is celebrating the 95th anniversary of the restoration of its statehood. The struggle for independence was not an easy one. For six centuries, the people of Armenia, whose history and cultural heritage go back millennia, making their ancestors the contemporaries of the ancient Assyrians and Babylonians, were deprived of their own state due to the continuous invasions of foreign conquerors. Consecutive generations of Armenians sacrificed their lives to put an end to the sufferings of their people and to achieve the sacred goal of independence. Finally, on May 28, 1918, following the nightmare of the atrocities of WWI and the Armenian Genocide under the Ottoman Empire, which claimed as many as 1.5 million innocent lives, the First Republic of Armenia was formed as an independent and sovereign state. However, soon afterwards Armenia found itself integrated into the Soviet Union as one of its constituent republics. Soviet Armenia was not a sovereign state, but it played an important role in the preservation of Armenian statehood until the aspirations of independence were realised once again on the eve of the collapse of the Soviet Empire with the emergence of the Third Republic of Armenia in 1991. Since then, and bearing the lessons of history in mind, Armenians have been crafting their present and their path towards the future on the basis of universal values and the principles of democracy, human rights, social justice and the free-market economy. After 22 years of independence, we are able to speak proudly about irreversible progress and the significant successes that have been made along the path of state-building. We already have mature institutions of public administration and local government, an emerging civil society and free media, a growing economy and improving social conditions. Notwithstanding these achievements, we are still pursuing policies that will lead to a better, fairer, freer, and more prosperous country, with the aim of overcoming the current challenges and moving forwards towards a more dignified and prosperous livelihood for every citizen and each family. Economic development is a core priority in this regard. We are still facing a whole array of problems, including unemployment, poverty and emigration, the solutions for which are still to be found. However, there have also been great achievements, despite the permanent blockade imposed by Azerbaijan and Turkey. GDP growth in 2012 was slightly more than seven per cent, which is one of the best performances for that year in the world. We are looking forward to 6.2 per cent economic growth in 2013. The government of Armenia is promoting high-productivity industries utilising new technologies, attaining favourable terms for domestic producers and exporters in external markets, developing free economic zones within the country, attracting efficient foreign investments, and systemically reforming the business environment. Armenia has also declared an “open door” investment policy. There are no restrictions on the participation of foreign investors in any economic activity in Armenia. According to the Heritage Foundation's Index of Economic Freedom, Armenia's economy was the 32nd freest economy in the world in 2012. In order to increase the country's economic competitiveness and ensure sustainable economic growth, the government has declared the development of a knowledge-based economy to be its core long-term strategic objective, while simultaneously developing a range of sectors with strong export potential, like mining, metallurgy, machinery, pharmacology, biotechnology, chemicals, precision engineering, textiles, and jewellery. There is also great potential for IT, agriculture, tourism, health and education. Lacking fuel resources, Armenia places great emphasis on the development of its own renewable energy sources, such as hydro, wind and solar energy. About 40 per cent of Armenia's electricity is produced by the Medzamor nuclear power plant. The establishment of a fair state that will guarantee equal opportunities, ensure and enhance competition, while at the same time protecting the most vulnerable social groups, is another priority for the government. A wide package of reforms has been introduced to further consolidate democratic institutions, strengthen the rule of law, protect and promote human rights and fundamental freedoms, improve electoral procedures and relevant legislation, strengthen the independent judicial system and expand the role of civil society. The recent presidential elections in Armenia in February 2013, followed by the municipal elections in the capital Yerevan in May, were assessed by international monitors to be in full compliance with the highest democratic standards. They are the most eloquent evidence of the great successes of both the government and people of Armenia in pursuing the on-going processes of democratisation and ensuring full respect for the rule of law and for human rights. In order to achieve our goals, extensive and dynamic engagement in international political and economic relations is essential. Our bilateral and multilateral international cooperation is progressing steadily. We are advancing relations with all the power centres and leading states of the world, strengthening our alliance and strategic partnership with the Russian Federation, expanding and strengthening our friendly partnership with the US and our rapprochement with Europe, deepening our traditional cooperation with the CIS Member States and our immediate neighbours of Georgia and Iran, while developing relations with Arab and other friendly countries. We are looking forward to expanding the already existing cooperation with Egypt, to which we are tied by a traditional and historically-formed friendship. Since the establishment of diplomatic relations between Armenia and Egypt in 1992, there have been plenty of activities, as well as official visits and contacts in different fields and on all levels. More than 40 agreements and protocols have been signed and joint governmental commissions of economic cooperation have been set up. The Armenian community, famous for its significant input into the public and cultural life of Egypt, is nowadays also actively contributing to the strengthening of Armenian-Egyptian cooperation and friendship. Armenia has become an active participant in leading international organisations and political processes, including the UN, the OSCE, the COE, the CIS, CSTO, BSEC, WTO and TRACECA. We are observers at the AL, NAM and AU. Just two weeks ago, Armenia assumed the presidency of the committee of ministers of the Council of Europe, a position which the country will hold for the next six months. The priorities of our presidency are combating racism, intolerance and xenophobia, promoting intercultural dialogue and fostering democracy and human rights. As part of our policy of creating stronger relationships with Europe, we are actively involved in the EU Neighbourhood Policy Eastern Partnership Programme, and we have already entered into the final stages of negotiations on the Association Agreement, as well as on the Agreement on the Deep and Comprehensive Free Trade Area. We are also contributing to international peacemaking: Armenian troops are participating in peacekeeping operations in Afghanistan and Kosovo. We are pursuing the issue of reinvigorating the process of the international recognition of the Armenian Genocide and addressing its consequences. In 2015, the international community will commemorate the centenary of the Genocide. For us, the recognition and condemnation of the Armenian Genocide is not just a matter of justice and retribution or a moral debt to be paid to our ancestors: it also has a security dimension. Without Turkey's sincere repentance, security in our region will always be endangered. We believe that true reconciliation does not consist of forgetting the past, but of the ability to cooperate in the elimination of the consequences of past crimes. Lasting peace and stability in our region very much depend on the fair and peaceful resolution of the Nagorno-Karabakh issue. The conflict started when Azerbaijan tried, by ethnic cleansing and then by unleashing a large-scale war, to suppress the right of the people of Nagorno-Karabakh to exercise their legal right of self-determination. In the face of imminent elimination, the Nagorno-Karabakh population resorted to self-defence and in the end forced Azerbaijan to conclude a ceasefire agreement in May 1994. Since then, Armenia has been exerting its efforts towards the settlement of the conflict exclusively through peaceful means and on the basis of the purposes, principles and norms reflected in the UN Charter and the provisions of statements made by the three co-chairs of the countries of the OSCE Minsk Group: FranceRussia and the US. We believe that any settlement must be based on the recognition of the Nagorno-Karabakh people's right to self-determination. Like the co-chairs of the OSCE Minsk Group, which is the only internationally mandated negotiating forum for this conflict, Armenia has many times urged respect for the ceasefire agreement and abstention from hostile rhetoric that fosters feelings of enmity and increases tension. Unfortunately, the Azerbaijani side has rejected all the proposals presented by the mediators, and it poses a threat to the security of the region by constantly increasing its military build-up and threatening the use of force against Nagorno-Karabakh and Armenia. Azerbaijan rejects all proposals for confidence-building measures and the consolidation of the ceasefire. It systematically provokes violations of the ceasefire and performs ceaseless acts of vandalism towards the Armenian historical and cultural heritage. Such an approach is endangering the negotiating process and the fragile peace on the ground. Instead of instilling anti-Armenian hysteria into its own society and multiplying its military budget on account of its large oil revenues, the leadership of Azerbaijan should realise that there is no alternative to the peace settlement and it should adopt a constructive position within the negotiation process. Notwithstanding the existing problems, Armenia is confidently developing, looking to its future and strengthening its role in the region.
