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AMERICAN MESSAGES TO ARMENIA
HAKOB BADALYAN
Story from Lragir.am News:
http://www.lragir.am/index.php/eng/0/comments/view/29085
18:03 25/02/2013
The United States of America will cut humanitarian assistance to
Armenia, reducing 44.2 million to 36.6 million dollars. This decision
does not concern Armenia only but the South Caucasus so it is hardly
a specific expression of the attitude of the United States to Armenia.
This is just part of budget saving.
Interestingly, the United States changes the directions of spending.
Formerly the bulk of this assistance was spent on economic development
programs whereas now two thirds of this money will be spent on defense.
First, economy. Recently, the United States has been taking interest
in bilateral economic ties. The U.S. Ambassador John Heffern has
stated his intention to attract American investments to Armenia. There
is a contradiction when with such a priority the share of economic
development is nullified in humanitarian assistance.
However, it seems so at first sight. In fact, the picture is logical,
there is no contradiction. The issue of economic development must be
tackled with the help of investments, not humanitarian aid. Moreover,
humanitarian programs seem to be psychological obstacles to economic
development. A healthy economy is based on investment programs and
strategy.
The decision of the United States is a clear hint to the Armenian
authorities not to rely on humanitarian aid but provide an attractive
business environment for investments.
The other side of the issue is that Prime Minister Tigran Sargsyan
visited the United States last December together with the U.S.
ambassador to meet with Armenian American organizations. The meeting
with the head of MCC and Vice-President Biden were not planned.
In 2006 MCC included Armenia in its program, granting 235 million
for 5 years for rural infrastructures. However, the program set
economic and political benchmarks, and in 2006 Armenia complied,
whereas after the tragic post-electoral developments in 2008 the
program was suspended, withdrawing a 70 million tranche. Armenia
did not comply with the benchmarks and therefore lost the chance to
participate in the program for the second time.
Now if the post-electoral developments in Armenia do not escalate
into clashes, Millennium Challenge may finance Armenia.
Although, the United States will certainly follow the post-electoral
developments. However, the nullified economic component of the
humanitarian aid to Armenia may be evidence to the U.S. wish to
compensate for MCC. As to the defense component which is two thirds
of the assistance, it is a clear message. At the end of last year
a group of high-ranking American defense officials visited Armenia
and signed agreements on cooperation on military industry. Given the
Memorandum of Cooperation by which the United States expressed its
readiness to ensure the safety of the Armenian NPP and help prolong
its service by another decade, these are practical steps by the United
States towards its commitments.
HAKOB BADALYAN
Story from Lragir.am News:
http://www.lragir.am/index.php/eng/0/comments/view/29085
18:03 25/02/2013
The United States of America will cut humanitarian assistance to
Armenia, reducing 44.2 million to 36.6 million dollars. This decision
does not concern Armenia only but the South Caucasus so it is hardly
a specific expression of the attitude of the United States to Armenia.
This is just part of budget saving.
Interestingly, the United States changes the directions of spending.
Formerly the bulk of this assistance was spent on economic development
programs whereas now two thirds of this money will be spent on defense.
First, economy. Recently, the United States has been taking interest
in bilateral economic ties. The U.S. Ambassador John Heffern has
stated his intention to attract American investments to Armenia. There
is a contradiction when with such a priority the share of economic
development is nullified in humanitarian assistance.
However, it seems so at first sight. In fact, the picture is logical,
there is no contradiction. The issue of economic development must be
tackled with the help of investments, not humanitarian aid. Moreover,
humanitarian programs seem to be psychological obstacles to economic
development. A healthy economy is based on investment programs and
strategy.
The decision of the United States is a clear hint to the Armenian
authorities not to rely on humanitarian aid but provide an attractive
business environment for investments.
The other side of the issue is that Prime Minister Tigran Sargsyan
visited the United States last December together with the U.S.
ambassador to meet with Armenian American organizations. The meeting
with the head of MCC and Vice-President Biden were not planned.
In 2006 MCC included Armenia in its program, granting 235 million
for 5 years for rural infrastructures. However, the program set
economic and political benchmarks, and in 2006 Armenia complied,
whereas after the tragic post-electoral developments in 2008 the
program was suspended, withdrawing a 70 million tranche. Armenia
did not comply with the benchmarks and therefore lost the chance to
participate in the program for the second time.
Now if the post-electoral developments in Armenia do not escalate
into clashes, Millennium Challenge may finance Armenia.
Although, the United States will certainly follow the post-electoral
developments. However, the nullified economic component of the
humanitarian aid to Armenia may be evidence to the U.S. wish to
compensate for MCC. As to the defense component which is two thirds
of the assistance, it is a clear message. At the end of last year
a group of high-ranking American defense officials visited Armenia
and signed agreements on cooperation on military industry. Given the
Memorandum of Cooperation by which the United States expressed its
readiness to ensure the safety of the Armenian NPP and help prolong
its service by another decade, these are practical steps by the United
States towards its commitments.