December 2002 Events
December  1 - 6 Incumbent President Robert Kocharian will face up to fourteen challengers in the upcoming election set for February 19. The deadline for submission of applications to Armenia's Central Election Commission (CEC) passed at 6:00PM local time today. In the upcoming weeks each nominee will have to collect at least 35,000 signatures for official registration as presidential candidates in the first half of January. Also this week, the CEC officially limited financing for each candidate's campaign to pre-election funds of no more than $103,000. Campaign donations are limited to roughly $350 for individuals and $860 for businesses. Financing by foreign citizens, the Armenian government and charitable or religious organizations is illegal.
According to the Armenian Sociological Association (ASA) and other observers, only four nominees are capable of posing a serious challenge to the incumbent. They are: Artashes Geghamian of the National Unity Party, non-party candidate Raffi Hovannisian, Stepan Demirchian of the People's Party and Vazgen Manukian of the National Democratic Union. A recent ASA survey found that close to a third of all respondents have already decided to vote for Kocharian, with the top opposition candidates polling between five and ten percent. Close to a half of all respondents said they are undecided or inclined not to vote.
Over the past two weeks, Kocharian's nomination received endorsements from the Republican, Country of Law (Orinats Yerkir) and Democratic Liberal (Ramkavar Azatakan) Parties, the Armenian Revolutionary Federation (Dashnaktsutiun) and several organizations comprised of local self-government, business and humanitarian leaders. 
"Considering the disarray in opposition ranks, it is not overly optimistic to expect Kocharian to receive over 60 percent in the first round," said one pro-presidential analyst. The opposition "alliance" of 16 parties, established earlier this year around their commonly espoused goal to unseat Kocharian, has produced nine nominees. Another factor playing to Kocharian's advantage is that ex-President Levon Ter-Petrossian refused to accept the nomination of the former ruling Armenian Pan-National Movement.
Below is the list of nominees and their affiliation, arranged in the order of application to the CEC:
Stepan Demirchian People's Party 
Aram Karapetian Constitutional Rights Union 
Paruir Hairikian Self-Determination Union 
Artashes Geghamian National Unity Party 
Robert Kocharian Unaffiliated 
Raffi Hovannisian Unaffiliated 
Ruben Avagian United Armenians Party 
Vazgen Manukian National Democratic Union 
Garnik Margarian Socialist Armenia Union 
Aram Sargsian Democratic Party 
Aram Harutiunian National Accord Party 
Arshak Sadoyan Union of National Democrats 
Vladimir Darbinian Communist Party 
Aram Sargsian Party of the Republic 
Petros Makeyan Democratic Fatherland Party 
December
 1 - 6
Funds raised in Armenian Diaspora communities and Armenia last week will allow for completion of almost half of the 102-mile long North-South highway in Karabakh, Hayastan All-Armenian Fund officials said. Of the total $5 million raised, over $260,000 came from Armenia and Nagorno Karabakh. Fund officials said the increase in domestic philanthropy reflected strengthening of the local business class. Earlier this year, several businessmen from Armenia funded a $450,000 housing project in the town of Spitak. The Karabakh highway is the fund's biggest project to date and requires $25 million in funding, with $12 million raised so far. 
December
 1 - 6
Armenia's Deputy Foreign Minister Rouben Shugarian paid a six-day visit to Israel last week for political consultations with counterparts in the Israeli government. Plans for exchanging resident ambassadors were among topics discussed. Foreign Minister Vartan Oskanian cautioned that there were no immediate plans to open an embassy in Tel Aviv, although Israel has emerged as one of Armenia's top trading partners. Israel is also home to one of the oldest Armenian Diaspora communities.
Shugarian's visit is expected to set the stage for improved bilateral ties. Israel's refusal to acknowledge the Armenian Genocide and renewed concerns over the security of Armenian lives and property in the Holy Land have created tensions earlier this year. The Armenian Patriarchate issued a statement last week reporting that the Israeli Army has ended its efforts to confiscate much of the Patriarchate's Baron Der property, located between Jerusalem and Bethlehem. Earlier this year, Israeli plans to build a security fence through the ancient olive grove and centuries-old retreat for Armenian clergy led to protests by Armenian and international organizations. The Israeli fence will now run along Baron Der's southern perimeter affecting only a narrow strip of the property. Israel will also compensate the Patriarchate for the damage already caused to Baron Der.
December
 1 - 6
Armenia is more developed than all of its neighbors, but lags behind Russia, Belarus and the Baltic States in terms of social and economic development, a United Nations study released last week reported. The Human Development Index (HDI) compares countries according to life expectancy, education level, productivity and income. Norway, Sweden, Canada, Belgium and Australia are at the top of the index and together with fifty other countries have what the UN terms as "high human development." Armenia is 76th, Georgia - 81st, Turkey - 85th, Azerbaijan - 88th and Iran - 98th on the scale. Their designation is defined as achieving "medium human development."
An Armenian Foreign Ministry official said this week that he objected to classification of Armenia and other post-Soviet states as "developing countries." Speaking at a conference held at the UN office in Yerevan, Artak Apitonian said that their economic structure and educational level differentiates them from typical developing countries. They should therefore be more accurately considered as a separate group of "countries in transition." 
December
1 - 6
The Georgian government last week came under strong pressure from BP, Azerbaijan, Turkey and the United States to quickly approve the proposed route of the controversial Baku-Tbilisi-Ceyhan pipeline, Georgia's Environment Minister Nino Chkhobadze admitted this week. "We gave in to the pressure [because] the investors were threatening to pull out of the project altogether," she said.
The latest pipeline-related controversy focused on the plan by the BP-led consortium to route the pipeline via Georgia's Borjomi valley, the source of the country's prized mineral springs. The consortium categorically refused suggestions to lay the pipeline via a shorter route through the Armenian-populated Akhalkalaki area. BP's Azebaijan chief executive David Woodward said the oil that will traverse the pipeline belongs to Azerbaijan and the latter will never agree to send its most prized asset through an area with an Armenian population.
Georgia's President Eduard Shevardnadze has described the proposed pipeline as his country's most important achievement since independence. Nevertheless, he pledged to withdraw from the contract should the pipeline damage the Borjomi ecology. The head of the Azerbaijani State Oil Company Natig Aliyev claimed that re-routing of the Georgian section of the pipeline would postpone its construction by over a year, double the cost and put the project's viability in question.
BP now plans to begin building the Baku-Ceyhan pipeline next spring with its own funds. An international coalition of environmentalists and human rights activists is fighting the effort to obtain some $2.1 billion in credits from taxpayer-funded international financial organizations. Meanwhile, the British government will launch a major effort to train Georgian forces in anti-terrorism techniques, including pipeline security, some time next year. 
December
6 - 13
One hundred and forty-four member countries of the World Trade Organization (WTO) agreed this week to admit Armenia to the world body, following years of negotiations. Prime Minister Andranik Margarian, who arrived in Geneva, Switzerland for the WTO General Council vote, called it an "historic occasion." WTO Director-General Supachai Panitchpakdi said the accession was a "decisive milestone" on Armenia's path to economic liberalization and market reform. The European Union Trade Commissioner Pascal Lamy praised Armenia for its "remarkable resolve to finalize negotiations over the past few months."
News reports suggest that the accession became possible after Turkey dropped its delay tactics vis-୶is Armenia's application. Armenia, meanwhile, pledged not to put up hurdles to a possible future accession of Azerbaijan, which is only now beginning its negotiations with the WTO. Both Azerbaijan and Turkey refuse to establish economic relations with Armenia until the Karabakh conflict is settled. Turkish officials have said that Armenia's inclusion in the WTO will not force them to reassess their decade-long policy.
Armenia will officially become a WTO member thirty days after its National Assembly ratifies the accession protocol, agreed to by the Armenian government and WTO negotiators. The Foreign Affairs Committee Chairman Hovanes Hovanisian said the parliament will take up the issue at a special session before the end of the year. No strong opposition is expected. The government has reportedly succeeded in placating the agriculture lobbies by negotiating a postponement until 2008 on the introduction of a value-added tax on agricultural products demanded by WTO. Armenia already has a liberal trade policy and most of its taxes and tariffs, which are among the lowest in the region, will not be affected. 
Government officials and analysts in Armenia agree that admission to the WTO in itself does not guarantee improved economic performance. Both countries with successful market economies such as Estonia, Latvia and Lithuania, and struggling Georgia, Kyrgyzstan and Moldova, are among the former Soviet Union republics that have already joined the WTO. Armenia sees better export opportunities as the most important benefit of accession. At the same time, Armenian manufacturers will be expected to continuously improve their product quality in order to successfully compete both at home and abroad. 
December
6 - 13
The private sector of the Armenian economy continues to make substantial gains, with the National Statistics Service reporting double-digit increases this week in the Gross Domestic Product (GDP) and in exports. Between January and October 2002, GDP growth reached 12 percent, including 15 percent in industrial production and 3 percent in agriculture. Energy generation continued to drop, down nearly 4 percent for the year. Trade indices continued a sharp climb, with the overall turnover up 21 percent, exports up 51 percent and imports up 9 percent. But the trade deficit continued to be large - almost $360 million for the past ten months. Jewelry and cut diamonds accounted for more than half of all exports, with food and metallurgy products coming a distant second and third. Rough diamonds, fuels and equipment topped the list of imports. Belgium, Israel, Russia, Iran and the United States remain Armenia's top trading partners. 
December
6 - 13
Armenia marked the anniversary of the catastrophic 1988 earthquake late last week. The earthquake took the lives of an estimated 25,000 people, leaving over half a million homeless and causing billions of dollars in damages. President Robert Kocharian and Prime Minister Andranik Margarian attended memorial ceremonies for the victims in Gyumri and Vanadzor, respectively, while Nagorno Karabakh President Arkady Ghoukasian led a similar commemoration in Stepanakert.
Due to programs financed in large part by USAID and the Lincy Foundation, 4,900 families will have received housing by the end of this year and as many will move into new homes in 2003. Armenian officials believe that the earthquake area rehabilitation program will finally be completed next year, and are beginning to draw up plans for accelerated economic development in Shirak, Lori and Aragatsotn provinces. Unemployment rates in the earthquake-affected areas are among the highest in Armenia, and there is concern that many local workers now employed in construction may be left without work when the relief effort ends.
December
13 - 20
Chief of the U.S. European Command and Supreme Commander of the NATO forces in Europe General Joseph Ralston visited Yerevan this week to discuss ongoing preparations for NATO-led multinational exercises which will be held in Armenia next June. Meeting with President Robert Kocharian, other senior officials and the press, the NATO commander noted the "tremendous progress" achieved in Armenia's relations with the alliance in the past two years. Ralston also recalled the important assistance provided by Armenia to the U.S.-led campaign in Afghanistan, including over flight rights, intelligence information and all other help requested by the United States. While senior Armenian officials say that they do not plan to seek full membership in NATO in the near future, they view the continued cooperation with the alliance as key to the country's national security strategy. Plans are now underway for the deployment of an Armenian peace-keeping unit, trained with the help of Greece. Also, last month Armenia became an associated member of the NATO Parliamentary Assembly. 
December
13 - 20
The U.S. Peace Corps director Gaddi H. Vasquez was in Yerevan over the weekend to sign a Memorandum of Understanding with the Ministry of Education and Science on expanding the organization's activity in Armenia. Vasquez became the first acting director to visit Armenia, where the Peace Corps has worked since 1992. Over the past decade, 335 Peace Corps volunteers have worked in Armenia as teachers and consultants. One of the recent volunteers, now the Armenian Assembly of America Assistant Grassroots Director Zach Brevis, used his U.S. farming experience to work as an agribusiness consultant. "In addition to being introduced to an ancient and fascinating culture, my Peace Corps experience helped establish a personal connection to what I consider to be America's most devout ally per capita - the people of Armenia," he said. 
December
13 - 20
The recently appointed Turkish Foreign Minister Yasar Yakis said that the new Turkish government of the Justice and Development Party (AKP) would work to improve relations with all its neighbors, including Armenia. In a television interview last Sunday he reportedly said, "we will consider Azerbaijan's concerns when establishing relations with Armenia, but if our economic interests require to establish relations with Armenia we must do so." Turkey has refused to establish any relations with Armenia, since its independence in 1991. Several successive Turkish governments conditioned the ties to an abandonment of the international campaign to affirm the Armenian Genocide and satisfaction of Azerbaijani demands in the Karabakh conflict. For its part, Armenia has been ready to normalize ties without preconditions.
Foreign Minister Vartan Oskanian this week welcomed the news that Turkey's new government was ready to establish friendly relations with all of its neighbors. Oskanian added that improved relations with Armenia would contribute to Turkey's prospects for the European Union (EU) membership. The EU decided last week that it would conduct a new review of reform in Turkey in 2004, and depending on progress could begin membership negotiations the following year.
Reacting to the Turkish announcement, the Azerbaijani media was quick to secure a new pledge of Turkish support this week. An Azerbaijani journalist was reportedly told by Prime Minister Abdullah Gul that no plan for normalization of relations with Armenia was on the agenda. He was also quoted as saying, "One false move against Azerbaijan might lead to the collapse of any Turkish government."
Meanwhile, addressing a Washington-based Turkish lobby group last week, the U.S. Under Secretary of State Mark Grossman encouraged efforts to improve Armenian-Turkish relations, including public diplomacy. One such effort was underway in Istanbul last week. The Armenian-Turkish women's communication groups, including prominent public figures from both countries, held its first meeting to explore ways to develop economic ties in the absence of diplomatic relations. The indirect trade between the two countries is estimated at tens of millions of dollars.
December
13 - 20
By all available pre-election opinion polls, the incumbent President Robert Kocharian continues to maintain his lead. Media focus centers on whether this advantage is strong enough for an outright victory by Kocharian and if opposition groups will be able to agree on a joint candidate. 
According to pollsters, whom the opposition describes as pro-government, Kocharian's support is now around 30 percent. With an anticipated 50 percent voter turnout, this lead can potentially translate to a 60 percent first-round victory. Opposition's own polls, however, put the incumbent's support at only about 20 percent of respondents, i.e., with the same assumed turnout, Kocharian would collect less than 50 percent, necessitating a run-off against the strongest challenger.
The extent to which the existing fourteen presidential challengers can consolidate remains unclear. One of the opposition's most vocal parliamentary leaders and one of the few not to seek a nomination himself, the National Democratic Party (AZhK) Chairman Shavarsh Kocharian called the abundance of candidates the "number one obstacle for [the opposition's] victory." Speaking at a press conference last weekend, the AZhK leader insisted that he had "well-grounded hopes" that a single opposition candidate is still a possibility. Some consolidation of the opposition is indeed anticipated. Shavarsh Kocharian himself indicated in the past that he might support Stepan Demirchian, who is also likely to get the endorsement of former Prime Minister and Party of the Republic Chairman Aram Sargsian.
The National Unity Party Chairman Artashes Geghamian, seen as one of Kocharian's strongest challengers, published a paid op-ed last week urging Demirchian and other "honest people" in the opposition to back his bid. Geghamian's campaign manager Aghasi Arshakian said earlier that Demirchian would be offered the chairmanship of the parliament should he support Geghamian. Meanwhile, leaders of the Socialist Armenia Union and Communist Party, which gave their tentative support to Geghamian last month, appear to have second thoughts and nominated their own candidates.
One of the nominees, a veteran of Armenian politics, Chairman of the Self-Determination Union Paruir Hairikian hinted this week that he might withdraw and back another candidate. Hairikian came fifth in the 1998 elections, polling about 5 percent, but his party faired worse in the 1999 parliamentary elections, failing to meet the 5 percent threshold required to enter parliament. Observers believe that out of all the nominees, Hairikian is most likely to endorse Raffi Hovannisian. Hovannisian is in turn seeking support from Demirchian and Sargsian.
Campaign headquarters of most of the fifteen presidential nominees reported this week that they were close to collecting the 35,000 signatures required for them to officially register as candidates with the Central Election Committee (CEC). Spokesman for the Kocharian campaign Vahagn Mkrtchian said earlier this week that they have already collected 90 percent of the necessary signatures. According to the CEC election schedule, all nominees must submit the collected signature lists by 6:00 PM on December 31. 
December
13 - 20
A former government official Murad Bojolian, charged with supplying sensitive information to Turkish intelligence, was found guilty this week and sentenced to ten years in prison by a Yerevan court. The prosecutors said that Bojolian, who worked in mid-level positions in the Foreign Ministry (1991-93) and the President's Office (1996-98), was recruited in 1999, when he no longer had access to state secrets. Bojolian's lawyer plans to appeal the verdict. The sentencing was strongly criticized in the Turkish media. 
December
13 - 20
President Robert Kocharian ordered this week a start to a sweeping restructuring of the Ministries of Internal Affairs and National Security. As a first step in the reform, plans for which were reported by the local press last June, the presidential order relegated the ministries to the level of state agencies. Subsequent overhaul is expected to unite the two former ministries' investigation directorates into a single State Investigations Agency. The Ministry of Internal Affairs would also transfer most of its public safety responsibilities to local governments, while its interior forces are to be transformed into the National Guard. The National Security Agency would focus on intelligence and counter-intelligence. The restructuring also aims to put an end to reported government infighting for control of the ministries. Presidential spokesman Vahe Gabrielian said this week that reform would prevent the agencies' meddling in politics, limiting them to their professional responsibilities. 
Reprinted, by permission, from Armenian Assembly of AmericaArmenian International Magazine , Armenian National Committee of America , Armenian National Institute ,Groong. Armenian News Network  
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