Failed democratization of Armenia – a heist worth $2,6 billion dollars to US taxpayers

When Armenia established its independence in the aftermath of the Soviet break-up, US undertook massive financial aid and assistance to that nation. From day one, Armenia became the second largest per capita recipient of US aid in the world.

Since 1992 Armenia has received over $1,777 billion in US aid, plus $236 million for 5 years in MCC funds. Incidentally, in years 1918-1920, Armenia received over $50 million in US loans, which in 2008 dollars is worth $623,121,387.28. This is for a grand total of $2,636 billion.

According to CRS calculations, Armenia has received $225 million in cumulative US foreign assistance for democratization (about 13 percent of all aid to that nation) from FY92 through FY06 (RS22675, Jun 8, 2007, p. 6). These figures do not include millions in additional democratization aid budgeted in FY07 and FY08. Did the US taxpayers' and American hopes and expectations bear fruit?

As all the elections in Armenia have shown, most vividly the Feb'08 presidential elections and its violent aftermath, US efforts have failed and money was all but wasted. Consider the official facts (independent and opposition report offer far higher figures): at least 8 people killed, over a hundred wounded, tanks and army patrolling the streets of the capital, full-scale government censorship of all communications for at least 20 days, and main opposition contender under house arrest.

Additionally according to the CIA World Factbook, Armenia is also militarily occupying 16% of neighboring Azerbaijan (including the NK region), displacing 800,000 ethnic Azeris in the process, placing an even harder moral and financial burden on its population, to sustain and support its military machine. Indeed, Congress and CRS note, "Armenia's shift away from a war footing would also further US interests in Armenia's economic development and improved standards of living (Congressional Budget Justification for Foreign Operations, FY2007)" (RL30679, Updated Jan 31, 2008, p. 29).

Compare this with Azerbaijan, a victim of occupation and ethnic cleansing by Armenia, yet has received only $746 million in cumulative budgeted US foreign assistance from FY92 through FY08, of which only about $75 million were for democratization. No other loans, grants or MCC compacts were given to Azerbaijan. Thus, larger Azerbaijan, a strategic US ally, has received some 4 times less aid than a smaller but more aggressive Armenia. As the CRS report notes, "The United States has provided most assistance for democratization to Armenia, and somewhat less for Georgia. U.S. aid for democratization in Azerbaijan was explicitly permitted by Congress [only] in FY1998 and thereafter" (ibid., p. 48).

Furthermore, when comparing to a similar presidential election that was held 5 years ago in Azerbaijan, when two people unfortunately died, dozens were wounded, yet tanks and army were not deployed, and no censorship or emergency rule imposed, Armenia's record looks even more deplorable. Thus, despite being born with a silver spoon in its mouth and more than generously funded by US taxpayers, Armenia, the second largest aid recipient in the world, ended up having markedly worse elections than Azerbaijan, which is suffering from occupation of its lands and has to grapple with 10% of its population being displaced. This shows that the US democratization aid to Armenia has been ineffective and failed (which was in line with the signs that the MCC, the Freedom House and others have started to
notice years ago).

This is the wrong message to send - we should not be rewarding a corrupt and militaristic regime, which is not only occupying its neighbor's lands, conducts ethnic cleansing and engaged in crimes against humanity (e.g., Khojaly Massacre), but also violently kills its own citizens during its elections and conducts markedly worse elections than its neighbors. It's grand time we ask Mr Kocharyan and his regime the age old question - "Where's the money?!"