In-depth

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Milk collection unit in Tavush region

Armenia registered economic growth of 3.5% in 2013 (7.2%/2012), driven mainly by mining, remittances from abroad, and agro-industries. The effect of the economic crisis on poverty is still visible: 32.4% live under the national poverty line (27.6%/2008). The Government increased the minimum wage to $108/month, so employed persons are now above the poverty line ($97.1). Armenia is ranked 87/187 in the 2013 HDR report - in the high human development category.

The Ministry of Economy registered an increase in SME contribution to GDP (44%) and exports (18%). 2014 Doing Business Report ranks Armenia 37/189 (highest amongst CIS countries) but the economy needs more diversification and competitiveness. The lack of dynamism leads to high unemployment (18.64%), with youth unemployment 39.1% (2013/ILO).

The government decided to liberalize the domestic civil aviation sector to attract investors and tourists. Air traffic is estimated to increase by 20% which could lead to increased economic growth of 1-2%

What we do

UNDP poverty reduction efforts are aimed at:

· Supporting the Ministry of Territorial Administration in developing and implementing the Regional Development Strategy, analyzing socio-economic development levels of the RA regions using the UNDP supported database of Rural and Urban communities;

 · Increasing competitiveness of SMEs by improving quality management and sustainable production, strengthening capacities of entrepreneurs and business organizations as well as establishing service provision institutions that support exporting of products;

· Providing support to the Government in ensuring efficient and sustainable agriculture;

· Implementing the Pilot Agricultural Census Project initiated in October 2013. The results of the pilot Census as well as tested methodology will then be used as basis for the organization of a full scale Agricultural Census to be conducted in the fourth quarter of 2014. The Census will provide benchmark data on the situation and role of agriculture for evidence-based policy making;

· Offering new graduates an opportunity to be involved for the first time in employment relevant to their education, and to gain valuable work experience and practical knowledge to become more competitive in their access to the labor market;  

· Rejuvenating and upgrading urban fabric of the capital through expansion of job opportunities and promotion of active labor market policy.    

 

Some resulst so far

More than 250,000 people living in more than 150 communities benefitted from increased access to energy, water, and sanitation services, new employment and income generation.

The Municipality of Yerevan rejuvenated the heart of Yerevan, refurbishing and painting buildings, repairing streets and sidewalks, and fixing up green areas – temporarily employing around 100 people.

Geghamasar community received 100 tons of wheat seeds and 62 tons of fertilizers, and established a pool of agricultural machinery.

Pambak and Daranak community received 145 cows, as well as artificial insemination equipment and quality semen. 6000 fruit tree seedlings distributed in all three communities.

Potable water networks were reconstructed in Artamet and Arevadasht communities.

Irrigation network was reconstructed in Baghramyan community.

An agricultural machinery pool was established in Myasnikyan community.

Farmers in the Aknaghbyur community of Tavush region received 17 greenhouses, helping to increase household income by 20 to 30 percent annually. (In partnership with Oxfam)

New employment and income generation opportunities (95 projects) are available in agro- and food processing and construction.

The Government created a database on Armenia’s urban and rural communities. It contains more than 600 indicators, which measure income, unemployment, land ownership, access to health services and education for every community in Armenia.

The Government adopted the Regional Development Concept (in Armenian).

New employment and income generation opportunities (95 projects) are available in agro- and food processing and construction.

More than 845 start-up entrepreneurs were trained, and 247 received 338.5 mln AMD  in micro credit and some 290 new workplaces were created.

UNDP and the municipal authorities introduced plastic waste recycling in fourteen urban municipalities serving over 330,000 people (10 percent of Armenia’s population), as well as in national parks.

UNDP has refurbished 21 colleges in Armenia and supplied them with state-of-art educational laboratory equipment (31 technical labs addressing more than 11 different professional occupations and 12 software packages of modern IT equipment) for colleges across the country, thus substantively contributing to the upgrade of about 24 percent of the country’s colleges.

The Government created a database on Armenia’s urban and rural communities. It contains 600 indicators, which measure income, unemployment, land ownership, access to health services and education for every community in Armenia.