Guest Posted September 7, 2000 Report Share Posted September 7, 2000 1. Kocharian Meets Diaspora Business Leaders in NY 2. Lebanese-Armenians Overwhelmingly Vote for United Bloc 3. Turkey's Sezer to Urge Clinton to Stop Genocide Bill Vote 4. Aliyev Says No One Can Force Armenians to Withdraw from 'Occupied Lands' 5. Sculptors Attend International Symposium-2000 In Lebanon 6. Ararat Gomtsian Appointed Aide To Prime Minister 7. Drought Causes 2 Damage In Siunik 8. Computer Center To Be Established In Artsax Community News 1. Software Buzz Brightens Armenia's Economic Reality -------------------------------------------------------------------------------- 1. Kocharian Meets Diaspora Business Leaders in NY NEW YORK (Noyan Tapan)--Armenian President Robert Kocharian held a meeting Tuesday with Diasporan businessmen. Attending the meeting were more than 50 Armenian businessmen from the US, Canada, and Latin American countries. Kocharian pointed out that the goal of the meeting was to encourage investments, Diasporan businessmen's economic activities in Armenia and the creation of new jobs. Stating that the creation of jobs and economic development is a major condition for Armenia's economic development, raising living standards and prevention of immigration from Armenia, the Armenian president stressed his wish that each Diasporan businessman has economic interests in Armenia. He pointed out that stability has been restored in Armenia, and the country is ready for investments and able to "digest" them. Speaking at the meeting was also Armenian Foreign Minister Vardan Oskanian who provided detailed information on the economic situation in Armenia, prospects of and obstacles to its development. President Kocharian arrived in New York Monday morning to participate in the United Nations Summit of the Millennium. The president's party also includes Foreign Minister Vardan Oskanian. On September 7, the Armenian president is to make a speech at a summit meeting. Robert Kocharian is also scheduled to hold a meeting with his Azeri counterpart Haydar Aliyev in New York. Both in New York and later in Geneva, Kocharian will hold meetings with Diasporan businessmen to discuss possibilities and prospects of more active participation of Diasporan businessmen in the economic life of Armenia. UN Secretary-General Kofi Annan challenged the largest ever gathering of world leaders on Wednesday to protect their people from misery and develop an agenda to eradicate poverty, wipe out disease and forge peace. ``They look to you to protect them from the great dangers of our time; and to ensure that all of them can share in its great achievements,'' he told more than 150 kings, presidents and prime ministers at the UN Millennium Summit. ``Let us not disappoint them,'' he said at the opening of the three-day summit, according to his prepared remarks. Annan said no mother in the world could understand why her child should be left to die of malnutrition or preventable disease. And no one could understand why people ``should be driven from their homes or imprisoned and tortured for expressing their beliefs,'' he said. Annan said the leaders had to set priorities and adapt the 55-year old United Nations so it could do what people expected of it in the 21st century. Germany's chancellor, Gerhard Schroeder, in his prepared remarks, said the first UN body to set priorities should be the 189-member General Assembly, which has overloaded its agenda with repetitious resolutions for decades. Annan, in his news conference on Tuesday, said he had no illusions that the summit would by itself cure the world of its problems of poverty, wars, environmental destruction and the AIDS epidemic. ``But in today's world, given the technology and the resources around, we have the means to tackle them. If we have the will, we can deal with them,'' he said. ``You may think I am a dreamer. But without the dream you do not get anything done,'' he added. Specifically, the world leaders are to sign a declaration on Friday based on calls for strengthened peacekeeping structures, targets against hunger, disease and illiteracy and a benevolent globalization. President Bill Clinton kicked off the parade of five-minute speeches on Wednesday after which the United States is bound to get its share of criticism from friends and foes alike, beginning with its $1.7 billion debt to the world body. Without mentioning Washington by name, Schroeder intends to call on every member state ``to pay its contributions on time and in full.'' Germany is the third highest contributor to the world body, following the United States and Japan. Clinton then met Israeli Prime Minister Ehud Barak and Palestinian President Yasser Arafat, his first crucial sessions with the two Middle East leaders since they left Camp David in July without a peace deal. Russian President Vladimir Putin and Chinese President Jiang Zemin, who spoke on Wednesday used the occasion to rally support against plans for a US national missile defense. Clinton has said he would leave a decision whether to deploy the system to the next administration. Cuban President Fidel Castro, who arrived in New York on Tuesday, his first US trip in five years, usually has one objective: to convince Americans to recognize Cuba and lift the 30-year-old embargo against his country. Beyond US-Cuba politics, the mainstay of his career, Castro was also sure to use a rare trip to what Havana calls the ``heart of imperialism'' to promote his view that radical reform is needed to save the world from doom. Kocharian, who is on a visit to New York, held a meeting September 5 with Director of the US "Epigi Labs" company Sam Simonian. The meeting was followed by the signing of the Agreement "On Epigi Park's foreign investments in the business of high technologies in Armenia". The agreement is aimed at promoting the development of private sector in the hi-tech sphere, including computer technology, in Armenia. The 5-year-long $20,000,000-worth program provides for the establishment of a 1,000-seat Internet-saloon, electronic business training, Internet-based training programs for students, as well as for the creation of 500 jobs in the hi-tech sphere. Later that day President Kocharian held a meeting with representatives of the Hi-Tech Council and discussed the possibilities of developing high technologies in Armenia as well as the direction of further cooperation. 2. Lebanese-Armenians Overwhelmingly Vote for United Bloc BEIRUT (Aztag)--The Lebanese-Armenian community overwhelmingly chose to side with and vote for the United Armenian Bloc slate of candidates during Sunday's second round of parliamentary elections, when former prime minister and Sunni Muslim leader Rafik Hariri's political machine registered a victory by outnumbering all the other minorities in the race. The official results of the elections were released Monday, following which the Armenian Revolutionary Federation Central Committee of Lebanon issued an announcement, through which the Armenian participation was outlined. The announcement also articulated the ARF Central Committee's position on the elections. "Independent of official results, we affirm that in all electoral districts Armenians overwhelmingly voted for the candidates of the United Armenian Bloc, thus clearly establishing that the Lebanese-Armenian community continues to give its vote of confidence to the policies and organizations which represent its interests and aspirations," declared the Central Committee in its announcement. The ARF leadership body explained that during first round of elections in Metn and Zahle on August 27, the United Armenian Bloc candidates received 90 percent of the Armenian vote, while in Sunday's vote in Beirut and the surrounding regions, the Bloc received more than 80 percent of the Armenian votes. In Beirut's first district, the United Armenian Bloc received 3,046 votes from the community, while in the second district, the bloc received 1,574 votes, and in the third district the slate received 6,366 votes. In Beirut's first district 253 Armenian voted for the Hariri's slate of candidates, while in the second and third districts 422 and 1,405 Armenian voted for the former prime minister's bloc respectively. In the three districts combined, the United Armenian Bloc received 10,986 Armenian votes (84 percent), while the Hariri slate received only 2,080 Armenian votes (16 percent). The Central Committee, in its announcement, praised the efforts of the election committee volunteers and members and congratulated them on their weeks of campaigning for the United Bloc. In conclusion, the ARF Central Committee extended its congratulations to the newly elected parliament members and called for the continued preservation of democratic norms and tolerance toward other communities. 3. Turkey's Sezer to Urge Clinton to Stop Genocide Bill Vote ISTANBUL (Marmara)--Turkish president Ahmet Nectet Sezer told reporters in New York Tuesday that he will urge President Bill Clinton to stop a Congressional resolution recognizing the Armenian Genocide from coming to a vote. The Sezer-Clinton meeting will the first and last meeting between the two leaders, since Clinton will leave office in January. Observers at the UN Millennium Summit, in the framework of which Sezer will meet with Clinton, say that Sezer will ask his US counterpart to intervene in the passage of the Genocide Resolution. Meanwhile, Turkish foreign ministry officials reminded that in the past US presidential intervention has resulted in the rejection of past Genocide resolutions in Congress. Turkish diplomats are expected to call on Clinton to use his stature and pressure Congress to not consider the bill. The Turkish and American leaders are also expected to discuss the progress of the Baku-Ceyhan pipeline, as well as alleged damages Turkey incurs in its role as a NATO member in defending the borders with Iraq. It is expected that Clinton will make his own set of demands on the issue of Cyprus. 4. Aliyev Says No One Can Force Armenians to Withdraw from 'Occupied Lands' BAKU (Noyan Tapan)--Before leaving for New York to take part in the UN's Millennium Summit, Azeri president Haydar Aliyev said that no one in the world can force Armenia to withdraw from the so-called "occupied territories," as long as there were elements in the international community who favor prolonging the conflict. In his announcement, reported by the Azeri News Service, Aliyev said that he expected to hold talks on the resolution of the Nagorno-Artsax conflict with various world leaders. The Azeri leader told reporters that he would address the issue of UN Security Council resolutions regarding the Artsax conflict, adding that, perhaps, Armenia was taking advantage of the impasse created in the peace process. Aliyev further pledged to raise the issue of Section 907, the provision impeding US assistance to Azerbaijan until that country lifts its blockade of Armenia and Artsax. 5. Sculptors Attend International Symposium-2000 In Lebanon YEREVAN (Noyan Tapan) -- The town of Aley that is situated 25 kilometers from the Lebanese capital of Beirut recently became a venue for a month-long conference attended by over 60 sculptors from 26 different countries. Garegin Davtyan and Gagik Ghazaryan from Armenia as well as a number of Armenian sculptors from Lebanon, Italy and France took part in the symposium. The symposium head committee expect Armenian artists to become permanent participants in this annual event, the Public Relations Department of the Ministry of Foreign Affairs said. 6. Ararat Gomtsian Appointed Aide To Prime Minister YEREVAN (Noyan Tapan) -- Prime Minister Andranik Margarian signed a decree on September 1 relieving Ararat Gomtsian of his duties as Head of the Department of Operative Management of the Government Staff and simultaneously appointed him as his personal aide, the Government's Public Relations Department reported. 7. Drought Causes 2 Damage In Siunik YEREVAN (Noyan Tapan) -- The examinations conducted jointly by foreign and local specialists have shown that the long drought of this summer has damaged 5,000 farms in 37 communities in Armenia's Siunik region. The damage is estimated at some 2 billion drams. This data was presented to the United Nations Development Program and the German Technical Cooperation Agency as "Southern Armenia: An Integrated Food Security Program" in the hope of getting assistance from these organizations. Simultaneously, over 70 percent of the 2057 hectares of tenanted lands situated outside the administrative territories of communities became worthless because of the drought. According to Head of the Agricultural Department of the Regional Administration Mushegh Kostandian, the collection of rent in the region has become impossible in consequence of the big losses incurred by local tenants. 8. Computer Center To Be Established In Artsax STEPANAKERT (Noyan Tapan) -- On August 31, Nagorno Artsax Republic President Arkady Ghoukassian met with Moscow-based businessman and philanthropist Levon Hayrapetian, who presented the activities of the Ata Vank woodwork enterprise established in the village of Vank this year, at the expense of his own funds. Presenting his further plans, Hayrapetian, in particular, pointed out the significance of modern technologies to develop the economy of the Nagorno Artsax Republic and announced his intention to make investments in this field. He announced his plans to set up a computer center in Artsax to train high-level programmers. According to Hayrapetian, this will create the opportunity to develop modern computer programs locally with a prospect of exporting these programs to the world market. President Ghoukassian stressed that the efficiency of the activities of the Ata Vank enterprise was a bright example of close cooperation between "the state and the investor" and expressed confidence that this would lead to a natural development of Artsakh's economy and solution to the social problems of the republic's population. -------------------------------------------------------------------------------- Community News -------------------------------------------------------------------------------- 1. Software Buzz Brightens Armenia's Economic Reality YEREVAN (RFE/RL) -- Amid the gloom of Armenia's depressed economy there is one bright spot that leaves some hope about its potential for recovery. Far from public eyes more used to industrial graveyards, it is quietly becoming one of the most promising avenues of economic development. The computer software industry has registered a major upswing in Armenia in the past several years, thanks to an influx of foreign investments. It is now a rare area where Western, mainly American, firms pull the strings, offering the country an opportunity to preserve some of the hi-tech orientation it boasted in the Soviet times. At least 12 US software companies are known to have their subsidiaries in Armenia at present. The number should grow in the coming months. European companies are said to be following the suit, with several of them already present in the country. For Armenia's unemployment-stricken economy this has meant hundreds of jobs and good prospects for the creation of new ones. So good that government officials now view computer programming and wider information technologies as one of the main potential engines of economic growth. "Herein lies our future," says Aleksandr Adamian, deputy directory of HPLA, the Armenia subsidiary of the California-based Heuristic Physics Laboratories. Founded in 1995, HPLA is one of the pioneers of Western hi-tech investment in Armenia. It started off with just 5 programmers and now boasts more than 60. Company officials see the possibility of further expansion. HPLA specializes in the development of a special software that is used for detecting defects in electronic microchips. It was HPLA's positive experience that inspired another Silicon Valley company, Credence Systems, to launch operations in Armenia two years ago. Its Yerevan branch now employs about 50 people and may also be expanded. The business is "very promising," according to its manager, Manuk Gevorgian. Chilli Technologies, a Yerevan-based company also owned by Americans, was opened six months ago but already has more employees than Credence. Its manager, Vasily Turovtsev, is equally enthusiastic: "I believe that this is one of the best ways of developing our economy." The West is a key but not sole market for Armenian-made software. Bever Computers is one of those local firms that get orders from Russia. Bever produces computer programs of automated financial management for Russian defense enterprises, capitalizing on its managers' old Soviet-era connections. Most of its programmers used to work for Yerevan's famous Mergelian Institute of Mathematical Machines, the once secretive research center that produced electronic equipment for the Soviet military. Mergelian's sprawling building is desolate these days, reflecting the economic decline of the past decade. The institute has been trying to adapt to the harsh realities of market economy. It is now said to be working on joint projects with China. Thousands of former Mergelian workers left jobless by the end of the Cold War and the Soviet collapse are a valuable human resource, which foreign and domestic firms are making use of. It is the shared opinion of industry insiders that the low cost of skilled labor is the primary factor attracting foreign investors to the sector. An experienced programmer working in an American-owned firm in Armenia is paid an average of $500 a month, 20 times less than their counterpart in the US. The overall volume of investments needed for launching a software subsidiary is fairly low compared with other sectors of the economy. The high transportation costs resulting from Armenia's geographical position and the Nagorno-Artsax conflict are irrelevant to information technologies. In the words of HPLA's Adamian, this makes the software business all the more beneficial for the country. "What we need to have is some industries that are unaffected by the transportation problems as much as possible," he says. "What you produce here is delivered within seconds." Also important is the fact that the sector is export-oriented thanks to foreign companies. The more than 30 local firms must themselves look for markets abroad. Some of them have been highly successful in the domestic market where most banks and other businesses use Armenian software to keep their computerized financial records. But very few have found export markets on their own. "You may lose five or even ten years trying to enter the Western market," Adamian says. Information technologies is now one of the few areas where Armenia may soon be faced with a shortage of skilled specialists. The government has already increased the number of places in computer science programs of state-run universities to keep up with the demand. The high likelihood of finding a decent job lures many young people to computer departments, making the application process there one of the most tightly contested in the country. The problem is that many university graduates are not qualified enough to work for software companies because of the general decline in educational standards, industry executives say. "There should be no illusions about skilled programmers in Armenia. There aren't too many of them," says Hakob Duvalian, head of the Yerevan branch of the US firm Virage Logic. The adequate training of future specialists is thus high in the list of demands addressed to the Armenian government by the software sector. Its "strategic importance" is recognized by the ministry of industry and trade which has come up with a program of fostering the spread of information technologies with "state assistance." "It outlines those important directions which should enjoy state privileges and an appropriate legal framework," the deputy minister, Armen Grigorian, said in a recent newspaper interview. One of the ideas considered in this context is the creation of a "technopark" near Yerevan - a sort of tax haven for hi-tech businesses. The government hopes to secure funding from the World Bank for that purpose. Despite the robust growth, the Armenian software industry still has a modest size. Its annual production volume is at best $15 million - a drop of water in the sea of global market worth trillions of dollars. As HPLA chief executive Andranik Hovannisian puts it: "Most Western software firms don't even know of Armenia's existence." If the government is to ensure a greater influx of foreign capital, Hovannisian and other industry insider say, it has to meet a number of specific conditions. A large part of software companies' grievances has to do with high taxation and customs administration. Customs officials are widely accused of arbitrary taxation of imported computer equipment and programs. "They are killing the business," Adamian complains. The official monopoly on Internet services enjoyed by the ArmenTel national telecom operator is also thought to be stifling growth. Companies that do not have a satellite connection with the outside the world have to rely on ArmenTel's services, which are expensive even by international standards. There is also the question of compulsory military service. Armenian university graduates serve two years in the armed forces and as company executives say, need some time to restore their skills after returning home. "The loss of a single programmer who gets drafted to the army, may seriously hinder the ongoing projects and the business in general," Hovannisian warns. Other obstacles to the sector's development are less fundamental. Under Armenian law, only those business transactions that are sealed by ink have legal force. In the era of electronic commerce this is seen as an anachronism. The Armenian state has so far had little involvement in the emergence of the software industry. Analysts say that the government can no longer stand by and just let the process go on if it is intent on turning the IT sector into a manufacturing leader. A comprehensive government strategy for hi-tech development would be a welcome boost. 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