Progress or backwardation?

[MJ]

"AZG" Armenian Daily # 70, 04/17/2001

Economy

 

WHY DO THE PEOPLE NOT FEEL THE OUTCOME OF REFORMS?

 

The chief advisor to president Kocharian on economic affairs Vahram Nersisiants is not an Armenia born Armenian, but has already adapted himself to Armenian realities.

 

He does not smoke cigars, he does not live in a mansion, but in an ordinary apartment and sometimes makes use of public transport, he is a frequent attendee to various public events, he does shopping in markets and so on.

 

“I have a strong desire to know my people from inside,” Nersisiants said with an interview to Azg daily. He has been living in Armenia for already eight years, (he was the World Bank first Resident representative in Armenia from 1993-1998) and is regarded as the ideological father of Armenia’s transitional period.

 

“The roots of our problems I see in the despotic political culture, inherited from the past, consolidation of force and its willful application . The ordinary citizens were unprotected both under the Soviets, the tzar, the sultans, because the despots could seize their property, honor and life. The consolidated force, by the way, was not only in the hands of the despots, but also in the hands of many smaller officials: governors, school inspector, sometimes in the hands of the family’s father. The poor citizen had to seek for means to make both ends meet after all these manifestations of despotism, he had to lie, to please, to steal, which, altogether create a despotic political culture, common to our immediate neighbors. The establishment of Armenian statehood cannot be considered accomplished unless we diagnose this disease and get rid of it.

 

Q. It’s been ten years since attempts are being made to disperse that force, but people do not feel any tangible progress in their lives.

 

A. Ten years is a short period of time next to 2000. Yes, ten years ago we started dispersing that force in different directions. The political forces through parliament, the executive power through reforms by creating private sector of economy, reforming the legal system and last but not least, by creating free press. In some places the reforms are more visible than in others. For example, in the press and parliament these changes are more conspicuous, in the executive and legal branches they are less visible. The process of dispersing this consolidated force will take much time, as long as old traditions and customs continue to live among the people. This is the reason why the progress is accompanied by recess. A change of generation is needed.

 

Q. Therefore, you regard the created situation as normal?

 

A. Yes. It is not possible to get rid of the heavy burden of the past in some years.

 

Q. But there are examples of more successful changes in the post-Soviet territory.

 

A. This exception covers the Baltic States, Poland and Czech republic in Eastern Europe. The velvet revolutions in these countries were deeper than in Armenia with complete ousting of the older ideology. Vaclav Havel in Czech republic prohibited former state officials, involved in corruption, to hold senior positions in the next 15-20 years. The case was different with us as we had Karabagh problem and the problem of national unity, arising from it.

 

Q. When holding the post of World Bank resident representative in Armenia, you used to say that Armenia was several steps ahead of other post-Soviet republics in terms of establishment of democracy and market relations.

 

A. I continue to think so. Armenia went to reforms quicker than any other former soviet republic, irrespective of the press and the public’s failure to assess it at this point. But since our leaders cannot act as Havel , the old nomenclature has penetrated into the new system giving rise to corruption, economic and political clan.

 

Q. The economic reforms in the first place should address the people’s needs, the majority of which is suspicious of the reforms and does not believe that they will bring any tangible outcome in their lives. What must be done so that the people believe in reforms?

 

A. The reforms in Armenia are more basic than in many other countries and imply big sacrifices, which, unfortunately, fall on one generation. Armenia saw a rapid economic downfall, making the people come to a conclusion that everything around them is limited, so if his neighbor gets richer it is at his expense and consequently, he must prevent others so that he does not suffer. This is called “zero sum game”. There is this psychology among Armenians. And in this situation all the assessments are strictly negative, but this will change quickly for the positive, provided there is a three-digit economic growth for several years.

 

Q. As you worked with the former authorities as well can you draw some comparison between the former and current authorities?

 

A. I would say that the policy of the current authorities comes to supplement that of the former ones. One should not forget that in the first years of independence the authorities had to revive the substructures and save the country from collapse, to create private sector and favorable legislation. And it was done. The policy of current president Kocharian lies in the attraction of foreign investments, to secure economic growth, create new jobs, increase in incomes and improvement of life. But it takes time and professional and honest realization.

 

Q. Can you list briefly president Kocharian’s main achievements in economic policy?

 

A. First, economic stability and its maintenance, second, development and prosperity of the private sector, third, economic growth (6percent annually). This year Armenia has a two-digit economic growth in many sectors and 28 percent growth in export volumes. If the political stability is maintained I think by the end of the year we shall have a ten-percent economic growth. If this speed is maintained for several years the positive outcome of the reforms will be tangible for all layers of the society and the quality of live will significantly improve.

 

Gayane Mukoyan