Armenian News

Prosecutors Insist On Opposition `Hypnosis' Of Armenians
By Emil Danielyan and Ruben Meloyan

Prosecutor-General Aghvan Hovsepian has stood by his view that Former President Levon Ter-Petrosian and his associates resorted to a mass hypnosis Armenia's population and other `psychological tricks' to muster popular support for their continuing campaign for regime change.

The theory about opposition recourse to the so-called `neuro-linguistic programming' (NLP) is part of the Armenian authorities' coup case brought against the opposition leader following last February's disputed presidential election. Hovsepian declared in early March that Ter-Petrosian managed to attract unexpectedly strong popular support for his presidential bid because of his `psychological sabotage' launched against disgruntled Armenians.

Ter-Petrosian, who had served as Armenia's first president from 1991-1998, was thought to be highly unpopular when he ended his decade-long political retirement and announced his par- ticipation in the presidential ballot in September 2006. Despite an extremely hostile coverage of his political activities by the government-controlled media, he quickly attracted a substantial following and emerged as Prime Minister Serzh Sarkisian's main election challenger with his harsh attacks on the government.

According to the Central Election Commission, Ter-Petrosian won 21.5 percent of the vote, trailing only Sarkisian, the official election winner. The ex-president has rejected the official vote results as fraudulent and rallied tens of thousands of supporters in Yerevan to demand a re-run of the ballot. The authorities used lethal force to end the protests on March 1-2, claiming to have foiled a coup d'etat. Dozens of opposition members and supporters were arrested in the following days.

In an interview with the daily `Aravot' published on Tuesday, Hovsepian insisted that many of the opposition demonstrators were hypnotized by Ter-Petrosian's and other opposition leaders' use of words such as `fatherland,' `family' and `we'll win.' `Of course I remain of the opinion which is substantiated by materials of the criminal case,' he said.

`We have certain individuals who have openly declared that they were in such a state [of psychosis.] The criminal case contains testimony to the effect that they were in delusion,' the chief prosecutor added without elaborating.

Ter-Petrosian aides were quick to again laugh off the allegations. `I can understand an individual with Soviet criminal mentality who probably has no idea of political struggle, political statements, political tactics and public mobilization,' said Arman Musinian, a spokesman for the ex-president.

`I think we shouldn't be upset with that,' Musinian told journalists. `Each of us knows some things and doesn't know other things. The sad thing is that an individual lacking elementary knowledge occupies the post of prosecutor-general.'

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FITCH UPGRADES ARMENIA TO 'BB', OUTLOOK STABLE
Interfax News Agency
July 3 2008
Russia

Fitch Ratings has upgraded Armenia's Long-term foreign and local Issuer Default ratings (IDRs) to 'BB' from 'BB-' (BB minus), the agency said in a press release.

The Outlooks have been changed to Stable from Positive. The agency has also upgraded the Country Ceiling to 'BB+' from 'BB' and affirmed the Short-term IDR at 'B'.

Fitch's upgrade of Armenia's sovereign ratings reflects the economy's rapid growth, rising incomes and strong policy framework, which the agency cited as potential triggers when it placed the ratings on Positive Outlooks in May 2007. The Armenian economy grew 13.8% in 2007, extending a five-year rolling average of 13% annual growth. This buoyed average incomes to around the 'BB' median of USD3,000 in 2007, easing a previous rating weakness. Armenia scores relatively favourably on the World Bank's Doing Business survey, where the country ranks 39th out of 178 economies, well above the 'BB' media of 98th place.

The policy framework remains disciplined, despite elections in 2008. The budget deficit has run at or below 2% of GDP since 2003, contributing to a drop in general government debt to 65% of fiscal revenues by 2007 from 139% in 2004, helping to make Armenia's public finances a clear rating strength. The central bank has allowed the dram to appreciate, driven by remittance incomes and increasingly by strong capital inflows, helping to contain inflationary pressure. Average annual inflation in 2007 of 4.4% was below the 'BB' median of 7.9%.

Armenia faces some risk of overheating, although pressures are moderate relative to 'BB' peers, as noted in Fitch's May 2008 report "Inflation and Emerging Market Sovereign Risk" (available on www.fitchratings.com). Inflation was 9.9% in May 2008, boosted by rising food prices (54% of the basket). Armenia's central bank cites the strong seasonal component to inflation, and 275bps of policy rate hikes since June 2007 (to 7.25%), in support of its view that inflation will fall back to around 6% by end-year.

Credit growth of 79% in 2007 is concerning, although Fitch bank analysts note imp- rovements in system quality, while the banks' small size remains the key weakness; total credit to the private sector was just 14% of GDP at end-2007. Strong bank credit expansion contributed to the widening of the CAD to 6.2% in 2007 from 1.8% in 2006, although strong capital inflows drove an improving external liquidity position.

The violent crackdown on post-election protests in March 2008 has made political risk more salient in the credit profile. However, tensions appear to have eased and the government has promised some structural reforms to help address social grievances, while political risk in Armenia is not out of line for the 'BB' range.

"Sustained growth and disciplined macroeconomic policies, and concrete action on the new government's reform agenda, could exert more upward pressure on Armenia's ratings in the long term. A failure to contain overheating pressures, problems in the banking system, or signs of a breakdown of political stability could be negative for the ratings," said Andrew Colquhoun, Director in Fitch's Sovereigns Group.

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ARMENIAN CURRENT-ACCOUNT DEFICIT DEEPENS FURTHER IN Q1
Venla Sipila
World Markets Research Centre
Global Insight
July 7, 2008

According to the newest data from the Armenian National Statistical Service, the country's current-account deficit amounted to $296US.2 million in the first quarter of 2008, ARKA News reports. This level indicates widening of nearly 55% compared with the current-account gap posted in the same period a year ago. As a percentage of GDP, the deficit measured 18.9%, against 16.4% of GDP in the first quarter of 2007. As expected, the overall deficit was mainly brought about by a deep imbalance especially in goods trade.

Indeed, the trade deficit in balance-of-payments terms measured some $478US.2 million in January-March, compared with $312US.1 million in the same period a year ago. In particular, exports only edged up by 1.5% year-on-year (y/y), totalling $236US.2 million, while imports soared by 31.3% y/y reaching $714US.4 million. The deficit on the service balance widened to $52US.1 million after totalling some $35US.0 million a year ago. Meanwhile, the current trans- fers account posted a surplus of $189US.3 million in the first quarter, the positive balance growing by around one-quarter in annual comparison, and the surplus on the income balance grew to $41US.8 million from $6US.4 million a year ago. Further, it was reported that the financial account registered a surplus of $274US.1 million, marking an increase of $102US.6 million in annual terms. In particular, the FDI balance registered a surplus of just under $117US million.

Significance:The wide deficit on the current account leaves Armenia vulnerable to external shocks, especially taken into account the country's reliance on private transfers and workers' remittances. Investment to Armenia remains restricted by, for example, geopolitical risks. On the other hand, despite only forming a relatively modest part of total foreign investment, FDI inflows finance a large part of the deep external deficit, reducing the need to increase foreign borrowing. Armenia's relatively good reform progress also gives it unproblematic access to soft loans. Thus, debt servicing is not likely to pose any difficulties for the sovereign in the medium term. However, in order to achieve continued improvement in its sovereign creditworthiness in the medium-to-long term, Armenia needs to progress further in economic restructuring to diversify its economy in order to strengthen its export earnings capacity.

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FACE IN THE NEWS
Lord Darzi
Daily Mail
July 1, 2008 Tuesday
London

He insists that he is first and foremost a doctor.

Indeed, within five months of taking up his Cabinet post, Lord Darzi was on his knees in the House of Lords saving the life of a fellow Labour peer.

Lord Brennan had a heart attack during a debate last November.

Lord Darzi (pictured) leapt over the benches and administered mouth to mouth, a heart massage and electric shock treatment using a defibrillator.

But saving lives is what 48-year-old Ara Darzi is used to - not piloting bills through Parliament.

He was born in 1960 in Baghdad, after his Armenian parents fled to Iraq during the First World War to escape the genocide by Turkey. He was brought up in the Russian Orthodox faith of his LORD DARZI family, although he went to a strict Jewish school.

Aged 17, Darzi moved with his family to Dublin to study medicine, later becoming a surgeon and earning the nickname 'Robodoc'.

A keen Pink Floyd fan, he became a UK citizien in 2003, a year after being knighted.

Despite being appointed Health Minister by Gordon Brown in June 2007, he still performs surgery on Friday and Saturdays and the transition from doctor to minister has not always been smooth.

He has landed his boss in trouble several times, for instance by admitting Labour's pledge to end mixed-sex wards 'cannot be met'.

And he embarrassed collegues by announcing pharmacists would be able to hand out the Pill to under 16s without a prescription.

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NEW LASER PHYSICS STUDY FINDINGS HAVE BEEN PUBLISHED

BY G.A. AMATUNI AND COLLEAGUES
Science Letter
July 8, 2008

"A dielectric medium consisting of roughly polarized molecules has been treated as a 3D disordered spin system (spin glass). Having in view the study of the statistical properties of this system on a micrometer scale and nanosecond time scale of a standing electromagnetic wave,
a microscopic approach has been developed," researchers in Yerevan, Armenia report (see also Laser Physics).

"Using the Birkhoff ergodic hypothesis, the initial 3D spin problem is reduced to two conditionally separate 1D problems along the external electromagnetic field propagation. The first problem describes a disordered N-particle quantum system with relaxation in the framework of a Langevin-Schrodinger (L-Sch)-type equation, while the second one describes a steric disordered spin-chain system. The statistical properties of both systems were investigated in detail. Based on these constructions, the coefficient of polarizability related to the collective orientational effects was calculated. The Clausius-Mossotti relation for the dielectric constant was generalized. Taking into account the generalized Clausius-Mossotti relation, a generalized equation for the dielectric permittivity function has been found," wrote G.A. Amatuni and colleagues.

The researchers concluded: "A simple formula was derived for the dielectric permittivity function in the X-ray frequency range, which can be larger than unity on the micrometer scale and nanosecond time scale."

Amatuni and colleagues published their study in Laser Physics (Dielectric permittivity superlattice formation. Laser Physics, 2008;18(5):608-620).

For additional information, contact G.A. Amatuni, Alikhanyan Yerevan Physics Institute, Alikhanyan Br 2, Yerevan 375036, Armenia.

Publisher contact information for the journal Laser Physics is: Maik Nauka, Interperiodica, Springer, 233 Spring St., New York, NY 10013-1578, USA.

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STUDIES FROM E.M. SARKISYAN ET AL IN THE AREA OF LASER PHYSICS DESCRIBED
Laser Physics
Science Letter
July 8, 2008

"We propose a method for the detection of a dynamical Casimir effect," scientists writing in the journal Laser Physics report (see also Laser Physics).

"Assuming that the Casimir photons are being generated in an electromagnetic cavity with a vibrating wall (dynamical Casimir effect), we consider electrons passing through the cavity to be
interacting with the intracavity field. We show that the dynamical Casimir effect can be observed via the measurement of the change in the average or in the variance of the electron's kinetic energy," wrote E.M. Sarkisyan and colleagues.

The researchers concluded: "We point out that the enhancement of the effect due to finite temperatures makes it easier to detect the Casimir photons."

Sarkisyan and colleagues published their study in Laser Physics (Detection of Casimir photons with electrons. Laser Physics, 2008;18(5):621-624).

Additional information can be obtained by contacting E.M. Sarkisyan, Yerevan Physics Institute, Alikhanian Bros St. 2, Yerevan 375036, Armenia.

The publisher of the journal Laser Physics can be contacted at: Maik Nauka, Interperiodica, Springer, 233 Spring St., New York, NY 10013-1578, USA.

Keywords: Electromagnet, Electromagnetic, Electronics, PhotonsLaser Research.

This article was prepared by Science Letter editors from staff and other reports. Copyright 2008, Science Letter via NewsRx.com.

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STUDY RESULTS FROM V.V. HOVHANNISYAN AND COLLEAGUES IN THE AREA OF PHYSICS PUBLISHED
Science Letter
July 8, 2008

"The Ising approximation is proposed for the Heisenberg model with two- and three-spin exchange interactions on a zigzag ladder placed in a strong magnetic field. Using the transfer matrix technique the magnetization is calculated and compared with the results obtained in the dynamical recursive approach," investigators in Yerevan, Armenia report (see also Physics).

"Magnetization plateaus are found at m = 0 and m = 1/3 with the two- and three-spin exchanges. The magnetic susceptibility in small and large zigzag ladders for various exchange parameters and
temperatures is also analyzed. As temperature decreases the magnetic susceptibility versus magnetic field shows the formation of spin pseudogaps and transformation from double to four peak structure," wrote V.V. Hovhannisyan and colleagues.

The researchers concluded: "Small clusters also exhibit characteristic features of large thermodynamic systems."

Hovhannisyan and colleagues published their study in Physics Letters a (Antiferromag- netic model and magnetization plateaus on the zigzag ladder with two- and three-site exchanges. Physics Letters a, 2008;372(19):3363-3368).

For additional information, contact V.V. Hovhannisyan, Yerevan Physics Institute, Dept. of Theoret Physics, Alikhanian Brothers 2, Yerevan 375036, Armenia.

The publisher of the journal Physics Letters a can be contacted at: Elsevier Science BV, PO Box 211, 1000 AE Amsterdam, Netherlands.

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