Estonia vs. Armenia

One other obvious distinction is that Estonia has the protection of NATO. Armenia, as we have all learned the hard way, has no real military allies. Yet Russia has the 102^nd Military Base in Gyumri with an estimated 10,000 soldiers, but that seems to be yielding little value to Armenia as witnessed in recent times.

Agriculture, mining, and tourism still make up most of the Armenian economy and, although the IT industry is the bright star in Armenia, unemployment is still 20 percent. In fact, it is estimated that some 15-20 percent of Armenians go to Russia to find work. We, in the diaspora, have little ability to change the geopolitical climate of Armenia. Apart from Georgia, who has never been an Armenian ally, our neighbors are far more powerful with resources unavailable to Armenia.

Some wonderful recent news is that the Armenian economy is likely the best it has been in years, primarily because of all the Russians who have migrated into Armenia since the war in Ukraine. A significant portion are IT workers who have real income. We cannot change the past, but Armenia needs to change its future trajectory. If Armenia pins its survival and economic hopes on Russia, the EU, or even the U.S., we will only be disappointed with the outcome.  If we are honest with ourselves, what real economic value do we offer to the world today? That must change and change soon if Armenia is to thrive.  And the good news is that it is within our power.

Our focus needs to be on what can the diaspora do to help Armenia help itself. We cannot fix all the ailments of Armenia from the diaspora, but we can be an important part of the solution. With all that you hear about the Armenian diaspora, it is still an underutilized and unrealized asset. It’s not about sending more donations or money – it’s about being the engine to building Armenia economically. It comes down to one key factor – economic development. This is something that the diaspora can do from anywhere and if those who have the wherewithal to help do their small part, together, we can move Armenia from linear growth to logarithmic growth.

For those of you reading who are thinking about improving education, health care, military capabilities and social services – those are all important needs, but our ability to affect them from the diaspora are limited. Improving the Armenian economy will help raise all levels in Armenia. The important question is how to do this in a manner that is highly efficient and effective. From time to time, I have helped a young company or two in Armenia. I’m not alone as I have known many people who have used their skills and talents to help an Armenian enterprise. The question is how to do this better and on a larger scale. How do we bring together the right person from the diaspora who can help an Armenian enterprise and can we institutionalize this as a repeatable and scalable process?

There are a number of venture capital firms and incubators in Armenia. Granatus Ventures and Hive Ventures have been active investors in Armenia for years. Impact Hub, FAST Foundation, and EPIC have been active incubators in Armenia. Many resources are available — if you know where to look. Armenia needs to develop a value chain from research to market to bring the most advanced solutions to the world. Despite the increase of multinational firms, the linkages between research and industry are not prevalent. The few linkages that have worked are based on personal connections rather than an institutional approach. What is missing is a centralization where all resources that an Armenian entrepreneur or business needs can be accessed.