Among the numerous consequences of the unsolved conflicts in Nagorno-Karabakh, the socio-economic situation of the enclave stands out. And yet, the foreign investments are beginning to take off. « In the telecommunications sector, Karabakh Telecom invested,over four years, 15,000,000 dollars in mobile telephony. Leaded by Ralf Erikian, this lebanese company foresaw a financial interest in investing here and is now exerting a monopoly over this economic sector. », explains Ashot Beglarian, 36 years old, correspondent for IWPR and the press agency Regnum in Stepanakert.

As a matter of fact, for the past three years foreign investments from the armenian diaspora have been emerging in the region. An example : the factory Gorna Abakatinieni Combinat (metals and gold), located in the region of Martakert and leaded by the Armenian Artur Makartumian. Generally, the capitals are at the hands of Armenians from Armenia, United States, France, Australia, and Iran. Seven millions dollars would have been already invested to relaunch the factory, have specialists coming from Yerevan, notably geologists, and pay the salary of almost 400 local workers.

There are tens of other examples such as the Iranian pipe consortium Cacyna, or the plywood factory set up thanks to Chinese investments and today partially retaken by the Karabakhtsi government.
Some local politics also have the takeover of the local economy. Thus, the building materials cartel belongs to Pavel Nadjarian, who is not only the former deputy mayor of Stepanakert but also a former candidate to the municipal elections of August 2004.

« The new government has conducted a policy of conciliation aiming to attract the foreign capitals in order to reboost the regional economy. Now the investors are from Russia, United States, France, Belgiul, Switzerland, Lebanon, Iran and also Australia.», keeps on Ashot Beglarian. Mainly the investors from those countries are Armenian established there. Issued in 2000 but effective for three years, this new law has notably eased the emergence of hotel complexes which should at term stimulate the tourist sector. The quite recent hotel Nairi which belongs to an Armenian, or also the former Soviet hotel modernised by Genevian owner, are example of such hotel complexes.

According to the State Department of Statistics of Nagorno-Karabakh more than 20 millions euros have been invested in Nagorno-Karabakh in 2001, of which more than 75% come from foreign capitals. According to Kamo Nersissian, director of Artsakh Bank, « State » bank, the International cash flows are vital to the future of Nagorno-Karabakh. « The diaspora is especially active by its investments.», underlines this man at the head of eleven subsidiaries of Artsakh Bank. Created in 1995, this bank was approved by the Central Bank of Armenia in 1996. Today this bank has locations in Nagorno-Karabakh and in Armenia.

Especially dependent on importations, the enclave is supplied notably in manufactured goods by Syria and Lebanon, where the Armenian community is strongly represented. Those economic links can be seen up to the coffee-houses : there are displayed plastic tables and chairs marked with « Aleppo – Syria ».

R.Kocharian would want to keep the takeover of Nagorno-Karabakh, as A.Goukassian does not have any other option than to agree with the policy of Yerevan. For now eight years, there have not been anymore relation between Stepanakert and Baku. «Two years after the cease-fire, there was still relations going on. », notices Ashot Beglarian. « Karabakhtsis have also understood that it is impossible to be 100% independent. Given our economy, our country cannot afford it. », as he explains. Even though there are no official numbers, Yerevan would be contributing up to 80% to the the Nagorno-Karabakh budget.

And yet, the Karabakhtsi identity is quite present there, as much as the idea of a “free” and independent Nagorno-Karabakh is outliving. But for some this appealing idea could conceal the economic risks that would follow on the independency. As for the possible return of the Azerbaijani refugees, « they would still be a diaspora on a land regarded as Armenian, and part of the dreamed Great Armenia », explains Ashot Beglarian.
Even if Russia has been active in the region for historical reasons, the United States do not miss an occasion to play the Armenian card. Mainly by way of the Armenian diaspora. But also by officially committing financially: in 2002, the American Congress granted five millions dollars to Stepanakert.
The « Road of Life », connecting Goris to Stepanakert is an exception to the Caucasian roads, and as such a Nagorno-Karabakh’s pride: a brand new asphalt road without ruts. Financed by the diaspora, at the mercy of the endless fundraisings, this road project has been supported by the Hayastan Fund.

Nevertheless the local financial situation is no less difficult. For working, retired or unemployed people. A retired journalist gets around 8,000 drami a month. The unemployment rate is officially of 10%, but it would affect more than 50% of the population, notably the 20-30 years old population. And Karabakhtsis who get a monthly salary of 50 dollars to provide a four people family are still considered as privileged people.