Is a brighter future in store for Armenia? Will the energy sector remain a charity case or will it become an investment magnet? Might Armenia become a net exporter of energy? Three articles in the current issue of Armenian Forum address these questions in depth.

Biricik’s Analysis

Attorney Sosi Biricik looks at the new energy law adopted by Armenia. From the perspective of the potential investor, she discusses the strengths and weaknesses of the law. Biricik is a partner in the Finance and Real Estate Department of the law firm Latham & Watkins. She brings to bear on her topic years of experience with international finance and an intimate knowledge of Armenia.

Looking beyond the letter of the law, Biricik discusses the way in which the energy statute has been implemented so far. She also discusses other legislation, such as the civil code that went into effect in January, that must be considered by potential investors.

According to Biricik, the laws on the books "demonstrate Armenia's commitment to establishing an investor-friendly legal climate. This governmental philosophy, if coupled with disciplined implementation of reform legislation, should help prime the investing world toward moving its debt and equity dollars out of alternative investments and into Armenia."

The Study by Touryan and Azerbegi

And just where in Armenia will they invest?

Scientists Kenell J. Touryan and Renée Azerbegi consider the potential of renewable energy technologies in Armenia, Georgia, and Azerbaijan in the context of global trends. They pay particular attention to progress in harnessing wind power in Armenia.

Dr. Touryan is widely recognized as the foremost expert on renewable energy in Armenia. He directs all United States Department of Energy projects in the former Soviet Union that are aimed at developing nonmilitary applications for defense technologies. Azerbegi is a graduate student in the Department of Architectural, Environmental, and Civil Engineering at the University of Colorado, Boulder.

Touryan and Azerbegi find that Armenia and Georgia are poised to make profitable use of certain renewable energy technologies. Azerbaijan, on the other hand, is currently showing little interest in such technologies, but might be moved to do so in the future as it confronts its environmental problems.

Banaian’s Proposal

Returning to the question of investor confidence, economist King Banaian focuses on monetary policy. He discusses the terms of the International Monetary Fund’s financing of the Armenian government’s economic program. He then proposes that Armenia should adopt a system that allows the government to issue money only insofar as the money is backed by foreign currency reserves. Banaian is professor of economics at St. Cloud State University, St. Cloud, Minnesota.