Some thirty years ago Hollywood writer and director Elia Kazan produced a stirring movie “America, America"; the story of a young boy in Turkey during the early years of the 20th century who dreamed of living in the United States. Well, it is not quite the same scenario but, nevertheless, a new film could be made called "Armenia, Armenia."
In the past two years, each time I travel to Yerevan, I meet or receive an increasing number of messages from North American, European and Middle Eastern friends and AGBU members. When I ask what has brought them to Armenia, I continue to be amazed at their now familiar response, "Oh Eve bought an apartment which I am renovating or I've just opened a new business. I come frequently now." diasporans are buying second homes and investing in retail stores, in jewelry factories, agriculture, herds of cattle, bidding on commercial property for sale, and, as one French friend announced last month, "I expect to establish a croissant bakery shortly." Croissants? Could this be the Armenia I once knew!
While Armenia has a long way to go to match the improved economy or the development of natural resources taking place in some of the other former Soviet Union republics, the slow but steady increase of foreign investments since the beginning of 1996 is hopeful. Less and less people, especially Armenians, are arriving with one suitcase of medicine or food or used clothing expecting to alleviate conditions and more and more are seeking the commercial opportunities which are crucial to employment and the building of a nation-state.
A recent release by the U.S. Embassy in Yerevan reports that the following joint venture and American based corporate negotiations are underway or agreements have been signed; packaging and export of fruits, juices and other foods; gold, oil and perlite exploration; construction of hydropower plants; freight forwarding services, automotive supply and cosmetic distribution, sale of established hotels; pharmaceutical, software, computer and semiconductor production; installation of fiber optic cables, telecommunications, new cable TV channels; and major insurance brokers and accounting firms seeking local opportunities.
Still, Armenia is basically a consumer country at present, with most major Soviet-designed industry stagnant or shut down, their machinery or products outdated for today's market. Recently, though, at least the sale of foreign merchandise has taken a new turn. In the past, individual traders, legally and illegally, purchased and delivered truckloads of goods into the country. Now, a number of businesses have been incorporated and recognized as official distributors of well-known international companies like Procter and Gamble, Johnson & Johnson, Mars, Nestle, etc., with exclusive rights in Armenia or sometimes Armenia and Georgia, of packaged foods, candy, cigarettes, electronic equipment, cars, toiletries and household equipment, to name a few.
While this progress might seem to have minimal impact on the overall economy of the country, still thousands of people have acquired employment at substantially higher than average salaries; managers, secretaries, salespeople, lawyers, accountants, truck drivers and warehousing staff. With the employment generated by joint ventures, local stores, restaurants, a number of successful new manufacturing or cottage industries, distributors, foreign organizations and embassies, the middle class is clearly growing in Yerevan, unlike the outer regions.
A graduate student completing his studies in the United States for the last three years told me he was astonished by his family when he returned to Armenia during his summer vacation. His sister and brother-in-law who were somewhat lost professionally after independence, had recently opened a hair salon, already netting a good income after just a few months of operation. "Day and night, all they could talk about was business, something that was completely foreign to them a few years ago," he said.
Succeeding or coping in the new environment, this increasing middle class is developing confidence, self-sufficiency and an understanding of their legal rights. A thirty-year-old AUA graduate, now working in one of the ministries, related an interesting story. His mother had a successful retail clothing shop and one day, six months ago, a tax collector appeared on her doorstep, demanding assessments which she felt were out of line. The tax official threatened to close her shop if she didn't pay. Consulting with her son, she said, "You know, dear, if I just give him something under the table, he'll go away." Her son was adamant, "You can't do that mom. You have to go to court." Now, after six months, her shop closed and her bank account frozen, she has learned every detail and variant of the tax law, and is awaiting her trial date, convinced she will win.
The most disappointing field, other than major industry, is construction. Unless one has a team of supervisors from abroad, professional experience or total control over the job, the chances of completing renovation or the construction of a new building, without firing a string of builders, going to court for cheating or poor quality materials, is almost nil. Most contractors are only interested in how much money they can squeeze out of the job. Talking to developers and builders in the United States, it is apparent that their peers in Armenia expect to net at least triple or quadruple the profits, securing their bank account from one contract for years to come.
It is particularly sad, because almost every Soviet built structure in Armenia today demands complete renovation to repair leaks, crumbling floors, walls and windows, rusted pipes and dangerous electrical wires. Many would take on the building of new or old offices, institutions and apartments if the ordeal weren't so grueling. The loss of jobs in this one area alone is unfortunate. After the summer opening of one new building, local guests left the inauguration betting on the number of months before the interior construction would fall apart. Many of the owners of new restaurants, shops and gas stations have shipped practically the entire components of construction from abroad. The worst aspect of all this is that instead of a medium size building being completed in a year, it can easily drag on for three or four, not only hindering progress but also increasing costs. Nevertheless, estimating all the projects under- way, in ten years Yerevan will have a completely different look.
Another plus in Armenia, are the number of diasporans contributing to the progress of healthcare. The population can now benefit from ultrasound, mammography, cat scan and angiogram examinations, dental clinics, heart, orthopedic and reconstructive surgery for children and adults are available, new blood and eye banks are soon to be established, all developed by American physicians, dentists or sponsors. Along with these modern services, training and equipment have been provided by Western medical professionals. In addition, dozens and dozens of medical personnel have been brought to the United States to learn the latest in healthcare.
Talking to locals, they seldom appreciate the positive changes which have taken place in the past two years. Although it has been some six plus years since independence, 1992 to early 1995 was a traumatic time: the war in Karabakh, the shortage of food and gas and most unexpectedly no heat or light demoralized the entire population. Businesses, institutions, and even government offices were partially or completely shut down. As energy was restored, commerce and industry made a major leap forward, trade with Iran and the United Emirates rose, freight from ports in Georgia moved quicker and more efficiently, and Armenia Airlines expanded its passenger and cargo flights to the Netherlands, Germany, Turkey, Greece, Iran, United Arab Emirates and Russia. Now, retail shops and open air markets, which flourish on almost every inch of vacant land in Yerevan, and factories, importing and exporting goods, are benefiting from the improved transportation and energy supply.
One often hears the figure of 750,000 living below the poverty level. This figure of destitute people was originally formulated in the desperate days of 92/93 when anyone who felt they needed aid was allowed to sign up for assistance. To some extent, it was realistic during a period when conditions were so difficult, but times have changed. The Social Ministry has begun to investigate family by family, some of whom were never eligible in the first place and many of whom have since found employment and own cars and apartments (which in Armenia is indicative of their financial status).
If you spend a half hour on any street corner in Yerevan and watch the passersby you will begin to realize the difference. The suits, dresses, sweaters and shoes worn by the general public, young and old, give a positive impression (half the women in Yerevan sport the latest wide, high heeled shoes fashionable in the West today. Certainly you cannot buy these imports for just a few dollars).
Besides the Western diasporan investment in Armenia, be it residential, business or tourism, there are the "near abroad" diasporans who are beginning to regain their confidence in Armenia. Some who moved their families and businesses to Russia and other former Soviet Republics in the early nineties are returning, part-time and full-time. Having made money and finding less than acceptable living conditions in these other countries, they are beginning to invest or send their children to school in Armenia (drugs and alcohol among the young are becoming more prevalent in cities like Moscow). Their experiences in these metropolises are a good influence for business progress in Armenia. One major distributor of Western products has firmly established his new company in Armenia and moved his family to Yerevan while keeping an affiliate in Moscow. On the road to Goris, we saw a new small hotel just opening. Stopping for lunch we asked the elderly couple how they financed the construction, "Our son in Moscow is funding us. It's really his hotel."
More surprisingly, the population is beginning to learn to pay their taxes and their telephone, water and electric bills, bringing in much needed income and proving that economic conditions for the population have improved. On a recent television show, people were interviewed on the street about taxes. "What about them? We have to pay. We're a nation now!" was the common answer. If you ask government officials you will find them still dissatisfied at the rate of remittance but they forget that three years ago people were amazed and angry that after 75 years of subsidized living, they needed to give anything for the services they received.
Touring the countryside is another matter. During a more lengthy stay in July, I had, for the first time in a few years, the opportunity to drive north, south and east, from Gyumri, Spitak, Vanadzor (Kirovakan), Goris and Alaverdi to the beautiful mountainous region of Shamshadin on the Azerbaijan border.
Outside of Yerevan
In all the areas, new homes, some quite palatial, have been built while most others are half-finished, owners completing the construction over years as they acquire the money they need for materials. Here too, Armenia has a different appearance than when I first saw the country in 1982. The prevailing poor construction of the early and mid- 20th century is disappearing. It may be my imagination, but the cows are fatter too, unlike the old days when they all seemed unfed with their bones clearly showing.
In Sissian, like many towns and villages throughout Armenia, cows have become the life-line of almost every family. Producing milk, cheese and butter, the animals provide income for the unemployed and pensioners. One long-time citizen of Sissian remarked, "We used to have a lovely city. Now it's filled with animals!" Another acquaintance in Hrazdan said, "You know, the milk, cheese and butter that is sold by an individual is sometimes resold over and over. Maybe four families live off of one piece of cheese!"
The road to Goris, now traveled daily by hundreds of truckers, Iranian and Armenian, taking or bringing goods from cities in Iran or even as far away as Dubai, is providing new commercial ventures for residents as they open restaurants or roadside stores selling food, liquor, cigarettes and souvenirs. But Goris, itself, once one of the main towns of Armenia, has declined considerably.
The greatest loss in all of the regions is industry. The vast Soviet factories, each employing several hundred to several thousand employees are shut down. Deserted, rusted, windows broken, too large for the new, less labor intensive era, most can never be rejuvenated. They are simply memories of the past.
Earthquake Zone
The earthquake region differs greatly from one village and town to another. Gyumri, with an energetic new governor, is beginning to look like there is hope. For the first time in nine years, apartments, offices and schools are being rebuilt in the center city. The once nine to twelve story structures are being lowered to four and five, in case of future tremors (which often continue to plague the area). A few factories, a number of stores, plus the burgeoning reconstruction have considerably increased employment. If and when the border of Turkey opens, Gyumri will become a major trading center.
Vanadzor, once the home of the chemical industry in Armenia, no longer looks like a ravaged city. Only a small number of domigs (shacks used as temporary housing) remain. The chemical plants are of course all shut down permanently since the fear of future earthquakes is always present. Small businesses and factories have opened, one producing ice cream which many say is the best in Armenia. Another light fixture plant has recently found a market in Ukraine.
Spitak, almost completely destroyed in the 1988 quake, no longer looks like the same town. The main street, once lined with high rise apartments, now has one and two story homes, some rebuilt with domigs, others completely new. In the outskirts, housing complexes built by a number of foreign countries (Italy, Ukraine, Russia) after the earthquake are filled with families but look rather desolate since there are no stores, play areas or cultural activities nearby and are a considerable distance from Spitak.
Shamshadin
For some years, people have said that Shamshadin is unique in Armenia. Northeast of Lake Sevan and bordering on Azerbaijan, it is a scenic, lush, green, blooming with a variety of wild flowers, mountainous region. It is almost like going back to the 17th century. Seasonally inhabited by villagers who bring their cows, sheep and pigs to graze from May to early October, Shamshadin is without running water (except for mountain springs) or electricity. Families live in small one room temporary huts or tents with coal or wood burning stoves to cook and keep warm. Every so often, they travel miles back to the nearest village to pick up food since nothing is available nearby.
Starting out at 9 a.m., our mountain drive was slow as we went around and around hairpin curves, hardly ever reaching 30 miles an hour. Half way on our journey we were flagged down by a gentleman who asked if we could give a lift to an elderly woman. She had been visiting relatives and was returning back to her own family. He pointed in the distance and said, "she lives just up the road." It seemed the least we could do.
She was a typical country-woman, looking older than her age, rugged yet content for whatever life offered. After a rather enjoyable conversation about her children and grandchildren, and the many years she and her husband had been coming to Shamshadin, she pointed to the east and said, "That's the Azeri border." We casually asked if she was frightened living so close. "Oh, we're used to it," she remarked, adding, "A month ago, three Azeri soldiers came over the mountain and killed two of our soldiers at the guard station. Not only killed them but cut their ears and tongue to show their officers." For her and all the Armenians and the Karabakhtsis life goes on.
After some twenty minutes, someone in our car asked, "Mayrig, (mother) just exactly how far is your place?" "Oh, it's around the corner, just keep going." Well, it was, except it was around and around a couple of more mountains, another ten minutes. Finally arriving, we were amazed to find fifteen people anxiously awaiting their mother, ready to eat lamb, stuffed cabbage, potatoes, salad and drink homemade wine, a feast. Her sons and daughters, with their families, visiting from Yerevan, had brought the food for a Sunday visit. As we were finishing the meal about one o'clock, suddenly a fog descended. By the time we said good-bye, we couldn't see ten feet away. "Does this happen often," we asked. "Oh, yes," was the response. "Most every day."
The Lighter Side of Life
Today you can stay in a comfortable hotel in Yerevan with heat, air conditioning, hot water, cable television (sometimes even a VCR), mini-bar, room service, an AT&T line and a hotel operator who answers. Offices and institutions, too, are air conditioned in the sweltering days of August and heated during the freezing temperatures of February. You can dine in an elegant restaurant with excellent food and service or eat hamburgers, pizza, spaghetti with Bolognese sauce, grilled lamb chops and chow mein. My first few days are now usually spent in the supermarket buying Tropicana orange juice (every room has a refrigerator), bread and baked goods for a quick breakfast. I've even locally purchased a coffee maker and small multi-system video player ($200) for my room which I leave in Armenia for future visits. You can fill up your car at a real gas station and you no longer have to pack your suitcases with every imaginable thing you could ever need during your stay. You can buy films for your camera and develop them. But you have to choose carefully. Locals usually ask for a sample of developed photos. Some are great, some are terrible. Supermarkets are chock-full of soaps, shampoos, tooth-paste, razors, cookies, coffee or tea while clothing stores sell imported shoes, coats, men's suits, shirts and ties and women's apparel. I can remember ten years ago when a friend's luggage was lost in Europe, guests at the hotel chipped in ties, shirts and underwear for his two week stay. Another woman, a well- known writer from California, with the same problem, had to spend one week of official visits in her jogging suit, the outfit she had worn for comfort on the plane, unable to buy one decent item of clothing locally.
BMW's and cellular telephones are the rage in Armenia. The BMW's are a luxury but with the always troublesome telephone lines, the cellular are a god-send. To date, they only work in Yerevan and up to ten miles distant. However, from overseas you can dial any cellular by using a different city code. Tourists can rent them when visiting. It's quite useful when you're on day-long appointments or if your family abroad wants to reach you.
But like any country in the world there are some misses. Having heard about a new French restaurant which served imported seafood, I dragged a friend to a supposed four star establishment about ten to fifteen minutes from Republic Square. It did occur to me that one can hardly ship anything to Armenia in less than a week, even DHL takes three days, so how would this fish which needs a frozen container ever arrive in Yerevan in edible condition. But then the excitement of being able to buy Tropicana somehow influenced me that anything could be possible.
Walking into the restaurant, it was interesting to find it filled with locals, not a tourist in sight. Waiters were in tuxes and a four piece band was playing Armenian and foreign music. We immediately met some acquaintances, an ex-prosecutor and an ex-mayor. I couldn't decide if this was a good sign or a bad sign. I asked the wife of the ex-prosecutor how the food was. "Voch Eench," she said. Loosely translated, this means "okay." "How come you eat here often if it's only voch eench," I inquired. "Oh we're used to it," was the response. To make a long story short, after one and a half hours of poor service, two Fantas (orange soda), one dried, slightly smelly Dover sole and one so-so (voch eench) stuffed crab, two salads, and a bill of $50, I heartily recommend you not try a French restaurant on Komitas Street with the word "lake" in it.
So What Is Life Really Like In Armenia?
Not easy but improving. The settlement of the Karabakh/Azerbaijan conflict is uppermost in everyone's mind. The opposition in Armenia is going full force they seem to have no solutions or analyses to offer except attacking the government. In this issue AIS News has reprinted a number of articles and interviews which give an overview of current issues. President Levon Ter-Petrossian's article should be read by all. It offers in-depth insight to the choices and decisions both the Armenia and Karabakh government and public must consider.
Unlike previous years, the press has greater freedom expressing their views or covering important events. However, the art of journalism has yet to be understood or achieved. Television coverage ranges from mediocre to terrible. This is particularly unfortunate since newspapers, printed in limited numbers, barely reach three or four percent of the population while everyone owns a television set.
Corruption is now openly discussed. Arrests of middle level government officials accused of accepting bribes or businessmen accused of operating illegally are not unusual. However, with old Soviet laws still in place, the guilty and not guilty often suffer the same consequences. It was surprising to learn of an incident concerning the brother of a friend. When he was arrested for supposedly taking a bribe, he was held for forty-five days without the right to see his family or a lawyer (when photographers were arrested in Paris after Princess Diana's death, many of us learned for the first time that French law allows the police to hold someone incommunicado up to four days but Armenia's no limit of detention is truly excessive). Two months later, with no proof of guilt, the brother was released but the traumatic experience can hardly be forgotten.
Whether in the United States or in Armenia, running up against the government or bureaucracy is always the worst of experiences (the recent IRS scandals in the U.S. are a shock for any citizen who believes he or she is living in the freest and most just of countries). But there is a difference. Those of us in the West can often live our life, work or run our business having little interaction with the government. In Armenia with privatization only partially realized, with some totalitarian laws still in place, with countless institutions and businesses still government owned, with ministers often making the decisions, it is difficult to live an independent life, free to make one's own choices.
On the other hand, loss of complete control in these early stages could cause chaos. Today, Armenia, unlike Russia, Ukraine, even parts of Georgia, has a much safer atmosphere. While crime is not uncommon, walking the streets of Yerevan any time of the day or night is never a problem. In the warm weather, families are strolling the streets past mid-night. Last year it seemed only the privileged obtained authorization to open retail establishments, now many have the opportunity. For years and years, the fairness of entrance exams to universities (more was accomplished with a bribe) were in serious question, hundreds of families often protesting the results. I remember one time, during the communist period, having to meet the Minister of Education in a secret office because he couldn't face the angry crowds. This year, every exam session had inspectors and parents present to assure that no irregularities took place. Quite a change.
Of course, for many in and out of Armenia it's still too slow (gamatz, gamatz). We all want Armenia to be perfect, life to be great, people to be happy. The country and the population are emerging from almost a century of repression. It will take time.
