2022 January 27

Daily news wrap-up

Jan/27/2022: Modernizing Armenia's industrial machinery; Business subsidies & audits __ Professor on opening AM-TR border __ PACE resolution; democratic institutions __ Sewage filters for Sevan __ "Assassination" back on menu __ Stats: Judicial cleanup __ New medical guidelines __ War commission
by ar_david_hh

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Your 12-minute Thursday digest in 3152 words.

interview with an associate professor at the American University of Armenia about the economic benefits & risks of opening Turkey border

Reporter Arshaluys Mghdesyan: We've been hearing politicized statements from opponents and proponents about "Turkish expansionism" and "new logistics opportunities". Is there a study on what would happen if the borders were to open? You have conducted studies on how the business would react.

Alexander Grigoryan: We've been studying this in the past 3-4 years, with the direct participation of Armenian and Turkish businesses. A Turkish organization is also conducting similar research. Virtual games were simulated. The participant made decisions while we observed the process.

We also have scientific studies dating back to 2014 about people's stance on opening the border. There are studies around migration and economic transformation if the border was to open.

1) Regarding the perception of economic benefits. It varies depending on the segment of the population based on social status and other characteristics. The groups do not have a consensus in terms of perceived benefits.

2) The issue of economic benefit is often easily politicized, making it difficult to discuss it as an isolated topic.

3) The economic development calculations can lead to many scenarios, diminishing the usefulness of standard economic theories.

Reporter: Armenia doesn't have enough connections to the world. On the other hand, Turkish "expansionism" has caused some problems in Georgia's agriculture and elsewhere. Are these economic "phobias" justified in Armenia? Are the expected "logistics benefits" justified?

Grigoryan: During the studies, the businesses told us that there have never been any serious barriers to Turkish products in Armenia, except for the 1-year ban after the war. Turkish expansionism in Armenia is realistic if Turkey adopts that policy at the state level. It likely would, just as in the case of Georgia. Our businesses have long called for a similar state policy by Armenia to ensure balance if the border opens. The aforementioned is more like a prediction because things have changed since these Armenian-Turkish business studies were conducted.

Reporter: Which Armenian businesses would be vulnerable?

Grigoryan: Armenia has an advantage in 5-6 economic branches. It's visible in international trade and the export structure.

It may sound strange but we have potential in the textile industry, despite Turkey having strong textile. Our agriculture also has potential in our economic growth and export structure. Growth potential also exists in mineral and leatherwork industries.

Other branches are quite vulnerable: The food industry, machinery. The high-tech and finance fields are a bit of a different story. If you look at Armenia's economic structure you'll see that it's not diversified enough and is susceptible to external shocks.

We need a state economic policy. Armenian businesses are asking for help with administrative issues, transportation, ...

Reporter: What should the state policy look like? Customs duties on Turkish products? Since Armenia is an EAEU member, Turkish products would face EAEU import taxes, which are already higher than what our own taxes would have been. Or should Armenia go one step further and use WTO rules? I believe when Armenia joined WTO, Turkey had agreed to it with some reservations. Can Armenia impose additional duties besides the EAEU tariffs, or perhaps set quotas, to protect the domestic market.

Grigoryan: If we let the [market decide] and create equal conditions after opening the border, and we don't have an issue with malicious coordination by Turkey and Azerbaijan anymore, there shouldn't be major fears about Turkish expansionism. The conventional economic rule dictates that long-term protectionism can cause problems.

Armenia should negotiate these issues with Turkey and Azerbaijan - not just Turkey. This is necessary to minimize possible risks in the future. We don't want to allow things to reach a point where Turkey could threaten to close the border and take other action if there are problems with Azerbaijan.

Reporter: What about the GDP growth if the border opens? In 2006 a study claimed it would be 1%-1.5%.

Grigoryan: We don't know yet because more info is needed. AFAIK some data was gathered and present as of last year but it would be difficult to predict right now.

www.civilnet.am/news/647926/պե՞տք-է-վախենալ-թուրքիայի-տնտեսական-էքսպանսիայից-զրույց-տնտեսագետ-ալեքսանդր-գրիգորյանի-հետ/

$116 million financial program to modernize Armenia's manufacturing and "boost local production to replace imports"

Government: Today, many factories operate with outdated and inefficient equipment that requires too much energy. Increasing Armenia's labor productivity is part of our program.

Studies show that our businesses need more raw materials, and if we reduce the cost of obtaining them, the processing industry will grow, and so will the tax revenues.

There will be financial programs to help lease equipment, import raw materials, increase the quality and safety to meet international standards, boost exports, and to replace imported products with domestic ones.

This program will cost approximately $116 million within the next 6-7 years.

Within the next 2 years, we expect $207 million in capital investments in the economy to modernize the equipment. We expect a 60% increase in productivity in some areas.

New jobs will be created, directly and indirectly. The program will serve as an additional tool to make the investment environment in Armenia more attractive.

The recipient businesses will be required to increase their transparency. For example, larger participant businesses will be required to submit reports in accordance with international financial reporting standards, as well as audit results from one of the Big Four firms. This will ensure transparency and high productivity. //

More: https://armenpress.am/arm/news/1074131.html https://youtu.be/lSTrhhzZc4A?t=51 http://arka.am/en/news/economy/armenian_government_subsidizes_up_to_10_billion_dram_lease_of_equipment_by_manufacturing_enterprises/

Tags: #manufacturing #industry

decentralized sewage treatment plant will be built near Lake Sevan

Germany, EU, and Armenia held a meeting today as part of the EU4SEVAN program to improve Lake Sevan's ecosystem.

Economy Ministry: Today, the entire volume of sewage flows uninterruptedly into the lake, leading to serious environmental problems.

EU: We're implementing new experimental programs in communities near the lake.

Germany: From August to January, the German firm Akut Partner and a group of experts conducted studies to choose the best sewage cleaning method.

Algae has been blooming in Sevan in recent years, due to high levels of phosphorus in the water, which is partly a result of sewage inflow.

We studied costs associated with centralized, semi-centralized, and decentralized solutions, to help the government make a fact-based decision. //

Details later. https://armenpress.am/arm/news/1074139.html

U.S. ambassador met the president of Constitutional Court

Ambassador: The US administration is committed to continuing to work closely with Armenia in the areas of justice, rule of law, and strengthening democratic institutions.

Dilanyan: The Constitutional Court is determined to implement the ambitious agenda of domestic reform with the support of international partners, including the United States.

Pashinyan approved the commission tasked with discussing Constitutional reforms

The constitutional reform council will discuss the areas that need to be reformed, after years of complaints about the existing constitution drafted in 2015.

Council members: Justice Minister, international legal affairs expert, Human Rights Ombudsman, Supreme Court member, QP MP, LHK MP Marukyan, Republic party MP (Aram Sargsyan party), Helsinki Vanadzor NGO, Europe in Law NGO, Informed Citizens NGO.

Notably absent are parliamentary opposition parties representing the former administrations; they turned down the invitation.

Few other non-parliamentary parties did not qualify for being too new and not having at least a 5-years participation record in the electoral process.

https://iravaban.net/367287.html https://armenpress.am/arm/news/1074176.html https://armenpress.am/arm/news/1074154.html https://youtu.be/WyxmFndc7GA https://www.armtimes.com/hy/article/230113

2021 stats: cleanup in the judiciary branch

The Supreme Court heard 28 cases against judges last year.

18 were brought by Justice Ministry, 4 by the Corruption Prevention Commission, 6 by a general assembly of judges.

2 judges had their duties terminated, 9 were warned, 4 were acquitted, 13 petitions were rejected.

https://hetq.am/hy/article/140478

PACE report: Armenia made marked progress in its democratic development

PACE will discuss [update: done] a resolution about the democratic institutions in Armenia.

PACE Authors: We welcome the fact that Armenia has made marked progress in its democratic development since the change of leadership in 2018 and has successfully emerged from the political crisis by holding parliamentary elections in 2021.

The committee assesses the achievements and the remaining challenges regarding electoral reform, the balance of institutions, judicial reform, ..., and makes a number of recommendations such as providing a precise legal definition of campaign expenditure, abolishing the ban on bi-nationals standing for election, enabling voters to challenge voting results in their constituency.

The Assembly also welcomes the pursuit of reforms, the launch of new projects since 2018, and the degree to which Armenia has co-operated with the Council of Europe.

All Armenian POWs should return home. //

PACE adopted the resolution about democratic institutions in Armenia.

QP MP Ruben Rubinyan: All Armenian amendments were approved. All Azeri amendments were rejected. //

https://armenpress.am/eng/news/1074112.html https://armenpress.am/arm/news/1074191.html

here we go again: assassination's back on the menu, boys

Opposition official Davit Khazhakyan, who represents the LUYS alliance in the Yerevan council, criticized an opposition journalist Boris Murazi for comments allegedly made by the latter.

Boris Murazi's comment: The history shows that there are times when political assassinations are necessary for national security. Even the democratic mud U.S. has done it when necessary. //

Khazhakyan responds: Boris and his ideological allies criticize the current administration for not being democratic, yet they are nostalgic about the political assassinations in Armenia that are a thing of the past. Boris and his allies write this stuff then claim they meant something else while in a police station. Boris and the likes of him must continue to be rejected in politics and media. //

LHK chief Edmon Marukyan: How can an author of such comments lead a media outlet. //

Boris Murazi responded saying his words were twisted, and that he didn't urge any assassinations in Armenia.

Murazi is an editor at Kocharyan-allied Politik outlet that often spreads conspiracy theories about Nikol Pashinyan hiding the death of 3,000 soldiers, etc.

https://www.armtimes.com/hy/article/230084 https://www.facebook.com/khazhakyan

the media still can't figure out why Pashinyan appointed his political enemy's brother to a ranking position

You may recall that Pashinyan recently appointed Grigor Minasyan as a Deputy Justice Minister. He is the brother of Mikael Minasyan (aka Kitchen Mishik), the fugitive son-in-law of former president Serj Sargsyan. Some MPs noted that although Girgor and Mikael are brothers, they hold different political views.

Reporter: Grigor used to be allied with HHK. He would often mock Pashinyan. Today he received a ranking position in the Pashinyan administration at your invitation. Explain.

Justice Minister Andreasyan: we've been friends with Grigor for years. He is a professional. The position of deputy minister is a political one. You appoint like-minded allies. I don't know about his past political views but today we are on the same page. //

https://factor.am/468607.html

driver throws money inside a police vehicle after officer refuses to take the bribe

HOW RUDE!

The new Police Patrol officer spotted an illegally parked Mercedes in Zvartnots airport. The driver approached the cops and offered a bribe. The cops rejected it so he tried to throw the cash inside. They detained him.

https://www.armtimes.com/hy/article/230114

new medical guides & standards to boost the importance of clinics and reduce unnecessary hospitalizations

Healthcare Ministry official: There will be changes to pediatric medical care. Too many children end up in hospitals for things that can be treated at home or in clinics. We need to reduce the unnecessary flow from the first ring to hospitals.

We will prepare lists for medical workers to explain when the child needs hospitalization, when they need intensive care, etc.

Unregulated and wrong referrals often lead to the child unnecessarily taking a hospital bed and receiving unsubstantiated treatments. This reduces the supply for those who truly need it.

There are many reasons why doctors make incorrect decisions. We need to guide and aid them. For example, nasopharyngitis doesn't require hospitalization. [sound like Stage-5 cancer but I bet it's one of those bullshit "drink lots of liquid" things, NO GOOGLE]

The proposed guidelines will explain that nasopharyngitis, among other things, doesn't require hospitalization. Children could contract more dangerous viruses while in hospital, making things worse. //

Several doctors are against the changes. They fear it will reduce the course of treatment in hospitals. Ministry doesn't agree and says it's meant to only regulate to rule out unnecessary treatment without degrading the quality of care in hospitals.

The funds saved from reducing unnecessary hospitalizations will be used on long-term medical care for children with serious illnesses. An expert panel was formed to discuss the proposal.

https://www.armtimes.com/hy/article/230032

a monthly aid program for Artsakh IDPs is extended by two more months

One of the programs pays $80 to IDPs who are under 18 or have disabilities, and $40 to everyone else. It's an assistance for those with housing issues and winter-related hardships. The program will last two more months.

A resident who became an IDP urged the authorities to increase the pace of housing construction and to restore the 2021-level financial aid that was being provided to IDPs. Last year there were programs to distribute $600 and other packages but some of them have since ended or changed.

Artsakh IDPs also want the Foreign Ministry to take steps to return the occupied Hadrut and Shushi regions.

https://armenpress.am/arm/news/1074120.html https://factor.am/468750.html

land reforms to eliminate superfluous requirements for landowners who want to expand their property

Economy Minister Kerobyan: The current law regulates how state-owned lands are sold to businesses or private citizens who want to expand their agricultural lands or lands that have buildings. It requires a structure to be present before a land expansion, and the expansion can only be done once.

Businesses have long complained that this is a major barrier to expanding business and construction. They are forced to waste time and money by building unnecessary structures just to comply with the law to expand the land. //

The government approved the amendment to remove some requirements. It is yet to receive a vote in Parliament.

https://armenpress.am/arm/news/1074119.html

Armenia and Spain mark the 30th anniversary of diplomatic relations

Nice words were exchanged. Nuff said.

https://armenpress.am/arm/news/1074156.html

Antony Price named as CEO of the new Armenian national carrier Fly Arna

Price has 20 years of experience in aviation and tourism and has had leadership positions in British Airway, Air New Zealand, FlyBMI, and Air Arabia. He was the head of flight supply strategy at Agoda, a Singaporean online travel agency.

https://factor.am/468551.html https://gulfnews.com/business/aviation/who-is-the-new-ceo-of-air-arabias-armenia-airline-1.1643279655893

2020 war investigation leads to arrest of another army Colonel

Investigative Committee: Colonel V.E. of Artsakh Defense Army refused to perform his duties as a regiment commander on October 10-13 during the war. He is charged with criminal negligence towards the service. //

https://armenpress.am/arm/news/1074101.html

2020 war commission will announce its formation in February

Parliamentary Sec. Com. chief Andranik Kocharyan: Today we have a calmer environment. It was delayed last year mainly to avoid unnecessary tensions within the army. Next month an announcement will be made about the formation of the commission. We have enough MP signatures. //

www.civilnet.am/news/647995/44-օրյա-պատերազմի-հանգամանքների-քննիչ-հանձնաժողովը-շուտով-կհայտարարի-ձևավորման-մասին/

COVID stats

7.4k tested. 2.5k infected. 0.3k healed. 2 deaths.

COVID cancels a military ceremony

January 28 is the Army Day. A ceremony about the 30th anniversary of the formation of armed forces won't take place in Dvin hotel tomorrow because ranking army officials tested positive for Covid.

37% of adults are fully vaccinated

45% have received at least one shot. The vaccinated residents usually do not have symptoms, or it's mild, said Healthcare Minister Avanesyan.

why don't we ban Backgammon Gazebo Olympics for a week?

Minister: Vaccination of citizens over the age of 65 is only 19%, which is a matter of concern. This is our main target group. We're trying to increase the rate. [Is this another evidence that it's mainly working-age people who get vaccinated because of the PCR-or-vax requirement?]

restaurants saw 20% revenue drop after the new PCR/vax mandate

Economy Minister: Visitors are required to show a negative test or a vaccination card for entering restaurants. This measure is justified.

The average drop in revenue was 20%, and not 75% as some have claimed. There are two reasons for the drop: People without a test or vax card cannot enter facilities, and more people have very recently gotten infected and cannot/won't visit such facilities.

does Armenia have enough vaccine supplies?

Yes, and Pfizer is coming soon, the contract has been signed, said the Minister.

only 6% require hospitalization thanks to vaccinations & Omicron: Minister

Avanesyan: There are many infections but the good news is only 5-6% need hospital care. This is due to the already high vaccination rate and the certain characteristics of the Covid strain.

The infections are rising. We're ready to expand the hospital bed count again. 6 hospitals are currently handling Covid.

criminal charges after authorities discover fake PCR cards in Zvartnots airport

9 visitors were caught with fabricated test results while entering Armenia via air in August-December. Court papers were filed to proceed with charges. One of the suspects has since "disappeared".

https://armenpress.am/arm/news/1074107.html https://armenpress.am/arm/news/1074116.html https://armenpress.am/arm/news/1074115.html https://armenpress.am/arm/news/1074118.html https://armenpress.am/arm/news/1074122.html https://armenpress.am/arm/news/1074131.html https://factor.am/468662.html

Junior Eurovision 2021 winner Malena underwent emergency surgery

Malena on Instagram: "sooooo 2 days ago i passed out unexpected and we called the ambulance they took me to the hospital and i had a surgery hahahahah but im fine now this is funny for me lol 🤓"

End of quote.

https://www.armtimes.com/hy/article/230081

Armenia will receive a $1.7 million grant to improve energy efficiency in dozens of buildings

The aid from Eurasian Development Bank is the latest program to reduce energy consumption in 20 "buildings of public significance" that will lead to "50% energy saving".

A similar program was recently completed successfully, said Infrastructure Minister Sanosyan.

https://armenpress.am/arm/news/1074114.html

quarter of Yerevan's 70,000 street lights are now energy-efficient LED

It's a joint program between Yerevan and the UN. 2017թ.-ից մինչև 2021թ. տարեկան վճարվող էլեկտրաէներգիայի գումարը նվազել է շուրջ 500 մլն դրամով:

https://armenpress.am/arm/news/1074178.html

farmers will receive more subsidies to install modern irrigation systems

Today the government approved an amendment to agricultural subsidy law. The size of compensation for installing modern irrigation will increase to 50%. There will be an aid for expanding the existing irrigation pools.

https://armenpress.am/arm/news/1074131.html

Armenia and Bulgaria launch a wine partnership program

WineBizz (GinuGorts) program has been launched in Armenia to promote winemaking relations between Bulgarian and Armenian companies and business service providers.

Sponsored by EU's EU4BCC program, carried out by Armenia's Enterprise Armenia Foundation and Bulgaria's Yambol Trade Chamber.

Winemakers will exchange visits to explore opportunities. Armenians can receive professional training in Bulgaria.

https://armenpress.am/arm/news/1074123.html

newly discovered lichen is named after an Armenian scientist

You know, those small fungus/alga things that grow on rocks and trees. One of its genera is called Ramalina, which has 200 species.

Dr. Arsen Gasparyan at the National Academy of Sciences has discovered two new species in Armenia. Simultaneously, his European colleagues discovered one in Europe, and decided to name it after the Armenian scientist: Ramalina arsenii.

https://armenpress.am/arm/news/1074150.html

more

The news in русский (by Impossible-Ad-).

News archive: http://www.armeniapedia.org/wiki/Daily_Anti-Corruption_Reports Donations: soldiers' families, humanitarian aid, US tax-deductible donation.

The accused are innocent unless proven guilty in the court of law, even if they "appear" guilty.

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Link to original report and comments: https://www.reddit.com/r/armenia/comments/se77sg/jan272022_modernizing_armenias_industrial/