Corruption in Armenia

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Armenia is a member of the Council of Europe's Group of States Against Corruption (GRECO) and OECD's Anti-Corruption Network and its anti-corruption measures are regularly evaluated within their monitoring mechanisms. GRECO in its fourth evaluation round in 2015 noted that corruption remains an important problem for Armenian society.[1]

Forms of Corruption in Armenia[]

The forms of corruption present in Armenia are Bureaucratic corruption, Grand corruption, Political corruption.

Bureaucratic corruption is one of the most widespread corruptions present in the world. An example of Bureaucratic corruption might be bribe-taking for administrative procedures not taking much time or saying "thank you" in the form of a gift to higher authorities. According to a survey done in Armenia, a fifth of the responders mentioned that throughout the last year, they paid a bribe. Moreover, more than 70% of them also mentioned that they believe that civil servants in Armenia are corrupted.

Grand corruption usually takes place at a higher level of the Government. Even though, according to the Constitution, it is illegal to run a business if one is a member of parliament, this policy is often not followed in many countries. Many members of parliament run their business and firms with the help of hidden and illegal partnerships or through their relatives. This phenomenon is widespread in Armenia, where single-source procurement is often used.  

Political corruption is when government officials use their power and network contacts for illegal private advantages. According to a survey done with Armenians, it is believed that Armenian politicians and political leaders are corrupted. Approximately 60% of the respondents mentioned they think that politicians and the parliament as a whole are either corrupt or extremely corrupt.[2]

Progress since 2018[]

Since 2018 Armenia recorded significant progress in fighting corruption. Its Corruption Perception Index score increased by 14 points in years 2019-2020, recording the best improvement worldwide. In 2020 Armenian ranked 60 out of 180 countries by CPI by scoring 49 out of 100, with 0 being a country that is highly corrupted and 100 being a very clean corruption-free country. Thus, Armenia was in the middle. [3] To see how corruption in Armenia have risen, the country ranked 77th in the previous CPI, which was released in 2019. However, in 2019, the CPI score was 42. To make things even worse, in 2018 the country was in 105th place out of 180 by its corruption level. Thus, the CPI score increased by 7 points from 2019 to 2020, while the country became more corrupt in this one year by rising 17 places. The thing that makes it still different from its neighboring countries, Azerbaijan (ranks 129th place in the CPI), Iran (149th) and Turkey (86th), is that Armenia is still less corrupt.[4] Georgia's CPI was 45th in 2020. [5] In 2020 Armenia ranks ahead of countries like Romania, Bulgaria, Slovakia and Croatia and improves its ranking in the Corruption Perceptions Index reaching to 60 from 77 reported in 2019. [6]

Armenian authorities failed to fulfill the expectations of the society and shape legitimate frameworks, hence the victory that the authorities gained during the revolution, turned into a major collapse. The fight against corruption and the level of democracy achieved was soon jeopardized in the year 2020, which has brought extra difficulties that truly imperiled the accomplishments of the government. COVID-19 Pandemic, the conflicts with Azerbaijan on the northern line of Armenia in mid-July, the conflict released by Azerbaijan and Turkey in Artsakh suspended a myriad of new working group formations such as, fighting against increased corruption levels in Armenia and rearrangement of assets acquired illegally. [7]

Following chart represents score of Armenia in Transparency International's Corruption Perceptions Index, higher is better.[6]

Anti-Corruption Strategy[]

Since January 22, 2001, Armenian government aiming to reach minimum corruption in the country, develops anti-corruption strategy and its implementation plan along with Steering Committee. The Republic of Armenia put large emphasis on the fight against corruption, ensuring the participation of various NGOs, governmental and non-governmental actors and other institutions in the act of anti-corruption promotion.[8] To reach to the goal of 0 corruption, special steps need to be taken:

  1. The creation of fair public administration system based on the rule of law, laws, regulations, values, beliefs, etc.
  2. the detection and investigation of the act of corruption and proper liability
  3. Raise awareness about the real reasons and negative causes of corruption
  4. disallowance of abuse of official position of an individual
  5. enforcement of special laws against corruption.[8]

The program sets priorities in the fight against corruption, which are Raising public awareness of the danger posed to society by corruption and its consequences; preventing corruption and Ensuring the rule of law in order to protect the rights and legitimate interests of individuals.[8]

Earlier developments[]

According to Transparency International 2014 report, entrenched corruption, strong patronage networks, a lack of clear separation between private enterprise and public office, as well as the overlap between political and business elites in Armenia render the implementation of anti-corruption efforts relatively inefficient and feed a pervasive political apathy and cynicism on the part of citizens, who do not see an impactful role for themselves in the fight against corruption.[9]

In 2006 the United Nations Development Programme in Armenia views corruption in Armenia as "a serious challenge to its development."[10] The selective and non-transparent application of tax, customs and regulatory rules, as well as weak enforcement of court decisions fuels opportunities for corruption. The Armenian procurement system is characterised by instances of unfair tender processes and preferential treatment. Relationship between high-ranking government officials and the emerging private business sector encourage influence peddling. The government has reportedly failed to fund implementation of the anti-corruption strategy and devoted no money and little commitment for anti-corruption efforts.

The main anti-corruption institutions of the Armenian government are an Anti-Corruption Council – headed by the prime minister – and the Anti-Corruption Strategy Monitoring Commission, established in June 2004 to strengthen the implementation of anticorruption policy. However, these institutions scarcely functioned in 2006-2007, even though they were supposed to meet twice-quarterly and monthly, respectively.[11] Furthermore, Armenian Anti-Corruption Council was accused of lavish spending and has largely failed to investigate or prosecute senior officials.[12][13]

The late Prime Minister Andranik Margarian launched Armenia’s first post-Soviet campaign against corruption in 2003. The initiative, however, has been widely disparaged for being short on results.[14] Former Prime Minister Tigran Sargsyan has acknowledged that corruption is Armenia’s "number one problem that obstructs all our reforms."[14]

The government has launched an anti-graft campaign which has been accompanied by changes in customs regulations, reported tax police inspections of companies owned by pro-government businesspeople and numerous high-profile firings of people in the tax department, customs service and police. The recent crackdown on corruption has received mixed reactions.[14]

Areas[]

Mining[]

Regulation of mineral industry in Armenia carries multiple corruption risks, as it was highlighted by international research.[15]

Education[]

Despite the success of the authorities in reducing petty corruption/bribery in some citizen-government interactions, anti-corruption watchdogs report that entrenched corruption, strong patronage networks, a lack of clear separation between private enterprise and public office, as well as the overlap between political and business elites limit the effective implementation of anti-corruption efforts. These problems affect the education system too. It is perceived as one of the sectors that is hit hardest by corruption. Attempts to fight the problem have brought mixed results and often opened new opportunities for malpractice instead of closing the existing ones.[16][17]

Tax and customs agencies[]

In 2007, World Bank economists pointed to serious problems with rule of law and widespread corruption in the Armenian tax and customs agencies.[18]

Misappropriation of international loans[]

In March 2004, an ad hoc commission of the Armenian parliament investigating the use of a $30 million World Bank loan concluded that mismanagement and corruption among government officials and private firms was the reason of the failure of the program to upgrade Yerevan's battered water infrastructure.[19] The World Bank issued the loan in 1999 in order to improve Yerevan residents' access to drinking water. The government promised to ensure around-the-clock water supplies to the vast majority of households by 2004, but as of 2008, most city residents continue to have running water for only a few hours a day.[19]

Veolia Environnement, the French utility giant that took over Yerevan's loss-making water and sewerage network in 2006, has said that it will need a decade to end water rationing.[19] In August 2007, Bruce Tasker, a Yerevan-based British engineer who had participated in the parliamentary inquiry as an expert, publicly implicated not only Armenian officials and businessmen but also World Bank representatives in Yerevan in the alleged misuse of the loan. In an October 4, 2007 news conference, the World Bank Yerevan office head Aristomene Varoudakis denied the allegations, claiming that the World Bank disclosed fully all information available on the project to the parliamentary commission and that based on this information there was no evidence of fraud or mismanagement in the project.[19]

Northern Avenue residents protest the proposed demolition of their building through signs and posters, 2011.

Illegitimate use of eminent domain[]

Eminent domain laws[20] have been used to forcefully remove residents, business owners, and land owners from their property. The projects that finally are built on the site are not of state interest, but rather are privately owned by the same authorities who have executed the eminent domain clause. A prominent example is the development of Yerevan's central Northern Avenue area. Another involves an ongoing project (as of November 2008) to construct a trade center near Yerevan's botanical garden. The new land owners are non other than Yerevan's mayor Yervand Zakharyan and Deputy Mayor , who was at one time Director of the Armenian Development Agency and successfully executed the eviction of residents on Northern Avenue.[21]

Traffic police and extortion[]

Traffic police residing along major highways, such as those connecting traffic between Tbilisi and Yerevan frequently extort passing traffic for bribes in exchange for forgiving "traffic violations". Tourists are especially targeted, with the police openly requesting ~5,000 Armenian Dram per bribe. Violations are often fabricated, and police target local and foreign drivers alike.

See also[]

References[]

  1. ^ "FOURTH EVALUATION ROUND on Armenia".
  2. ^ Sofia, Wickberg (May 13, 2021). "OVERVIEW OF CORRUPTION AND ANTI-CORRUPTION IN ARMENIA" (PDF). Transparency International Anticorruption Center.
  3. ^ "Corruption Perceptions Index 2020 for Armenia". Transparency.org. Retrieved 2021-04-19.
  4. ^ "Armenia improves ranking in Corruption Perceptions index 2020". Public Radio of Armenia. Retrieved 2021-05-11.
  5. ^ "Armenia Continues To Rise In Global Corruption Rankings". «Ազատ Եվրոպա/Ազատություն» ռադիոկայան (in Armenian). Retrieved 2021-04-29.
  6. ^ Jump up to: a b "Corruption Perceptions Index 2020 for Armenia". Transparency.org. Retrieved 2021-03-11.
  7. ^ "Statement on the International Anti-Corruption Day". transparency.am. Retrieved 2021-05-13.
  8. ^ Jump up to: a b c "REPUBLIC OF ARMENIA ANTI-CORRUPTION STRATEGY AND IMPLEMENTATION ACTION PLAN" (PDF).
  9. ^ "TI's 2014 National Integrity System Assessment Armenia".
  10. ^ "Strengthening Cooperation between the National Assembly, Civil Society and the Media in the Fight Against Corruption" Archived 2006-05-02 at the Wayback Machine, Speech by Ms. Consuelo Vidal, (UN RC / UNDP RR), April 6, 2006.
  11. ^ Global Corruption Report 2008 Archived 2010-09-03 at the Wayback Machine, Transparency International, Chapter 7.4, p. 225.
  12. ^ Grigoryan, Marianna (2015-08-12). "Armenia's anti-corruption council accused of lavish spending". The Guardian. ISSN 0261-3077. Retrieved 2017-03-14.
  13. ^ "The Guardian: Armenia's anti-corruption council accused of lavish spending". Retrieved 2017-03-14.
  14. ^ Jump up to: a b c "ARMENIA: GETTING SERIOUS ABOUT CORRUPTION?" Archived 2008-07-27 at the Wayback Machine, EurasiaNet, July 11, 2008.
  15. ^ e.V., Transparency International. "TI Publication - Combatting corruption in mining approvals". www.transparency.org. Retrieved 2018-02-28.
  16. ^ Strengthening integrity and fighting corruption in education: Armenia, Open Society Foundations - Armenia and Center for Applied Policy, 2015
  17. ^ Armenia,3 Round of Monitoring of the Istanbul Action Plan, OECD Publishing, 2014
  18. ^ World Bank Urges ‘Second Generation Reforms’ In Armenia, Armenia Liberty (RFE/RL), March 20, 2007.
  19. ^ Jump up to: a b c d Corruption Chronicles: International Loans, Eurasianet.org, 2008.
  20. ^ The Constitution of the Republic of Armenia (27 November 2005), Chapter 2: Fundamental Human and Civil Rights and Freedoms, Article 31 Archived 27 November 2010 at the Wayback Machine
  21. ^ The Yerevan Municipality Allocates a Parcel of Land to one of its Employees under the Guise of “Eminent Domain” Archived 2009-08-21 at the Wayback Machine, Hetq Online, November 10, 2008.
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