Property rights violations are damaging Armenia’s economic and political reputation: analyst on the nationalization of Ararat Cement

By a decision of the Anti-Corruption Court, based on a motion filed by the Prosecutor General’s Office, Ararat Cement has been transferred to the administration of the Republic of Armenia, represented by the Ministry of Economy.

According to political analyst Hakob Badalyan, the decision is yet another case of de facto violation of property rights, which could negatively affect Armenia’s reputation. “If property rights are not protected in a country, that state becomes discredited in the international investment environment. This, in turn, leads to both economic and political consequences. The economy and politics are interconnected, and if Armenia’s economic reputation comes under attack, then the country’s political reputation also comes under attack,” Badalyan said in an interview with Aysor.am.

According to him, the situation surrounding the protection of property rights also calls into question the existence of a democratic environment in Armenia.

“If the issue of property rights protection is, to put it mildly, open to question, it means that there is, in fact, no environment of democratic coexistence in Armenia. The right to property is one of the fundamental values of democratic and free societies, one of the European values the current government invokes at every convenient and inconvenient opportunity. However, in reality, we see a completely different picture,” the analyst said. 

Asked whether the government’s approach had been encouraged by the lack of political consequences following the nationalization process involving the Electric Networks of Armenia (ENA), Badalyan said such behavior is predictable if it encounters no resistance.

“It is natural that if the political authorities behave in a certain way and face no reaction or consequences, they will continue to act in the same manner. However, the very concept of ‘consequences’ is relative. The question is how to restrain such behavior. This requires serious discussion, because for many years assessments in Armenia have been largely mechanical, regardless of which authorities are in power,” he said. According to Badalyan, society ultimately bears the main consequences of the current situation. 

“The consequences of all this are borne by Armenia and its society. These simple realities must be explained to the public so that the government understands it is dealing with a society against which such methods cannot be used,” he stressed. 

Asked whether society is the only effective restraining factor, the political analyst said theoretical discussions alone are insufficient.

“A lot can be said. For example, Nikol Pashinyan himself says: if you don’t want this government, you can stage a revolution. But he understands very well that revolutions never begin only from below, and society must assess how realistic such scenarios are. Therefore, I believe it is more productive to work with society, raise awareness and create public demand,” Hakob Badalyan concluded.