Robert Kocharyan

“ When I look at the Government’s draft laws, I always keep this factor in mind – to do whatever it takes to make sure that our decisions do not hinder the development of small and medium businesses. I repeat, because there is always a temptation to make one’s work easier: the work will be easier when one deals with a small number of businesses. It is clear, isn’t it? It is one thing to have 5 bread factories in Yerevan, and it is completely different to have 300 small bakeries. Of course, the shadow economy is going to be larger with 300 small bakeries. ”

“ Accumulation of debts would simply mean that the country will not get enough gas to run its economy. For this reason, we have to be very strict in these issues, because if it is now some people who are unhappy with us, everyone is going to be unhappy in the future if we are not strict. Let me repeat, one or two months more, and we will be able to work in a more relaxed regime in the energy sector; we already know what reform program we are going to implement. ”

“ We must do our utmost so that the great philanthropist, who is ready to back up Armenia and assist it in solving its most pressing problems, has reciprocal trust in us. The fourth program is connected with advanced technologies. Kirk Kerkorian is ready to help in this issue as well, by using his influence throughout the world, granting financial assistance and assisting in bringing corporations which produce advanced technologies to Armenia. ”

“ A. I believe that the economic relations are the most important ones, since we do not have any political problems with Greece. Since regaining independence our relations with Greece have been warm and consistent. As regards economic sector, the main legislative acts for bilateral cooperation have been formed with very successful examples of Greek capital's investments in Armenia.
Q. Mr. President, Greece and Armenia cooperate on international level concerns our national problems. What is your attitude to Armenia-Greece relations regarding Turkey and Cyprus-related developments? ”

“ Yes, there are problems with the budget, but this does not mean that there is no economic development. Most importantly, I repeat, the banking capital has started to finance the economy, businesses have started looking at exports, because competition is very tough in the domestic market. It is also understandable that our market is small, and therefore, we will simply have no future if our industry, our economy does not export. There are many interesting phenomena, and we need to conduct such an economic policy that would encourage these phenomena, these tendencies. ”

“ When we were discussing the draft budget last year, we knew that we are going to lose more than 4 billion drams in income tax revenues as a result of the new law. The amount of broad money is a much more accurate indicator of economic growth and the size of the economy. Compared with the same period last year, the amount of broad money is 14.5 billion more today. The total amount including foreign currency has increase by about 30 billion. There is no inflation. It is lower than projected, about 1 percent. These numbers are for the first 9 months of the year. ”

“ It is a question of balance: there are no very good or very bad Constitutions. I am surprised by the debate about parliamentary, presidential, semi-presidential systems of government, simply surprised. There are very established presidential, semi-presidential or parliamentary countries. In this case, the people chose one system and try to improve that system, to achieve success. ”

“ Economy, job creation, constitutional reforms
ROBERT KOCHARIAN – Let me remind you that I first spoke about job creation on November 2, 2000, in my interview to National Television. Since then, we have turn on the meter and started counting. Today I will talk about a bit less than a year, about 11 months, since we will have to meet in February to sum up the results of the whole of 2001. I must say it was very difficult work: no administrative monitoring of job creation has ever been conducted in Armenia. ”

“ This is a strategic task, and its solution will create conditions favorable for the development of Armenia's economy, as well as yielding some transit profits. An agreement has been reached to allocate $85 million US dollars for this program, part of which ($35 million) will be spent for the construction of a road linking the Gegharkunik and Zangezur regions. This will shorten the transit road from Armenia to Georgia and Iran by about 50 km. This program has dual significance: it allows us to better pursue our territorial policy and seriously impact on transit possibilities. ”

“ It is simply impossible to assign a policeman to everyone who sets his meter back. We need to introduce a private interest in the relations between consumers and the energy sector. What we have today cannot be tolerated. ”

“ President, is the participation of other Diasporan Armenians in investment programs for the development of Armenia's economy expected?
ANSWER - Yes, it is expected. You are aware that Richard Manoogian was in Armenia a few days ago. It was his first visit. I think this visit of Kirk Kerkorian will become an effective stimulus for many other Diasporan Armenians. Even his name serves as a strong guarantee both for us and our compatriots abroad. Yes, they are planning substantial activities and are interested in Armenia. ”

“ I do not rule out the possibility of making more active use of the capabilities of various entities in Armenia and of the employees of the energy sector itself.
QUESTION (Gayane Movsissian, “Caspian” news agency) – Mr. President, how do you see the future of energy distribution networks?
ROBERT KOCHARIAN – We couldn’t sell them. I have always been and I remain a supporter of their privatization. The economy that is functioning in Armenia is private. Any contact between government and private sector always ends negatively for the state-owned enterprise. ”

“ Rather than discuss humanitarian programs with Kirk Kerkorian, we discussed far-reaching programs promoting the development of our republic. We are trying to move from sustaining our existence to development programs. This is very important, and I feel that Mr. Kerkorian is particularly encouraged by this approach. We have also agreed that Kirk Kerkorian needs to visit Armenia more frequently. ”

“ Second, if Shavarsh Kocharian wants to have his own draft, he should at least try to become President and then become an agent for constitutional reforms and submit his own draft to the people. There is no second draft and there will not be any second draft. If the people want to talk about it, discuss it, they are very welcome to do so. There will be no second draft. Or the consent of at least two-thirds of the National Assembly is required, because if the President does not agree with a draft, then you need two-thirds of the National Assembly. ”

“ I understand his interest in conflicts, since they have a certain impact on the current CIS processes. Today, he is studying the situation in depth and trying to better understand the parties to the conflict. ”

“ We have done everything to make the numbers presented by us credible and we have means of verifying them. One can say a lot of things just like that, without justification: one can even talk about 200 thousand. I must repeat that we did not take into consideration the numbers that have to do with seasonal jobs. For instance, 15 thousand people worked for the census for about 4 months on average. We could have easily divided that 15 thousand by three and say that we have created 5 thousand new jobs within the framework of that program alone. ”

“ It is not right to say whether one system is good or the other. In the so-called transition countries that are in risky conditions and where there is a need to show strong will, personalized responsibility and strong presidential powers give an advantage by offering much more precise solutions in cases of complications, emergency situations and wars. ”

“ We talk about risks, and there is a risk factor here as well. We have no oil and no large metallurgy complexes. In a number of countries, about 40-50 percent of the budget comes from these sectors, while tax administration and the activities of tax authorities usually have to do with large taxpayers that help solve all budget problems. Tax authorities are always tempted to use such laws that would lead to businesses becoming larger so that it is easier to work with them. ”

“ It is understandable that everyone is a master of taking something away from a state-owned business – we have 70 years of Soviet experience and “creative” people... everyone knows about people setting their electric meters back. ”

“ Private entrepreneurs do not keep that list hidden and they update it immediately as the need arises, while in this case the factory finds itself in a totally different status. About the shadow economy: a few different directions. For instance, we have passed the law on procurements and set up an appropriate agency, which means that a significant portion of budget expenditures will be carried out in a centralized fashion, according to the law. Practice has already shown that a lot of money can be saved that way. ”

“ And the second question. When we talk about new jobs, we often neglect the issue of wages. For instance, wages in the light industry are very low – 10-15 thousand drams, which is not enough for prosperity. ”

“ If we were able to keep up this pace of job creation in the next two-three years, most of the population would feel a significant change in their daily lives. But 2003 is an election year, and I am not sure that the second half of 2002 will be very productive in that respect. ”

“ The reconstruction was completed faster than expected. To work at full capacity, there is a problem of markets, there is a problem of ensuring the full cycle of work. Chemistry is, generally speaking, a very difficult area. ”