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U.S. Direct Assistance to Nagorno Karabakh
Position Paper June 2002
Background
Azerbaijan's aggression against Nagorno Karabakh,
which culminated in an outright war between 1991 and 1994, killed several
thousand citizens of the Republic, injured tens of thousands more, and
destroyed 80% of Nagorno Karabakh's economic capacity. The heaviest
casualties and most widespread destruction of property resulted from
indiscriminate Azerbaijani shelling and GRAD rocket attacks on population
centers, including the capital city of Stepanakert.
With the cease-fire agreement of 1994, Nagorno Karabakh
affirmed its sovereignty but found itself in a catastrophic humanitarian
and economic situation. Under pressure from Azerbaijan, which seeks
to isolate and weaken Nagorno Karabakh, the International Monetary Fund
(IMF) and the World Bank (WB) have been reluctant to provide any of
the assistance that they normally extend to former war zones. Aggravating
this situation, Azerbaijan blocked the United Nations from assisting
or operating in Nagorno Karabakh.
Prior to Fiscal Year 1998, the people of Nagorno Karabakh
had been the only population in the Caucasus to be entirely excluded
from direct U.S. humanitarian assistance programs.
In the FY 1998 foreign aid bill, the U.S. Congress
allocated $12.5 million in direct humanitarian assistance to the victims
of the Nagorno Karabakh conflict. Congress charged the U.S. Agency for
International Development (USAID) with dispersing that aid, but only
$5.5 million was expended that year. The FY 1999 and FY 2000 House Report
language increased the amount of the assistance to $20 million "to
the victims of the Nagorno Karabakh conflict residing in Nagorno Karabakh"
and instructed USAID to expend the assistance "forthwith."
Non-governmental groups such as Doctors Without Borders, the American
Red Cross, Family Care, Catholic Relief Society, the United Methodist
Church, and the Armenian Technology Group have used these funds to implement
humanitarian assistance programs for the people of Nagorno Karabakh.
As a result of these appropriations, hundreds of homes
have been rebuilt, water distribution systems repaired, and medical
care provided to families: for many of them, the first such aid in close
to a decade. First-aid centers are being built, and hundreds of families
have received loans for small income generating projects. Nagorno Karabakh
President Arkady Ghoukasian expressed his deep appreciation to the United
States government for being the sole international source of
assistance to Nagorno Karabakh. The President has
also underscored the need for continued U.S. support to help overcome
Azerbaijan's ongoing aggression, economic blockade and exclusion of
Karabakh from traditional multi-national assistance programs.
While progress has been made, much more work remains -80 villages and
towns lack water-distribution systems, among them the capital of Nagorno
Karabakh, Stepanakert and its regional centers, 21 hospitals and other
medical facilities require major repair and modern medical equipment.
There also exists a pressing need for social and economic
developmental projects, such as new transportation infrastructure and
assistance for democracy building. Continued U.S. aid to Nagorno Karabakh
is critical to ensure that all subsets of the Caucasus develop generally
at the same time and in the same direction.
Position
The Nagorno Karabakh Republic is grateful to the people
and the government of the United States for their leadership in providing
humanitarian assistance to Nagorno Karabakh.
Nagorno Karabakh's humanitarian needs such as housing,
water-sanitation, and health-care needs must be addressed. We urge U.S.
Congress and USAID to expedite the remainder of the $20 million promptly
and consider additional funding for humanitarian, democracy-building
and economic development assistance.
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