HUMAN DEVELOPMENT REPORT
   ARMENIA 1999

  FIVE YEARS OF HUMAN DEVELOPMENT IN ARMENIA

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3.4. From Totalitarianism to Social Partnership

While describing the State as the main participant in social cooperation, it is equally important to consider the extent of authorities' awareness of the interests of civil society and the private sector, and of the means to satisfy mutual interests.

According to the model of "social partnership" proposed already in the first phase of social cohesion mentioned above, the State supposedly ceded the economic sphere to the private sector, which was given the role of budget provider. The social sphere was given to civil society in the role of law-abiding citizens, whereas the State itself would undertake the functions of law enforcement and defense. The new model was considered acceptable for Armenia's future and for donor nations and organizations. It was proposed that all participants of social process consolidate around the ANM. Such a "neo-Bolshevik" model of social cohesion led to the fragmentation of both the private sector and the fledgling civil society. Individuals and groups were divided into "friends" and "aliens". There was a sharp discrepancy between the model proclaimed by the State and what was put into practice. Despite proclaiming an equal attitude toward all participants of social cooperation, the "friends" enjoyed illegitimate privileges.

The experience of this phase suggests that participants of the social process can succeed both in the common cause, as well as private business only if there is mutual support. For that reason, the privatization of large industrial enterprizes should have been accompanied by conversion programs. Land privatization should have been carried out in parallel with programs for the promotion of the agricultural and food processing industries. The free flow of foreign goods into Armenia should have been orchestrated together with programs designed to protect domestic industry. A list of similar measures can be extended. This does not contradict the selected model based on partnership. On the contrary, it becomes the only real means of cooperation.

An effective and mutually acceptable means for making the transition from totalitarianism to social cooperation is "paternalism d'etat" (i.e. the State treats the people according to the "parent-child" model), that is, the State delegates its functions to the private sector and civil society when the latter are ready and able to undertake these functions with State support.

Social cooperation enhancement mechanisms. State assistance provides a number of social and psychological prerequisites for efficient social cooperation. If the existing mechanism of social cooperation is depicted graphically, then the steps taken by the participants in the social process to achieve efficient social cooperation will become obvious.

The steps aimed at enhancing social cooperation must become a cornerstone of State policy, which in turn will provide a number of important socio-psychological prerequisites for efficient mutual cooperation of the parties and will:

· create certain prospects for social development, where the expectations of the parties, the needed contributions and the envisioned results will be defined;

· provide the transparency of motives of actions and the means of achieving the goals, which will reduce the mutual distrust of the parties and increase their cohesion around common goals;

· secure sustainability of human development by means of application and improvement of social cooperation mechanisms.

Figure 3.3. Steps Aimed at Achieving Social Cooperation