New Grants to Georgia While Armenia will be Left at a Broken Tub
00:00, January 7, 2011 | News
Millennium Challenge Corporation will again provide funds to Georgia to carry out their projects successfully. It should be noted that in 2005 Georgia already was granted with funding up to 295, 3 dollars from MCC.
And this year the implementation term of the projects financed by MCC in Armenia is expiring. And most probably, expectations of new financial means from the foundation is unrealistic, since still in March of 2009 the foundation had decided to terminate the provision of a subsequent grant to Armenia.
The respondent of “1in am Armenian News and Analyses” is Artur Sakunts, the head of Helsinki Citizens’ Assembly Vanadzor, who has also been a member of MCC – Armenia beneficiary council.
– Mr. Sakunts, how would you estimate Armenia’s chances of getting new funding from MCC?
– They will definitely terminate the funding; moreover, I am surprised that MCC still continues to provide funding to Armenia. MCC should have terminated it not partially but totally, because, in fact, there are problems serious enough from the prospective of democracy, economic industry, competitiveness and political freedoms. Armenia has very serious issues with regard to Millennium Challenge Corporation criteria. That is why the foundation has already partially terminated the funding, but even after that the authorities have not drawn any conclusions and haven’t taken any step to alter the situation. It is evident that Armenia shouldn’t anticipate the funding to be extended.
– It is the second grant that our neighbor Georgia has received from MCC, while the issues of Armenia are too complicated, even in 2009 the funding was partially terminated. What is the reason, in your opinion?
– Taking into account the economic freedom, the fact that Armenians consider more beneficial to move their businesses to Georgia makes it evident to compare the situations between Armenia and Georgia. Regarding the efficiency of MCC project implementation, particularly, from the prospective of road construction Georgia has recorded outstanding results: current state of Tbilisi-Akhlkalak and Tbilisi- Goris roads. In fact, Georgia should not have any issues with MCC, since it is in a much better condition because of economic competitiveness and low corruption level, there is no point in comparing it with Armenia and naturally there is much sense in providing funds to Georgia.
– The Armenian Government also talks about road construction and presents a number of proposals. How were the road construction activities in Armenia carried out via the funds provided by Millennium Challenge Corporation in your estimation?
– I don’t know what sort of road construction projects Armenia has implemented, because when travel to different parts of Armenia, we don’t see substantial changes on the roads.
– In case the predictions come true, and in 2011 Millennium Challenge Corporation completely terminates the funding, what losses will the government and the country have, will Armenia be able to find alternatives for funding?
– Our government does not deal with either Armenian economics or other issues of the country at all. This government is a self- induced system, it elaborates its own plans, carries out and surpasses them. From this prospective, the government will not suffer at all, only our people and the economy will undergo losses. Moreover, even the existence of MCC funds will not save Armenia’s economy, it has already suffered a lot, since the right of private property is violated and instead of economic competitiveness we have oligarchic relations. No matter what contributions are made in such an oligarchic system, no development will occur, only a few oligarchs will become rich. Ivan Grozni era is dominant in Armenia, when everything belongs to the state, while certain infrastructures were owned by Grozni’s authorities.
– Mr. Sakunts, the USA is well aware of the situation in Armenia and that the Armenian government is not fully implementing its projects. Why does the USA keep on providing funds to Armenia being well informed of everything in your opinion?
– The major reason is that the USA doesn’t want the Russian influence to become completely dominant in Armenia. It is a means of preventing Armenia from Russian slavery via economic levers.