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According to the World Bank, the
blockades of Armenia are costing
Armenia between 30 to 38% of its
Gross Domestic Product (GDP) and
blocking up to 50% of Armenia's
potential exports.
Using the World Bank figure for
Armenia's 2000 GDP of $1.9 billion,
the Turkish and Azerbaijani
blockades costs Armenia between $570
million to $722 million annually.
In human terms, these blockades
have caused economic hardships
that have caused over 800,000
Armenians to leave their homeland
out of desperation.
Despite strong Congressional
opposition to these illegal
blockades, the Administration has
not taken any meaningful steps to
bring them to an end. |
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World Bank: Armenia Country Assistance
Strategy 2001-2004 |
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Section III. Economic Reform Successes and Risks
Gains from Re-Opened
Borders:
The unresolved conflict over
Nagorno Karabakh has closed
most of Armenia’s land
borders, cutting off rail
links to the east and west.
As a result Armenia is
heavily dependent on
trans-shipment of goods
though Georgia. This has
significantly raised its
trade costs, given the high
costs of all modes of
transport (road, rail and
port) in Georgia. A recent
report suggests that
re-opening of Armenia’s
borders with Turkey and
Azerbaijan could result in a
reduction in transport costs
of 30-50%, a doubling of
exports, and an increase of
30-38% in GDP.
Source: Trade, Transport and
Telecommunications in the
South Caucasus: Current
Obstacles To Regional
Cooperation (World Bank
2001) |
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