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  • NKR: Only Investments Are Not Sufficient

    ONLY INVESTMENTS ARE NOT SUFFICIENT
    Norair Hovsepian

    Azat Artsakh Daily, Republic of Nagorno Karabakh [NKR]
    20 March 07

    Along with the development of the economy, different organizations are
    set up to foster this development. Besides the government agencies, the
    public sector is gradually becoming engaged in this process, which is
    evidence to changes in the economy and the approach of the society. The
    Regional Business Center NGO was set up in NKR in August 2006, after
    the International Alert launched the Business and Conflict program in
    2002 with the three recognized and three unrecognized countries of the
    South Caucasus (Armenia, Georgia, Azerbaijan, Abkhazia, Ossetia, NKR)
    and Turkey, said the director of the NGO Valery Balayan in an interview
    with the Azat Artsakh. "The British organization included Turkey
    because they think the important routes connecting the South Caucasian
    states with Europe run across Turkey. And they found it important to
    include Turkey as well. We offered to include Russia as well because
    this country has major interests and influence in the region, however,
    this effort failed, which was partly due to the indifference of the
    Russian party." Valery Balayan says one of the goals of the NGO is to
    support small and medium-sized businesses. "In some developed countries
    the small and medium-sized businesses provide 60-70 percent of the GDP,
    and employ 50-60 percent of the labor pool of these countries. It
    means we have a lot to do yet. Our organization intends to mediate
    dialogue between the NKR government and enterprises. I think there is
    need for this dialogue today. We have problems with taxation, this
    sphere needs to be improved. Considering this, the collaboration
    of the government with the businesses will produce only positive
    results." The Regional Business Center and the International Alert
    are partners on the Business and Conflict Program. In answer to our
    question how business and conflict are related, Valery Balayan said:
    "The idea of the initiators is that business relations, two-party
    and multi-party relations may relieve the atmosphere of intolerance.

    We will not exaggerate if we say that even with the
    Armenian-Azerbaijani tensions and the absence of relations between
    Armenia and Turkey there are businessmen from both sides who seek for
    cooperation. However, the government policies affect this. The Armenian
    environment is more tolerant and ready for a itizens do not wish and
    have no opportunities to become involved in this dialogue. We have
    foreseen dialogue. In Azerbaijan, where the government carries on
    anti-Armenian propaganda, ordinary c joint activities, efforts for
    cooperation. However, presently there are no ways of implementing
    them. Besides, a developed economy necessitates the search for ways
    of cooperation. In this sense, every step towards the development of
    our economy indirectly increases possibilities. As to the choice of
    small and medium-sized enterprises, it was not made at random. Small
    and medium-sized enterprises develop only at peace, unlike major
    enterprises which can operate at war as well." Valery Balayan said
    in late February the NGO held the first photo exhibition headlined
    "Small and Medium-Sized Business in Karabakh". "We wanted to show
    that besides mere investments and government support a continuous
    and clear-cut policy is required, including from production of raw
    materials to processing and sale."

    According to Valery Balayan, another program is underway. "We intend
    to do a research on the NKR small and medium-sized business, the
    legislation and tax policy to figure out the factors which hinder
    the development of small and medium-sized enterprises."
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