Azerbaijan's Entire Economy Set to Collapse

As you probably know by now oil prices have plummeted, resting near the $40 a barrel mark, and expected by some to slide further still. According to Google, and disregarding increased production for the sake of simplicity, Azerbaijan pumps out about 800,000 barrels of oil a day. That's quite a bit even by today's numbers, amounting to something like $32,000,000/day or about $11.5 billion dollars a year in an economy with a GDP of about $53 billion a year. That's a staggering 20% of the production from oil. But wait, the $53 billion figure could be off, as the 2008 average price of crude was $100, give or take, thus Azerbaijan could have a shortfall of about $17,000,000,000. And with all the crisis, Aliyev still wants to continue spending money that it does not have, as evidenced by their $2.5 billion debt, though likely much more now, in his ultimate wet dream to equal his military spending to Armenia's GDP.

And all this when more Azeris than Armenians live on less than $2 a day, even with the fact that Armenia has zero oil and an economy roughly less than one fourth the size.

So, should we call the bookies?

Armenia Exports Bananas...NOT!

You must be thinking that I've gone B-A-N-A-N-A-S! Hetq found this bit of statistical curiosity and decided to investigate:

In 2006, Armenia exported 3002 tons of bananas to the Bahamas and 91 tons to Georgia. In 2005, 594 tons of bananas were exported to the Bahamas. The Republic of Armenia’s State Council on Statistics provided these figures.

If you're thinking WTF, you're not alone. Surely bananas don't grow in Armenia, so how can they be exported to other countries? Funny you should ask.

...in 2005-2006 the "Ketrin Ltd" firm exported 59.44 kilos of banana oil to the Bahamas, an amount equivalent to the 755.4 tons of bananas imported on a temporary basis for reprocessing purposes...

So some statistical bluffing, then? Sure seems wasteful to ship bananas from the Bahamas to Armenia only to ship it back, especially given the high cost of trasportation in the last couple of years. But there's more!

The "Godfather of Bananas" was Grisha Harutyunyan, the former Deputy Chief of the National Security Service. He in fact owns "Ketrin Ltd". He has been lining his pockets with untaxed profits for years on end. We’re not talking about $1 or $2 million, but rather tens of millions of dollars.

A tale of greed and the shadow economy: that's more believable!

Source: Hetq

We're Pirates, Ape!

Once in a while we hear about Armenians and their involvement in shady endeavors, no doubt obvious propaganda by the Turkish government. Surely we are incapable of fraud, crime, and dishonesty in general! Other times, we realize it's all too true.

[Software] Piracy was most prevalent in Armenia, Bangladesh and Azerbaijan, where more than 90 percent of PCs had unlicensed software.

Software piracy not only hurts software developers, it also harms local resellers, reduces government tax revenues and increases the risk of computer security problems and crime...

Weighed against the fact that it's free? I think this is one time we are agreed with our evil neighbors to the East.

Source: Orlando Business Journal

A Novell Armenian

This one is for the business and IT people amongst you!

Meet Ronald Hovsepian. Ronald is the current CEO of network software corporation Novell and has held management and executive positions in IBM for 17 years before that.

As you can tell from the image, he made $5,400,000 in 2007, placing him among the top earners in his field. That's more than $20,000 a day for every working day in a year. How's that for inspiration?

Here's some more information on WikiPedia

Chocolatier Nestle Upsets Azerbaijan

What can an international candy company possibly do to upset Azerbaijan? This one is sweet in more ways than one:

The CD-ROM [attached to a breakfast ceral as a gift] featured information about countries around the world but the data on Azerbaijan caused outrage there.

It said that Azerbaijan had started a war against neighbouring Armenia and that the hotly disputed territory of Nagorno-Karabakh belonged to Armenia.

Nestle has now issued a formal apology but some Azeris are still not happy. They accuse Nestle of playing Armenia's hand, and are demanding more than just an apology to chew on.

It looks like my choice of snack on those long days prank-calling the Azeri embassy is firmly and deliciously decided.

A free t-shirt to anyone who can produce an original CD from Azerbaijan for publication on TheArmeniaBlog.com and elsewhere!

Source: BBC News

Update On Krtsats Kukuruz

If you recall I posted an entry about the now-destroyed krtsats kukuruz or corn cob building that was a veritable landmark in Yerevan until recently, when it was sold for a ridiculous amount and destroyed to make way for an expensive new hotel.

All that aside, it turns out the American Krtsats Kukuruz was used in at least one movie. This clip is from 1980's "The Hunter" with the legendary Steve McQueen.



Enjoy!

Picture: Victoria's Secret in Armenia

Click to enlarge.

Ah yes, the infamous Victoria's Secret. Did I mention it's a knockoff, probably like most such "branded" stores in Armenia?

Anyway, this is probably not news to anyone who has been there recently, but enjoy it nevertheless! Oh, and do read the Armenian part.

Photo credit: uncorneredmarket on Flickr

Breeding Hamsters: The Business of Our Ancestors!

Most everyone knows that Armenians are a very business-oriented people and there is a certain level of pride associated with that, but now we can take that to an even higher level! You see, the following advertisement is from the June 1950 issue of Popular Mechanics. Seeeing as how there are many Armenians currently living in North Hollywood, California, it only makes sense to assume that Mr. Akopian (Hakopyan) was among the original businessmen in the area!

Still, the notion of raising these awesome creatures just to fulfill a "big laboratory demand" seems, at best, troublesome.

Stealing Armenia's Gold, Again

Ah, gold. What self-respecting Armenian doesn't have at least a few pounds of it stashed somewhere? As of this very moment, the price of Gold stands at $833.20, having made a mad rush to that position in the last few years, no thanks to the present economic uncertainties. So where does Armenia fit in all of this, you ask?

In the town of Ararat - about an hour's drive south of Yerevan, Armenia's capital - investors from Russia have moved in to take control of what is believed to be one of the biggest gold-mining operations in the country.

But there's more to it than that.

Azerbaijan says a considerable amount of the Zod mine is in its territory, at present occupied by the Armenian military.

And let's not forget the previous owners:

In 2002, AGRC was taken over by a company controlled by the family of Indian mining billionaire Aneel Agarwal. But its operations were closed down after the Armenian authorities accused the company of reneging on various licensing agreements. The company was charged with tax fraud and environmental violations and ordered to pay millions of dollars in fines.

Besides the laughable notion of the Armenian government charging anyone with tax fraud, this is yet another nail in the coffin that is Armenia's economic future. We've given away nearly everything in the name of short term profits, but what of the future?

Critics will contend that some of the assets are actually on a long-term lease, but this isn't the case with all of them. Besides, how absurd is it that to revitalize the economy and move it forward means giving control of important assets to foreigners? We only have so much left!

Source: BBC News

Yoga Arrives in Armenia

It seems yoga and pilates are no longer trends associated with the United States and European countries alone. That's right: Armenians now have their own refuge called Shunch or Breath, dedicated to yoga, pilates, and the ever-popular spa. The studio is located in Yerevan and inescapably their entire website is in English.

So not only are Armenians quickly becoming wealthier, more democratic, and definitely less Armenian, but they are also embracing ancient Hindu traditions and giant round balls. Wowee!

Here's more information: Shoonch Website

Bored Armenian Creates "Baby Yoga"

What do you give to the child that has everything? Baby yoga classes, of course!

Itsy Bitsy Yoga is the brainchild of Helen Garabedian, who was born near Boston, has lived in Philadelphia and Fort Lauderdale, and now resides in Sudbury, Mass...

"It really does help the kids with sleeping, and helps parents with bonding," she says. "It helps you just feel better as a parent, to be able to be present as a parent, teaching you techniques that calm and comfort the child. And the environment is kind of special. It's a great time for like-minded parents to come together and get to know one another."

I feel sorry for these parents who need to rely on baby yoga to bond or otherwise put their kids to sleep. Sounds to me like a lazy way out, really.

Source: OC Register

Youth Palace Doppelganger or: The Rise & Fall of "Krtsats Kukuruz"

Our beloved Kukuruz is gone now for the second year, falling victim to the desires of capitalist pigs! The iconic building was "sold" by the "government" for a mere $740,000 to monopolist Avangard Motors Company, the owner of which hopes to build a modern hotel in its place. Blasphemy!

In all seriousness, the Youth Palace was a familiar symbol of Yerevan in postcards and elsewhere, the Armenian version of the famous Hollywood sign. It was unlike any other building in the Yerevan skyline - one that looked like eaten corn - and it will be missed.

Even though fundraising for the building began in the early 1960s, it took more than a decade to be completed. Before its demise in 2005, it served as a hotel with some 500 beds, a concert hall, a restaurant (spinning, if I recall), and other goodies. Here is a picture of it:



What a beautiful and original look, right? It was designed by a group of young Armenian architects some 40 years ago. But what if it was a copy of a building on the other side of the world?





A ha! The two pictures above show Marina City in Chicago, a pair of residential towers designed in 1959 and built in 1964, well before the Youth Palace was ever committed to paper. Further, both buildings appear to be built around a central backbone of reinforced concrete. Oh, and Marina City is known as "Corn Cob Building" to the local residents!

So what should we do? Bow our heads in shame and never speak of it or proclaim that they copied us? Or further, continue to celebrate our beloved Kukuruz regardless? First and foremost, we must keep in mind that there exists a third possibility of two separate architects designing something similar. The use of concrete and designs reminiscent of futurism were all the rage in those years, and that vision towards tomorrow wasn't limited to just Western countries, either. If it was indeed copied, so what? Walt Disney's architects copied Neuschwanstein Castle for Cinderella's Castle in Disneyland.

And isn't imitation the sincerest form of flattery? When this was conceived and built, in the 1960s and 1970s, every young person in Communist countries wanted freedom and they all looked to the United States as a beacon of a society without limits and one with opportunities and openness. It could very well be the case that those architects were defying Communist ideals and striving for something greater, hoping that a Corn Cob building in their own country would never cease to amaze and inspire a generation of Armenians to come.

And for that reason we can never cease to respect and remember our Kukuruz!

Further reading:
ArmeniaNow
Marina City on WikiPedia

Armenian to Auction Adolf Hitler's Personal Globe!

This is one of those hard to believe stories. Here are the facts:

Barsamian found the globe in May 1945 in the Berghof, Hitler's home in the Bavarian Alps town of Berchtesgaden. He boxed it up with a few other keepsakes, including a pistol and a dagger, and shipped them home.

"Literally, the place is all bombed out and here this globe is sitting there on the desk," said John Barsamian, now 91.

If you have some money burning in your pocket, the globe will be auction in November with estimates ranging up to $20,000.

Source: Yahoo! News

Armenian Boy Raises Money for Charity

Check out this Armenian kid and his fund raising efforts for his community. What a great model for everyone!

You can see the video story on CBS4. Be patient, because it takes a while to load.

Dikran Izmirlian: The Armenian Peanut Tycoon

It is always fun to find out about wealthy and influential Armenian figures around the world, though admittedly more so when their source of wealth stems from a near-monopoly of the peanut!

The firm's principal shareholder has been identified as Dikran Izmirlian, 77, who made his fortune by creating a near-monopoly on the world's peanut market. Izmirlian, who is of Armenian descent, is chairman and chief executive of Alimenta, a company that has built up a big interest in the Gambian peanut, or groundnut, market.

Despite holding a Swiss passport, Dikran Izmirlian has roots in Armenia. In 1994 he established the Izmirlian Foundation in Armenia's capital, Yerevan, to support education and business in the country. Other philanthropic work involves funding construction work at the city's university library, military academy and religious institutions.

I can't promise that my hatred for peanuts will disappear, but at least we have identified another Armenian who has made a mark on the world!

Source: The Sunday Times, May 23, 2004

Smart People Earn Very Little

Who do you think earns the least amount of money in Armenia? Street cleaners? Garbage collectors? You'd be surprised:

The lowest wage earners in Armenia are physicists, mathematicians, educators and critics.

...in recent years there has been an increase in jobs, but the role of employment agencies remains small. Jobs are still acquired mainly through friends and acquaintances.

On a personal note, I know quite a few people through people through people in Armenia who are sitting at home with college degrees unable to fill jobs, as there are none.

Source: Yerevan.ru (translated)

Drilling for Oil in Armenia

I think it is fair to say that Armenians have been jealous of the vast oil resources of its neighbors for quite some time. Perhaps envious no more!

...the agreement allows prospecting on half of Armenia's territory adjacent to Iran, Azerbaijan and Georgia, the states rich in oil and gas. "We suppose the south of Armenia has similar potential."

Then again, a lot of oil-rich countries have become lazy vis-a-vis business development. Too much reliance on any one resource will do that to a country.

Here's hoping some oil is found, if for nothing else other than bragging rights!

Source: Pan Armenian via Gibrahayer

Armenia's Economy Grew in First Half of 2007

Armenia's economy is on the rise yet again!

The growth of Armenia’s GDP in January-May of 2007 totaled 10.2%, as compared to the same period of 2006.

The average monthly salary in Armenia in January-May of 2007 increased by 18.0%, as compared to the same period of 2006, thus making 71016 drams.

That's almost $207 dollars a month, which compares favorably with the $186 a month in 2006, converted with today's currency exchange rates. Of course, this is assuming zero inflation and zero numbers fudging, both of which have to be taken into account with all purposely incomplete government statistics.

Source: Banks.am

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

Help Save Teghut's Forest From Mining

It's not often that I ask readers to do something for the greater good, especially since a very small percentage of people would even consider spending a minute or two to help save a forest in their homeland. However, I urge you to do just that.

Armenian Copper Program (ACP), with approval from Armenia’s Ministry of Nature Protection, plans to clear-cut over 1,500 acres of Teghut's forest in order to establish an open pit strip mining operation for copper and molybdenum ore.

In addition, ACP plans to create a "tailing dump" in a nearby pristine gorge, where heavy metals and other toxins from mining waste will leach into the ground and into the river flowing through the gorge, ultimately contaminating the local water supply.

I don't think any of you want to see a forest cut down and the environment polluted. Even if you don't care about the animals, trees, and so on, you almost certainly care about the people there who would have a higher risk of disease, birth defects, and so on.

And if you think your voice won't matter, you're wrong: over two years ago, Armenia Tree Project and many other NGOS and international organizations came together to save the Shikahogh Nature Reserve from sure destruction! If it was done before, it can be done again.

I'm starting to sound like a PBS Pledge Drive, so I'll just give you the link: Save Teghut's Forest