Caucasus Press Review (July 1-6)

Armenia marked Constitution Day on July 5. The Golos Armenii paper says that the commission for constitutional reforms in Armenia will have presented the final project of amendments by July 1. However, the commission asked the president to extend the deadline until October 15 because all previous discussions had only been held in Yerevan, skipping the regions. A schedule has already been drawn up. The commission will send two officials to each region to inform the public about progress in reforming the Constitution.

Meanwhile, the commission has not come to a consensus on changing the form of mandates and ratio of proportional and majority mandates. The commission will have discussed the concept of amendments with experts of the Venice Commission by October 15.

The paper reminds that only the Republican Party and Dashnaktsutyun want the reform. Other parties insist that now is not the time for it and point out more pressing problems. The public has little interest in the reform. Members of the commission take it as a matter of course, because the reform has just begun and it is too early talk about the public’s attitude.

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The Nuzhnaya Gazeta paper of Abkhazia informs that a round-table conference entitled “Russian-Abkhaz strategic partnership and Eurasian integration: challenges and prospects” was organized in Sukhumi. The conference focused on evaluation of challenges, threats and prospects, choice of tactics and strategy for progress in integration of Abkhazia into the Eurasian Economic Space.

Russian experts presented analyses in global and regional contexts, their vision of a step-by-step strategy of integrating Abkhazia into the Eurasian Economic Space. Fedor Lukyanov, the head of the Council for Foreign and Defense Policy of Russia, the editor-in-chief of the Russia in Global Affairs magazine, noted that the Eurasian Economic Union would not weaken any state’s sovereignty. Kazakhstan, for instance, would never let that happen, he pointed out. Abkhazia, according to the journalist, would only gain higher recognition by integrating into the Eurasian Economic Space. Kirill Koktysh, a member of the Council of the Russian Association of Political Experts and Consultants, a docent of MGIMO, said that Abkhazia should talk about its membership in the Eurasian Economic Space before all the rules get set.

Alexander Skakov, coordinator of the working group of the Center for Studies of Central Asia and the Caucasus at the RAS Institute for Oriental Studies, pointed out that any forces capable of taking power in Abkhazia have only one foreign political priority, Russia, and only one interior political priority, real independence.

Beslan Butba, Abkhaz vice prime minister, and Leyla Taniya, the director of the Abkhaz Agency for Black Sea–Caucasus Development, said that Abkhazia had realized its geopolitical potential as a military and strategic buffer between Russia and NATO, enforcing a stable status quo in the region and stability. Its geo-economic potential beneficial for Abkhazia and its strategic ally Russia in the architecture of the Black Sea–Caucasus Region remains unused. Abkhazia can offer agricultural products and eco tourism to the Eurasian Economic Union. The Eurasian Space gives access to a common market, modern technologies, modernization of the economy and international cooperation. Abkhaz Deputy Foreign Minister Irakly Khintba proposed using the Eurasian Partnership as an analogue of the European Neighbourhood Policy, boosting integration in the region.

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“Stability of macroeconomic indictors, rising budget expenses and the favourable business climate formed in the country allows Azerbaijan to remain a leader in the region in attracting national and foreign investments," academician Ziyad Samedzadeh, head of the Azerbaijani parliamentary commission for economic policy, stated in an interview with the Kaspiy paper.

He noted that Azerbaijan had liberalized foreign trade, free flow of finances, capital and workforce, it lifted export fees, simplified foreign economic procedures. A multitude of property forms and conditions was formed in the context of free competition of all subjects of the market.

The State Oil Fund of Azerbaijan formed in December 1999 is one of the most important instruments for investment projects. It accumulates income from hydrocarbon exports. Development of infrastructure and industry is the priority investment policy.

Samedzadeh stated that about $170 billion had been invested in the Azerbaijani economy in the past 20 years. About half of the sum had been invested by foreigners. An investment record of $28 billion was achieved in 2013. $17.5 billion of the volume were national investments. The share of private companies exceeded 80%. A proper legal basis for free business was formed in the country to encourage the business climate and attract investors. State programs for support of the economy and stimulation of small and medium-sized business are realized. The single-window form for electronic registration of business, the electronic government interactive portal, the state registry of inspections of business are being implemented successfully.

Azerbaijan plans to invest about $3.5 billion in information technologies in the next few years. Funds will be invested in the development of the space industry, alternative energy technologies, maritime and railway transportation and the petrochemical industry. The activeness of private companies in capitalization should exceed the government’s share at a certain point.

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The government of Georgia has adopted a decree on systematization of premiums for functionaries of lawmaking, judicial and self-governance structures. According to the Svobodnaya Gruziya paper, it is hard to judge the success of the premium system in ministries and agencies. The pension totals 150 laris in the country. A four-digit premium for heroic work of functionaries seemed to be a mockery of the public.

The paper informs that a premium can only be given once a quarter and should not exceed the wage. An essential innovation are the limitations set to prevent authorities from granting themselves premiums. A functionary receives a premium only if his/her boss has clear reasons to grant one. Premiums for deputies will only be issued by heads of offices.

 

Experts are still curious about the so-called bonuses to salaries. The law has nothing to say about them and it may turn out that functionaries would receive additional income in the form of bonuses. The press service of the government says that the system of excessive income of ministers (salary + bonus) will stay, although the system of bonuses and premiums will be limited. Some experts believe that harsh rules for premiums may cause reduction of staff. A good employee is hard to keep without proper financial stimulation.

* * *

The Kabardino-Balkarskaya Pravda paper says that the first ecological path has been opened at a height of 2200m above sea level at a national park near the Khulamo-Bezengi Gorge. A 562-m long road runs along River Cherek towards the glacier between highland meadows and a unique landscape. Benches were made along the path. Information notices there describe the plans and animals that can be fed from one’s hands. The path ends with an observation platform. Constructors plan to extend the path to the glacier, the origin of the river.

The ecological path was built by RusHydro. Kabardino-Balkaria plans to establish more such routes in the Berkhnyaya Balkaria District and the Chegemsky Gorge. They should boost tourism in the region.

Caucasus domestic and foreign political events in the local press (June 23-29)Armenia marked Constitution Day on July 5. The Golos Armenii paper says that the commission for constitutional reforms in Armenia will have presented the final project of amendments by July 1. However, the commission asked the president to extend the deadline until October 15 because all previous discussions had only been held in Yerevan, skipping the regions. A schedule has already been drawn up. The commission will send two officials to each region to inform the public about progress in reforming the Constitution.Meanwhile, the commission has not come to a consensus on changing the form of mandates and ratio of proportional and majority mandates. The commission will have discussed the concept of amendments with experts of the Venice Commission by October 15.The paper reminds that only the Republican Party and Dashnaktsutyun want the reform. Other parties insist that now is not the time for it and point out more pressing problems. The public has little interest in the reform. Members of the commission take it as a matter of course, because the reform has just begun and it is too early talk about the public’s attitude.The Nuzhnaya Gazeta of Abkhazia informs that a round-table conference entitled “Russian-Abkhaz strategic partnership and Eurasian integration: challenges and prospects” was organized in Sukhumi. The conference focused on evaluation of challenges, threats and prospects, choice of tactics and strategy for progress in integration of Abkhazia into the Eurasian Economic Space.Russian experts presented analyses in global and regional contexts, their vision of a step-by-step strategy of integrating Abkhazia into the Eurasian Economic Space. Fedor Lukyanov, the head of the Council for Foreign and Defense Policy of Russia, the editor-in-chief of the Russia in Global Affairs magazine, noted that the Eurasian Economic Union would not weaken any state’s sovereignty. Kazakhstan, for instance, would never let that happen, he pointed out. Abkhazia, according to the journalist, would only gain higher recognition by integrating into the Eurasian Economic Space. Kirill Koktysh, a member of the Council of the Russian Association of Political Experts and Consultants, a docent of MGIMO, said that Abkhazia should talk about its membership in the Eurasian Economic Space before all the rules get set.Alexander Skakov, coordinator of the working group of the Center for Studies of Central Asia and the Caucasus at the RAS Institute for Oriental Studies, pointed out that any forces capable of taking power in Abkhazia have only one foreign political priority, Russia, and only one interior political priority, real independence.Beslan Butba, Abkhaz vice prime minister, and Leyla Taniya, the director of the Abkhaz Agency for Black Sea–Caucasus Development, said that Abkhazia had realized its geopolitical potential as a military and strategic buffer between Russia and NATO, enforcing a stable status quo in the region and stability. Its geo-economic potential beneficial for Abkhazia and its strategic ally Russia in the architecture of the Black Sea–Caucasus Region remains unused. Abkhazia can offer agricultural products and eco tourism to the Eurasian Economic Union. The Eurasian Space gives access to a common market, modern technologies, modernization of the economy and international cooperation. Abkhaz Deputy Foreign Minister Irakly Khintba proposed using the Eurasian Partnership as an analogue of the European Neighbourhood Policy, boosting integration in the region.* * *“Stability of macroeconomic indictors, rising budget expenses and the favourable business climate formed in the country allows Azerbaijan to remain a leader in the region in attracting national and foreign investments," academician Ziyad Samedzadeh, head of the Azerbaijani parliamentary commission for economic policy, stated in an interview with the Kaspiy paper.He noted that Azerbaijan had liberalized foreign trade, free flow of finances, capital and workforce, it lifted export fees, simplified foreign economic procedures. A multitude of property forms and conditions was formed in the context of free competition of all subjects of the market.The State Oil Fund of Azerbaijan formed in December 1999 is one of the most important instruments for investment projects. It accumulates income from hydrocarbon exports. Development of infrastructure and industry is the priority investment policy.Samedzadeh stated that about $170 billion had been invested in the Azerbaijani economy in the past 20 years. About half of the sum had been invested by foreigners. An investment record of $28 billion was achieved in 2013. $17.5 billion of the volume were national investments. The share of private companies exceeded 80%. A proper legal basis for free business was formed in the country to encourage the business climate and attract investors. State programs for support of the economy and stimulation of small and medium-sized business are realized. The single-window form for electronic registration of business, the electronic government interactive portal, the state registry of inspections of business are being implemented successfully.Azerbaijan plans to invest about $3.5 billion in information technologies in the next few years. Funds will be invested in the development of the space industry, alternative energy technologies, maritime and railway transportation and the petrochemical industry. The activeness of private companies in capitalization should exceed the government’s share at a certain point.* * *The government of Georgia has adopted a decree on systematization of premiums for functionaries of lawmaking, judicial and self-governance structures. According to the Svobodnaya Gruziya paper, it is hard to judge the success of the premium system in ministries and agencies. The pension totals 150 laris in the country. A four-digit premium for heroic work of functionaries seemed to be a mockery of the public.The paper informs that a premium can only be given once a quarter and should not exceed the wage. An essential innovation are the limitations set to prevent authorities from granting themselves premiums. A functionary receives a premium only if his/her boss has clear reasons to grant one. Premiums for deputies will only be issued by heads of offices.Experts are still curious about the so-called bonuses to salaries. The law has nothing to say about them and it may turn out that functionaries would receive additional income in the form of bonuses. The press service of the government says that the system of excessive income of ministers (salary + bonus) will stay, although the system of bonuses and premiums will be limited. Some experts believe that harsh rules for premiums may cause reduction of staff. A good employee is hard to keep without proper financial stimulation.* * *The Kabardino-Balkarskaya paper says that the first ecological path has been opened at a height of 2200m above sea level at a national park near the Khulamo-Bezengi Gorge. A 562-m long road runs along River Cherek towards the glacier between highland meadows and a unique landscape. Benches were made along the path. Information notices there describe the plans and animals that can be fed from one’s hands. The path ends with an observation platform. Constructors plan to extend the path to the glacier, the origin of the river.The ecological path was built by RusHydro. Kabardino-Balkaria plans to establish more such routes in the Berkhnyaya Balkaria District and the Chegemsky Gorge. They should boost tourism in the regio