called On That Side of the World about life in Kashatagh, where there are no normal roads or even electricity, and where Armenians who sacrificed life in civilization choose to survive. I cannot imagine living without electricity and I don’t understand how they do it. The heartbreaking thing is that no one cares, not the governments of Armenia or Nagorno-Karabagh, and not the Armenian Diaspora. They just linger there, waiting for someone to pay attention to them, waiting for something to change that never does.

Reflecting on twenty years of independence

editor — Wed, 21 Sep 2011 22:16:01 +0000

Twenty years ago when Armenia declared itself independent from Soviet rule it was not only claiming statehood, it was calling for a restoration of values. The Armenian people would be able to think and create freely in a fledgling democracy that was both naïve yet highly optimistic. Many people believed that prosperity was on the horizon, jobs would be created, and a bright future awaited them. Little did they know that both war and unchecked entrepreneurship would set them back several years. Some have never seen any kind of prosperity after independence, whether financial or spiritual.

Armenia today is ruled by a handful of wealthy families competing for prominence, similar to what you would find in a Hollywood film about the mafia, but without all the gory violence. The common people are subjects to the nepotistic society these leaders, or oligarchs, have created. Citizens who speak out against government decisions are cruelly suppressed by this system. Others are victims to bad policies and lose their livelihoods in the process. Civil society is weak, and initiatives to bring about change in the form of grassroots movements are often supported by outside special interest groups, mainly from the US or Europe. Narcissism has long become a virtue of the nepotists, with general disregard for law and order and respect for neighborhood peace violated day and night. Society is increasingly polarized with the dividing line between the haves and have nots all the more obvious. The social equality of Armenia’s soviet past is long gone.

Although the president is quite aware of the dire economic and societal issues that most Armenians face day to day, he either plays them down or fails to address them. For instance, he recently discounted the somber fact that entire villages have been relocating to remote parts of Russia as part of a controversial resettlement program promoted by the Russian government. Judging from the headlines in the Armenian press, it is clear that the president is often out of sync with what is transpiring in the country he supposedly rules.

Below is a list of problems that the president needs to contend with to ensure Armenia’s democratic and economic progress in the years to come:

Create jobs. In the wake of independence countless factories that were prosperous during the soviet era closed either overnight or during the course of several years. Although some like chemical plants and sugar processing facilities have reopened in recent years, Armenia’s industrial output is nowhere near what it was just before the Soviet Union began to crumble. The permanent closure of key factories in rural areas, like Sisian in the southern Syunik region and Charentsavan to the north of the capital, not to mention scores of other towns throughout the country, have resulted in a depopulation, with many people once living in small towns and villages flocking to Yerevan or leaving the country, most of them for Russia, in search of work. The president needs to create an environment whereby new factories can be built by wealthy Armenian citizens or foreign businessmen weary of doing business in Armenia. Eradicating corruption in the tax and customs departments and simplifying the business registration process would be an excellent start.

Promote small business. Yerevan mayor Karen Karapetyan made himself public enemy by sweeping traders off the streets (oddly only florists are allowed to sell roses from sidewalk stands) and destroying inconspicuous kiosks where cobblers, tailors, and cigarette sellers set up shop. Shopkeepers are harassed by taxmen and some are even forced to close for days on end while they scramble to clear up minute discrepancies found as a result of loopholes purposely left open by the tax authorities to extort bribes. Although Prime Minister Tigran Sarkisian has often talked about encouraging the growth of small businesses, he has been reluctant to disclose the details of policies his government plans to implement. Tax breaks coupled with guaranteed interest-free government loans would encourage small businesses to open and help nurture an environment of trust.

Encourage civil society. In flourishing, deep-rooted democracies dissent and opposition to government policy are tolerated, and public advocacy is allowed to function. Initiatives to promote civil society need to be implemented, mainly by immediately stopping police confrontations or crackdowns on peaceful demonstrators. Society cannot be built while oppression and fear looms overhead Armenian citizens.

Tax the wealthy and give tax breaks to the lower classes. Hundreds of millions of dollars in revenue can be generated if only oligarchs were taxed, the sums of which could be funneled to important social programs. By 2006 estimates 26.5 percent of the population lives below the poverty line. Free housing could be provided to impoverished citizens still living in shacks, temporary housing, or on the street. Also, pensioners could finally receive monthly stipends that are in line with the current standard of living, which is continually on the rise with food prices often skyrocketing, especially in the period leading up to the holiday season. The government should aim to eradicate poverty nationwide, and it can easily do so if and when taxes are properly collected.

Prevent emigration and promote immigration. President Sarkisian desperately needs to draft a plan for slowing down the exodus from Armenia. That should include job creation through promoting foreign investment in the manufacturing and IT sectors, an increase in the minimum wage, and equal opportunity, particularly in government agencies. He also needs to address the relatively low birthrate, with 12 children born for every 1,000 people and on average one child born per household, according to 2011 figures. He also needs to ensure that infrastructure is modernized even in the most remote villages of the republic. Several areas of Artsakh along with the Armenian controlled territories surrounding it must be populated, and that again can only come about with increased investment and the vital infrastructure in place. When Armenians worldwide feel confident that the Armenian government is able to provide the means and conditions for promoting growth throughout the regions, they will begin to immigrate.

These are only a handful of issues that loom over Armenia’s destiny. There are just as many if not more challenges related to Armenian foreign policy that must be addressed, the most important being the resolution of the Nagorno-Karabakh conflict, which seems to be floating in an eternal stalemate.

In his Independence Day remarks, President Sarkisian hailed the new generation of the republic recognizing its “concerns and demands” of a better society. He also stated that “… in the next twenty years we will be able to build a country which will come close to our ideals. I believe in that because I believe in our collective power.”

Now the pressure is on the president. He alone can muster the support of both an apathetic public and the oligarchic society backing him by making the right policy decisions that would benefit all, not just a select few. That is a difficult balancing act, but the means to accomplish such a feat simply need implementing and the vision to do so. Having said that, it is up to Armenian society as a collective whole to ensure he aspires to the same ideals to which he alludes, the same that all citizens expect to live by.

Why Demolish Yerevan Kiosks?

editor — Fri, 12 Aug 2011 09:34:06 +0000

Dismantling a Yerevan kiosk

About three days ago while driving down Papazian Street in the Arabkir district I noticed a lot of commotion beside the kiosks that are situated along the sidewalk near the intersection with Komitas Street. There were several police officers while other citizens seemed to have been irate and agitated. Yesterday there were red beret policemen on the scene. The kiosks came down upon a verbal decree by the Yerevan Mayor, Karen Karapetian. He gave the business owners a three-day warning.

Karapetian, who was the the former head of ArmRosGazprom, has proven himself since his appointment late last year to be a ruthless, despised leader who doesn’t have the interests of Yerevan residents that are barely able to get by in mind. Just after the New Year he infamously declared that street trading — in other words grandmothers selling cilantro and lemons on the sidewalk — was to end, no ifs, ands or buts. Even fruit stands could not be allowed to display their produce right in front, despite ample space available for foot traffic. Now he wants to destroy the lives of small shop owners, most of whom are most certainly living day to day, an opinion based on conversations I’ve had with many of them during the last seven years of my stay. He claims that they are an eye sore and are in the way. Just over 900 have already been dismantled this year.

Papazian Street is far from the city center and is by no means a busy street frequented by tourists. The area is a center for trade of basic foodstuffs and services. One man repairs shoes while another works as a tailor out of these tiny, inconspicuous stores. Perhaps they are not as impressive as the posh boutiques on Abovyan Street, but they serve a purpose and have steady clients. Now their owners and employees are out of work. Some of them have taken out huge business loans.

But, thanks to the power of the people, the government supposedly is putting a stop to further demolition. Apparently the authorities have been dumped with letters of protest, not to mention having been embarrassingly forced to deal with sit-ins.

The only political party that was present to support the shopkeepers was Heritage, led by Raffi Hovannisian, which comes as no surprise given their track record of consistently fighting for people’s rights. The Armenian National Congress and ARF-Dashnaktsutiun seem to be dubiously silent on the issue.

Yesterday at a cabinet session Prime Minister Tigran Sarkisian, another controversial figure who made a fool of himself last week when he stated that continued emigration was good for the country as it filtered out the bad citizens from the good, blasted Karapetian for his decisions. But this morning I saw that the dismantling of kiosks on Papazian Street continued unabated, and there were no police officers in sight.

About the future plight of these shopkeepers, Karapetian has this to say: “I don’t think that there are poor people among the owners of kiosks on central streets, and the Mayor’s Office has no obligations to them … We are not obliged to give them an alternative [source of income] or compensation.” This statement alone demonstrates how utterly clueless and out of touch he is. He probably never walks down any city sidewalk, carted around in an outlandishly expensive European sedan or SUV, just like all the other selfish, abhorrent big shots.

Yesterday once again I was left wondering where Armenian society is headed. Emigration continues. People are thrown out of work and no new jobs are created. Governmental officials aren’t very concerned about these issues, distracted by making millions for themselves. People are too scared or apathetic to protest. How long can this indifference continue? And how am I expected to raise my infant son in this environment? How long will any new parents be able to withstand these injustices? Why doesn’t the Armenian Diaspora care? What the hell is going on?

I’d like to have some indication of when these questions will be answered positively. But it appears as though I have a very long wait.

Apathy Found in Cheese

editor — Thu, 28 Jul 2011 07:44:34 +0000

This morning I cut into a lump of braided string cheese, which I bought in a neighborhood store that mostly sells produce and foodstuffs made in villages of Armenia. Just after pulling apart a segment of the cheese I found a long strand of hair that was intertwined with one of the braids. There was also some kind of unidentifiable wheat colored dust in the cheese, which could have been breadcrumbs. That surprise did not actually await me for the first time, and I had stopped buying homemade string cheese years ago (from the Gomidas market) for that reason alone.

This blatant lack of quality control tells me a few things. One, the woman (I assume based on the hair’s length) who made and braided the cheese did not evidently bother to wear some kind of head dress — a scarf, hairnet, whatever — to prevent her hair from falling into the cheese. The mysterious specs of dust shows that the cheese was not made in a sterile (okay, let’s say somewhat sterile), sanitary environment. I can only imagine how unclean her hands were. Simply put, the woman doesn’t care about quality, and furthermore she is demonstrating disrespect towards her customers by not ensuring that her product is free of debris. Moreover, her carelessness shows a lack of self-respect by not giving a damn.

I often wonder when complaining, discontented Armenians are going to awake and start standing up for something, anything. I’ve told people time and time again, and have written in my blog entries, that change in society and governance must come from the bottom-up. It’s the people who have to demand that apathy not reign in their own society, and they can’t be afraid to push their government to meet their needs, whether economic or social. You hear complaints everywhere — in markets and taxis, in newspapers, on the Internet. But nothing changes — the same issues related to unemployment, social inequality, and economic instability not only continue but are worsening. But people don’t get it, and they continue to complain and moan. Ironically, the main opposition block, the very one that was supposed to represent the marginalized and unlucky, is “negotiating” with the government, the details of the talks still unclear.

But regardless of how hard life may seem to be, you have to foster dignity, you need to respect yourself before you can respect others. Armenians must understand that change comes from within, it comes from the soul. You have to embrace the hope and potential of change. You have to believe it.

That can start by making high-quality cheese.

Gold Mining in Sevan Threatens Environment

editor — Thu, 21 Apr 2011 06:22:27 +0000

Photo of Sotk gold mine courtesy RFE/RL

Yesterday an article was published by RFE/RL confirming that a controversial plan to exploit gold mines near Lake Sevan’s shores was going ahead as planned. And supposedly the government is uninformed about it.

Villagers in the area are rightly up in arms about it since Lake Sevan has already been jeopardized by toxic waste flowing in from polluted rivers. The environmental threat could get a lot worse if this Russian mining company, GeoProMining, continues forward with its profit-seeking ventures damning the future of Armenian ecology in the wake of its efforts.

Here’s an excerpt:

The area around Sotk has substantial gold deposits that are controlled by an Armenian subsidiary of the Russian industrial group GeoProMining. The company called GPM Gold started building an ore crusher there in February. About two dozen workers could be seen at the construction site on Tuesday.

Environmentalists accuse GPM Gold of violating an Armenian law that bans any manufacturing activity in the vicinity of Sevan that involves toxic emissions. They also say that work on the facility got underway without a mandatory authorization from the Armenian Ministry of Environment Protection.

Such an authorization can be obtained only as a result of an impact assessment conducted by ministry experts. A ministry spokesman, Artsrun Pepanian, told RFE/RL’s Armenian service that GPM Gold never asked the ministry to gauge environmental consequences of ore-crushing operations at Sotk.

…

Last November, the Armenian parliament’s Audit Chamber urged the government to revoke the company’s operating licenses for what it called mismanagement and serious legal violations. GeoProMining rejected the accusations and said it will take the parliamentary body to court.

The Armenian government has yet to respond to the recommendation made by the Audit Chamber. The Ministry of Energy and Natural Resources told RFE/RL’s Armenian service on Wednesday that it is still looking into the chamber’s arguments.

Hetq has written extensively about the environmental risks facing Lake Sevan and its environs as well as in other regions of Armenia. Unfortunately Hetq’s archive section is under development after the relaunch of the web site, but I did manage to find some cached articles when doing a search. Below is a segment written by Astghik Khachatryan from April 2009:

Simon Papayan, Deputy Minister for Nature Protection, stated to the participants that his office has never received any official correspondence from GeoProMining. He added that, “Article 10 of the “Lake Sevan Law” prohibits such operations at the Sevan basin and we are guided by this law. In the past, such a petition was made when the mine belonged to the Indians but we denied their request.”

When asked by “Hetq” what then was reviewed at the March 2 meeting, Mr. Papayan responded, “There was no review meeting. There was a reception where the company presented its vision of how to operate the mine site.”

So in terms of lack of communication, nothing has changed in two years at all. The government still turns a blind eye to what’s going on in Sotk.

We’re talking about Lake Sevan here, the pride and joy of Armenia, one of the most revered vacation spots in the country. Lake Sevan is legendary all over the world, and thousands of Armenians in the diaspora who have yet to visit Armenia, including my brother who was named in honor of that natural wonder, only dream of seeing it. Now the government is standing idly by as the lake faces total destruction. Fish supplies have already dwindled and some subspecies have even gone extinct due to overfishing.

Here’s an excerpt from a follow-up article written by the same reporter in June 2009:

At a press conference held today Boris Gabrielyan, Director of Institute of Hydro-Ecology and Ichthyology of the National Academy of Sciences stated that Lake Sevan no longer has viable fish stocks for commercial use.

He said that besides a fish locally called “karas”, an undesirable species that competes with others for food and habitat, there are few other native species that reproduce naturally.

Mr. Gabrielyan said that two subspecies of Lake Sevan “ishkhan” fish has disappeared all together.

He pointed to the fact that this wasn’t the case 100, 50 or even as late as 10 years ago.

“The government is allocating funds to restock certain species with 3 year-old fingerlings. But their efforts are mostly in vain since much of the restocked fish, once they reach adulthood, are illegally being trapped and fished for commercial purposes. There is no adequate oversight,” Mr. Gabrielyan argued.

Referring to plans by GeoProMining to build a processing plant for Sotk gold on the shores of Lake Sevan, Mr. Gabrielyan said that their studies of the matter or continuing but that they hadn’t given a green light for the project.

So there you have it. No oversight by the government while Armenian businessmen do whatever they want at the expense of the livelihood of rural citizens barely getting by to earn a living, not to mention irreversible environmental damage. Some people are giving polluted water to their cattle due to the reckless dumping of toxic waste. And no one in the government seems to care. The recklessness goes on unabated. No one in politics seems to be complaining about it–either in pro-government or opposition camps. Once word gets out that the operations indeed go forward as planned tourism to Sevan will taper off. And the reason for this catastrophe is the same story: “The country’s not a country.” When does it start to become one?

To Be, or Not to Be, a Country

editor — Fri, 25 Feb 2011 21:39:40 +0000

Lately I’ve been ruminating about this malaise that is rampant in Armenia, the notion that the “country’s not a country.” This mentality has really been bothering me lately and I just don’t know how to ignore it. The more I hear it or imagine people thinking it, the more frustrated I am.

I can’t remember the first time I heard this phrase. I’m guessing it was back in late 2004 or perhaps 2005. At first I used to hear it regularly from someone who I consider an extended family member, even though we aren’t related. But when he used that expression, it was to vent his anger and frustration with having to contend with paying bribes, high taxes and other bureaucratic issues on a near daily basis when he was farming twenty hectares of land in the Ararat valley. Now you can hear it from anyone on the street if you listen carefully enough, young and old alike. I’ve heard teenagers say it, without even understanding what the implications are for saying such a thing.

The world is changing and with it costs for food and utilities are rising though the roof. And as I’ve pointed out in a previous post, the authorities are taking away jobs, not creating them. I keep hearing stories of people being offered contracts to relocate to Russia where they’ll have a job and home provided for them, and they’re signing up. Then, as I wrote about before, I think about the untold number of people that have left so far from all over the country. Entire villages have supposedly moved en masse. How can the government continue to turn a blind eye to this problem?

I also hear more and more about twentysomethings applying to study abroad, somewhere in Europe, the US or wherever. I know of at least three people who are doing that. There is a huge drain of talent and intellect, and there doesn’t seem to be any kind of discussion about how to reverse the trend. Why don’t officials try to understand why it is that so many citizens of Armenia live day to day believing that their country is not a country?

Now I find myself thinking about this exodus when I get into bed at night. Here am I, an Armenian from the US who came to Armenia to be a part of something — a movement of change for the betterment of the homeland. I felt that civil society was strengthening and that soon the people would reclaim their government from the oligarchs, and work for the common good of all citizens, not an elite circle of families. I’ve only seen things get worse. Dissent is put down and some people live in fear. Apathy is thriving. Protests yield no results. People are leaving, and the government is letting them go.

The country’s not a country. But what does that really mean for Armenian citizens? And what will make Armenia a country for Armenians to stick around and rebuild it, nurture it for future generations? Why can’t anyone answer these questions?

Armenian Drivers Need Auto Insurance

editor — Thu, 02 Dec 2010 10:08:24 +0000

Yesterday I bought mandatory auto insurance for my car, having found out only a month ago that I needed to invest in a policy.

Beginning January 1 all registered motor vehicles in Armenia must have insurance according to a law that was passed last May, otherwise a motorist will be fined 50,000 dram every time he/she is pulled over. That means you could be potentially fined multiple times driving home from work, for instance. And since there is substantial amount of money to be made from violations of this law, I am sure the traffic police will be out in full force. Something tells me whoever’s at the top benefitting from the income this new law brings and its actual enforcement is one and the same person.

According to an article that appeared on the RFE/RL web site on November 25 only one in ten drivers in Armenia have insurance up to date. I don’t think those statistics have changed much since that article was published. Here’s an excerpt:

Vache Gabrielian, the deputy governor of the Central Bank of Armenia (CBA), warned them to hurry up, saying that the authorities will not extend the January 1 legal deadline for the introduction of what has until now been a rare practice.

[...]

Gabrielian revealed that despite the approaching deadline only roughly 40,000 drivers have bought such policies to date. “There is an old Russian saying, ‘Until the thunder strikes, the peasant won’t cross himself,’” he said. “The same logic explains the wait-and-see approach of our citizens.”

A friend of mine put me in touch with an insurance agent — there are about nine companies providing auto insurance at the moment. The agency he represents, Roskosstrakh, is actually a Russian company that started doing business in Armenia a year or two ago. We called him in the morning and since there is no mad rush to get insurance at the moment, the policy was signed by mid afternoon. All he needed were copies of my driver’s license, passport, social security card (Armenian) and the vehicle registration/title. To prove that the car is insured, you have to place a sticker that you’re given on the windshield adjacent to the inspection sticker.

The policy only covers the costs of repair for the vehicle that has incurred damage in an accident. Collision insurance–where a motorist at fault in a fender bender is covered for his own damage to his vehicle–costs a few hundred dollars from what I’ve been told, and that’s a separate policy altogether.

The actual cost of the insurance is based on how many years of driving experience you have and how powerful the car’s engine is. Since my Niva only produces around 70 horsepower and has a four cylinder engine, not to mention my 22 year-long driving history, I only had to pay 25,000 dram for my policy, and that’s an annual fee. Hopefully, in a year it won’t increase — if anything it should decrease since my car will be 12 years old then. But since Armenia thrives in a paradox market where the rules of supply and demand are not always in play, I won’t be surprised if I have to pay a little more for insurance next year.

Anyway, that’s one less headache to worry about before the New Year.

10 Percent Growth in Armenia’s GDP?

editor — Tue, 18 May 2010 06:36:20 +0000

Yesterday I read an article that explained the European Bank for Reconstruction and Development (EBRD) is forecasting a whopping 10 percent growth in Armenia’s GDP for 2010. That’s right, 10 percent. And that’s up from a previous estimate of 2 percent.

Why? According to the EBRD press release, the high amount of cash expected to flow into the country from loans and remittances this year is to account for the growth. This means Armenia’s economy is still internationally acknowledged to be chiefly dependent on foreign aid, nothing more. Armenia’s financial situation is clearly not rock solid if it needs to rely primarily on a constant cash influx in order to survive.

Here’s what the report stated:

Armenia has seen an exceptionally sharp output contraction as remittances fell, and the remittances-fuelled construction boom came to an abrupt halt. Preliminary data suggest that vigorous growth has returned in recent months following growth in remittances, an agreement on an IMF programme and substantial financing from other IFIs and bilateral donors.

Contrary to what I used to speculate, there doesn’t seem to be any near-term or long-term concern for Armenia’s economy to flounder, so long as the cash continues to pour in. Naturally, this isn’t necessarily good. Armenia needs to ultimately figure out how it can become self-sustainable without the reliance of foreign assistance that can’t possibly last forever. The country’s economy needs to stand solid on its own two feet and not depend on crutches indefinitely, and that’s a huge challenge. But there doesn’t seem to be any concern about that. Armenians are simply not worried about the bottom dropping out. But is that a bad thing?

Photo credit: Leonardini

Is Armenia’s Economic Crisis Really Over?

editor — Tue, 23 Feb 2010 08:19:54 +0000

I just read an interesting report on RFE/RL about what is being pawned off as the end of an “economic crisis” in Armenia. I guess that depends on who you ask and where in Armenia you live.

Below are excerpts from the article:

Armenia’s worst recession since the early 1990s has come to an end, a senior government official claimed on Monday, citing official statistics that show the Armenian economy growing last month for the first time in over a year.

According to preliminary data released by the National Statistical Service (NSS), Gross Domestic Product (GDP) increased by 2.4 percent year on year in January after shrinking by 14.4 percent in 2009.

The reported growth was twice faster than the one forecast by the Armenian government for 2010. A senior official from the International Monetary Fund (IMF) said last week that the full-year growth rate may well reach 2 percent.

The NSS data show that a 6.5 percent rise in industrial output was the main driving force behind the unfolding recovery. That seems to have primarily resulted from rallying international prices of copper and other non-ferrous metals, Armenia’s main export item. Armenian exports jumped by 57.5 percent to almost $54 million in January.

Armenia’s macroeconomic performance was also positively affected by a 3 percent growth in agriculture reported by the NSS. By contrast, the construction sector, which has born the brunt of the recession, contracted by about 11 percent during the same period.

Trade and Economic Development Minister Nerses Yeritsian portrayed the latest macroeconomic data as a clear indication that the economic crisis in the country is over. “And I want to assure you that we have come of out that crisis well,” he told journalists.

In Yeritsian words, the recovery is facilitated by what he described as substantial capital investments that have been made in public infrastructures in the last two years. “They could not have failed to have an impact on the diversification of the economy and this growth figure,” he said.

Yeritsian also insisted that financial assistance provided by the government to the crisis-hit construction industry has not been a waste of money. “The government measures against the construction decline have been limited,” he said. “The government has never even tried to fully make up for the construction decline.”

Finance Minister Tigran Davtian likewise asserted in late December that Armenia is emerging from the recession with minimal losses. Davtian downplayed the sharp GDP drop which has increased unemployment and poverty in the country.

According to World Bank estimates, the number of Armenians living below the official poverty line rose by 90,000 to make up 28.4 percent of the population in the first half of 2009.

If you ask me, Armenia did not go through a temporary crisis that lasted for about a year and only recently rebounded. Maybe Yerevan perhaps (I don’t believe this) but not the entire country. On the contrary, the economic situation of Armenia has been in crisis mode since it declared independence in 1991.

And it’s really surreal to keep reading that construction was in a decline in 2009 while high-rise apartment buildings are being erected across Arabkir and in central Yerevan. Sure, the construction of certain buildings is slow-going. Some of them have been going up for as long as five years, with construction ceasing for several months then starting again until the developer’s cash runs out. What has that to do with the “crisis?”

Do I need to mention all the new shiny supermarkets, exclusive boutiques and expensive restaurants that have been popping up everywhere in central Yerevan?

Let’s see how Laura Tadevosyan is coping with things in Aragatsotn at the end of the “economic crisis,” as reported by Hetq:

When [w]e visited the abandoned hut, Laura came out to greet us. The elderly woman was covered in soot and her cheeks were swollen from the cold. The clothes she wore were old and tattered. She spoke in a straightforward and lucid manner with us and said that the family had always encountered hardships and that they had now adjusted to their new situation.

The family owned a one room apartment in the town of Kapan, Syunik Marz. They used the money to rent and lived in different places until they wound up here, at the garbage dump.

“My son-in-law is from Masis and he wanted us close by. We sold the apartment and came to Yerevan with the hope of buying a place here to live. He got arrested for a robbery. We moved around for a while and then found ourselves here. We first lived in Ashtarak, but an acquaintance brought us here,” said Mrs.Tadevosyan. “When money falls into your hands, you get flustered and don’t know how to spend it all. It was my daughter and her husband that managed the house money. We spent it all and wound up on the street.”

She and the kids live in a metal “tnak” (hut) that is falling apart and the roof is missing in spots. When we stepped inside, the place was engulfed in smoke. Soot and grime was everywhere. Even the bed sheets were blackened by the soot. They had been burning garbage from the dump, plastic bottles, pieces of wood and shoes, to stay warm.

The hut consists of two small rooms with two metal beds and a few chairs.

“We live in a pretty awful state. I’m ashamed to even show you how we live,” Laura said. For the past two years the family has used candle to light the house.

Mrs. Tadevosyan said they have no relatives in Armenia. They’ve all moved to Russia. Her son also lives in Russia and she says he sends money when he can.

Washing glass bottles is their only source of income. Laura said that there’s a soda plant in Ashtarak. They get the bottles from the plant and wash them for 2 drams a bottle. Workers from the plant then come and collect the bottles.

“I don’t wind up washing many bottles when it’s cold like this. At best, I can wash 1,500 a day. When the kids are home they help me out and I can wash more. The girl is just a child but she’s in water the whole day washing bottles for money. What else can I do?” Laura asks.

Exactly.