top of pageBackground: Armenia's leaders remain preoccupied by Armenia's 10-year conflict with Azerbaijan over the Nagorno-Karabakh enclave. Although a cease-fire has been in effect since May 1994, the sides have not made substantial progress toward a peaceful resolution. In January 1998, differences between President TER-PETROSSIAN and members of his cabinet over the Nagorno-Karabakh peace process came to a head. With the prime minister and defense and security ministers arrayed against him, an isolated TER-PETROSSIAN resigned the presidency on 3 February 1998. Robert KOCHARIAN, TER-PETROSSIAN's prime minister, was elected president in March 1998. Concerns about Armenia's economic performance rose in 1997 with a slowdown in growth and an increase in inflation.
Climate: highland continental, hot summers, cold winters
Terrain: high Armenian Plateau with mountains; little forest land; fast flowing rivers; good soil in Aras River valley
top of pageEthnic groups: Armenian 93%, Azeri 3%, Russian 2%, other (mostly Yezidi Kurds) 2% (1989)
Note: as of the end of 1993, virtually all Azeris had emigrated from Armenia
Languages: Armenian 96%, Russian 2%, other 2%
Birth rate: 13.52 births/1000 population (1998 est.)
Death rate: 8.82 deaths/1000 population (1998 est.)
EnvironmentCurrent issues: soil pollution from toxic chemicals such as DDT; energy blockade, the result of conflict with Azerbaijan, has led to deforestation when citizens scavenged for firewood; pollution of Hrazdan (Razdan) and Aras Rivers; the draining of Sevana Lich (Lake Sevan), a result of its use as a source for hydropower, threatens drinking water supplies; restart of Metsamor nuclear power plant without adequate (IAEA-recommended) safety and backup systems
International agreements party to: Air Pollution, Biodiversity, Climate Change, Desertification, Nuclear Test Ban, Wetlands
International agreements signed but not ratified: none of the selected agreements
top of pageAdministrative divisions: 10 provinces (marzer, singular_marz) and 1 city* (k'aghak'ner, singular - k'aghak'; Aragatsotn, Ararat, Armavir, Geghark'unik', Kotayk', Lorri, Shirak, Syunik', Tavush, Vayots' Dzor, Yerevan*
Independence: 28 May 1918 (First Armenian Republic; 23 September 1991 (from Soviet Union)
Executive branchChief of state: President Robert KOCHARIAN (since 30 March 1998): ead of
Government: Prime Minister Armen DARBINYAN (since 10 April 1998)
Cabinet: Council of Ministers appointed by the prime minister
Elections: president elected by popular vote for a five-year term; special election last held 30 March 1998 (next election to be held March 2003); prime minister appointed by the president
Election results: Robert KOCHARIAN elected president; percent of vote_Robert KOCHARIAN 59%, Karen DEMIRCHYAN 41%
Legislative branch: unicameral National Assembly (Parliament) or Azgayin Zhoghov (190 seats; members serve four-year terms)
Elections: last held 5 July 1995 (next to be held NA July 1999)
Election results: percent of vote by party_NA; seats by party_Republican Bloc 159 (ANM 63, DLP-Hanrapetutyun Bloc 6, Republic Party 4, CDU 3, Intellectual Armenia 3, Social Democratic Party 2, independents 78), SWM 8, ACP 7, NDU 5, NSDU 3, DLP 1, ARF 1, other 4, vacant 2
International organization participation: BSEC, CCC, CE (guest), CIS, EAPC, EBRD, ECE, ESCAP, FAO, IAEA, IBRD, ICAO, IDA, IFAD, IFC, IFRCS, ILO, IMF, Intelsat, Interpol, IOC, IOM, ITU, NAM (observer), OSCE, PFP, UN, UNCTAD, UNESCO, UNIDO, UPU, WFTU, WHO, WIPO, WMO, WTrO (applicant)
top of pageEconomy overview: Under the old Soviet central planning system, Armenia had developed a modern industrial sector, supplying machine tools, textiles, and other manufactured goods to sister republics in exchange for raw materials and energy. Since the implosion of the USSR in December 1991, Armenia has switched to small-scale agriculture away from the large agroindustrial complexes of the Soviet area. The agricultural sector has long-term needs for more investment and updated technology. The privatization of industry has been at a slower pace, but ahead of most of the rest of the CIS. Armenia is a food importer and its mineral deposits (gold, bauxite) are small. The ongoing conflict with Azerbaijan over the ethnic Armenian-dominated region of Nagorno-Karabakh and the embargoes imposed by Azerbaijan and Turkey contributed to a severe economic decline in the early 1990s. By 1994, however, the Armenian Government had launched an ambitious IMF-sponsored economic program that has resulted in positive growth rates in 1995-97. Armenia also managed to slash inflation and to privatize most small and medium-sized enterprises. The chronic energy shortages Armenia suffered in recent years has been partially offset by the energy supplied by one of its nuclear power plants at Metsamor, which in 1996 supplied about 40% of the country's energy needs, according to the Armenian Government. Moreover, Armenia is expanding its energy imports from Iran.
Agriculture products: fruit (especially grapes), vegetables; vineyards near Yerevan are famous for brandy and other liqueurs; minor livestock sector
Industries: much of industry is shut down; metal-cutting machine tools, forging-pressing machines, electric motors, tires, knitted wear, hosiery, shoes, silk fabric, washing machines, chemicals, trucks, watches, instruments, microelectronics
Unemployment rate: 10.6% officially registered unemployed, but large numbers of underemployed (June 1997)
Exports: total value:$290 million (f.o.b., 1996)
Commodoties: gold and jewelry, aluminum, transport equipment, electrical equipment, scrap metal
Partners: Iran, Russia, Turkmenistan, Georgia
Imports: total value:$727 million (c.i.f., 1996)
Commodoties: grain, other foods, fuel, other energy
Partners: Iran, Russia, Turkmenistan, Georgia, US, EU
Debt external: $820 million (of which $75 million to Russia) (1997 est.)
Exchange rates: dram per US$1_499.89 (November 1997), 414.04 (1996), 405.91 (1995), 288.65 (1994), 9.11 (1993)
top of pagetop of pageTelephone system: joint venture agreement to install fiber-optic cable and construct facilities for cellular telephone service is in the implementation phase
Domestic: NA
International: international connections to other former Soviet republics are by landline or microwave radio relay and to other countries by satellite and by leased connection through the Moscow international gateway switch; satellite earth station_1 Intelsat
top of pagetop of pageArmenia - Transnational issues 1998
top of pageDisputes international: Armenia supports ethnic Armenians in the Nagorno-Karabakh region of Azerbaijan in the longstanding, separatist conflict against the Azerbaijani Government; traditional demands on former Armenian lands in Turkey have subsided
Illicit drugs: illicit cultivator of cannabis mostly for domestic consumption; used as a transshipment point for illicit drugs to Western Europe and the US