Armenia-Iran

[Guest]

The Geo-Economy of the "Great Economic Region":

Iran-Armenia Relations

 

Amu Darya

Summer 1999, Vol. 4, No.2

By: Igor Moradian

Pages: 170 - 179

Word Count: 2518

 

Summary: The geo -economic strategy of the West in the former

socialist countries includes the following parameters: Elimination of

the high technology sector and the prevention of its future

rehabilitation (specially in the military and information fields),

obtainment of needed raw materials, de politicization of the

encouragement of the free market economy-in other words, all

instruments that facilitate the free flow of capital into these

countries.

 

Text: The globalization of the economy and international relations at

a specific juncture in time gave way to vast speculations on the

preservation of national economies. Theories concerning the

disappearance of the dividing line between domestic and foreign

policies, the incongruence of political borders and economic policies,

and similar ideas gave way to the perception that governments erecting

economic obstacles, i.e. tariff barriers, will be marginalized in the

realm of international business. It is obvious that the

internationalization of markets brought about major changes and

facilitated progress along with political and economic

development. However, the major factors of instability giving way to

wars and conflicts and the widening economic gap between regions were

not addressed.

 

Therefore, alongside the global market theory, national economic

relations and views concerning the protection of national economic

commercial institutions gained momentum. However, this time, 19th

century protective policies were not resorted to; instead, an increase

in the competitive ability of national economies was focused

upon. This view became even more popular both politically and socially

in European and non-European countries that were advanced

technologically. This phenomenon was in many ways caused by

discrepancies between the growth rates of industrial

countries. Therefore, at the very height of globalization, an intense

competition was ignited among the world's industrial poles in the

political and economic spheres.

 

Geo-economic competition between western industrialized countries will

not only surpass the realm of globalization in the near future, but

will also include such areas as financial policies, technology, and

banking mechanisms. In this context, the most serious problem in the

West will be that of the social welfare, which consumes resources and

thus decreases the competitive strength of national economies.

 

When social welfare costs get as high as 40% of the GNPs the whole

idea will be questioned, since not only will it involve the incomes of

the wealthy class, but also the middle class will be taxed, making the

ideal totally irrelevant. Similar problems are facing the former

socialist countries and developing nations that are seeking to find a

suitable share in the international division of labor. These countries

will have to coalesce social welfare concerns and issues of economic

competitiveness.

 

Governments that are situated in various stages of economic and

industrial development are becoming heavily dependent on the West,

especially the US, and the international economic organizations. Even

a country like Russia did not succeed in rescuing herself from this

bind. The geo-economic strategy of the West in the former socialist

countries includes the following parameters: Elimination of the high

technology sector and the prevention of its future rehabilitation

(especially in the military and information fields), obtainment of

needed raw materials, de-politicization of the economy, encouragement

of the free market economy - in other words, all instruments that

facilitate the free flow of capital into these countries. Armenia

provides a classic example of the geo-economic strategy of

international organizations. This country had to accept existing

monetary systems, deregulate within a five-to six-year period, and

thereby suffer from a rapidly declining living standards and national

production level.

 

To solve persisting problem, Armenia has a number of alternatives.

However, in all of these options the requisite of economic

reconstruction and partnership with an economic partner in any of the

major economic fields, which has to be fairly developed and

accessible, would be inevitable. In the world's economic history there

were many troubled countries that were able to revitalize themselves

by both entering a vast market and becoming a reliable partner in that

scene.

 

Even the most liberal-minded politicians in Armenia have realized that

a movement towards western ideological and economic model will ensue

the weakening of the national economy and the elimination of

traditions and social norms. Moreover, nowhere in the West can Armenia

enter the economic sense as a "reliable partner". Of course, the

initiative of the Armenians and the efforts of the government will

helps us overcome the present economic difficulties, hopefully

resulting in the rehabilitation of the production potentials. It

remains to be seen which one of the goe-economic plans assume priority

from an Armenian perspective.

 

Two decades ago the Iranian government chose a specific developmental

path of its own, basing itself on the Shiite tradition and the

preservation of traditional values, i.e. religion, family, individual

freedom, and the right to private ownership. Although, the

revolutionary tenets were not readily accepted by the world and even

came under attack the Iranian nation succeeded in creating a unique

society and government, not only withstanding economic embargo, but

also challenging political sanctions.

 

Today, many Armenian statesmen and experts are carefully following -up

on the political-social-economic model pursued in Iran. They have come

to the conclusion that despite traditional, religious, ethical, and

 

philosophical differences, the Iranian experience can provide useful

object lessons that can be adopted by Armenia. The following points

deserve due attention:

 

The combination of free market principles with governmental

intervention in the nation's economic life. Flexible planning

approaches that are neither socialist nor authoritarian, and yet

they reflect the efficiency needs of the economy and social

welfare.

 

The multidimensional character of economic plans, which allow

private ownership along with state and cooperative ownership in

accordance with the socio-economic conditions.

 

The combination of privatization, especially in the industrial

fields, and the participation of the government in major

industrial arenas that attracts other industries so as to pave the

way for specialization of Iran's economy.

 

The expansion of the Iranian economy in such areas as social

issues,

 

price setting,tariffs and social standards.

 

As far as Armenia is concerned, not only Iran's economic mechanism

(which can be labeled " the third way"), but also its geo-political

and geo-economic goals seem interesting. As a result of the Shiite

doctrine and goals, Iran succeeded in attaining a considerable

position in the region, with its interests spreading far beyond the

Middle East. This was the net result of that country's historical

growth. The Iranian government is not only a cultural pole, but also

emerges as a geo- economic weight to be reckoned with. As regards

Iran's defense doctrine, this country has emerged as a force of

stability in the region. Iranian officials have repeatedly voiced

their wish for peace and security in international quarters. However,

the attainment of this objective is contingent upon the ability to

fortify the potentials of this geo-economic pole with the attraction

of other regional countries in a 1000-mile wide region around the

Caspian Sea. Candidates that wish to join this pole as geo-economic

members must see the requisite economic as well as political

incentives for doing so. At the same time, the combination of

political and economic factors will emerge as the main characteristic

of this geo-economic entity.

 

Subsequent to the demise of the Soviet Union, Pan Turkism was

revitalized. It pursues a global ideology that is in no way congruent

with Turkish national and governmental goals. The sole objective here

is to impose the will of the governing body in Anatolia as "a big

brother" ideology. This strategy is pursed against the immediate

interests of Russia, Iran, and China, while Armenia is considered as

an ally of Russia and Iran. Though the Anatolian radicals are mere

instruments in the hands of NATO, they pretend to be independent and

autonomous.

 

Creation of a strong Moscow-Yerevan -Tehran can emerge as a key to

Europe. But here it becomes clear that the political and economic

proximity between the two countries depends on a variety of factors.

First, due to a number of reasons, Russia is not willing to shift from

active cooperation with Iran to the creation of the aforesaid axis.

Second, Iran and Armenia share similar interests that can be met

without mediation. Finally, a politico-military alliance with Russia

is not only consistent with the necessity of Armenia's membership in

this "vast economic arena," with Iran at its heart, but also

imperative.

 

It bears mention that despite the lack of political agreements between

these potential partners, that is Iran, Armenia, Turkmenistan,

Tajikistan, Greece, etc., concrete political trends toward that

objective are being shaped. These trends are underpinned by the

geo-political activities of Iran as the most powerful country in the

region. Strategic infrastructure such railroads, pipelines, and roads

that are being built by Iran and regional partners can give way to a

new geo-political reality. Given the existing limitations and

complexities emerging in the realm of foreign policy (mainly initiated

by third countries), these achievements were indeed notable. Yet they

mark the very beginning of the emergence of a "greater economic

region".

 

Should we presume that some of the political problems in the region

will be solved, then the following points must be taken into

consideration:

 

The creation of a common network of energy distribution together

with requisite infrastructure and facilities.

 

Cooperation in great economic projects and efficient use of

productive potentials in the countries of the region.

 

Adoption of a coordinated approach in the use and export of raw

materials, food, water, and intellectual properties.

 

Expansion of cooperation and coordination of prices in the use of

energy resources, construction materials, and social needs.

 

Participation in production schemes and the development of the

region's infrastructure.

 

Combination of financial capital and economic cooperation in order

to confront inflation and preserve each country's monetary value.

Coordination in prioritizing economic plans while taking into

consideration the participating countries' interests.

 

Development of unified tariff policy that can contribute to the

further expansion of economic ties, while minimizing adverse

foreign influence.

 

Development of coordinated social and educational approaches

 

The realization of the above is contingent upon stability and flexible

economic systems that could incorporate the variety of views that

exist.

 

The geo-political cooperation of the participating countries

necessitates the creation of common laws and perceptions that take

into consideration regional tradition, ethnic composition, religion,

and the rights of individuals and social groups.

 

Main Areas of Economic Cooperation

 

In recent years, Iran-Armenia relations have expanded considerably,

and this happened despite serious infrastructural impediments, such as

lack of adequate roads and transportation. The political circumstances

were not helpful either, as military confrontation in the Caucasus and

the intervention of non-regional forces made matters all the more

difficult.

 

These problems are more tangible for Armenia. For instance in 1996

Iran's share of Armenian foreign trade amounted to 22.5%and in 1997

despite the relative decline in the volume of trade between the two

countries, Iran's share of Armenian's foreign trade was estimated at

11.6% representing 18.3% of exports and 9.9 % o imports.

 

Yet it bears mention that as far as Armenia is concerned, Economic

relations wield strategic significance and are vital. For various

reasons, Iran's role in meeting Armenia's energy and food needs is

irreplaceable.

 

Under the present circumstances, projects for the development of the

infrastructure, i.e., transportation, construction of tunnels and gas

pipeline, power and utilities network, all have increasing

significance.

 

These projects can totally transform the regional configuration, and

pave the way for the creation of intercontinental and interregional

communication networks, all of which affect the geo -politics of the

region.

 

As far as the development of communication lines is concerned,

Armenia's importance to Iran stems from the fact that this country

acts as a bridge to Russia and East Europe. Iran, also, due to its

wealth of petroleum resources is a source of attraction for many

European countries such as France and Germany or countries in Central

Europe. In addition to being a repository of fossil fuel, Iran is

viewed as a source of energy provision for the next century. The

development of the petrochemical industry also necessitates the

creation of communication networks to Europe and Russia. These network

and roads must be economically feasible and do not fall under the

control and jurisdiction

 

of NATO. They must thus circle the Suez Canal and the Black Sea. Such

a network can turn this whole region into an important transit route

for China and India, and later on Russia, allowing the total volume of

transferred goods to reach millions of tons.

 

At this point it would be necessary to make the political decisions

for the construction of communication roads on the basis of strategic

geographical considerations. The initial agreements between Iran,

Russia, Armenia, and Turkmenistan on road development plans can help

prevent the entrance of NATO members into the region. In this context,

Iran's role is so crucial that it cannot be discarded by any of the

regional countries.

 

The economic relations between Iran and Armenia cannot be limited to

road construction. This solution will only be effective when

complemented with other ingredients such as infrastructure, increase

in the production capacity, technological projects, production

expansion, and investment ; therefore, a host of problems remain to be

solved.

 

As we all know, Armenia is in a period of economic decline and faces

serious infrastructural shortcomings, hence the need to enter foreign

markets. Financial regulations and the restrictions imposed by

international financial organizations, all parts and parcels of the

American global strategy, do not allow the former socialist countries

to make full use of their production potentials. It is thus important

for Armenia to be able to enter a large market and over the long run

remedy its production capacity.

 

This imperative can apply to a portion of the Armenia economy or to

its totality. Armenia offers products that can appeal to the Iranian

market, i.e., metals, chemical products, construction and

transportation equipment, and electrical or technical appliances. Use

of the Armenian products can save Iran a considerable amount of

investment. To attain this goal, the remnants of mistrust must be

eliminated and acceptable methods should be devised for fostering

cooperation. For instance, a joint investment group can be incepted

with the help of both the Iranian and Armenian governments. The stock

exchanges in both countries can be actively tapped and thus investment

can flow back and forth between both economies.

 

One of the characteristics of the geo-economic pole is the existence

of a military complex. In this specific regard, Armenia can play an

active role, since during the Soviet era a major share of this

country's production was directed at meeting defense needs.

 

Thus far economic considerations have played a significant role in the

Iran-Armenia relations. The expansion of economic ties has brought

about a closer relationship in a political arenas. However, it is high

time for both countries to move on to a political plane, since without

the shaping and expansion of bilateral political ties, all

geo-political plans would be doomed, especially given the offensive

approach adopted by non-regional actors. All in all, economic

cooperation can be integrated into the overall geo-political picture,

giving way to the emergence of a geo-political "pole".

[Guest]

4. Khatami Donates $120,000 To Ararat

 

TEHRAN (Armenpress)--In accepting the wishes of His Holiness, Aram I, Catholicos of the Holy See of Cilicia, the Islamic Republic of Iran Mohammad Khatami

donated $120,000 to the Ararat soccer team of the Tehran's Ararat sport-cultural union. The president also promised to support the union during the upcoming

years.

 

As it was reported earlier, His Holiness met with the president Khatami last week. During the meeting he presented the needs and concerns of Iranian Armenians.

President Khatami promised to meet their needs in the near future.

 

The Catholicos on Sunday said Armenian-Iranians form an inseparable part of the Iranian nation, and stressed that people of his faith in Iran are not really a religious

minority.

 

Aram I, who was meeting with the Speaker of the Iranian parliament (mejlis) Hojjatoleslam Karrubi said all nationals in Iran, regardless of their religion, are entitled

to full rights and privileges of citizenship. He thanked Iran's religious leaders for providing Armenians with the freedom to worship.

 

He lauded Iran's progress at the national and international areas, and expressed hope that Armenians would contribute to that progress on the side of their Iranian

fellow-citizens. The Catholicos also called for the help of the Iranian Government for Armenian schools in Iran.

 

Karrubi, in response underscored the contribution of Armenians to the development of the country in all areas, and promised to set to Aram I's request.

[Guest]

very good FC Ararat had financial problems and was playing at the secondleague of Azadegan, also it was nice to donate to FC Sepahan Esfahan (which is called FC Ärmänestane Iran, by Tehrani kids) , which plays in the first league of Azadegan, and has financial needs, and because of that they should sell their Armenian forward Estepanian, but their Armenian goal keeper Armenak Petrossian, refused to leave Sepahan, because of his passion for his club.

 

I hope that Ararat comes back to the Azadegan first league.

 

Good news: They are building a big stadium of 75000 people for Esfahan.

 

[This message has been edited by Iranyar (edited July 25, 2000).]

[Guest]

God knows I love Iran, that is well known to everyone, but I don't think we should follow the economic model of the present regime which has led the country to economic ruin, outrageous unemployment and consequently high levels of heroin addiction and prostitution(yes in the Islamic republic).