By Garabed Setian 

Armenia intends to build a new nuclear power plant to replace the present one in order to provide clean energy for the country’s use and for export to neighbouring countries.

The new plant will produce 1,060 megawatts of electricity at an estimated cost of US$ 5bln.

If Armenia finally decides to go ahead with new plant, and provided that it is built to meet the highest modern standards to resist the strongest of earthquakes, Armenians around the world must be ready to mobilize their financial resources and must also participate in this strategic project to save their country.

If however, the country decides not to build the new plant, the capital raised may be used to create clean and renewable energy like wind, solar, hydro and underground thermal. These resources are available in abundance in the country and are more beneficial in the long run.

By participating in these projects, Armenians around the world would be safeguarding their own wealth. It is well known that people’s wealth globally is on the decline. By parking a small portion of their money in such safe investments as these projects they can protect their life savings from further erosion.

Armenians have seen their wealth decline in value in the 2008 global financial crisis. Billions of dollars were wiped out from their general wealth, and the prediction is that the downward spiral will continue. Some analysts predict that this is the tip of the iceberg. The world seems headed towards another recession.  

Media reports predict a credit crunch which may again affect poor countries and cause more civil unrest. National debts are climbing to historical and dangerous levels. Global youth unemployment has risen to dangerous levels and countries are losing generations of youth through employment migration. Greece’s youth unemployment has reached 60%.

According to media reports, the loss of wealth of a very few wealthy Armenians around the world during the 2008 GFC was equivalent to building three new power plants.

However there are still opportunities to cut losses and invest in these profitable projects. Analysts say energy and agriculture are the investments of the future. Global food production is unable to catch up with the population growth. Armenia is a safe haven for these types of investments.  People are moving by the millions in search of food.

The 2008 crisis has had a negative effect on Armenia, both economically and socially. Populations in villages have been reduced by more than half, resulting in large amounts of agricultural land remaining undeveloped. Young men between the ages of 20-50, head off mainly to Russia and the rest of the world to find work; never to return. At this rate, in the near future, the country will face a lack of labour needed in the country.

Nations of the West believe they are having a tough time of it. They appear to be worried by their decreasing savings when all the while   poor countries are suffering from food shortages and starvation.

Added to Armenia’s economic dilemma, is that it must be prepared to face a sudden mass immigration of Armenians from the Middle East resulting from the “Arab Spring”. Most are heading towards Armenia, the closest country that accepts them, thus increasing the economic burden on the country. This is already happening with Armenians from Iraq, Syria and other Middle East countries where life has become unbearable.

By investing in the country and creating jobs, the Diaspora can help the country to relocate all Armenian refugees if they have nowhere else to go. Armenia must always be in a position to accept all Armenians if other countries reject them.

Formation of a considerable Armenian capital base in the Diaspora can create economic stability in Armenia.

This is a golden opportunity and the chance of a lifetime for Armenians to mobilise and remedy the situation and save their country. They can show the world that the people of a small nation like Armenia, by getting together en mass can find a way out of their country’s economic malaise, instead of always relying on their governments. John F. Kennedy said, “Ask not what your country can do for you; ask what you can do for your country”.

Armenia needs trade and jobs, not more aid.   Hence Armenia’s famous saying - Do not give us the fish to eat, give us the fishing rod to fish for ourselves”.

Armenia has world class lucrative investment projects in the pipe line in which diasporans can participate and which can create huge investment opportunities and huge profits for shareholders. High on the list is the new power plant which is due for completion by 2020.

Some of the other investment opportunities available are:

The country may have to sell state owned Vorotansky Hydropower Station which produces 400 MV of electricity to US company because the state needs money.

Potential for solar heating power stations that get direct solar radiation within 80% of the daytime, returning 5-6.5% profit.

Potential for wind energy from plant capable of producing 10000 MV in the north of the country.

Potential for underground thermal energy in Sisian province.

Armenia has the capacity to resume the manufacture of better quality goods to replace the $ 300 million worth of imported goods from one of our neighbouring countries.

The Nairit Rubber Factory requires $ 512 million to revive production.

A centre of winter alpine tourism near Lake Sevan costing $300 million Euros is being considered.

The tourist industry needs more hotel rooms as the country expects over one million tourists to visit annually.

Armenia’s mining industry, with a huge potential for minerals and precious metals, is hungry for capital and is forced to sell its mining resources to foreign companies at fraction of their value.

It is said that 70% of Armenia’s strategic investments are owned by foreign countries. Foreign investment is good for a country because it creates a mutual trade environment vital for the country. Despite the importance of these countries investing in Armenia at a time where investment was vital for its economic survival, however, it ought to be limited. Armenians must do their best to reduce it to a minimum of 50% by buying some of it back.

These investment proposals must initially be approved, and must have the blessing, support, backing and the collaboration of the Armenian government.

A blue print business plan and a prospectus may be prepared and presented to all Armenians everywhere - ordinary people, business people, philanthropists and organisations. It is estimated that Armenians around the world number six to eight million, and a miniscule transfer of funds for investment in their homeland would get these vital projects off the ground.

An Armenian Capital Fund may be established involving renowned international personnel, with a board of trustees of Armenians and non-Armenian professionals to administer the capital.

The corporation may initially be floated with five billion shares on issue at $ 1 per share, raising a capital of $5 billion. People can buy as many shares as they wish, with a minimum of five thousand shares. If every family that can afford it invests $ 5,000 for each member of the family, the total investment of only four million people would be $ 20 billion and the company will be oversubscribed. If however we discounted that by 75%, i.e. with only one million subscribers, the total would come to $ 5 billion.  This would be sufficient as a start for Armenians to have a share in their country and be proud of their investment.

The corporation must be run on a strictly commercial basis with the objective of making profit for its shareholders.

Industries like manufacturing, mining, tourism and agriculture, which are in their infancy, would resume. Old factories left in ruins from the Soviet era can be revived.

The corporation’s ultimate objective would be to develop Armenia’s economic foundation.

Armenians around the world are urged not to lose track of these golden opportunities and to participate in these lucrative investments for themselves and for saving their country. If all these projects fall into foreign hands it would be very difficult, if not impossible, to buy them back in different times and different circumstances and it may be too late to save the country.

This is a wakeup call for all Armenians. It is time to show the whole world who we really are and how we always come together to save our nation in time of need. We have survived worst periods and catastrophes. This one is an easy task in monetary terms for the survival of our people. This is considered a humanitarian endeavour and a good example for the world to emulate. The Armenian people could be the road map, and the template for the world’s economic recovery.

Armenians must strive to make their country economically strong so that they can return and make a life for themselves if the need arises.

For what would the Diaspora and Armenian identity be without Armenia?

Garabed Setian, an Australian Armenian, has served the Armenian Church and various charitable organisations for many years. Working to assist Armenia since 1988 the earthquake, he has represented Australia in the Hayastan All Armenian Fund.