Armenia
Franchise Association:
Armenian Franchise Association
Mr. V. Ivanov, Chairman,
JSC Amrich,
Moscow Representative Office,
Lusavorchi, Yerevan
ARMENIA
Background
Armenia prides itself on being the first nation to formally adopt Christianity (early 4th century). Despite periods of autonomy, over the centuries Armenia came under the sway of various empires including the Roman, Byzantine, Arab, Persian, and Ottoman. During World War I in the western portion of Armenia, Ottoman Turkey instituted a policy of forced resettlement coupled with other harsh practices that resulted in an estimated 1 million Armenian deaths. The eastern area of Armenia was ceded by the Ottomans to Russia in 1828; this portion declared its independence in 1918, but was conquered by the Soviet Red Army in 1920. Armenian leaders remain preoccupied by the long conflict with Azerbaijan over Nagorno-Karabakh, a primarily Armenian-populated region, assigned to Soviet Azerbaijan in the 1920s by Moscow. Armenia and Azerbaijan began fighting over the area in 1988; the struggle escalated after both countries attained independence from the Soviet Union in 1991. By May 1994, when a cease-fire took hold, Armenian forces held not only Nagorno-Karabakh but also a significant portion of Azerbaijan proper. The economies of both sides have been hurt by their inability to make substantial progress toward a peaceful resolution. Turkey imposed an economic blockade on Armenia and closed the common border because of the Armenian separatists' control of Nagorno-Karabakh and surrounding areas.
Geography
Area: 29,800 sq. km. (11,500 sq. mi.); slightly larger than Maryland.
Cities: Capital--Yerevan.
Terrain: High plateau with mountains, little forest land.
Climate: Highland continental, hot summers, cold winters.
People
Nationality: Noun--Armenian(s). Adjective--Armenian.
Population: Estimates range from 2,968,586 (CIA World Factbook, July 2008 est.) to the Armenia National Statistical Service’s estimate of 3,235,000 (October 1, 2008).
Ethnic groups: Armenian 98%; Yezidi 1.2%; Russian, Greek, and other 0.8%.
Religion: Armenian Apostolic Church (more than 90% nominally affiliated).
Languages: Armenian (96%), Russian, other.
Education: Literacy--99%.
Health: Infant mortality rate--20/1,000. Life expectancy--66.6 years.
Work force (1.24 million; 10.5% unemployed): Industry and construction--24.5%; agriculture and forestry--24.6%; trade--17.3%; education--13.4%; other--22.2%.
Government
Type: Republic.
Constitution: Approved in November 2005 referendum.
Independence: 1918 (First Armenian Republic); 1991 (from Soviet Union).
Branches: Executive--president (head of state) with wider powers relative to other branches, prime minister (head of cabinet), Council of Ministers (cabinet). Legislative--unicameral National Assembly (parliament). Judicial--Constitutional Court.
Administrative subdivisions: 10 marzes (provinces) in addition to the city of Yerevan, which has the status of a province. A reform of Yerevan's status, to that of a regular municipality as required by the 2005 constitutional referendum, is currently underway and was expected to occur in 2008, but has since been delayed and will likely occur in mid-2009. Once the parliament enacts legislation to change the capital's status, the mayor will no longer be appointed by the president but instead be chosen by elected city councilors.
Political parties represented in the National Assembly: Republican Party of Armenia, Prosperous Armenia, Armenian Revolutionary Federation (ARF) Dashnaktsutyun, Country of Law (Orinats Yerkir), and the Heritage Party. Other parties include: the Armenian National Congress, People's Party of Armenia, National Accord Party, Republic Party, New Times Party, United Labor Party, Dashink Party, National Democratic Union, and the Armenian National Movement. In addition, there are dozens of other registered parties, many of which become active only during national campaigns, if at all.
Suffrage: Universal at 18.
Economy
GDP (purchasing power parity):$19.6 billion (2008 est.)
GDP (official exchange rate):$12.07 billion (2008 est.)
GDP - real growth rate:9.4% (2008 est.)
GDP - per capita (PPP):$6,600 (2008 est.)
GDP: $9.18 billion.
Natural resources: Copper, molybdenum, zinc, gold, silver, lead, marble, granite, mineral spring water.
Agriculture: Products--fruits and vegetables, wines, dairy, some livestock.
Industry: Types--mining, information technology (IT), diamond processing, metal-cutting machine tools, forging-pressing machines, electric motors, tires, knitted wear, hosiery, shoes, silk fabric, chemicals, trucks, instruments, microelectronics, jewelry manufacturing, food processing, brandy.
Trade: Exports--$1.16 billion: precious and semi-precious stones and metals, mining products, foodstuffs, brandy. Export partners (2007)--Russia 17.5%, Germany 14.7%, Netherlands 13.5%, Belgium 8.7%, Georgia 7.6%, U.S. 6.6%, Switzerland 4.3%, Bulgaria 4.1%, Ukraine 4%. Imports (2007)--$3.28 billion: natural gas, petroleum, precious stones and metals, tobacco products, foodstuffs, textiles. Import partners (2007)--Russia 15.1%, Ukraine 7.7%, Kazakhstan 7.4%, Germany 6.8%, China 6%, France 4.6%, U.S. 4.5%, Iraq 4.3%.
Since the breakup of the Soviet Union in 1991, Armenia has made progress in implementing many economic reforms including privatization, price reforms, and prudent fiscal policies. The conflict with Azerbaijan over the ethnic Armenian-dominated region of Nagorno-Karabakh contributed to a severe economic decline in the early 1990s. By 1994, however, the Armenian Government launched an ambitious IMF-sponsored economic liberalization program that resulted in positive growth rates. Economic growth has averaged over 10% in recent years. Armenia has managed to reduce poverty, slash inflation, stabilize its currency, and privatize most small- and medium-sized enterprises. Under the old Soviet central planning system, Armenia developed a modern industrial sector, supplying machine tools, textiles, and other manufactured goods to sister republics, in exchange for raw materials and energy. Armenia has since switched to small-scale agriculture and away from the large agroindustrial complexes of the Soviet era. Nuclear power plants built at Metsamor in the 1970s were closed following the 1988 Spitak Earthquake, though they sustained no damage. One of the two reactors was re-opened in 1995, but the Armenian government is under international pressure to close it due to concerns that the Soviet era design lacks important safeguards. Metsamor provides 40 percent of the country's electricity - hydropower accounts for about one-fourth. Economic ties with Russia remain close, especially in the energy sector. The electricity distribution system was privatized in 2002 and bought by Russia's RAO-UES in 2005. Construction of a pipeline to deliver natural gas from Iran to Armenia is scheduled for completion in Spring 2009. Armenia has some mineral deposits (copper, gold, bauxite). Pig iron, unwrought copper, and other nonferrous metals are Armenia's highest valued exports. Armenia's severe trade imbalance has been offset somewhat by international aid, remittances from Armenians working abroad, and foreign direct investment. Armenia joined the WTO in January 2003. The government made some improvements in tax and customs administration in recent years, but anti-corruption measures will be more difficult to implement. Despite strong economic growth, Armenia's unemployment rate remains high. Armenia will need to pursue additional economic reforms in order to improve its economic competitiveness and to build on recent improvements in poverty and unemployment, especially given its economic isolation from two of its nearest neighbors, Turkey and Azerbaijan. The disruption of rail transit into Armenia during the Georgia-Russia conflict in August 2008 highlighted how Armenia's supply chains for key goods - such as gasoline - were vulnerable to instances of regional instability.
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NewsThe worldwide chain of McDonald's fast food restaurants plans to invest around US $1 bn into developing its franchises in Europe next year, the Reuters newswire reported. At the same time, they will pay greater attention to developing countries. "The potential for growth in Central and Eastern Europe is huge. We have only opened 350 restaurants in Ukraine, Poland and Romania, which have a combined population of more than 100 million and flourishing economies", says Executive Director Ralf Alvarez. There are 63 McDonald's restaurants in Ukraine in 19 cities. The total amount of investments since they began operating in Ukraine (since 1997) exceeded US $100 mn. McDonald's Ukraine has around 5,000 employees across the country. Reuters Sep 2008
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