General background: An Armenian Apostolic Christian
country, Armenia was incorporated into Russia in 1828
and the USSR in 1920. Armenian leaders remain preoccupied
by the long conflict with Azerbaijan over Nagorno-Karabakh,
a primarily Armenian-populated region, assigned to Soviet
Azerbaijan in the 1920s by Moscow. Armenia and Azerbaijan
began fighting over the area in 1988; the struggle escalated
after both countries attained independence from the
Soviet Union in 1991. By May 1994, when a cease-fire
took hold, Armenian forces held not only Nagorno-Karabakh
but also a significant portion of Azerbaijan proper.
The economies of both sides have been hurt by their
inability to make substantial progress toward a peaceful
resolution.
Area comparative: Slightly
smaller than Maryland
Climate: Highland
continental, hot summers, cold winters
Terrain:
Armenian Highland with mountains; little forest land;
fast flowing rivers; good soil in Aras River valley
Population: 3,330,099
note: Armenia's first census since independence
was conducted in October 2001, but official figures
have not yet been released (July 2002 est.)
Ethnic 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
Religions: Armenian Apostolic 94%, other Christian
4%, Yezidi (Zoroastrian/animist) 2%
Language: Armenian 96%, Russian 2%, other
2%
Government type: Republic
Capital: Yerevan
Legal system: Based on civil law system
Economic 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 era. The agricultural sector
has long-term needs for more investment and updated
technology. The privatization of industry has been
at a slower pace, but has been given renewed emphasis
by the current administration. 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 breakup of the centrally directed economic system
of the former Soviet Union 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 1995-2001. Armenia also managed
to slash inflation and to privatize most small- and
medium-sized enterprises. The chronic energy shortages
Armenia suffered in recent years have been largely
offset by the energy supplied by one of its nuclear
power plants at Metsamor. Armenia's severe trade imbalance
has been offset somewhat by international aid, domestic
restructuring of the economy, and foreign direct investment.
Communication/Telephone system: System inadequate;
now 90% privately owned and undergoing modernization
and expansion, the majority of subscribers and the
most modern equipment are in Yerevan (this includes
paging and mobile cellular service). Yerevan is connected
to the Trans-Asia-Europe fibre-optic cable through
Iran; additional international service is available
by microwave radio relay and landline connections
to the other countries of the Commonwealth of Independent
States and through the Moscow international switch
and by satellite to the rest of the world; satellite
earth stations - 1 Intelsat (2000).
Places of interest:
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