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Turkish-Armenian Economist’s Theory Explained through Armenian TV Soaps

Daron Acemoglu (pictured), a Turkish economist of Armenian descent, along with well-known Turkish writer Orhan Pamuk and Turkish Minister of Foreign Affairs Ahmet Davutoglu, is considered one of Turkey’s “most intellectual” people. Acemoglu’s work and ideas were discussed at yesterday’s meeting of the “Small Council,” a local sociopolitical group that resumed its activities a few months ago after a brief hiatus. The group, through intensive discussions on a wide variety of topics, intends to create ideological, cultural, political and civil approaches to current, post-industrial society. The group currently operates as part of the umbrella opposition bloc the Armenian National Congress.

Local culturologist Vardan Jaloyan yesterday discussed the theories of Daron Acemoglu, who was born in Istanbul in 1967, and currently teaches applied economics at MIT (Massachusetts Institute of Technology).

Jaloyan noted how Acemoglu is quite respected in Turkey, and he continues the work of Douglass C. North (winner of the Nobel Prize in Economics in 1993, along with Robert Fogel), according to which the key role in development belongs to establishments, institutions. 

He stresses the significance of institutions, since they “decide the structure of motivation for human interaction, whether that be in the political, social or economic sectors.”

According to Jaloyan, Acemoglu’s theories cannot be understood and applied in Armenian society if we don’t know what kind of institutions, “rules of the game,” so to speak, are operating in Armenia.

The cultural theorist proposed using the example of Armenian TV shows (more like soap operas) to understand the “rules of the game” that are in place in Armenia.

“Armenian [TV] serials usually describe a few families and the relationships among them. This is essential, not relationships between individuals, but families. This means that the individual is under the strict supervision of the family and, more or less, doesn’t have stable relationships outside of the family [unit]. The establishments above the family are represented only by the State, through the character of a police officer, but he too is ‘privatized’ — he serves the interests of this or that clan,” explained Jaloyan. 

According to him, the dramatic high point is based on unique logic: everything that can be done in favor of someone else is done to the detriment to one’s family. To assist someone else means to harm your own clan: one cannot even be fair; it seems too much like treason. The main characters operate under the following principal: “seek the maximum benefits for your clan, based on the provision that others will be doing the same.”

In Armenian serials, said Jaloyan, the only action that is really carried out is harming another. Those who have the greatest resources to cause harm are oligarchs, and that’s why they’re the main characters of Armenian soaps. In order to be able to cause harm, it is necessary to have criminal addictions; that is, oligarchs are also mafia, leaders of criminal gangs.

That doesn’t mean everyone in Armenia agrees to these rules. According to the culturologist, in Yerevan, there are two big public institutions, two “rules of the game”: those who abide by this “clan system” and those who don’t.

In his opinion, it’s possible to have a choice among different political, public and economic institutions. However, in Armenia, lack of a “democratic culture” and a low level of welfare are listed as barriers (to not having a choice and not having developed institutions), while “being an ancient civilized nation” is noted as a positive contributing factor. Acemoglu, however, denies this approach. 

“The prospect of democracy in Russia, in the other former Soviet states, as well as in the Middle East depends on whether there will be a collection of political institutions that will be able to supervise those who already have authority and provide the opportunity for different groups to express themselves, and become a mediator between the demands of those groups. The example of many successful democracies shows that indeed such political institutions can be created,” according to the economist. In his opinion, it’s not an easy issue, since not only ordinary individuals, but also mayors and ministers cannot be controlled. More so, it’s those who more uncontrollable. 

Speaking about Acemoglu’s theory, Jaloyan said politics can be compared to Armenian TV soap dramas: the same rules apply and they are the same institutions. To change political establishments means to change political representation; for example, the scenario of elections. 

Acemoglu knows to change the system, and that’s why in Armenia they try not to talk about him too much, said Jaloyan. 

The Small Council was initiated by the following individuals: theater critic Ara Nedolyan; art critic Nazaret Karoyan; stray animals rights’ defender Lala Poghosyan; artist Karen Andreasyan; painter Arman Grigoryan; journalist Arakel Semirjyan; painter, composer Davit Vardanyan; and journalist, musician Zara Hovhannisyan.