1499) Diaspora The Comparative Advantage For Armenia, Tatoul Manaseryan, MP

tatoulm@parliament.am

January 2004

Abstract

The main question posed in the paper is: What should be done to encourage Diaspora investments in Armenia? The paper makes the following recommendations to achieve this objective:

• utilize Diaspora’s professional recourses;

• create networking in all professions;

• utilize Diaspora investment and professional capacities for Armenia’s gradual integration into the world economy;

• promote regional economic cooperation;

• promote the self-organization of the Diaspora via the policy pursued by Armenian authorities;

• conduct market research on Armenia’s export capacity abroad;

• establish the supremacy of law in all the spheres of business for the confidence-building of Diaspora investors towards Armenia and for the abolishment of “privileged” conditions;

• implement joint studies with the Diaspora for the choice of strategic partners and comprehensive analyses of the investment climate;

• establish regular business forums that represent Armenia’s economic potential abroad by best utilizing the Diaspora’s professional potential;

Keywords: Armenian Diaspora, development strategy

The Diaspora as Armenia’s Comparative Advantage

For the efficient utilization of the Diaspora’s potential, encouraging an inflow of its investments and enhancing its role in Armenia, it is necessary to analyze what has been done so far, pragmatically assess the reality, reveal the obstacles and develop a comprehensive plan of activities to overcome them.

The efficient utilization of the Diaspora’s investment potential cannot be isolated from global trends and regional development shifts. Nowadays, new developments are observed in the world that touch upon the vital interests of both Armenia and the Diaspora, and Armenia cannot disregard these challenges. . .

It is necessary to work out and implement a current and prospective far-reaching plan of economic integration with the Diaspora. There has been no thorough conception of its professional and business potential so far.

For effective cooperation, it is necessary to promote the Diaspora’s consolidation, utilize its investment and professional potential in Armenia’s gradual integration into the world economy, and work out joint programs for regional economic integration.

What Has Been Done

An enforced barrier arose between Armenia and the Diaspora in the years that followed the 1915 Armenian Genocide, which brought about the formation of the Diaspora. In the recent several years, Diasporan Armenians have definitely united around the Armenian Republic to support the Karabagh movement, establish democracy, offer material contribution to the Armenian population, and develop the country’s economy.

If before 1998, a tendency to undermine the Diaspora’s political structures and to indirectly impede active business in the homeland was observed, after 1998 numerous attempts were made to use the business potential of Armenia and the Diaspora, and to accomplish their political unification. Two wide-ranging Armenia-Diaspora conferences were been organized with participation of representatives from almost all the communities of the Diaspora. In any event, no long-lasting cooperation strategy, plan, or relevant mechanisms have been worked out yet.

Despite the fact that approximately 2000-3000 Armenian citizens, not counting Diasporan Armenians, work in Diaspora structures supplying assistance, the decline of charitable activity can be observed in almost all the communities of the Diaspora today. Charity by organizations gave way to individual donations (approximately 7,000 people giving, on average, 100 USD each ).

Fourteen large organizations of the Diaspora have provided assistance of about 900 million USD to Armenia. As for the support by foreign governments and non-Armenian . .

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