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U.S. Department of State

Diplomacy in Action

II. Country Assessments and Performance Measures - Armenia


U.S. Government Assistance to and Cooperative Activities with Eurasia
Bureau of European and Eurasian Affairs
January 2007
Report
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Country Overview

Country Facts

  • Map of ArmeniaArea: 11,506 sq mi (29,800 sq km), slightly smaller than Maryland 
  • Population: 2,976,372 (July 2006 est.) 
  • Population Growth Rate: -0.19% (2006 est.) 
  • Life Expectancy: Male 68.25 yrs., Female 76.02 yrs. (2006 est.) 
  • Infant Mortality: 22.47 deaths/1,000 live births (2006 est.) 
  • Gross Domestic Product (GDP): $13.46 billion (purchasing power parity, 2005 est.)
  • GDP Per Capita Income: $4,500 (purchasing power parity, 2005 est.) 
  • Real GDP Growth: 13.9% (2005 est.)

Overview of U.S. Government Assistance

In FY 2006, the USG provided an estimated $94.22 million in assistance to Armenia, including:

  • $19.20 million in democratic reform programs; 
  • $25.27 million in economic reform programs; 
  • $16.49 million in social reform programs; 
  • $9.40 million in humanitarian programs; 
  • $17.86 million in security, regional stability, and law enforcement programs; 
  • $6.01 million in cross-sector and other programs; and 
  • Privately donated and USG excess humanitarian commodities valued at $14.37 million.

FY 2006 Assistance Overview

U.S. STRATEGIC INTERESTS & FOREIGN POLICY PRIORITIES

Strong relations with a stable and democratizing Armenia allow the U.S. Government (USG) to advance its policy goal of regional stability in the Caucasus. Armenia is an important ally in the war against terrorism, surrounded by potential Middle Eastern and Eurasian flashpoints and strategic energy corridors. Resolution of the Nagorno-Karabakh conflict with neighboring Azerbaijan and improved relations with Turkey will enhance the movement of goods and people throughout the region and create a better trade and investment environment. In March 2006, the U.S. recognized Armenia's progress in democratic and economic reform by signing a Millennium Challenge Corporation (MCC) Compact with the Government of Armenia (GOAM).

FOREIGN ASSISTANCE PRIORITIES

Armenia's long-running, unresolved conflict with Azerbaijan over the Nagorno-Karabakh region negatively affects both its role in the region and U.S.-Armenian relations. Therefore, the USG's primary assistance priority is to promote regional stability through conflict prevention. Energy security is an important component of regional stability and the USG is working with international partners to continue developing a comprehensive energy plan for Armenia that will promote alternative energy sources and improve regional energy integration. This plan includes decommissioning Armenia's aging nuclear power plant and replacing its energy-generating capacity.

The second USG assistance priority is to assist the GOAM improve its ability to govern justly and democratically. Armenia has yet to conduct elections that are recognized internationally by the Organization for Security and Cooperation in Europe (OSCE) as free and fair. The GOAM still has serious weaknesses in providing for media freedom, rule of law, and anti-corruption. The USG fully engages with the GOAM and civil society in a broad range of projects to deliver better results.

Because of persisting severe rural poverty, economic growth is the third USG assistance priority. Rural irrigation and road infrastructure improvement is the largest USG program, significantly bolstered by Millennium Challenge Corporation (MCC) Compact funding. In addition, projects to improve Armenia's financial sector help ensure that Armenia can continue its economic development, particularly outside of the capital.

OPERATING ENVIRONMENT

Armenian Government officials strive to build a more secure, democratic state where more of Armenia's citizens share in continued economic growth. However, the GOAM's inconsistent approach to reform has resulted in uneven progress.

The Nagorno-Karabakh conflict remains a serious obstacle to regional stability. Although a breakthrough in the negotiations between Armenia and Azerbaijan that many had hoped for in 2006 did not materialize, the GOAM has indicated it will continue negotiations with Azerbaijani counterparts in 2007, even through the spring 2007 election cycle. Fall 2006 registered a step forward in confidence building between Armenia and Azerbaijan with an international environmental assessment mission to the occupied territories surrounding Nagorno-Karabakh that include representation from both sides to the conflict.

In FY 2006, the GOAM made little progress in advancing just and democratic government, even though it reiterated its commitment to do so. Although Constitutional amendments gave a new level of independence to the judiciary, serious problems remain. Police continue to abuse detainees, the GOAM has not taken serious steps to fight corruption, and GOAM pressure on the media continues to result in significant media self-censorship. The GOAM has not taken steps to address violations that the OSCE identified in the 2005 local elections and it is unclear whether Armenia's leaders will demonstrate the political will required to ensure elections in 2007 and 2008 meet international standards.

Although Armenia has impressive macroeconomic indicators that suggest its economic reforms continue to yield results, economic growth in rural Armenia has not materialized as quickly as in the capital. The GOAM implemented significant agricultural reform, but it has not reduced rural poverty.

COUNTRY PERFORMANCE MEASURES

Armenian Democratic Reform

The "radar" or "spider web" graphs below illustrate Armenia's democratic performance during FY 2005. Ratings are based on a 1 to 5 scale, with 5 representing the greatest advancement. These charts provide a disaggregated look at each of the indices and are reported to Congress on a regular basis. The gray-shaded area represents 2005 performance levels, while the two dark lines indicate how each country compares in its progress vis-�-vis two standards: (1) the average of Romania's and Bulgaria's performance in each indicator as of 2002 (2002 was the year that Romania and Bulgaria - the "threshold countries" - were invited to join NATO and received favorable indications of future EU membership and, (2) where the country stood in each indicator in 1999. Together, these charts provide a broad picture of where remaining gaps are in a country's performance, and to what extent these gaps are being filled. For more information, including a detailed explanation of each indicator shown in the graph, see USAID/E&E/PO, "Monitoring Country Progress (MCP) in Central and Eastern Europe & Eurasia," No. 10 (August 2006). Found online at: http://inside.usaid.gov/EE/po/mcp.html.

Graph shows Armenian Democratic Reform:  Average of Romania and Bulgaria-2002, corruption, 1.8; electoral process, 1.8; civil society, 3.3; independent media, 2.0; governance/public admin, 2.2; rule of law, 2.2

The graph above shows Armenia's democratic reform scores in 2005* (the gray- shaded area) as compared to the average of Romania's and Bulgaria's democratic reform scores in 2002 (the bold line) when they were invited to join NATO and receive favorable indications of future EU membership.

*Actual 2006 scores not yet available.

Graph shows Armenian Democratic Reform:  1999, corruption, 1.8; electoral process, 1.8; civil society, 3.3; independent media, 2.0; governance/public admin, 2.2; rule of law, 2.2
The graph above shows Armenia's democratic reform scores in 2005* (the gray- shaded area) as compared to its democratic reform scores in 1999 (the bold line).

*Actual 2006 scores not yet available.

Armenian Economic Reform

The "radar" or "spider web" graphs below illustrate Armenia's economic performance during 2005. Ratings are based on a 1 to 5 scale, with 5 representing the greatest advancement. These charts provide a disaggregated look at each of the indices and are reported to Congress on a regular basis. The gray shaded area represents 2005 performance levels, while the two dark line indicates how each country compares in its progress vis-�-vis two standards: (1) the average of Romania's and Bulgaria's performance in each indicator as of 2002 (2002 was the year that Romania and Bulgaria - the "threshold countries" - were invited to join NATO and received favorable indications of future EU membership); and (2) where the country stood in each indicator in 1999. Together, these charts provide a broad picture of where remaining gaps are in a country's performance, and to what extent these gaps are being filled. For more information, including a detailed explanation of each indicator shown in the graph, see USAID/E&E/PO, "Monitoring Country Progress in Central and Eastern Europe & Eurasia," No. 10 (August 2006). Found online at: http://inside.usaid.gov/EE/po/mcp.html.

Graph shows Armenian Economic Reform: Average of Romania and Bulgaria-2002, external debt percent GDP, 4.0; private sector share, 4.5; share of employment in SMEs, 2.0; export share of GDP, 1.5; FDI pc cumulative, 2.0; GDP as percent 1989 GDP, 3.5; 3yr avg inflation, 4.5

The graph above shows Armenia's economic reform scores in 2005* (the gray shaded area) as compared to the average of Romania's and Bulgaria's economic reform scores in 2002 (the bold line) when they were invited to join NATO and received favorable indications of future EU membership.

*Actual 2006 scores not yet available.

Graph shows Armenian Economic Reform: 1999, external debt percent GDP, 4.0; private sector share, 4.5; export share of GDP, 1.5; FDI pc cumulative, 2.0; GDP as percent 1989 GDP, 3.5; 3yr avg inflation, 4.5

The graph above shows Armenia's economic reform scores in 2005* (the gray shaded area) as compared to its economic reform scores in 1999 (the bold line).

*Actual 2006 scores not yet available.

FY 2006 Country Program Performance

Governing Justly and Democratically

Democratic institutions in Armenia are still relatively young and relatively fragile, as demonstrated by the lower monitoring country progress (MCP) democratic reform scores in 2005 compared to 1999. While the November 2005 referendum was flawed, the referendum did provide for greater legislative and judicial independence. To ensure the full benefits of separation of powers, however, the GOAM needs to take further steps to reduce the dominance of the executive branch and to strengthen the inexperienced legislature and relatively weak judiciary. In late spring, Orinats Yerkir, one of three parties in the National Assembly governing coalition, went into opposition; its leader resigned as Speaker, and nearly half of its Members of Parliament left the party.

While the GOAM has demonstrated some commitment to long-term institutional reform, considerable room for improvement remains. The GOAM's country's anti-corruption strategy and action plan, due to conclude in 2007, has yielded few results. The GOAM has not yet submitted a follow-on plan and entrenched state bodies and business interests show little will to change.

U.S. ASSISTANCE PRIORITIES

In 2006, USG assistance combined top-down governance with bottom-up civil society programs to foster a more professional, transparent, accountable, and democratic political system. The USG seeks to assist the GOAM raise the political awareness of its citizens, decentralize political power, and strengthen good governance at the local and national levels. USG assistance also aims to help the GOAM fight corruption while encouraging a meaningful separation of powers by developing a professional legislature and an impartial judiciary, bolstered by an independent media.

Armenia has yet to conduct elections that are recognized by the OSCE as free and fair. To assist Armenia to conduct free and fair parliamentary and presidential elections in 2007 and 2008 respectively, the USG is funding programs to improve voter registration lists, enhance the media's election coverage capability, and prepare the Central Electoral Commission and the courts to perform their independent responsibilities more effectively. USG programs also assist political parties and civil society in the areas of polling methodology and election monitoring and promote youth and women participation in the political process.

DESCRIPTION OF PROGRAMS AND ACTIVITIES

In early 2006, the USG unveiled a comprehensive electoral assistance program to increase transparency and efficiency of the 2007 parliamentary and 2008 presidential elections. These programs include assistance to: improve the voter registry; develop political parties; increase voter participation; enhance election administration; provide voter information, boost opinion-polling capacity; support election monitoring; and ensure greater accountability of elected officials to voters.

USG assistance to enhance the capability of independent media and others is intended to spur Armenians to participate in the decision-making process and in civic affairs. The USG's election and civil society programs both provide grants to non-governmental organizations that are energizing public interest in the 2007 election. In addition, Democracy Commission grants address issues such as youth civic education, environmental and legal education, volunteerism promotion, citizen participation in the local decision making process, and the societal integration of the disabled. Peace Corps small grant projects also support local initiatives in smaller communities.

USG assistance is also targeting judicial and legal reform. In FY 2006, the USG provided for the first time a Resident Legal Advisor (RLA) to Armenia. The RLA began working with the Procuracy and Ministry of Justice to craft reforms to bring the criminal justice sector in line with international standards.

OUTPUTS

USG assistance helped establish standing parliamentary institutions and practices to ensure greater transparency and responsiveness to public needs. For example, the National Assembly held seven public hearings on key pieces of legislation. USG assistance provided on-the-job training to National Assembly staff on analysis and tracking of 6,470 constituent letters. The USG also trained 131 members of parliament and staff on budgetary procedures, and sent a group to Washington to learn directly from Congressional appropriations staff.

In 2006, USG assistance trained 45 judges, prosecutors, and investigators to combat trafficking in persons. In addition, a U.S. federal judge and a Lithuanian European Commission on Human Rights (ECHR) expert conducted a training program for 60 prosecutors and judges on European Court of Human Rights case law, focusing on the right to a fair trial and detention issues.

The USG assisted local governments to become more independent by training some 250 mayors, finance officers, and council members in over 20 cities on roles and responsibilities, budgeting, service provision, and billing and collection management. In the area of civil society, the USG augmented current efforts by providing leadership, democracy, and human rights training to 70 young leaders in Yerevan and the regions. Two hundred young people in the provinces attended an ecological summer camp and environmental awareness instruction introduced 1,100 active residents, NGO members, schoolteachers, parents and children from ten communities to key concepts, problems, and solutions. More broadly, more than 100 representatives from local NGOs and active groups participated in training on the monitoring of local needs and NGO management. One key program helped more than 70 NGOs develop practices to promote their long-term sustainability and to support efforts to build awareness of the importance of public participation in upcoming elections.

Also related to elections, in FY 2006, 752 political party activists received pre-election training. As a result of USG assistance, the Armenian national police is now capable of maintaining the national voter registry. Television debates, roundtable discussions, press conferences, interviews, and public service announcements provided information to voters in Yerevan and the regions about the newly adopted constitutional amendments. USG assistance arranged for 257 participants to attend some 25 media training sessions on such topics as election coverage and the use of television ratings. To build a strong basis for professional journalism, the USG trained 30 journalism educators to teach in a new Master's Degree program in journalism.

After five years, the USG completed a program that established 330 school computer centers (all but 24 with Internet connectivity) and trained 18,000 teachers and 63,000 students on computer skills.

PROGRAM PERFORMANCE/IMPACT

The USG has seen early results in its governance and civil society programs. The GOAM addressed some voter registry problems that USG assistance providers identified, including problems with voter lists. A USG-sponsored program on women's political empowerment led 21 political parties to agree formally that at least 25% of their National Assembly candidates should be women. The USG continues to assist the National Assembly improve its website to increase the public's access to information. The National Assembly's session agenda and representatives' voting records are now available within 24 hours, letting voters know how their representatives voted on individual bills. During the year, the website received 60,000 hits. A working group comprised of U.S. Congressional study tour participants also wrote and published the Summary Budget 2007.

USG assistance has also improved the bar's and judiciary's ability to act as independent and impartial participants in and commentators on the legal reform process. One key effort enhanced the Prosecutor General's ability to investigate and prosecute complex cases. USG assistance also promoted prosecutorial compliance with Council of Europe and other international rule of law standards that give prosecutors and defense attorneys equal standing in the courts. The Armenian Chamber of Advocates successfully conducted the first bar examination in five years, which was widely acknowledged by the international community, legal professionals, and the judiciaryto be open and transparent. Another program helped several Armenian law students place sixth in the Philip Jessup International Moot Court Competition. The GOAM and U.S. communicated effectively on priority criminal justice issues, including money laundering/terrorist financing, corruption, and criminal procedure reform.

In civil society efforts, local partner organizations now directly manage USG grants in advocacy and elections. In FY 2006, rural youth routinely engaged regional governors and central government officials in discussions and other youth clubs have successfully initiated more than 215 civic actions, ranging from anti-corruption activities in schools, where the bribing of teachers for good grades is common, to environmental clean-up projects. Local NGOs contributed to draft laws and codes and were instrumental in blocking a draft Law on Lobbying that would have placed undue restrictions on public advocacy. In addition, the current draft election law amendments now include provisions proposed by NGOs. The National Assembly is considering a draft law on volunteers so that NGOs will not have to pay employment tax on volunteer labor.

USG assistance helped establish a television ratings system that has led to an approximate ten-fold increase in the television advertising market, permitting independent stations to exist.

More than 41,000 Armenians have used school computer centers funded by USG assistance. In addition, more than 790 Armenian teachers participated in on-line activities with more than 118 U.S. partner schools. As a result of this pilot program, the GOAM has budgeted funds to launch a nationwide program in July 2007 that will incorporate the pilot centers.

MEASURES OF PROGRAM EFFECTIVENESS

To determine how U.S. Government assistance affects a country, U.S. embassies set targets for improvement called "performance indicators." Data for these indicators are collected by research institutes, embassies and international organizations. By examining data over time, U.S. policymakers can better understand whether assistance programs are having the intended impact.

Please find below two important indicators in the area of Governing Justly and Democratically. In the charts, the "Baseline" refers to a starting point from which to measure progress or regression over time. The embassy and its partner organizations then agree on a "Target" figure that they hope to achieve as a result of U.S. assistance programs. The "Rank" figure is the resulting measurement. "FY" stands for "fiscal year," the period of the U.S. budget that runs from October 1 - September 30 of the following year. "CY" stands for "calendar year," or January 1 - December 31.

Performance Indicator: USAID NGO Sustainability Index. Seven different dimensions of the NGO sector are analyzed each year in the NGO Sustainability Index: legal environment, organizational capacity, financial viability, advocacy, service provision, NGO infrastructure and public image. The NGO Sustainability Index uses a seven-point scale to facilitate comparisons to the Freedom House indices, with 7 indicating a low or poor level of development and 1 indicating a very advanced NGO sector. The data upon which this ranking is based comes from the previous calendar year. Source: USAID, The 2005 NGO Sustainability Index for Central and Eastern Europe and Eurasia, found online at http://www.usaid.gov/locations/europe_eurasia/dem_gov/ngoindex/2005/index.htm.

CY 2002 Baseline

CY 2004 Rank

CY 2005 Rank

CY 2006 Target

4.4

4.1

4.1

4.0



Impact of U.S. Assistance on the Above Indicator: The NGO Sustainability Index ranking remained the same this year, squarely in "mid-transition," largely because of the re-emergence of the threat of a regressive Draft Law on Lobbying, which a coalition of NGOs very effectively resisted. Overall, NGO organizational capacity has improved in the past year.

Performance Indicator: The Political Rights Index draws from Freedom House's Annual Report Freedom in the World as adapted for "Monitoring Country Progress in Central and Eastern Europe & Eurasia," USAID/E&E/PO, No. 10 (March 2006). Four different dimensions of political rights are analyzed each year in the Political Rights Index: electoral process, political pluralism and participation, functioning of government, and additional discretionary political rights issues. The Political Rights Index uses a seven-point scale, to facilitate comparisons to the Freedom House indices, with 7 indicating least free and 1 indicating most free. The data upon which this ranking is based comes from the previous calendar year. Found online at http://www.usaid.gov/locations/europe_eurasia/country_progress/.

CY 2002 Baseline

CY 2004 Rank

CY 2005 Rank

CY 2006 Target

4

5

5

5



Impact of U.S. Assistance on the Above Indicator: Armenia's political rights index reflects no change from 2002 to 2005. Freedom House derived Armenia's 2005 Political Rights Index score from events in 2004, a year that included GOAM crackdowns against political protesters and reports of violence against journalists. USG assistance in 2006 worked with reform-minded officials to strengthen public participation and democratic processes. While the November 2005 referendum was flawed, the approved constitutional amendments allow for a substantially stronger National Assembly.

Performance Indicator: Judicial Framework and Independence Rating (formerly known as Constitutional, Legislative and Judicial Framework Rating). Source: Freedom House. The Rule of Law rating highlights constitutional reform, human rights protections, criminal code reform, judicial independence, the status of ethnic minority rights, guarantees of equality before the law, treatment of suspects and prisoners, and compliance with judicial decisions. (7=lowest, 1=highest) Source: Freedom House Nations in Transit. The data upon which this ranking is based comes from the previous calendar year. Found online: www.freedomhouse.org/research/nattransit.htm.

CY 1999 Baseline

CY 2005 Rank

CY 2006 Rank

CY 2007 Target

5.0

5.0

5.0

4.8


Impact of U.S. Assistance on the Above Indicator: The CY 2006 ranking, which actually captures 2005, did not improve from the baseline because USG programs were just beginning to get started. USG assistance and training in CY 2006 helped launch a case law system and these new programs are expected to improve the CY 2007 ranking that measures CY 2006.

Economic Growth

The Armenian economy continued to improve rapidly, as evidenced by Armenia's double-digit growth, low inflation, and declining poverty rates. Despite this statistically impressive performance and significant increases in real per capita income, Armenia continues to face severe challenges. Because nearly one-third of the population lives on two dollars or less per day, the greatest challenge is reducing the wide income distribution disparity and a 35% poverty rate. Secondly, Armenia's economy remains unbalanced. The construction sector, which grew by almost 40% in real terms and accounted for about half of the total increase in GDP, has been the primary driver of economic growth. While the key export-oriented diamond sector started to show signs of recovery, agricultural and industrial output declined in real terms. A third and fourth challenge is Armenia's expanding trade deficit and the relative weakness of its export sector. Closed borders and significant local currency appreciation have weakened external competitiveness. Finally, Armenia's financial sector experienced rapid growth over the past few years thanks to important financial sector reforms. Nevertheless, the financial system is still too small to provide enough credit to the private sector to act as a significant factor for economic development.

U.S. ASSISTANCE PRIORITIES

The USG assistance to the GOAM and private sector seeks to address imbalances in the economy. In FY 2006, USG programs focused on the building blocks of economic growth, including strengthening the competitiveness of small and medium enterprises (SMEs) and job creation, improving the legal and regulatory environment, increasing the transparency and effectiveness of the tax administration, and developing the financial sector.

USG programs also concentrate on heightening energy security and increasing the capacity of key management and regulatory institutions in the energy, telecommunications, and water sectors. Particularly through technical assistance to agribusinesses, USG efforts also emphasize rural poverty reduction through the promotion of sustainable economic performance increases in the agricultural sector. At the policy level, assistance targets the reform of Armenia's legal, regulatory, and administrative entities to reduce or remove barriers to private sector development, attract higher levels of foreign direct investment, and integrate Armenia as much as possible into the global trading system.

DESCRIPTION OF PROGRAMS AND ACTIVITIES

To create a more business-friendly regulatory environment, USG support in FY 2006, focused on enhancing tax administration, bolstering telecommunications and intellectual property rights laws, introducing alternative dispute resolution practices, strengthening utilities regulation, and improving fiscal policy. Given the importance of competition and a stable regulatory environment to economic growth promotion, the USG continued to provide significant assistance to strengthen key regulatory agencies such as the State Commission for the Protection of Economic Competition and the Public Services Regulatory Commission (PSRC).

To promote private sector development in Armenia, the USG provided selected SMEs with technical assistance to upgrade their marketing, management, financing, and production capabilities. The USG further provided assistance to information technology (IT) and tourism enterprises to raise their production standards and improve their marketing. In so doing, the value of chain linkages within related industries has increased, thus enhancing individual enterprises' competitiveness.

The USG provided assistance to develop private bond markets in Armenia, thereby enhancing product innovation at the Armenian Stock Exchange (ARMEX), offering new investment opportunities to potential investors and providing Armenian enterprises with new, non-bank sources of export financing.

During FY 2006, a major portion of energy sector-related USG assistance consisted of work on policy, legal, and regulatory reforms. Technical assistance helped improve the performance of key public institutions, particularly the PSRC. The USG also continued to support energy service companies by providing technical assistance and training.

In the water management area, USG programs worked to strengthen the regulatory framework to ensure the protection and sustainable commercial use of water resources as well as integrated basin management. Other USG projects were designed to further the performance of water sector management and regulatory institutions, and to increase local capacity to develop and implement market-based solutions to water management issues.

USG Treasury advisors also work with the GOAM on internal and external audit reform.

OUTPUTS

USG SME development assistance in FY 2006 helped to build a more competitive and diversified economy based on a dynamic business sector that can respond freely to domestic and international market signals. In particular, USG assistance aimed to reduce regulatory impediments, lower transaction costs, improve access to finance, and enhance transaction capacity in private sector firms and financial institutions. These efforts translated into the creation of more than 12,000 new SME jobs in 2006. USG-assisted SMEs also registered an overall sales increase of $13,800,000, of which $2,305,000 was export-related.

USG assistance enabled targeted enterprises in key strategic sectors to upgrade their marketing, management, financing, and production capabilities. Areas for technical assistance included product branding techniques, improved product packaging, and product advertising campaigns. Further assistance aided in integrating marketing strategies with an overall business strategy, supporting the participation of Armenian companies in international trade shows and bringing Armenian producers and processors into contact with potential brokers and buyers through overseas study tours. An example of technical assistance effectiveness is USG support to Armenia's first commercial leasing company that, in 2006, executed 111 leases valued at more than $3.5 million to support the acquisition of a wide range of industrial and transport equipment used to raise enterprise competitiveness.

A milestone achievement of the USG water program in 2006 was the GOAM's approval of the country's first National Water Program and its submission of a draft Drinking Water Law to the National Assembly for adoption. USG implementing partners made significant strides in strengthening the capacity of the GOAM and civil society in managing, regulating, and protecting Armenia's water resources. A total of 169 GOAM officials, journalists, and NGO representatives received training on various topics related to water management and basin planning. In addition, the first decentralized Basin Management Organizations offices became operational through USG support, thus moving Armenia further towards local control of water resources.

In the energy sector, the USG assisted the GOAM to prepare a least-cost generation plan and its first energy strategy, both of which have paved the way for energy sector development and the decommissioning of Armenia's aging nuclear power plant at Metsamor. These steps make it more likely that Armenia will be able to shut down the facility. The USG worked on necessary safety upgrades to the power plant, in order to make it safer until decommissioning occurs. In FY 2006, the USG also rehabilitated or installed heating systems in 41 schools, residences, hospitals, and businesses, thus bringing heat to more than 10,000 students, 976 residents, and 2,670 other beneficiaries. The USG additionally implemented 13 pilot projects in such areas as mini-hydroelectrical plants, street lighting and small business. USG assistance also helped to develop two public service announcements on gas safety for broadcast on national television and to prepare 300,000 copies of a gas safety brochure.

PROGRAM PERFORMANCE/IMPACT

USG-funded SME development efforts resulted in the increased sustainability of small businesses in Armenia. The creation and dissemination of the Entrepreneur's Roadmap is a prime example. The guide outlines business registration and licensing processes, thereby reducing opportunities for corruption. Several new financing instruments, such as a short-term working capital loan package targeted for trade financing, increased SME access to capital. The package introduced purchase order finance and generated approximately $5.8 million worth of loans, a significant portion of which financed increased exports, leading to increased profitability and market share of the participating companies.

Supported by a development credit authority guarantee, the ARMEX saw Armenia's first-ever bond issued in September 2006, thus providing companies a new way to attract capital outside of the banking system. The USG additionally launched successful efforts to initiate foreign exchange (FEX) trading on ARMEX. Newspapers now regularly list FEX trading results. With new ARMEX business and foreign currency exchange transparency, cumulative FEX trading amounted to over $190 million by September 2006.

The USG also collaborated with the GOAM to advise the Ministry of Agriculture on establishing and operating an effective Food Safety Committee and to assist the Ministry of Health in finalizing its application for authorization to ship Armenian fish products to the EU. As a result, the EU began to accept Armenian certification and to monitor programs in the aquaculture sector. The USG also coordinated with the Ministry of Agriculture to improve national veterinary testing capability and avian influenza preparedness.

USG-funded industry assistance contributed to the broader usage of business services and cooperation among stakeholders, the improvement of advocacy skills, and the heightened sustainability of tourism and IT associations. Because of USG assistance, business associations in each industry now provide training, advocate for business-friendly changes, attract new members, and generate non-dues revenue. Two newly established associations in the tourism industry operate in the hotel and airline sectors. The Armenian IT industry organized the first IT Month, thus increasing international recognition of Armenia as an IT center and attracting investments from major multinational IT companies, such as Sun Microsystems, Hewlett-Packard, Microsoft, and Festo.

In the water sector, USG-supported improvements in the legal and institutional framework brought about improved water services in the irrigation and municipal sub-sectors and decentralized management of water resources to the river basin level. It also resulted in municipalities' progress toward water service commercialization for irrigation and the GOAM's implementation of Integrated Water Management principles. USG assistance fueled substantial progress in increasing local capacity to develop and apply market-based solutions to water management issues. The USG-sponsored regional water program conducted a number of regional and national workshops and meetings that led to agreement on an agenda for promoting regional cooperation.

The USG also helped the GOAM to develop and update the country's long-term energy strategy to include a least-cost plan for improved energy diversity that calls for the construction of a new nuclear plant.

MEASURES OF PROGRAM EFFECTIVENESS

In order to determine how U.S. Government assistance affects a country, U.S. embassies set targets for improvement called "performance indicators." Research institutes, embassies and international organizations collect data for these indicators. By examining data over time, U.S. policymakers can better understand whether assistance programs are having the intended impact.

Please find below two important indicators in the area of Economic Growth. In the charts, the "Baseline" refers to a starting point from which to measure progress or regression over time. The embassy and its partner organizations then agree on a "Target" figure that they hope to achieve because of U.S. assistance programs. The "Rank" figure is the resulting measurement. "FY" stands for "fiscal year," the period of the U.S. budget that runs from October 1 - September 30 of the following year. "CY" stands for "calendar year," or January 1 - December 31.

Performance Indicator: Days to Start a New Business (World Bank). This indicator, which is used by the MCC and addresses bureaucratic efficiency as well as transparent implementation of business regulation, provides a quick and cost effective way of gauging the ease of establishing a new business, a critical factor for continued economic growth. Improvements in this indicator support broad-based growth on the macroeconomic level. Found online at: www.doingbusiness.org.

CY 2004 Baseline

CY 2005 Rank

CY 2006 Rank

CY 2007 Target

25

25

24

23



Impact of U.S. Assistance on the Above Indicator: The USG is providing assistance to review and analyze the current business registration system. The USG is further assisting the State Registry to utilize fully and properly the software previously provided with USG assistance. The State Registry's technical staff is thus becoming increasingly capable of managing the business registration system in an efficient manner. This has reduced the time required to start a new business.

Performance Indicator: Agricultural gross output - Percentage change in real terms. Source: European Bank for Reconstruction and Development, Transition Report. Found online at: http://ppc.usaid.gov/esds/sources.cfm.

CY 2003 Percentage

CY 2004 Percentage

CY 2005 Percentage

CY 2006 Target

4.0%

14.5%

11.2%

11%



Impact of U.S. Assistance on the Above Indicator: Because of USG assistance, several hundred companies made significant progress in developing new international and local markets for their products.

Investing in People

In FY 2006, the context for providing health and social service in Armenia remained challenging. Despite overall high life expectancy, Armenia's health indicators compare poorly against other countries with similar per capita incomes and education. The infant mortality rate is currently 26 deaths per 1,000 live births, and the total fertility rate is 1.7 children per woman. Armenia's Contraceptive Prevalence Rate was 53%, though only 19% of women used modern family planning.

The GOAM is increasing national primary healthcare (PHC) funding. Although the 1.3% is low as a percentage of GDP, GOAM national health care spending was higher than ever in 2005 and rose 20% in 2006. The proportion of the health budget allocated to PHC increased from 24.5% to 36.5% in FY 2006. Key progress included the availability of PHC services to all Armenians as part of the Basic Benefits Package. The Ministry of Health's (MOH) commitment to develop positive policies and laws bears witness to the institutional changes occurring with USG assistance.

Even though double-digit growth led to a decrease in the poverty rate from 50% to 35% over the last year, part of this reduction was due to a change in survey methodology. Over 35% of the population still lives on under $2 a day. Social benefits provided to the most vulnerable populations remained inadequate. Because the GOAM has neither adjusted pensions for inflation nor defined pensions on the basis of the "consumer basket," serious vulnerabilities remain for recipients of such benefits. Furthermore, at just 4.7% of the GDP, the GOAM public social protection spending is among the lowest in the world, compared to 15% in the OECD, 17.3% in the EU and 8.6% in the U.S.

U.S. ASSISTANCE PRIORITIES

The combined health and social sector programs implemented with USG funding focused in FY 2006 on strengthening institutional capacity and providing direct assistance to reduce poverty and improve quality of life in Armenia. The first priority of USG assistance is to support the GOAM's efforts to provide the entire population with sustainable, high-quality, and cost-effective essential PHC services to improve the health of the Armenian people. To this end, assistance targeted strengthening the GOAM's capacity to implement national PHC reform and to provide PHC services at the facility level, particularly to meet maternal and reproductive health needs.

In tandem with these reforms, the USG also seeks to strengthen the GOAM's ability to deliver social services to all citizens and social assistance to the most vulnerable including humanitarian assistance. The USG and GOAM are working to ensure that the GOAM can continue to enhance and implement social insurance programs once USG assistance phases out.

DESCRIPTION OF PROGRAMS AND ACTIVITIES

The USG works with the Ministry of Health (MOH), the Armenian National Institute of Health, regional and local authorities, and other donors to provide technical assistance, training, and commodity support to increase the availability of high-quality PHC services. This work is being carried out by strengthening the MOH's capacity to implement PHC reform and to reinvigorate the provision of PHC services to satisfy the immediate needs of vulnerable populations. Specifically, USG-financed activities aim to increase the transparency and efficiency of administrative, managerial and health-financing mechanisms, improve the regulatory environment for healthcare service delivery, and strengthen undergraduate and continuing medical education. Activities further focus on improving the overall quality of care by training personnel, providing essential clinical equipment and renovation, expanding the provision of quality PHC and outreach services with an emphasis on vulnerable, underserved populations, and enhancing consumer demands for high quality, client-focused PHC services.

The USG assists the GOAM to improve overall social services. USG-funded self-help initiatives complement local community initiatives by offering temporary employment to address the pressing rural infrastructure needs. At the same time, USG programs meet the basic needs of the most vulnerable populations by supplying food supplements and providing much-needed social services. They also address the needs of at-risk children by strengthening the capacity of families and communities to support orphans and otherwise vulnerable children, and to avoid then from being placed in inadequate institutions.

The USG also has 79 Peace Corps volunteers in Armenia who help with community business development, environmental education, community health education, and teaching English as a foreign language.

OUTPUTS

The USG continued to build the capacity of PHC providers by providing pre-service, in-service, and on-the-job training. In 2006, 79 clinicians and 230 physicians received training in safe motherhood, prenatal care, and other PHC competencies. Over 80 rural physicians and nurses received on-the-job training and mentoring during periodic outreach visits. The USG also developed a six-month comprehensive training curriculum that will prepare nurses to serve in rural areas. In response to the continuing need to improve the physical infrastructure of PHC facilities, the USG upgraded 75 clinics and provided basic equipment and supplies to 113 health facilities.

To enhance consumer demands for PHC services, the USG assisted in establishing over 50 Health Action Committees (HACs) in rural Armenian communities that sponsored over 400 gatherings to disseminate key health messages.

During 2006, the USG supported the provision of high quality outpatient and outreach services to vulnerable populations. Using medical outreach teams, the USG provided essential PHC services to approximately 80,000 people in 123 remote villages. Through alliances with two private Armenian- American organizations, the USG assisted in providing eye care and breast and cervical cancer screening services. Of the over 44,000 patients professionals screened for eye conditions, almost 2,500 received surgery, laser treatment or glasses. Over 13,000 women received cancer-screening services.

In support of social services, the USG collaborated with local governments and community groups to prioritize social infrastructure projects, improve stakeholder participation, and raise matching contributions of at least 10% of each project's total amount. USG assistance rehabilitated a rural clinic, ten kindergartens, two schools, three secondary school sports halls, one music school, and repaired five drinking water mains in five towns. It also constructed 179 solid waste units in five towns, which benefited 50,000 people and trained some 300 people in marketable vocational skills in the construction sector, which generated more than 1,400 short-term and permanent jobs for vulnerable community members.

To meet the immediate nutritional, social, and health care needs of the most vulnerable, the USG provided daily meals and social services to over 8,000 vulnerable elderly citizens through 27 soup kitchens and five community centers throughout Armenia. To assist vulnerable children, the USG provided training and supplies to 12 community centers serving 856 children in difficult circumstances. It further trained 702 teachers and 1,657 parents on inclusive education and child development. Because they had completed their individual development plans, 224 children graduated from the project and another 15 children will now receive vocational training in special institutions.

In FY 2006, the USG concluded an eight-year program that trained more than 10,000 teachers in new teaching methodologies and published 18 textbooks for elementary and middle level schoolteachers, school administrators, and pre-service educators.

PROGRAM PERFORMANCE/IMPACT

Despite significant challenges, health sector activities led to tangible results this year. Because of USG assistance, use of PHC services in target areas doubled, according to data collected from selected health facilities in target zones. Because of USG safe motherhood training for rural nurses, the GOAM now allows rural clinicians to provide quality routine prenatal care. The USG also created clinical training sites and upgraded the skills of rural clinical trainers to provide for a sustainable training system for rural practitioners after USG assistance ceases. USG support for mobile medical outreach teams immediately improved care for 80,000 people living in rural, underserved areas and increased the MOH commitment and capacity to provide services to these populations.

USG work with HACs led to the mobilization of community resources (from 50% to 80% in most cases) to renovate health clinics. HACs have also improved the demand for PHC services, have empowered community members to solve their own health problems, and have increased the involvement of local government in healthcare issues.

In FY 2006, the USG laid the groundwork to enable the GOAM to roll out a nationwide open enrollment (OE) system that allows clients to select their healthcare provider. In addition, the socio-economic conditions of many Armenian communities improved through rehabilitated social infrastructure and social services. Communities designed, proposed, partially financed, and implemented their own rehabilitation programs. USG assistance registered major accomplishments including the renovation of orphanages, nursing homes, hospitals, kindergartens, schools for the handicapped, and other social infrastructure facilities throughout Armenia. Many of these programs provided work opportunities and training for the unemployed and engaged communities in the development process. Others provided food and social services daily to 8,000 vulnerable elderly individuals in six Armenian regions.

USG assistance strengthened Armenia's social protection departments, agencies and systems, allowed the GOAM to advance macro-level reforms to improve the national social insurance and pension programs, and supported GOAM improvements in the policy, regulatory and administrative systems that guide the delivery of social assistance to vulnerable populations and social services such as unemployment, disability benefits, and occupational safety for all citizens.

MEASURES OF PROGRAM EFFECTIVENESS

In order to determine how U.S. Government assistance affects a country, U.S. embassies set targets for improvement called "performance indicators." Research institutes, embassies and international organizations collect data for these indicators. By examining data over time, U.S. policymakers better understand whether specific assistance programs are making their intended impact and, if necessary, how to adjust these programs to improve the impact.

Please find below two important indicators in the area of Investing in People. In the charts, the "Baseline" refers to a starting point from which to measure progress or regression over time. The embassy and its partner organizations then agree on a "Target" figure that they hope to achieve because of U.S. assistance programs. The "Rank" figure is the resulting measurement. "FY" stands for "fiscal year," the period of the U.S. budget that runs from October 1 - September 30 of the following year. "CY" stands for "calendar year," or January 1 - December 31.

Performance Indicator: Public Health Expenditure. Ratings are based on a scale from 1 to 5, with 5 representing the best score. Source: USAID "Monitoring Country Progress in Central and Eastern Europe & Eurasia," No. 10 (March 2006), drawing from World Bank, World Development Indicators 2005 and UNICEF, Social Monitor 2005. The data upon which this ranking is based comes from the previous calendar year. Found online at http://www.usaid.gov/locations/europe_eurasia/country_progress/.

CY 1997 Baseline

CY 2004 Rank

CY 2005 Rank

CY 2006 Target

0.5

0.5

0.5

0.5



Impact of U.S. Assistance on the Above Indicator: Although the USG cannot influence many of the factors contributing to this indicator, the USG assisted the GOAM to conduct its first-ever National Health Account Study in 2006. The study revealed that of total health expenditures in 2004, the GOAM State Budget financed 24%, while private sources such as household and donor expenditures financed 76%. The study's results, to be disseminated in 2007, will draw public attention to the GOAM's need to increase health spending.

Performance Indicator: Under 5 Mortality. Ratings are based on a scale from 1 to 5, with 5 representing the best score. Source: USAID "Monitoring Country Progress in Central and Eastern Europe & Eurasia," No. 10 (March 2006), drawing from World Bank, World Development Indicators 2005; UNICEF, Social Monitor 2005. The data upon which this ranking is based comes from the previous calendar year. Found online at http://www.usaid.gov/locations/europe_eurasia/country_progress/.

CY 1997 Baseline

CY 2004 Rank

CY 2005 Rank

CY 2006 Target

3.0

3.0

3.5

3.5



Impact of U.S. Assistance on the Above Indicator: According to the Armenian Demographic Health Survey, mortality under the age of five declined from 39 deaths per 1,000 live births in 2000 to 30 deaths per 1,000 live births in 2005. Although it is statistically difficult to measure the exact contribution of USG assistance, USG activities to improve the quality of and access to PHC, including illnesses that affect children such as neonatal illness, upper and lower respiratory infections, and diarrhea, most likely contributed to this decline.

Peace and Security

While Armenia has developed viable military and security forces, it has substantial work to do to improve the North Atlantic Treaty Organization (NATO) interoperability of its military forces and to meet Euro-Atlantic standards regarding its military, border guards, and its nuclear energy sector. To address the shortfalls, the GOAM has increased its cooperation with the U.S., NATO, and other Western allies to improve its military forces and enhance its other peace and security capabilities.

USG assistance to the Armenian Border Guard (ABG) is limited by continued Russian Border Guard responsibility for Armenia's Turkish and Iranian borders; however, in FY 2006, the USG expanded assistance to the ABG by providing material and educational support to border personnel.

U.S. ASSISTANCE PRIORITIES

USG assistance supports Armenian national defense institutional reform with an emphasis on Euro-Atlantic values and integration. USG assistance works to increase the interoperability of Armenia's military with NATO by harmonizing the Armenian military's planning, logistics, and personnel and resource management systems. USG assistance programs also strive to build the GOAM's capacity to conduct peace and stability operations in support of coalition or NATO operations.

U.S. security assistance programs encourage and enable the GOAM to support multilateral nonproliferation regimes, enforce U.S. and multilateral sanctions, interdict illicit shipments, and strengthen nonproliferation export controls and border security practices. USG assistance also aids the GOAM's development of systems to defend against and eliminate weapons of mass destruction (WMD).

USG assistance for the criminal justice system aims to modernize the law enforcement infrastructure to meet international standards and to encourage a respect for human rights and the rule of law.

DESCRIPTION OF PROGRAMS AND ACTIVITIES

USG assistance focused on supporting Armenian institutional defense reform and on increasing the combat capabilities of the few Armenian units that are currently involved in international peacekeeping missions. In FY 2006, this new peacekeeping focus of security assistance allowed the use of Foreign Military Financing (FMF) for non-communications gear for Armenian ground forces.

With USG assistance, Armenian officers received professional military education and English-language courses to support peacekeeping operations and defense reform. In addition, the USG provided a limited amount of personal and unit equipment to enhance its NATO interoperability and improve its ability to support ongoing peacekeeping missions in Iraq and Kosovo. U.S. European Command (EUCOM) funds further programs with Warsaw Initiative Funds (WIF).

In FY 2006, USG assistance renovated and equipped training centers for customs and police officers and border guards. The USG began building a nationwide police computer network to connect precincts in all 11 regions and to provide them with central database access. The USG continued to develop a forensic laboratory to serve all GOAM law enforcement agencies with building renovation, wireless Internet connection, and internationally accredited internal policies and procedures manuals. The USG also implemented activities aimed at raising public awareness of trafficking in persons, protecting trafficking victims, and improving national referral mechanisms.

OUTPUTS

USG assistance provided and installed personal and vehicular radiation detection portals at all border crossings to control entry, exit, and transit of WMD materials. The USG conducted 11 training sessions in which it trained 223 officers and industry representatives in the legal, licensing and enforcement techniques related to export control and WMD crime scene management. USG Equipment and training helped the GOAM improve its radioactive source control and management.

In 2006, U.S. assistance provided 20 Armenian Ministry of Defense (MOD) officers with U.S. professional military courses that increased the 12th Peacekeeping Battalion interoperability with NATO and enhanced the MOD's implementation of reform within the MOD and the General Staff. FMF equipment provided the 12th Peacekeeping Battalion with NATO interoperable field equipment and individual soldier equipment for use during peacekeeping deployments. Complementary EUCOM JCTP and SPP exchanges, seminars, and conferences improved the Armenian Rescue Service's crisis management capabilities.

USG assistance sent six GOAM law enforcement representatives to a training conference to develop their capacity to combat intellectual property rights violations. The USG also provided case law training for 30 judges, 13 prosecutors, and 37 advocates. Twenty-six judges, eight police officers, and 13 prosecutors attended a training seminar on combating trafficking in persons. Additionally, the USG developed a manual for GOAM consular officers on combating trafficking in persons. A USG-funded shelter identified 25 trafficking victims and assisted them. The USG also produced two reports on trafficking issues that need to be addressed by the general population and within vulnerable groups. In addition, the USG donated to the police physical techniques training equipment, as well as hardware and software for a new computer network. The USG also joined other donors in renovating the GOAM's only police induction center.

The recently completed USG-sponsored Border Guard Training Center trained 143 new border guards who have replaced Russian border guards at Yerevan's main Airport. Infrastructure improvements included the establishment of two main training centers and small office/trailers at the three border crossings with Georgia. The USG provided computer and classroom equipment, high-tech radios and sensors, as well as all-terrain vehicles to the ABG and the State Customs Committee.

PROGRAM PERFORMANCE/IMPACT

In FY 2006, USG assistance directly provided to Armenian Ministry of Defense officers that were educated in U.S. tactical, doctrinal and NATO systems will now enable the GOAM to implement NATO interoperable military systems on national and tactical levels. USG assistance provided material that improved the capability of the peacekeeping battalion. The equipment will be used to prepare for upcoming deployments and will be deployed with troops in Iraq and Kosovo in 2007. Limited equipment acquisitions in 2006 have enhanced the GOAM's peacekeeping capability have supported defense reform at the ministry level and below.

USG military assistance improved the ABG's WMD detection capabilities and its development of defensive systems to combat terrorism in the region.

In FY 2006, USG assistance supported the improvement of nuclear reactor safety, established emergency response procedures, and secured nuclear material against misuse. In the energy sector, the USG implemented joint projects with the GOAM that improved near-term safety at the Armenian Nuclear Power Plant (ANPP) and enhanced emergency management and plant operators' technical and operational practices.

Humanitarian Assistance

Despite the best efforts of the national government, the needs of many vulnerable people remain unmet. Widespread poverty, slow progress on reform, and continued regional trade barriers have made it difficult for Armenia to raise public funding sufficient to support citizens who are unable to work or otherwise support themselves. In FY 2006, the USG continued its efforts to meet basic needs of these groups through the distribution of commodities and provision of basic services.

U.S. ASSISTANCE PRIORITIES

USG humanitarian programs in Armenia continued to focus on improving the daily lives of the most vulnerable, often institutionalized, persons living in remote areas without even the most basic of necessities. The top priority for humanitarian assistance was to provide medicines, clothing, and adequate housing. The second priority was bolstering local and USG disaster and crisis response capability.

DESCRIPTION OF PROGRAMS AND ACTIVITIES

In FY 2006, the USG continued to fund a commodity distribution project, a healthcare services project, small reconstruction projects, and a children's vaccination program.

The USG funded the distribution of donated and USG excess medical and other relief items. U.S. assistance funded the operation of a medical clinic in Alaverdi, a mobile medical unit, and rural nurse stations to provide basic medical and diagnostic services to underprivileged and remote rural populations. The USG-funded GOAM Measles, Mumps, Rubella (MMR) immunization program sought to immunize all children between the ages of one and six. USG funds renovated two ambulatory clinics, three institutions for the mentally and physically disabled, and a boarding school (orphanage) for boys under the age of 18. These projects repaired roofs, re-installed plumbing, and renovated living areas of those institutions identified as most in need.

The U.S. provided supplemental food for institutionalized persons through a cheese distribution program. . Finally, the USG funded an ongoing humanitarian outreach program that provided free shipping and guidance to any registered U.S. charitable organization currently implementing or planning humanitarian projects in Armenia. In FY 2006, this program allowed two U.S. charities to deliver and distribute seven containers of food, clothing, medical supplies, and other items valued at over $1 million to a school for underprivileged children in Gyumri and to a center for the elderly in Yerevan.

OUTPUTS

The primary focus of the USG humanitarian program is the distribution of humanitarian commodities, for which need has been verified, to vulnerable persons beyond the reach of GOAM and other USG assistance programs. Overall, in FY 2006, the humanitarian program delivered 65 surface containers and five airlifts of various humanitarian commodities valued at $14.37 million. The cost to transport, distribute, and monitor these commodities was just over $1.6 million. Commodities delivered included, medicines, medical supplies, shelter items, clothing, shoes, food, blankets, linens, hygiene kits, and school supplies. With USG assistance, locally-produced cheese was distributed to 78 institutions housing orphans, physically and mentally disabled people, and the elderly. Additionally, the formerly empty building of the Nor Artamet Ambulatory Clinic was fully furnished and equipped with supplies necessary to treat patients, including medicines, medical supplies, and primary care kits.

PROGRAM PERFORMANCE/IMPACT

Although humanitarian programs have a significant impact on the day-to-day lives of recipients, they are not designed to have long lasting results for recipient countries. Still, there are a number of benefits that help to promote sustainable development. The provision of relief supplies and the renovation of facilities alleviates some of the burden on the Government of Armenia and allows for resources to be focused on democratic and economic reforms that will enable the country to care for its own in the future. In addition, humanitarian programs foster greater cross-cultural understanding between the U.S and Armenia and can be a foundation for future economic and cultural exchanges. Lastly, humanitarian programs can help the local governments identify areas in need of improvement and act as a blueprint for how to begin solving social welfare problems. 

FY 2006 Funds Budgeted for U.S. Government Assistance to Armenia [PDF format]



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