An Interview with Amalia Kostanyan
Chairwoman, Center for Regional Development / Transparency International Armenia

The Center for Regional Development/Transparency International Armenia (CRD/TI Armenia) is a non-governmental organization that focuses on promoting an accountable and transparent governance system, increasing public awareness on reform processes and encouraging civil society participation in policy decision-making.

The activities of the organization are implemented through close cooperation with other NGOs, government institutions and the international community in Armenia and the region.

CRD was established in July 2000 and was officially recognized as Transparency International's contact/partner organization in Armenia in November 2000. In May 2001, CRD was given the status of a Chapter in Formation and in October 2001 it became a fully fledged National Chapter of Transparency International.

This interview was held at the CRD/TI Armenia office on 2 February 2004 in Yerevan, Republic of Armenia.

ONNIK KRIKORIAN: How and when did the CRD/TI Armenia establish itself in Armenia?

AMALIA KOSTANYAN: I was originally a scientist and graduated from the Department of Biophysics at Yerevan State University. After taking my Ph.D. degree in Biochemistry I then worked for many years in the Institute of Molecular Biology at the National Academy of Sciences.

Then, when Armenia gained independence, I wanted to somehow make my contribution to the reform process. However, as a scientist, I had no opportunity to do so and I changed my field of interest instead. In 1996, I graduated from the American University of Armenia with an MA in Political Science and International Relations.

After graduation I was then involved with a number of international organizations such as ICMA/USAID, ISSHD/UNDP, TACIS etc and all of this was very good experience because I became familiar with working with local and regional government. Afterwards, I went on to study for two years in the United States at Duke University where I received my MA in International Development Policy.

When I returned to Armenia in 2000, I established the Center for Regional Development (CRD) with a small group of like-minded individuals. However, this was a local NGO that had nothing to do with corruption, or at least, not yet.

In fact, corruption only came to our minds after meeting with other NGOs in Tbilisi during August 2000 to discuss the agenda for a Regional Conference for graduates of American universities. We decided that corruption was a problem that we all had in common and that as a topic, would allow us to circumvent any 'political differences' that existed in the region.

The US State Department funded the Regional Muskie Alumni Conference in October 2000 and people came from Azerbaijan, Georgia, France, Germany, the US and elsewhere. The Transparency International Secretariat in Berlin sent its representative to the Conference as well, and soon afterwards, in November, they offered CRD the opportunity to become a partner organization. Later, we were granted the status of a National Chapter in Armenia.

OK: Presumably, at this time, Transparency International had representation in the Republic of Georgia but not Armenia?

AK: Yes, and in fact, the National Chapters of Transparency International in Armenia and Azerbaijan were accredited at the same time.

OK: Is this the way that Transparency International always works -- through already established NGOs?

AK: There are two ways. Either Transparency International accredits existing local NGOs or alternatively, it forms its own Chapter and then registers as a local NGO. That is why our organization has such a long name: we are the Center for Regional Development and also represent Transparency International in Armenia.

Anyway, our first serious project as a Chapter was to promote transparency at regional customs, an idea that we had already discussed with the Georgians. It was funded by the Eurasia Foundation's South Caucasus Cooperation Program and our web site contains more details about this project and others although there are a few that we've just started and haven't put online yet.

For example, two weeks ago we entered into the second stage of our regional customs project, which is called Trade Facilitation in the South Caucasus. In fact, it is more than just customs, it is licensing, inspections and everything else related to import and export.

In general, our activities can be grouped into three categories: research, public awareness campaigns and monitoring. Conducting expert assessment studies and public opinion surveys, along with raising public awareness on specific issues, are components in almost all of our projects. Monitoring is also a component of some projects such as the financing of political party pre-election campaigns and budget tracking in the education sector.

Based on the analysis of our findings we normally make policy recommendations or legislative initiatives. For example, we proposed ten amendments to the electoral code and are working on the draft law on environmental impact assessment.

We have also established a National Anti-Corruption Resource Center, with branches in five regions of Armenia. This Center provides interested parties with information on the relevant political, economic and social reforms being undertaken in the country as well as the international experience in combating corruption. The Center aims to increase the public's awareness about corruption and the necessity to resist it.

OK: Before we speak more on corruption and how it is perceived in Armenia, perhaps we can start more generically. For example, what is corruption?

AK: I think that this is still an issue that is open for much debate and there are many definitions in circulation. There is, for example, the definition of corruption used by the Armenian Government in its anti-corruption strategy. Briefly speaking, it is the abuse of position or power for personal gain.

Power can be formal and informal since it is not simply the abuse of formal power and it is not only the abuse of position in the public sector. It is not always detectable and measurable and it is not simply about bribes -- it is also about the use of public resources, revealing or misusing information, exchanging favors, etc.

OK: How does corruption manifest itself in Armenia and what specific damage does it cause to the state?

AK: Corruption manifests itself in various forms such as bribery, “service fees” and “unofficial fines”, gifts, hospitality and other special “services”, exchange of favors, nepotism and clanship, protectionism and rent-seeking, misuse and misallocation of public funds and property, state capture and illegal lobbying, abuse of public office, facilitation in bidding and contracting, state intervention in the activities of public and private institutions, hiding illegal practices and avoiding punishments, donations for election campaigns, buying votes and members of electoral commissions, sale of positions, political appointments to non-political positions etc.

Petty corruption is what average citizens face on a regular basis in their everyday life. It refers to the relatively small scale of corruption that includes bribes to traffic policemen, tax inspectors, customs officers, university professors or physicians in hospitals etc. Grand corruption, however, is not so visible but takes the form of public procurement bidding or construction contracts, the process of appointing senior ranking officials and gaining favorable conditions or monopolies for business operations.

Corruption exists everywhere and has a destructive effect on any state no matter what stage of development it is going through. Nevertheless, the negative effect of corruption is much more harmful for nations that are experiencing the challenges of transition. On the one hand, the lack of appropriate institutions and values allows corruption to flourish and significantly damage the ongoing reform process in countries such as Armenia. On the other hand, building and developing new political, economic and social institutions and values create opportunities for corrupt practices.

This vicious cycle of corruption, among other factors, is currently hindering political stability, democratic development and economic growth in Armenia. It also deteriorates the moral fabric of Armenian society. Corruption is a two-way process because there is supply and demand, and without looking at both sides, it is impossible to address the problem. Therefore, the main message of our anti-corruption films [http://www.transparency.am/Website/eng/id104.htm] is that we are all responsible for tackling corruption.

But, because this is a time of transition and social, economic and political inequality, people tend to think that they primarily suffer from corruption in the public sector. However, it also exists in other areas as well.

OK: When we think about corruption, we generally think of money changing hands but in the case of elections, if no money has been given, is that corruption or simply breaking the law?

AK: When we conducted our survey on public perceptions towards corruption two years ago, most people considered it primarily as bribery. However, they had no idea regarding political corruption because at that time, they had no recent experience of elections. Now, the public is more aware about such issues -- about buying votes, paying off members of electoral commissions, falsifying vote counts, stuffing ballots etc -- because last year, in 2003, they had personal experience of that.

For example, our phone survey carried out in Yerevan immediately after the Parliamentary elections in May 2003 demonstrated that 75% of respondents as well as their families and friends had been offered bribes to vote for a particular candidate or party. However, the issue of political corruption during elections is not necessarily the fact that people were offered money. It is corruption because power was abused. But, while the public might accuse officials of this, they never put the blame on themselves.

We all feed corruption by taking and giving bribes when it is not a matter of survival or emergency. Tolerating corruption has the same effect and people need to understand that corruption has a political, economic, social and moral cost for the development of our nation.

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