Footprints - Armenia

In 2012, Armenia Must Innovate, Not Devastate

editor — Sat, 14 Jan 2012 10:34:22 +0000

A dense forest in upper Lori (Photo Christian Garbis)

Last night while out for a stroll with my dog I met my friend Haik who lives next door. We were talking about the advantage of having a garage to keep a car away from gasoline thieves. who love to ravage my Niva’s fuel supply.

While we chatted the upstairs neighbor, who along with his wife and kids has snubbed me for the last five years despite the number of times I’ve said hello, stopped to great Haik and exchange New Years greetings. As they were parting I overheard him telling Haik that he had taken his family to Moscow for the holidays, since staying in Armenia was “meaningless.”

The neighbor, purportedly a banker by profession, is one of these nouveau riche Yerevanites who suddenly found himself with a lap full of cash overnight. Within the span of only a couple of months I recall he purchased two brand new Hyundais and remodeled his home. And now that he has the money to burn, it’s “meaningless” for him and his family to celebrate the holiday season in their own country. Like it’s all some big joke.

Vacationing outside Armenia for New Years and Christmas is a trendy thing to do nowadays. But this sentiment of meaninglessness is permanent, particularly amongst the wealthy. A glance of the daily headlines will make this obvious — government officials trying to push through deals to excavate hundreds of hectares of land for mining projects, or displacing hundreds of homes for urban development projects, cutting forests to sell the wood, and so on and so forth. For these people, it appears it is “meaningless” to take pride in your country, since as the old ludicrous saying goes, “the country is not a country” to begin with. And since the world is going to end this year as many the naive believe, it’s better to take advantage while you still can. Yet the nouveau riche appears to have been living by this mindset on a daily basis, and I am convinced they have no love for country, only what they can reap from it for fattening their purses. An imprudent generalization, I admit, but there it is.

I can’t say what this New Year will bring for Armenia. But there’s one thing I always hope for — when people with the means to benefit their nation will come to their senses, reset their jaded attitudes and begin to innovate rather than devastate.

Protest for Syunik’s Environmental Sustainability

editor — Thu, 29 Dec 2011 23:00:49 +0000

Today my wife Anushik attended a protest held opposing the plans for a massive copper mining project. It was held in front of the Government Building on Republic Square in late morning, then the protesters marched to the Presidential Palace. I covered the controversy surrounding this project in my two previous posts, so read them for more details.

An estimated 608 hectares of precious land in Syunik is slated to be turned into a massive open mining pit so that a handful of government officials can make countless millions at the expense of Armenia’s long-term environmental sustainability. But not if these activists can help it.

Long live Armenia.

Armenian Activism at its finest

editor — Thu, 22 Dec 2011 11:08:17 +0000

This video depicts a confrontation between environmental activists and Syunik governor Surik Khachatryan in Kajaran (the video is in Armenian).

Basically they are saying what I wrote in my previous post, emphasizing that the extracted copper and the profits associated with its sale on the market will go to Germany, where the parent mining company is based, and that the Armenia economy as well as the countless village inhabitants that will be displaced, won’t reap any benefit from the mining.

The woman wearing the hat is the maverick Mariam Sukhudyan, but unfortunately I cannot identify the man in the camouflage jacket. Mariam is certainly an inspirational woman and she is the single most effective spokesman for badly needed change in this country — change in the mindset and the corrupted values fostered by so many politicians here.

Towards the end of the video he called her a dragonfly and purportedly said that something “bad” would happen to her if she continued her protest (it was not audible but appeared in print).

Her continued efforts (as well as those of her teammates) will undoubtedly spark a fire in the hearts of many Armenians to stand up for themselves. It’s just a question of when.

One thing is certain for many people not just in Syunik but in the minds of many here in Yerevan — this guy has to go and this project must be stopped. He can barely defend himself and can’t even speak proper Armenian. Being born in the States I was not educated in Armenia and mostly self-taught in the language, yet it seems I can speak better Armenian than he can. The video is testament to how utterly uneducated Khachatryan and undoubedly many other people in government are.

Kudos to these brave activists. May their crucial work continue unabated.

Syunik village mayor resigns over mining project

editor — Fri, 16 Dec 2011 12:08:55 +0000

Upper Syunik, Armenia (photo Christian Garbis)

Reading yesterday’s headlines I came across a major news story of a Kajaran mayor in Syunik, Rafik Atayan, resigning from his position and from the Republican party in protest to the government’s decision to confiscate 181 hectares of land in the area. The land will be turned over to the German-owned mining company, Zangezur Copper-Molybdenum Combine (ZCMC). The lands will become an “open-pit mine,” meaning that all the dust created in the excavation process will drift and pollute the surrounding areas. Water supplies and agricultural lands will be ruined as well. The Armenian MP living the village, a former executive of the mining company, is obstinately indifferent.

The mayor’s protest is admirable but will ultimately prove nothing since his replacement will obligatorily sign the paperwork formalizing the new mining initiative.

Land has already been given to the Chinese in Syunik in a different government-backed plan, ironically nit to far from Tatev, which was anticipated to be Armenia’s top tourist attraction when it opened just over a year ago. There are still other controversial projects that are stalled or about to get underway in Teghut and Hrazdan.

The justification for opening the mine (and others) is the following, quoted from an article published by RFE/RL:

The German group [Cronimet, the parent company] insisted that the planned expansion of the ZCMC’s mining operations stems from “a number of agreements” with the Armenian government. That will also boost Armenian exports and “economic stability in the country, it said.

These types of statements have become totally laughable and even insulting. The monthly minimum wage in Armenia is absurdly low at 32,500 dram ($83) and a bill introduced by the ARF last month to nearly double it was shot down by the Republican controlled National Assembly. In other words, most people in Armenia — factory or mining workers being no exception — live hand to mouth. Most people can’t save up and have little or no pocket money to spend to benefit the economy. ZCMC prides itself as supposedly being the top tax paying corporate institution in Armenia (untold sums of collected taxes are, in turn, eaten), but that doesn’t mean government officials will not reap the benefits of kickbacks from profits. The money made in this deal (and others) will not be vested in the Armenian economy realistically simply because it will end up in several peoples’ pockets and foreign bank accounts instead at the expense of Armenia’s fragile environment. That’s the way things work in capitalist Armenia.

So let’s stop kidding ourselves that high exports in metals are good for the economy. When rural areas are still underdeveloped in and around Armenia, with some new settlements in Armenian-controlled territories doing without roads, running water and electricity as I wrote in a previous post, these statements from government officials are paradoxical. Mining businesses benefit the elite, while the rest of the country’s potential along with its ecological longevity suffer.

Time to wake up.

Nareg Free Thanks to Support

editor — Thu, 15 Dec 2011 10:39:24 +0000

I just wanted to make yet another point that when a collective group of individuals campaigning for the same cause protest hard enough, their demands will eventually be met, sooner or later. In Nareg Hartounian’s case it only took a few days.

At last count 1,251 people signed the online petition demanding his release from jail, and the “Free Nareg” Facebook page received 1,624 “likes,” with 2,041 users discussing the issue. Although the Ministry of Diaspora declined to comment on Nareg’s arrest, Minster Hranoush Hakobyan undoubtedly received myriad complaints. We know that he and his associates were released per the order of an official in the Prosecutor General’s office, but it’s still unclear what additional pressure was placed on the authorities to free Nareg from jail, not that it matters much at this point.

Kudos to the activists tirelessly pushing for Nareg’s freedom from incarceration. Now we can only hope that the the controversial, on the surface incredulous, tax evasion case he is embroiled in will be resolved without additional drama.

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.

How to Free Nareg

editor — Sun, 11 Dec 2011 10:53:06 +0000

ON Friday December 9, Nareg Hartounian, the founder of the Naregatsi Art Institute, was arrested on suspicions of tax fraud. This arrest marks yet another circumstance of an Armenian from the diaspora being harassed or swindled by the authorities or people with ties to the government. On the same day of his arrest he was tried and sentenced to serve 60 days in jail. This complicated issue with the tax authorities has actually been ongoing for several months. Unsurprisingly, the refusal to pay a hefty sum has something to do with it.

Nareg is a fellow Armenian from the diaspora who lives and works here part of the year. He and his family have initiated multiple projects, both humanitarian and cultural, in and around Nagorno-Karabagh, even in parts of the Armenian controlled territories where he encouraged settlers to live. The Naregatsi Art Institute is a center for young, emerging artists, filmmakers, and photographers to display their works. Musicians even give concerts in the mini concert hall-like setting. Another center was opened in Shushi several years ago.

Hetq already published several articles about Nareg’s arrest, including letters from friends and acquaintences. In one of them someone mentioned that it was high time Armenians from the diaspora were left alone to do their business dealings or philanthropic work without the interference of the government or people with seemingly honest intentions out to make a buck. But Armenians born and raised here have been convicted on trumped up (or even invented) charges for years since there is no independent judicial system. It seems anyone from the upper echelons of the country’s leadership can make a phone call to the Minister of Justice to ensure that someone is tried and convicted by any means necessary. It’s not yet clear who exactly ordered Nareg’s arrest but the truth will hopefully come out in the coming days.

I have met Nareg on two occasions through a mutual friend. Unfortunately I have not learned about his efforts in detail from him, but I have admired Naregatsi and I hope Nareg’s arrest does not in some way interrupt the center’s longevity.

What can be done to help Nareg? Well there is an online petition for starters. There is also a Facebook page created to spread awareness, which as of this writing already has 1003 “likes.” But the only way for the government to resolve the issue once and for all is for the Armenian diaspora to cry foul en masse. That would entail getting leaders from philanthropic and political organizations to get involved. But the success of that effort is perhaps tied to how “liked” Nareg is in different circles and by people of influence.

As with many social and political issues in Armenia, when enough noise is made by people who oppose a controversial decision, the government eventually relents. Unless people become vocal about Nareg’s plight and demand his release, he will sit in jail for another 58 days and possibly face additional recrimination when he’s finally let out, if he doesn’t pack up and leave the country in disgust before then. Let’s work to get him out now.

Waiting for Sarkisian to do the right thing

editor — Tue, 22 Nov 2011 22:09:28 +0000

Serge Sarkisian, left, and Surik Khachatryan (Photolur photo)

One week has passed since the assault accusations against Syunik governor Surik Khachatryan were revealed to the public. On Monday, November 14, while leaving the Marriott Hotel in Yerevan Silva Hambardzumian, a businesswoman, was allegedly hit on the head by Khachatryan, who later denied any wrongdoing. Naturally, no one working at the hotel saw anything, not even the doorman apparently. The parliamentarian Khachik Manukian who happened to be there and purportedly witnessed everything according to Hambardzumian later said that he had arrived on the scene just moments after the incident of violence took place. Now the Special Investigative Service (SIS) is looking into the matter, although its unlikely it will hold Khachatryan accountable.

The issue stems from an allegation made by Hambardzumian that equipment worth 100 million dram had essentially been stolen from her mine then found its way to a different mine owned by Khachatryan, and she passed blame on him, who besides being a regional governor is a feared thug (and, according to former defense minister Vasken Manukian, an “uneducated criminal”).

Khachatryan is no stranger to controversy. He is believed to have embezzled about $1.5 million in state funds in 2008, as determined by the Audit Chamber of the National Assembly, and got away with it.

Apparently Khachatryan is well connected to President Serge Sarkisian and has even been described as his “protégé.” He apparently ran an election campaign for the president’s brother Alexander in 2007. His relations with former president Robert Kocharian are also excellent. For these reasons alone, there is a very good chance that he will not face prosecution and walk away scot-free.

Not unless, of course, the president wants to add to the credibility of his legitimacy. President Sarkisian has been cleaning house lately, forcing several high-level officials to resign. In the last month both the Yerevan mayor Karen Karapetyan and National Assembly president Hovik “Moog” Abrahamyan stepped down (the press insists they left their posts because of their ties to Robert Kocharian, who supposedly wants to run for president in 2013). A year ago Sarkisian fired then mayor Gagik Beglaryan for slapping around one of his assistants. The president not only has to give the impression that he is not tolerating any nonsense from any of his officials, he also has to show the world that governmental corruption or ethical misconduct cannot be tolerated on any level.

Prime Minister Tigran Sarkisian claimed that the authorities are waiting for a final determination from SIS before action is taken against Khachatryan. But the right thing for the president to do would be to replace the governor. The accusation of assault in a public setting is reason enough to fire him.

The position of regional governor should be an honor to hold. But for Khachatryan, his post is nothing more but a conduit to do unchecked business and even get away with misappropriating state funds. President Sarkisian, do the Armenian citizenry good service by promptly sacking Khachatryan and make sure that his replacement will actually respect his governing role. Armenia certainly doesn’t need another mafia boss in a position of power.

Will the New Tax Plan in Armenia Work?

editor — Thu, 03 Nov 2011 21:11:57 +0000

Yesterday just over a month after the government revealed its $2.5 million budget plan for 2012 Prime Minister Tigran Sarkisian explained just where the $268 million in tax revenues was to be generated. There are three primary sources it seems: from a tax on luxury automobiles, a tax hike on the upper class, and high excise taxes on expensive alcoholic beverages.

First let’s look at the car tax. He proposed that the owner of a car estimated to be worth $90,000 or more be taxed, estimating the collected amount to reach around $2.6 million (1 billion dram). This expectation is a bit naïve thinking, however, since the number of cars priced that high is so infinitesimal that it will be hard to believe so much will be collected in taxes. There are ways around paying that “luxury tax” of course. Since the customs department determines the value of automobiles entering the country and the customs fees required to be paid using whatever mind-numbing algorithms they employ, it certainly wouldn’t be difficult to pay an official a bribe to set the worth of the car at $89,000, thereby avoiding the luxury tax.

Then there’s the expensive alcohol tax – amounting to a 50 percent increase in excise duties. Fancy drinks like high-priced Cognac, haughty French wines and the like have a niche market, although the PM claims sales make up a 15 percent share of alcohol sold (naturally there’s no way of knowing where he got that number from). I’ve only seen expensive liquors and wines at SAS supermarket, which caters to Yerevan’s nouveau riche as well as foreigners working in the country. It’s hard to believe anyone – a visitor or a local – would be willing to pay several hundred dollars for wine when a five-buck bottle of Areni will suffice most tastes. In other words, the PM shouldn’t expect much tax revenue from the food and drink business sector.

The proposed tax hike from 20 to 25 percent of income for anyone making at least $5300 a month is intriguing. It’s safe to say that anyone making a salary that much or higher is not properly reporting their annual worth to the tax authorities anyway(if at all), and again, paying them a bribe to avoid paying higher taxes will not be difficult.

Even if he decides to crack down even more on small and medium-sized businesses (a.k.a., ordinary people trying to make a buck) than he already has, it’s hard to believe he’ll be able to collect very much additional tax revenue from them since they’ve been squeezed to the breaking point. I’ve been seeing many vacant stores recently in Yerevan, and low sales may not be the only determining factor in the decision to close shop.

The head of the State Revenue Committee Gagik Khachatrian has yet to be convinced that the funds can be raised with the PM’s plan. He’s been expressing his concerns about the new budget and the government’s anticipated ability to hit its target since the 2012 budget was unveiled on September 29, claiming that there was no way it could collect so much in tax revenues with its current focus.

What’s strange is that there’s really no intent in store to properly tax the oligarchs. Why doesn’t he simply go after the multimillionaires? Probably because that will mean he will ultimately have to tax himself.

Perhaps the Prime Minister really expects to collect the $268 million through the established system of bribery in place. Khachatrian is certainly right – on the surface of things the expected numbers just don’t add up.