Saturday, 20 June 2009
I would like to greet you all on behalf the RA Government and wish the forum fruitful activities. The tradition of organizing and hosting forums like this, which was shaped in Tsakhkadzor, has moved on to Nagorno-Karabakh, and sharing in what was said by the President of the NKR, I wish to thank the organizers for this nice initiative, when over hundred business representatives have arrived from Armenia for attendance in this gathering.
This is a promising start. I am convinced that this mood will be conveyed to our colleagues who are working not only in the Republic Armenia, but also in Russia and, certainly, to the representatives of the Armenian Diaspora. I think the watchword of this forum may really lead to building bridges between all our friends from Diaspora, from many countries of the world, and they too can become participants of this forum. Anyway, we should fix this goal.
Unfortunately, this time the number of participants from abroad is insignificant and does not satisfy us. In any case, we came together in a close circle of friends and, therefore, today’s conversation should be sincere and open. What should the governments of Armenia and Nagorno-Karabakh Republic do in order the business environment turns out amenable to you?
It is very important for you to get a first-hand view of public life in Karabakh, the overall environment, what the Karabakhtsi do in daily life and the city breathes. And when you come to feel this environment, I am convinced that it will be the most important stimulus which you will have ever taken back to Yerevan. Each time we come to the NKR, we return to Armenia with a feeling of strong inspiration in the form of new potential received from the Nagorno-Karabakh. It is extremely important that said inspiration comes from a perspective of business environment.
The first question which worries any businessman is the strategy of Nagorno-Karabakh in terms of its long-term development, economic targets and those areas in which it should specialize. Quite naturally, it may suggest us in which sectors investing would be profitable. The President of the NKR has specified those main directions attractive for investment: agriculture, mining and processing industry, power engineering and tourism. But, on the other hand, it is important for us to listen to you because the Government and the private business have different views concerning Nagorno-Karabakh’s economic development prospects. And, naturally, we should listen to your proposals, observations, as well as to what additional steps should be taken or what interesting potential is available, which maybe we have not yet noticed. And you, looking with the eyes of business, can notice and suggest in order this “bridge” takes effect and strengthens.
The second thesis which I want to put forward and which is extremely important, is that the Government of Armenia should do everything so that economic development proceeds faster in the NKR than in the Republic of Armenia as this problem is of serious national and political importance. We should strive that the living standards are higher in the NKR than in Armenia because it is in the NKR that the problem of living standards not only for the local population, but also for Armenian residents is addressed. From the point of view of our originality and decision of national tasks, we are obliged to back up the military achievements in the economic sphere, and the economic achievements of Nagorno-Karabakh are a pre-requisite for economic success in Armenia and in the Armenian world so much spoken about recently which has become an obvious reality in the 21st century. Homeland-Diaspora ties are getting ever stronger from year to year in the Armenian world, and it is caused by several objective circumstances. Scientific and technical revolution makes the world get smaller and smaller and, quite naturally, linkages with the Diaspora become stronger. We should create such channels as may bring this strengthened economic potential and human resources closer to the NKR. This means that economic development in the NKR should be held as a priority by the Armenian Government. We have discussed a project-idea, referred to as “BackHome” which is being realized by the Ministry of Diaspora.
A similar program should be carried out in the NKR as well. From this point of view, the global financial and economic crisis creates new opportunities for us. It is not a secret that our compatriots wish to return home, to have a house and a job over here, and in this respect the Government has the duty of offering them favorable conditions. I think that the program which we are trying to develop today should be realized in the NKR as well. Housing construction is of essential value, and we have passed a decision to create a mortgage fund in Armenia at a State level. The Central Bank will invest 5 billion drams, and we have decided to give the Fund about 30 million US dollars from the Russian credit with a view to speeding up its becoming. The fund can issue bonds and, quite naturally, the resources committed will be directed towards the development of the mortgage market. Our purpose is to extend mortgage loan maturities as far as 30 years, with the interest rates to be held below the mark of 10-15% in dram denomination, supposed to decrease over time.
This means that should our compatriots return to Armenia and find a job over here, their monthly income will allow them access to mortgage lending. They may get apartments or any other dwelling, and if the repayment terms are long enough, they will manage to pay back the loans by means of their salaries. We do not rule out that the State will also subsidize mortgage credits in part - the interest rates, in particular. If we choose target settlements in the NKR to carry out settling, the State can assume the payment of interest rates by 100 percent to ease the burden of the borrowing and provide for enhanced lending attractiveness.
I think that the development of tourism has good prospects from an employment perspective. If we consider that 90 percent of Armenia’s population has never been to Nagorno-Karabakh, it becomes clear how much potential we have for developing tourism and providing related services. I think that the realization of investments in this sphere should be a priority for the Government. The private sector too can carry out serious investment programs in this sphere.
You may know that in the framework of the activities of the Council on National Competitiveness, we have created the Agency for Tourism Development which seeks to realize such actions as will help connect tourism centers worldwide with Armenia through best international standards in an effort to have a “conveyor of tourism” at home. Now we can realize a similar task in Armenia as well as we have introduced this idea to trade unions and state enterprises. If only we manage by means of trade unions to provide our ministries with appropriate financing for the organization of tourism, we will be able to considerably increase the number of tourists in the NKR within the first three years. If today we come to such an arrangement, we will undertake to fix this approach by a decision of the Government and specify how many public sector employees a year can be sent to the NKR for holiday. This can be an important figure. However, it turns out that the possibility for the NKR to host organized rest is insufficient. And if we send a few thousands of persons to Karabakh right now, it will not be able to ensure proper service for them. But if today we fix the program with the private sector, that is the Government undertakes to send to Karabakh a few thousands of its employees on holiday every summer, knowing about these streams, the private sector may carry out investments into the building sector, will erect the necessary facilities, and we all over again shall agree upon the prices, from now on we can come to some agreement under this program. The point is that the culture of cheap rest is not widespread in Armenia. Actually, it turns out to be much cheaper for a family from Yerevan to have a rest in Turkey or Georgia, inclusive of air fare. It is our problem, and we should solve it together with you. This means that we should adopt a strategic program based on the concept of public-private sector cooperation. And I am confident that if the Union of Industrialists and Businessmen takes it as a new approach to the cooperation between the State and the private sector, we can develop this program and endorse the respective obligations. I am giving a great value to this program because the flux of people will obviously reveal the economic potential of the NKR.
People must come around, see with their own eyes, grow fond of this land, water, country, and it will provide a guarantee that they will be back next year and will think of investment. And this flux of people will call for infrastructure development and investment. I think that as launched by the NKR authorities, the airport project will give a new stimulus to the strengthening of these ties At the same time, I wish to express readiness to listen to all the questions of interest to you concerning your expectations from the Government of the Republic of Armenia, in order we can stimulate economic development in the NKR.
Once again, I want to thank you all for prompt response to this “Bridge Artsakh” initiative and participation in this forum. I wish fruitful work to all of you. Also, I would like you to feel enthusiastic and ready to contribute to the development of the NKR, once you are back to Armenia.
Thank you.
