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Failed States Index Scores 2007 Overview: Armenia

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  • Failed States Index Scores 2007 Overview: Armenia

    In the list of the failed states Armenia ranks 112th, while Georgia and
    Azerbaijan rank accordingly 58th and 62nd. See the full list here:

    http://www.fundforpeace.org/web/index.php?o ption=com_content&task=view&id=229&Ite mid=366

    Failed States Index Scores 2007:

    Overview: Armenia

    http://www.fundforpeace.org/web/index.php ?option=com_content&task=view&id=56&It emid=266

    Armenia is located in Southwestern Asia, bordering Azerbaijan, Georgia, Iran
    and Turkey. It has a population of almost 3 million and a GDP per capita of
    $4,500. Armenia became independent in 1991 after the collapse of the Soviet
    Union. It had a modern industrial sector under the Soviet system of central
    control, but this was neglected following the Soviet Union's collapse and
    economic activity turned to small-scale agriculture. The population is 97.9%
    Armenian, 1.3% Yezidi (Kurd), 0.5% Russian, and 0.3% other ethnic groups. It
    is also 94.7% Armenian Apostolic, 4% other Christian, and 1.3% Yezidi.

    Social Indicators
    Demographic pressures received a rating of 6.0 in the Failed States Index
    2006 (FSI 2006). Population growth was negative at -0.19%. A drop in the
    birth rate from 21.6 per 1,000 in 1989 to 10.2 per 1,000 in 2002 coincided
    with a rise in the death rate from 6.5 per 1,000 in 1989 to 8.5 per 1,000 in
    2003. The unemployment rate is very high, however, and is estimated at
    32-35% (three times the official figure). The high unemployment rate, which
    has caused many people to return to subsistence farming, is largely
    responsible for the rating of 6.0 for demographic pressures. The rating for
    refugees and internally displaced persons (IDPs) was 7.1. Armenia is
    currently hosting about 235,000 refugees from Azerbaijan and also has about
    50,000 IDPs resulting from the conflict with Azerbaijan over the
    Nagorno-Karabakh region from 1988 to 1994. Group grievance was rated 5.0.
    Although the conflict with Azerbaijan is still unresolved, Armenia's
    population is now very homogenous because most of Armenia's ethnic Azeri
    minority fled to Azerbaijan as a result of the conflict, while 250,000
    ethnic Armenians fled to Armenia from Azerbaijan. The homogenous population
    accounts for the low level of group grievance. Human flight was high, with a
    rating of 7.0 in the FSI 2006. An estimated 800,000 people have left the
    country since the fall of the Soviet Union, giving Armenia a net migration
    rate of -5.72 per 1,000 people. The rate of emigration has fallen in recent
    years, however.

    Economic Indicators
    Armenia has a high level of inequality, resulting in a rating of 6.0 for
    this indicator in the FSI 2006. The top 10% of the population controls 41.3%
    of the wealth while the bottom 10% controls only 1.6%. The high unemployment
    rate combined with the return to subsistence agriculture from manufacturing
    has exacerbated the situation. The rating for the economy was 5.1. Although
    Armenia suffered from negative economic growth during the 1990s as a result
    of the conflict with Azerbaijan and the collapse of the centrally managed
    industrial economy left from the days of the Soviet Union, there were
    positive growth rates from 1995-2005. Armenia has stabilized its currency
    and reduced inflation significantly, and the economy grew by an estimated
    13.9% in 2005.

    Political/Military Indicators
    Legitimacy of the state received a rating of 7.0 because of government
    corruption and an excessive concentration of power in the hands of the
    president. The president, Robert Kocharian, was first elected in 1998 and
    was reelected in 2003, but the elections were deemed flawed by international
    observers. An Anti-Corruption Council was created in 2003, but the fact that
    its members are mainly taken from the government or the judiciary has called
    its independence into question. Armenia received a rating of 6.5 for public
    services because, although public services were fairly well developed under
    Soviet rule, they have deteriorated since independence. The adult literacy
    rate is 99%, but spending on education has been cut from 6.6% of GDP in 1990
    to 2% in 2003. Many schools now close in the winter because they are unable
    to provide heating, and books and teachers are in short supply. Healthcare
    has also deteriorated since independence.

    Although Armenia had the highest life expectancy of any of the Soviet
    Republics, the number of hospitals, clinics and health professionals has
    declined since independence. Although human rights were generally respected,
    human rights was rated 6.0 in the FSI 2006 because there were scattered
    incidents of human rights abuses. These included beating of detainees and
    impunity of the security forces. The rating for the security apparatus was
    4.5 because the military's support for the president played an important
    role in preserving presidential power. The indicator for factionalized
    elites received a rating of 5.8 because the country's ethnic homogeneity
    reduced political factions, and the president and his supporters (mainly the
    Republican Party) were the dominant force in government, with the opposition
    having very little influence. The rating for external influence was 5.5,
    mostly due to Russia's economic influence and military bases. Armenia relies
    on military support from Russia, and much of Armenia's energy sector is
    under Russian management. Armenia also receives substantial amounts of aid
    from the U.S., thanks, in large part, to the activism by large Armenian
    community in the U.S.

    Core Five State Institutions

    Leadership: Weak; Military: Moderate; Police: Weak; Judiciary: Weak; Civil
    Service: Moderate

    Armenia has a strong president and a unicameral parliament. President Robert
    Kocharian was first elected in 1998 and reelected in 2003 in elections that
    international observers considered to be flawed. The last parliamentary
    elections, in which the pro-president Republican Party won the largest
    number of seats, were held in 2003 and were also considered to be flawed.
    Although the opposition organized several demonstrations calling for a
    public vote of confidence in the president, a government crackdown ended the
    protests and no vote of confidence was held.

    Presidential power is connected to the military, with the officer corps
    playing an influential role in government. The military consists of a total
    of about 45,000 troops.

    Impunity was a serious problem in the police force. Members of the police
    were involved in a number of human rights abuses, including beating of
    detainees and other forms of abuse. The police force lacked the resources or
    established procedures to end the abuses, and there were no reforms in
    progress. Corruption was also an issue and the police often set up
    checkpoints to extort bribes from motorists.

    Judges are appointed by the president without parliamentary approval, which
    has resulted in a judiciary that is weak and lacks independence.

    Civil service reform has been progressing since 2002, which includes raising
    salaries to reduce corruption and attract more qualified staff, but
    corruption still remains an issue.

    Prognosis
    Armenia, like many of the former Soviet Republics, has an authoritarian
    government and is still struggling with the transition to a market economy.
    The conflict with Azerbaijan over the Nagorno-Karabakh region also remains
    unresolved. In addition to reaching an agreement with Azerbaijan over the
    Nagrono-Karabakh issue, the government needs to allow greater democracy,
    uphold human rights, and focus on reducing unemployment to prevent the
    Armenian workforce from leaving the country or becoming too dependent on
    subsistence agriculture.

    Copyright (C) 2006 The Fund for Peace
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