The Country's New Shift Towards Transparency
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Special Report This supplement is printed and This report was produced distributed by the Los Angeles Times in partnership with Media Group. It does not involve the editorial staff of the Los Angeles Times. One World Media. March 2017 ARMENIA 25TH ANNIVERSARY OF INDEPENDENCE EDITION Armenia’s spirit remained resilient in the face of past atrocities. Adaptability and innovation have struck a powerful chord to remedy challenges, converting it into a modernized state in the process. The Country’s New Shift Towards Transparency Khor Virap Monastery, one of the country’s national treasures. n the center of Transcaucasia lays Arme- 2011. As a business executive, he achieved nia, a fascinating country of contrasts. tremendous success, channeling that exper- Located south of the Caucasus mountains tise and applying it to the new government. that edge Eastern Europe and Western Solidifying the beginning of an overdue Asia, it is characterized by a great variety transformation, Mr. Karapetyan made Iof scenery—the small landlocked country quick structural changes. He appointed borders Iran, Turkey, Georgia, and Azer- technocrats, experts from their fields in the baijan. As one of the world’s most ancient private sector to fill his new cabinet --four countries, Armenia’s geographical bound- of the six newly elected ministers had not aries today only encompasses a portion of held any ministerial positions in the past. what it once was. After centuries of different “When a private sector representative ruling regimes, Armenians have managed appears in the public sector, it becomes to sustain their culturally rich heritage and beneficial for the government in two identity through steady perseverance. The ways.” He explains. “First, you have a country now is at a pivotal moment. The pragmatic approach to everything. Sec- KAREN KARAPETYAN society conjures pride through embodying ond, you already know how the govern- President Serzh Sargsyan appointed Mr. Karapetyan as Prime Minister of the old traditions while simultaneously keeps a ment can hinder the private sector, and Republic of Armenia on September 13, 2016. progressive outlook towards a modernized you can look at the issue at hand from a future of the state. different angle.” able to survive in these equal conditions. per-sector diagnosis of problems, proposed Formerly a member of the Soviet Union, His pragmatic and non-bureaucratic phi- The fight against corruption is one of the measures to fix such problems, a detailed Armenia has only been sovereign for a short losophy resulted in a two-stage program to key elements of our Program.” He asserts. summary of the 100 days and finally a time but is rapidly at- tackle the challenges. A transparent investment climate to attract fourth part relating to the public-private taining high-growth The first would last FDI is of particular importance also, not partnership based on the Center for Strate- potential for invest- six months, assessing only for growth but to create an engine that gic Initiatives. The Premier is confident that ment opportunities the situation. “This will influence new management cultures the proposed reforms will deliver positive and human capital. IT DOES NOT MATTER would provide an for businesses in Armenia. outcomes. “Active utilization of our in- Armenia experienced what nationality you are, understanding of The country also depends on trade with its tellectual resources will lead us towards double-digit growth or what part of the world the problems and neighbors to promote development. The more prosperous and stable country.” leading up to the diseases of our econ- blocked borders along Turkey and Azerbai- He says. global economic cri- you come from, omy, short-term jan have created difficulties, and the cost The Premier is passionate for those visiting sis in 2008, from then I would like to invite you goals and quick re- of transport to Iran and Georgia have in- the country. Delivering a message of hospi- slowed and saw a 3% to Armenia. sults.” He says. The creased. The Program addresses this issue tality, which is so accustomed to Armenian YoY GDP increase second stage, “based by reforming the tax and customs services culture, says, “it does not matter what from 2015. It celebrated its 25th year of In- on the diagnosis, a long-term program to make tax collection less arbitrary. nationality you are, or what part of the dependence on September 21st, 2016, just aimed at solving all the identified prob- “A business cannot survive when the world you come from.” He continues, “I two months after manifestations abrupt- lems will be adopted. The aim of the tax and customs systems become an would like to invite you to Armenia. Our ed calling for political and social reform. Government will be to create favorable obstacle for development.” The Premier people will do their best so that you can President Serzh Sargsyan appointed Karen conditions that are necessary for the states. “Regarding transportation costs, feel secure here and you can have good Karapetyan as the new Prime Minister on growth of business and by no means of course, we have to admit that we have perspectives for your business.” September 13, 2016. impede it.” Economic growth, healthcare, a logistics problem in Armenia. At the April will see the first elections after the The President has called Karapetyan, “a social issues and eliminating corruption same time it’s a good opportunity, as the constitutional referendum in 2015, which symbol of change,” set to apply substantial are priority items for the government. Like business community must think wisely approved changes to make Armenia a par- policy changes igniting economic develop- other post-soviet countries, corruption has to overcome all these problems and to liamentary republic. Mr. Karapetyan de- ment and building credibility with the pub- been a shadowy characteristic of Armenia find better ways to export, better ways to scribes his vision for Armenia in the future lic. Mr. Karapetyan has been an aspirational that has impeded growth. “First of all, we generate profit.” He adds. as, “independent, just, attractive and in- figure in Armenia, his experience spanning are going to create same market condi- January concluded Mr. Karapetyan’ first tellectual.” A step towards a better-quality both the private and public spheres. He tions for all market players, and when we 100 days in office. The government pro- tomorrow for the population and absorp- served as the Mayor of Yerevan from 2010- succeed, artificial monopolies will not be duced a thorough analysis, outlining: tion of the status-quo. COUNTRY PROFILE / REPUBLIC OF ARMENIA Overview Key Figures 1st Adopters Joined Eurasian Economic Population of Armenia: Armenia’s geography rests in Union in 2015 3 million the South Caucasus region Armenian diaspora population: of Eurasia. Past centuries Capital 7 million + of invading cultures Yerevan Diaspora population in Los transformed the area Official Language Angeles: 1.5-1.8 million into a battle zone. Still, YEREVAN Armenian Total Land Area: 29,743 km2 locals managed to Form of Government ( 11,484 sq mi) withstand powerful Unitary Semi-Presidential Republic Total GDP ( 2016 ): aggressors and maintain President $10.6 billion the culture. It was the Serzh Sargsyan Main trading first nation to adopt Prime Minister partners: Russia, Christianity as its official Karen Karapetyan China, Germany religion in 301 AD. ONE WORLD MEDIA INDEPENDENT SUPPLEMENT ONE WORLD MEDIA INDEPENDENT SUPPLEMENT 2 Special Report FOR LOS ANGELES TIMES FOR LOS ANGELES TIMES Special Report 3 AGRICULTURE SECTOR AGRICULTURE SECTOR Business leaders of the agriculture sector in recent years have been able to revitalize old traditions and in the industry is this. That is what we are their signature fruit brandy production have not only Armenians in the USA but also exercise them to create new commercial ventures that capture the essence of the country’s history. trying to accomplish with Karas wine.” been passed along generation after genera- those who immigrated to the USA from Karas maintains a dominant market share of tion, with the modern technologies working the Soviet Union and might be familiar the local Armenian market and have effec- hard to produce their exclusive collection. with these kind of beverages or the brand. tively started increasing its international pres- They maintain a celebrated work culture, Anyone who tries our products once gets ence. The majority of exports concentrate in starting with only ten people in its first year sort of addicted to it.” the east and west coasts of the US, France to now employing 130, all with a dedicated The 25th year of Independence for the state An Era of Revitalization Russia, and Japan with their target market mentality towards quality. “The quality is also inspired a limited-edition cognac and the Armenian diaspora. He states, “we are the best advantage of our products. We Artsakh Mulberry, distributing 1000 bottles. confident of the quality product we have have been working for 18 years, and no Proud and dedicated to Armenia’s progress, n 2013, approximately 20% of Armenia’s cated forty minutes from the city center land and ProdExpo in Russia. They have also for the future to come. By accomplishing so developed in these past years, and there employee has been changed or fired. The they focus on empowering smaller commu- GDP value was generated from agricul- in the Aragatsotn Province.” been invited to present Armenian Wines at much in a short time frame, Ms. Aslanian are not many Armenian labels being ex- quality is assured by employees who have nities by investing back. “Our company ture and employed almost 40% of the Designed by Italian architects, the im- various conferences, such as the Asian Wine describes her role as “it’s not my job, it’s ported at this moment.