Armenia's Diamond Trade in Decline

The stone itself may last forever, but its trade certainly doesn't!

Armenia's diamond trade overall however has hit a rough patch in the past two years. Armenia reported a 35 percent decline in rough imports from all nations for the first couple of months in 2007, following an overall diamond export drop of 20 percent in 2006 to $212 million.

The article does not mention the reasons for this decline, but I suppose it has to do with cheaper labor in places like India and globalization. Anything can be blamed on globalization!

Source: Rapaport News

Foreign Trade Skyrockets!

If you expect than imports are responsible for this bulletin, then you are correct!

Armenia's foreign trade surged 44.4 percent to $876.4m in January-March 2007. Exports stood at $231.2m (up 25.1 percent) and imports amounted to $645.2m (up 52.9 percent.

Armenia has now become a rapid consumer of foreign goods. That's great, but can't we have the production edge in any industry?

If you recall, we've covered Armenia's trade deficit on a previous occasion.

Source: RBC

Armenia-Iran Railroad to Cost $1,000,000,000

Yes, that's a billion dollars for a railroad between the two countries for trade.

At present, there exists a railroad between Iran and the former Soviet republic but since it passes through the Nakhichevan, a controversial area between Armenia and Azerbaijan Republic, it is not currently in use...

Economic experts believe that given the possible resolution of the dispute between Armenia and Azerbaijan Republic over the Nagorno-Karabakh region, the building of the new railway would be uneconomical.

I'd support this project over the other failed one between the surrounding evil countries. Now let's find that investor!

Source: IranMania

Bill Gates, Warren Buffett Don't Want Genocide Recognition

NOTE: I can't find the original source to this story. Most places link to an Azeri website, thus I am starting to doubt whether it is real. If you can find a reputable news source with more information on this, such as the names of the 98 other people, please let me know.

Warren Buffett is perhaps my most favorite investor, but when he comes out against what is right and just, I realize that all he cares about is his personal fortune and that of his rich friends.

100 business leaders from the United States of America sent a letter to President George Bush of the United States to refuse to recognize the genocide of Armenians. Bill Gates and Warren Buffett, among the signers, stress that the genocide could become a disaster for the United States.

"In the event of recognition of the Armenian Genocide, trade relations between the United States and Turkey would be severely affected."

You can do something about this:

1) Boycott all Microsoft products. Either use alternatives or pirate. Yes, I said it.
2) If you have Geico for your insurance, change it. If you have an American Express card, cancel it. Don't go to Dairy Queen, don't buy from See's Candies, throw away your Fruit of the Loom underwear and go commando, crumple the Washington Post newspaper, and when it comes time to get married, don't go to Ben Bridge, Borsheim's, or Helzberg.

Of course, you're not going to do any of that. In fact, I doubt that you even read the whole list. In case you did, the companies listed in the second section are all owned - partially or otherwise - by Berkshire Hathaway, which is the source of Buffett's fortune.

Source: Yerevan.ru (translated)

Greece & Armenia to Enter Into Economic Development Program

Here is what we know so far:

Greece intends to involve Armenia into its five-year economic development program. During the meeting the sides discussed bilateral cooperation and issues that are of mutual interest.

Greece is a strong ally that must be kept close. Increasing trade between the two countries is a good start.

Source: Arka

Armenia & Globalization: A Journey

I've always maintained that Armenia needs to become part of the global village, so to speak.

Armenia should not yield to anti-globalization motions, since taking into account country’s size and abilities, it is quite out of sense, stated Armenian Foreign Minister Vartan Oskanian...

In his words, the little Armenia and the large Armenian Diaspora must use the chances given by globalization. If official Yerevan sensibly uses these opportunities, globalization can become a discovery for Armenia. If the country does not use the chances given by globalization, it can become a state that nobody pays attention to.

True enough.

Source: PanArmenian

Turkey, Azerbaijan, Georgia Sign Railroad Agreement - Without Armenia

The United States tried to stop it, but apparently it has already begun. What has begun, you ask?

The first step for the Kars-Tbilisi-Baku railway line project named "Iron Silk Road" has been taken. The Prime Minister Tayyip Erdoğan, the Azerbaijani president Aliyev and the state president of Georgia Saakaşvili signed the historical agreement of the rail way line of Kars-Tbilisi-Baku which drives out Armenia. The project is anticipated to be finished in two years and around $420 million will be spent.

Armenia has been trying to prevent the the Azerbaijani president Aliyev and the state president of Georgia Saakaşvili signed the historical agreement of the rail way line of Kars-Tbilisi-Baku which drives out Armenia rail way line of Kars-Tbilisi-Baku for the reason that the railway line in the country will be disposed. But the project aged 14 years which will provide railway connection from Europe to the Middle Asia is driving out Armenia.

Wow, that was a poorly worded article.

Regardless, it seems Armenia may be out for good. Armenia repetedly attempted to develop relations with Turkey - without precondition, by the way - to get a chance at reopening the Kars-Gyumri section of the railroad, as it was economically very important for Armenia. But seeing as how we would be giving up much more and gaining much less in return, in terms of the recognition of the genocide and other conditions for Turkey, I'm happy with this outcome.

Source: Sabah

Turkey's Preconditions to Border Opening: Laughable!

It seems that Turkey comes up with stranger and stranger requests weekly. Maybe not entirely so, but I found this particular attempt laughable.

"We do not want the border with Armenia to be opened," announced head of the Chamber of Commerce and Industry of Igdir Kemal Arslan. According to him, the businessmen of Igdir are against the opening of the border as, "Armenia has occupied 20% of the territory of Azerbaijan."

According to the Turkish official, as a precondition for the opening of the border, "Armenia must give back the occupied territories to Azerbaijan, recognize the borders of Turkey and refrain from the recognition of the Armenian Genocide."

First, this is not Turkey's official stance, it seems, but rather that of Igdir, a city in Eastern Turkey. Second, do you realize that if we refrain from the recognition of the Armenian Genocide - and that is what Kemal Arslan suggests - then that means a Genocide actually took place, which is the opposite of the official Turkish stance. Ah, they'll come to terms with their past.

Anyway, this whole thing is laughable to me. I've covered the border issue in previous entries, if you're interested in finding out more.

Source: A1+

Syria Signs Economic and Trade Agreements with Armenia

Here's the story:

Syria and Armenia on Sunday signed three agreements for the economic and trade cooperation within the framework of boosting bilateral cooperation and solving problems and obstacles that hinder its development.

Chainmen of Aleppo Chamber of Commerce Mohmmed Saleh al-Mallah signed with Armenian Chairman of Industry and Trade Chamber Martin Sarkisean a twinship agreement and another one to establish a joint business council between both countries' businessmen.

Good for Armenia, good for Syria!

Source: Sana

Armenian Jewelers Hold 10% of the World Market

Armenians are among the greatest jewelers in the world, and I say that with objectivity!

...Gagik Abrahamian, president of the International Association of Armenian Jewelers (IAAJ) and chairman of board of directors of Armenian Diamond Factory and Armenian Jewelry Factory said the International Association of Armenian Jewelers, established 10 years ago, has now representations in the USA, Europe, the Middle East, Asia and Armenia. 'The main objective of the Association is to use the available resources and experience of Diaspora Armenian jewelers to the benefit of development of this sector in Armenia.'

When it comes time to buy jewelry, whether an engagement ring or otherwise, consider Armenian brands. There are a lot of them and they put out some great stuff. I can tell you that I certainly will!

Source: ArmenPress

Russia Remains Armenia's Most Important Economic Friend

Russia is important to Armenia in almost every possible way, which is no wonder it is the closest of all the former states.

Russia remains Armenia's major trade and economic partner of Armenia.
According to the 2006 annual report of Armenia's Minister of Foreign Affairs Vardan Oskanyan, Armenian-Russian commodity turnover totaled $376.9mln in January-November 2006; $300mln in 2005.

And that is your economic news for the day!

Source: Arka

Armenia's $1,000,000,000 Trade Deficit

Armenia now enjoys the same problem as the United States: trade deficit. A trade deficit is when a country imports more items than it exports, meaning more goods are brought in than they are taken out of the country to be sold elsewhere.

Armenia’s external trade deficit reached a new record-high level last year, surpassing the $1 billion mark due to flat exports and a stagnant manufacturing sector...

Official figures cited by the Regnum news agency show the country’s net imports soaring by almost 21 percent to $1.95 billion in the first eleven months of 2006. Armenian exports stood at just $895 million, 0.3 percent up from the same period in 2005.

The government has repeatedly blamed the negative manufacturing trend on a continuing downturn in the global trade in refined diamonds, one of Armenia’s main export items.

The Armenian Central Bank says the dram has been bolstered by a similarly steep rise in cash remittances sent home by hundreds of thousands of Armenians working abroad.

Blame whomever you want: I blame the lack of a diversified economy. What we need is a good manufacturing sector!

Source: ArmeniaLiberty

Armenia and Kazakhstan Sign Important Agreements

And they say Borat never helped Kazakhstan.

The two countries signed an intergovernmental agreement on citizens' trips, a convention on avoiding double taxation, an agreement on investment protection and a cultural cooperation agreement.

"As a result of talks, we confirmed the urge of our states to further strengthen our relations. Increasing trade and economic ties will contribute to this, for Kazakhstan's business and capital not to be afraid to go to Armenia," he [Nazarbayev] said.

Armenia is doing the right thing, as it needs every friend it can get in the region. What is especially noticeable is how Armenia and other former Soviet states have realized that they need each other to survive, which is a far cry from the initial reaction to freedom by most of these countries, which was akin to economic isolationism. Maybe that's why it took Armenia 15 years for its GDP to surpass Soviet levels.

Source: Portalino