InternationalSerge Sargsian believes that Armenia’s future lies in a knowledge-based society
Promises fight against poverty
Touts record as defense minister
Published: Saturday February 16, 2008
Serge Sargsian on the campaign trail. Photolure
Yerevan - As the current prime minister and President Robert Kocharian's designated successor, presidential candidate Serge Azati Sargsian promises stability and continuity as well as reforms.
He is running on a record of seven years of double-digit economic growth. The portion of the population living in poverty has fallen from more than half in 1999 to 27 percent last year. Average wages have increased more than fivefold in the same period, from $40 a month to $220. Armenia's exports have increased from $234 million to over $1.1 billion, and imports from $802 million to more than $3 billion.
The economic reforms of the past have worked, he argues, and it is now time for "second-generation" reforms to "create the best conditions for business and investment."
Mr. Sargsian's platform calls for internationally competitive tax and customs rates and policies. Where there is economic regulation, it should help business by establishing a level playing field and reducing risk. The platform calls for a focus on small and medium enterprises. For state-owned enterprises, it calls for better and more transparent management.
For agriculture, Mr. Sargsian's platform calls for greater industrialization and the establishment of food processing plants to make produce available to distant markets.
Mr. Sargsian believes Armenia can become the financial services leader in the region. "The Stockholm's Stock Exchange entering Armenia is graphic evidence of that," his platform says. Affordable mortgages and car loans as well as insurance are among the services called for in the platform.
Combating corruption
Mr. Sargsian acknowledges in his platform that "corruption, the shadow economy, and unequal competitive conditions" are serious problems for Armenia. "One of the key issues of our policy will be efficiently and consistently struggling against bribery and corruption," his platform states.
"We will strive for a new Armenian mindset that will not tolerate the phenomenon of corruption. Personal contacts must not be the basis of our system and whoever promotes bribery will not be considered as a comrade, friend, or fellow party member but as a law breaker."
When asked by the Armenian Reporter's Emil Sanamyan in an October 22, 2007, interview in Washington, about "the widespread perception that certain figures in government and in business" can act with impunity, Mr. Sargsian was unwilling to acknowledge that this is a major problem. He had said, "There is a difference between perception and reality. I state with all responsibility that today in Armenia there are no individuals or groups that are above the law."
Mr. Sargsian continued, "The tax collection targets that our government has set for 2008 will also help dispel such perceptions. If we are able to meet our targets it will become clear to everyone that no so-called oligarch is above the law.
"We have a complex approach to corruption that includes introduction of stricter legal punishments for economic crimes, such as tax evasion; higher salaries for state officials; more transparent administrative mechanisms. Perhaps in this issue we are lacking a public relations campaign that would showcase punishments for corrupt officials.
"That is not to say that we do not have shortcomings, we have plenty of them. And I appreciate all criticism of such shortcomings."
Europe as a neighbor
There are differences in foreign policy between Mr. Sargsian and the man he hopes to succeed. Mr. Kocharian has been reluctant to endorse Turkey's bid for European Union membership, saying only that the accession process could work to Armenia's advantage.
"We have an interest in having as neighbors states that are more predictable, more developed, more democratic," Mr. Kocharian stated at a joint press conference with then-President Jacques Chirac of France in Yerevan on September 30, 2006. "We see no danger to ourselves in the process of [Turkey's] admission; perhaps the contrary. Of course, we want that during this process the issues that concern us also find their solutions. And that the system of values, the belief in open borders that exists in Europe apply also to Turkey's policy - not just at the final stage of Turkey's admission, if that happens, but from the start."
In a December 11, 2007, interview with the Financial Times, Mr. Sargsian stated his position. Under the headline, "Armenia Backs Turkey in EU," the Times reports:
"‘I think it would be good for us if Turkey's desire to become a member of the European Union were satisfied. Maybe the problems between us could find a solution within a EU framework,' said Mr Sargsian, . . . adding he hoped Turkey would produce proposals for improving ties with Armenia. . . . Referring to Recep Tayyip Erdogan, Turkey's prime minister, he said: ‘I don't think it's correct to say he's not committed to establishing relations with Armenia. We'll see what happens in the future.'
"Mr Sargsian, describing himself as optimistic that Armenia and Turkey would make progress, asked: ‘After all, what do we gain, what do the Turks gain, from the present situation? Even in the time of the cold war, when Armenia was part of the Soviet Union and Turkey was in NATO, we used to have a certain relationship with Turkey. A railway line was built through Armenia to Turkey. A high-voltage electricity line was built between the two countries. Why should my wish for relations not be logical now?'"
Mr. Sargsian also rejects Armenian territorial claims against Turkey. In his October interview with the Reporter, he said he was "surprised by conclusions of certain second-tier Turkish officials" that recognition of the Armenian Genocide "would lead to some other claims. This is surprising, because it is unclear how one would lead to the other. How can any territorial or other claims be realized anyway?" he asked.
