Note: This document may not always reflect the actual appropriations determined by Congress. Final budget allocations for USAID's programs are not determined until after passage of an appropriations bill and preparation of the Operating Year Budget (OYB).
ARMENIA
FY 1997 FY 1998 FY 1999 Actual Estimate Request FREEDOM Support Act............... $95,000,000 $87,500,000 $80,000,000 Introduction
Armenia is a strategically important republic in the Caucasus that is in the early stages of an uneven transition to a democratic political order and free-market economy. U.S. interests in the region will be advanced by the emergence of a Western-oriented, democratic and economically prosperous Armenia. With a settlement of the Nagorno-Karabakh conflict, Armenia could provide leadership to promote regional economic integration and political cooperation within the Caucasus.
The Development Challenge
Like other countries of the former Soviet Union, Armenia's economic transition has been hampered by the legacy of central planning, severe economic shocks arising from the collapse of the USSR, and limited will on the part of national decision makers to undertake critical reforms to restructure and privatize the economy. In the political sphere, flawed presidential elections in 1996 continue to erode the legitimacy of the present government, and together with widespread corruption, has produced a cynical body politic.
The absence of a viable legal and regulatory framework and the comparative weakness of civil society has also blunted progress toward democratic governance. A final major impediment to Armenia's emergence as a prospering free-market democracy has been the conflict over the predominantly ethnic Armenian-populated enclave of Nagorno-Karabakh located entirely within Azerbaijan. The conflict led to a trade and transport embargo of Armenia by Azerbaijan and the closure of the Turkish border since 1991. Although a cease-fire has held since May 1994, the borders are unlikely to open until a permanent peace settlement is negotiated. Successful resolution of the conflict would: (a) allow Armenia to reopen trade routes, particularly railways, thereby (b) make Armenia more attractive to potential investors; and (c) reduce significantly the level of popular hardship that has required humanitarian aid at the expense of more development-oriented assistance.
Despite it's hardships and challenges, Armenia has significant assets which include a highly skilled and educated workforce, strong national identity, impressive political and financial support from a large international diaspora and the international community in general. With the exception of flawed presidential elections, Armenia has registered noteworthy progress in the economic, political and social sphere. With support from the United States (U.S.) and other foreign donors, the hardships spawned by war and severe energy shortages has eased considerably.
The Government of Armenia (GOAM), with U.S. technical assistance, has taken measures (e.g. fiscal restraint, price liberalization, rationalized tax system) that have resulted in greater macro-economic stability evidenced by markedly lower inflation and positive growth rates in each of the past three years. Privatization and restructuring of former State enterprises have moved ahead slowly while the small business sector is just beginning to emerge. Revitalization of the economy is also being hampered by the underdeveloped state of the country's financial markets; commercial lending institutions are only beginning to function as financial intermediaries between savers and investors in order to mobilize savings. Central Bank operations are gradually improving and the adoption of internationally accepted accounting standards is proceeding. Progress on privatizing the housing stock is paving the way for a well functioning real estate market. Also, USAID programs have helped Armenia to register progress in overhauling the country's troubled energy sector, "unbundling" the power utility into more efficient components responsible for generation, transmission and distribution.
Collections for energy use by commercial and residential consumers have risen dramatically, an independent regulatory commission has been established, and a new energy law has been passed by the Parliament.
In the move toward democracy, there have been encouraging developments -- many achieved with USAID assistance. Legislation on a new civil and criminal code is close to enactment. Both the judiciary and the Parliament are becoming more capable institutions. USAID's work in civic society has fostered the comparative growth and maturity of the NGO sector and of opposition parties, enabling them to aggregate their collective interests through coalition building and advocate more effectively for democratic reforms. An independent print and broadcast media is emerging and exposing Armenians to divergent views.
Other Donors
While the U.S. is by far the largest provider of aid to Armenia (some 45% of Overseas Development Assistance), other major bilateral donors and lending institutions include the International Monetary Fund, World Bank, European Bank for Reconstruction and Development, European Union, Germany, Great Britain, Italy, Netherlands and France. USAID has worked cooperatively with several donors and been instrumental in leveraging large loans from the World Bank through targeted technical assistance.
FY 1999 Program
USAID's FY 1999 assistance effort will accelerate the trend away from humanitarian aid toward reform-oriented activities. Greater emphasis will be directed to revamping the energy and financial sectors; creating a legal, regulatory, and policy framework for broad-based competition and economic growth; and promoting democratic pluralism through better-informed citizen participation in the political process.
Under economic restructuring, USAID is requesting funds for strategic objectives in privatization, private enterprise development, financial sector development and energy restructuring. Under the democracy goal area, funds are requested for strategic objectives in citizens' participation, improved legal systems and local government strengthening. In support of the social sector rubric, USAID will downsize humanitarian programs and address longer-term social service delivery problems.
As part of cross-cutting and special initiatives, funds are requested for training programs that support mission strategic goals across the entire assistance portfolio. Beginning in FY 1998, funding for training will increasingly be focused on economic and related leadership training. Funds are also set aside for vaccines, medications and equipment to combat infectious diseases, including tuberculosis.
ARMENIA
FY 1999 PROGRAM SUMMARY*
(in Thousand of Dollars)
Strategic ObjectivesEconomic Restructuring Democratic
TransitionSocial Stabilization Cross-cutting / Special Initiatives Total Privatization 3,000 -- -- -- 3,000 Fiscal Reform -- -- -- -- -- Private Enterprise 9,000 -- -- -- 9,000 Financial Reform 4,600 -- -- -- 4,600 Energy 16,265 -- -- -- 16,265 Environmental Management -- -- -- -- -- Citizens' Participation -- 7,700 -- -- 7,700 Legal Systems -- 4,300 -- -- 4,300 Local Government -- -- -- -- -- Crises -- -- 5,000 -- 5,000 Social Benefits -- -- -- -- -- Environmental Health -- -- -- -- -- Cross-cutting / Special Initiatives -- -- -- 30,135 30,135 TOTAL 32,865 12,000 5,000 30,135 80,000
*FREEDOM Support Act (FSA) funds
USAID Mission Director: Geraldine Donnelly
ACTIVITY DATA SHEET
PROGRAM: ARMENIA
TITLE: Privatization, 110-S001.1
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $3,000,000 FREEDOM Support Act INITIAL OBLIGATION: FY 1998; ESTIMATED COMPLETION DATE: FY 2003
Purpose: Increased transfer of state-owned assets to the private sector.
USAID Role and Achievements to Date: A potential role for USAID in promoting the privatization of agricultural and industrial land is currently being assessed. Extensive meetings with counterparts in the Ministry of Privatization and the Ministry of Justice's cadastral department indicate that USAID can play a role in supporting the development of a private land market. Assistance is needed in several areas including: major titling and registration efforts; legal and regulatory reform to streamline procedures and institute uniform contracting procedures; the licensing and training of private surveyors, appraisers, auctioneers, and real estate brokers; and new areas such as zoning, land use rights, water rights, and the auction of residual shares. USAID has previously supported efforts to establish market based property assessment and a property registration system. New privatization work in this area will build upon these efforts.
Description: This is a new strategic objective in FY 1998 and still under design. The privatization of agricultural and industrial land will require coordination with other donors in establishing a titling and registration system. As part of this program, USAID plans to assist in developing programs that inform Armenian citizens about agricultural and industrial land privatization issues and ownership rights. This program, which is closely linked to other components of the market reform program, will enable municipalities to generate income through tax revenues rather than land leases and allow enterprises to raise capital more effectively, including through the use of land as collateral.
Host Country and Other Donors: USAID will work with the State Unified Cadaster under the Ministry of Justice and other donors, as appropriate.
Beneficiaries: A comprehensive and legally recognized right to private land ownership is an integral part of a country's economic transition to a market economy. By securing title to their land, private enterprises will enhance their commercial viability and be more attractive to investors, both domestic and foreign, and enhance the economic well being of the entire population.
Principal Contractors, Grantees or Agencies: Principal contractor not selected. International City/County Management Association.
Major Results Indicators: Baseline Target Land titling and registration system established* No (1997) Yes (2000)*Because this strategic objective is new in FY 1998, this is an illustrative indicator. Baseline and targets to be determined in FY 1998.
ACTIVITY DATA SHEET
PROGRAM: ARMENIA
TITLE: Private Enterprise, 110-S001.3
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998: $9,000,000 FREEDOM Support Act
INITIAL OBLIGATION: FY 1993; ESTIMATED COMPLETION DATE: FY 1999
Purpose: Accelerated development and growth of private enterprise.
USAID Role and Achievements to Date: USAID provides assistance to both the GOAM, to improve the legal and policy environment supportive of private sector growth, and directly to the private sector to provide increased access to opportunities. With USAID assistance, the Ministry of Economy and Parliament enacted the first market-oriented real estate law and the first condominium association law in the former Soviet Union. USAID also assisted with the drafting of bankruptcy and mortgage laws. These laws are important to develop real estate markets, ensure legal property rights and create market values for taxing real property. USAID is now helping the GOAM to join the World Trade Organization increasing assistance directly to the emerging private sector.
Description: The USAID-funded Center for Economic Policy Research and Analysis (CEPRA) provides technical assistance and training to enable policy-makers (Parliament and Executive branches) to formulate market oriented economic policies based on accurate measurement of key macroeconomic indicators and projected impacts of alternative policies. CEPRA is also engaged in the development of plans, policies, laws and regulations that support the transition to a market economy. CEPRA is helping to develop a commercial code to support private enterprise and will provide training for lawyers, judges and business persons in adjudication of commercial disputes. USAID will assist the GOAM on the design, test and development of a unified system of property registration. This is based on legal descriptions contained in the real estate law; and a service to legally register property, convey title and record property values based on market prices. USAID will also assist the Government and municipal authorities to develop unified urban planning and development policies (e.g., zoning ordinances), building ordinances, public property auctions. As the private sector increases, more credit is becoming available for micro, small and medium enterprises. USAID-funded Eurasia Foundation and Shorebank Advisory Services work through banks to provide credits to small and medium businesses; FINCA International provides direct micro-enterprise assistance. Increasing technical assistance is being provided directly to entrepreneurs through business centers with a focus on agribusiness, production and consulting.
Host Country and Other Donors: CEPRA coordinates its economic policy analysis and legal and regulatory reform of commercial laws with the IBRD, IMF, the European Union, and the Ministries of Economy and Finance. CEPRA assists the American University of Armenia with conducting economic education activities. USAID works with the IBRD in related programs for developing the land cadastral system and small and medium enterprise development. USAID grantees (VOCA and the International Executive Service Corps) identify and assist potential clients with the preparation of viable investment and business plans which benefit both the borrower and lender. In collaboration with Shorebank/FINCA's Caucasus SME Fund, micro, small and medium enterprise credit support is being provided by the International Finance Corporation. OPIC is also providing SME credit. Eurasia Foundation collaborates with the Open Society Foundation. Business centers receive money and assistance from the Department of Agriculture, the Peace Corps, and UNDP.
Beneficiaries: Reformed economic policies and institutions will set the stage for foreign investment and the rapid import of new technology to put its skilled labor force back to work. Home owners and land owners will possess guaranteed rights to the use of property. Banks will increase lending because they can collateralize loans and foreclose. Government will increasingly generate revenues from property taxes based on a system of tax laws and procedures that are applied fairly. To support real
estate and other markets, commercial laws will guide the way business is conducted. Finally, individual entrepreneurs will benefit from technical and financial assistance.
Principal Contractors, Grantees or Agencies: University of Maryland/IRIS (for CEPRA); International City/County Managers Association (ICMA) is responsible for housing privatization, housing law and property registration; IESC and VOCA provide advisory assistance to Armenian entrepreneurs; Eurasia Foundation, Shorebank Advisory Services and FINCA International provide loans to small and micro-enterprises
Major Results Indicators: Baseline Target Private sector percentage of income in Yerevan 57% (1995) 80% (1999) Private sector percentage of employment 43% (1994) 56% (1999) Private sector as percentage of GDP 50% (1995) 65% (1999)
ACTIVITY DATA SHEET
PROGRAM: ARMENIA
TITLE: Financial Reform, 110-S001.4
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998: $4,600,000 FREEDOM Support Act
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2001
Purpose: A more competitive and market-responsive private financial sector.
USAID Role and Achievements to Date: USAID, IMF, World Bank and EU are collaborating to establish a strong, market-oriented Central Bank. This began with the establishment of the domestic electronic payments system (EPS) and the establishment of the Bank Training Center within the Central Bank of Armenia (CBA) in 1996. USAID contributed to the opening of Armenia's first commercial lending facilities in three commercial banks to assist small and medium-sized enterprises.
Description: USAID will provide technical assistance to the Central Bank and Ministry of Finance as part of a multi-lateral effort to establish a new national accounting system based on internationally-accepted accounting standards, including an accounting law or decree. In 1998 USAID has work underway to extend the real time electronic payments to international transactions and to install an electronic accounting system on the CBA platform. When completed the CBA will have the basic modern electronic infrastructure to facilitate domestic and international payments and capital movements. USAID launched commercial bankers' training in 1996 in the CBA's new training center, focussing on international accounting standards, credit analysis, asset and liability management, lending operations, client services, etc. To facilitate lending, USAID has funded the Eurasia Foundation to establish a commercial lending facility for small and medium enterprises (SMEs), through competitively-selected local banks.
Host Country and Other Donors: The installation of the EPS is a joint undertaking with the IMF, the European Union (EU), and the IBRD. USAID assistance for accounting conversion is coordinated with the IMF's Banking Supervision Accounting Advisor to the Central Bank who is assisting with the installation of the IMF Chart of Accounts. EU short-term accounting advisors coordinate with USAID and Peace Corps Volunteer CPAs for accounting conversion.
Beneficiaries: USAID, IMF, World Bank and EU assistance will establish a strong, market-oriented Central Bank and commercial banking system. Savings deposits will increase and collateralized-lending will expand as banks compete. Offshore funds will begin to flow into banks, increasing capital for new business ventures. Savers and borrowers will benefit as both are served by a more rational, efficient and market-oriented banking system.
Principal Contractors, Grantees or Agencies: Motorola, Lotus, Sprint, IBM/MERVA and MONTRAN are implementing the electronic payments and accounting systems. Eurasia Foundation established the Small and Medium-Size Enterprise Loan Fund in Armenian commercial banks. KPMG/Barents is implementing bankers' training.
Major Results Indicators: Baseline Target Financial sector assets as percent of GDP 100 (1995) 140 (1999) Spread between deposit & borrowing rates (%) 56% (1995) 17% (1999) Level of deposits in commercial banks (index) 100 (1995) 107.2 (1999)
ACTIVITY DATA SHEET
PROGRAM: ARMENIA
TITLE: Energy, 110-S001.5
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $16,265,000 FREEDOM Support Act
INITIAL OBLIGATION: FY 1996; ESTIMATED COMPLETION DATE: FY 2001
Purpose: A more economically sound and environmentally sustainable energy system.
USAID Role and Achievements to Date: USAID's emphasis is threefold: (a) to create a climate that will attract private sector participation and ownership, with subsequent improvements in the management or resources and provision of services; (b) to improve the efficiency of the sector in economic terms, with subsequent increases in capital and operating resources; and (c) to reduce the environmental hazards of operating the Medzamor Nuclear Power Plant. To date, USAID has assisted the Ministry of Energy in achieving some major accomplishments in the restructuring of the energy sector. Armenergo, the power utility previously responsible for all electricity generation, transmission, and distribution, has been effectively "unbundled" or broken up into three generation companies, one transmission and dispatching company (with some generation), and 11 distribution companies. Divestiture is planned for the distribution and generation companies. In addition, USAID's assistance has been instrumental in the development of draft energy legislation including a general energy reform law, passed in June 1997, and a draft petroleum law. The new energy law solidified the legal foundation for the Energy Regulatory Commission created by decree in April, which is an independent body responsible for setting tariffs, issuing operating licenses, and developing the rules that will govern the power market. USAID is providing extensive assistance to the new commission. USAID also performed an environmental assessment of the Armenian power sector to facilitate a $100 million World Bank/Japanese Export-Import Bank (JEXIM) loan to rehabilitate the transmission and distribution system. USAID is assisting the Yerevan distribution company and state transmission company to adopt international accounting standards to meet World Bank conditionalities. To support the phasing out of the Armenian nuclear power plant, USAID has completed an analysis defining supply and demand projects that can be completed by 2004. USAID will be performing additional analyses on these projects to facilitate their actual implementation in time to close the plant by 2004, the GOAM's commitment.
Description: While initial USAID assistance to the energy sector involved the provision of critical equipment and fuel supplies, assistance is now focused on the systemic economic reform of the sector and the reduction of the hazards presented by the nuclear plant. To establish an economically sound and environmentally sustainable energy sector in Armenia, USAID resources will be used: to support the restructuring and corporatization of the electric power and natural gas subsectors, including legislative and regulatory reform to promote private sector participation; to strengthen the commercial operations of newly-created energy sector entities, including the introduction of improved metering and collections systems and the adoption of international accounting standards; to mobilize private/public financing for selected energy projects to rehabilitate the energy infrastructure and to reinforce the reform process; and to improve the safety of the Medzamor Nuclear Power Station through short-term safety upgrades and stronger regulatory oversight, while developing energy alternatives to allow the plant to be closed as soon as possible. In Armenia, the two energy subsectors having the greatest impact on the economy are the electric power and natural gas subsectors, where USAID is concentrating its assistance. Assistance is channeled through three institutional contractors in support of energy sector restructuring and privatization, including legislative and regulatory reform; commodity support for system rehabilitation; and short-term training. Two US government agencies also provide nuclear safety support encompassing operational safety improvements and regulatory strengthening.
Host Country and Other Donors: The World Bank, with co-financing support from EXIM, is currently taking the lead in developing a $100 million loan package for rehabilitating and strengthening the power transmission and distribution system, including improving the commercial operation of the enterprises. The Japanese have also provided a $600,000 grant through the World Bank for technical assistance to the Ministry of Energy. The European Union assists the Ministry of Energy in developing energy efficiency policies and legislation, and in strengthening billing and collection systems.
Beneficiaries: Approximately 2.0 million residential and commercial consumers of electricity and natural gas receive more reliable power.
Principal Contractors, Grantees, or Agencies: Three U.S.-based institutional contractors: Hagler Bailly (restructuring and privatization), Burns and Roe (rehabilitation of energy systems), and the U.S. Energy Association (training); and two US Government agencies: the Department of Energy (nuclear safety upgrades) and the Nuclear Regulatory Commission (nuclear safety regulation).
Major Results Indicators: Baseline Target Independent regulated utilities with meaningful financial statements established 0 (1994) 13(2001) Independent regulated utilities with sufficient current earnings and profits to sustain operations 0 (1994) 13(2001) % of Private sector participating in the energy sector 0 (1994) 60%(2001) % of State-owned enterprises fully divested 0 (1994) 60%(2001)
ACTIVITY DATA SHEET
PROGRAM: ARMENIA
TITLE: Citizens' Participation, 110-S002.1
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $7,700,000 FREEDOM Support Act
INITIAL OBLIGATION: FY 1994; ESTIMATED COMPLETION DATE: FY 2000
Purpose: Increased, better-informed citizens' participation in political and economic decision-making.
USAID Role and Achievements to Date: As a result of USAID-funding, approximately 65 journalists from over 12 independent television stations across the country have benefitted from professional technical/journalistic training and are regularly contributing objective news reports for a weekly news program broadcast in the capital city and 11 regions of Armenia. Additionally, USAID activities have ignited political dialogue between key members of several major political charters and a coordinated effort amongst these, NGO representatives and Parliament officials to reach consensus on a new Universal Electoral Code. A number of nascent and relatively inexperienced grassroots organizations have successfully implemented projects and garnered the trust and recognition of international voluntary organizations working in Armenia.
Description: USAID is providing equipment and professional training to independent media entities through Internews and the Eurasia Foundation. The International Foundation for Electoral Systems (IFES) and the National Democratic Institute (NDI) are working on political process reform. Junior Achievement of Armenia will pioneer the incorporation of a novel civics education curriculum in over 200 schools in Armenia and through the Armenian Assembly of America Training and Resource Center. These activities will be expanded in FY 1998 and FY 1999.
Host Country and Other Donors: All USAID programs are closely coordinated with other donor organizations, such as the Soros Foundation and Eurasia Foundation, as well as with the U.S. Information Service (USIS). In addition, USAID's strategies and efforts in the areas of democratic reform are being shared with representatives from international donors and inter-governmental organizations, including the United Nations Development Program, the World Bank, and the European Union as well as with the British, French and German Embassies.
Beneficiaries: USAID-funded activities seek to benefit individuals and organizations actively involved in civic participation and democratic reform efforts, as well as the population at large over time, in encouraging further and deeper citizen participation in the country's transition to a democratic market-oriented state.
Principal Contractors, Grantees, or Agencies: USAID funded activities are implemented by the following grantees: Internews, the Eurasia Foundation, the National Democratic Institute (NDI), the International Foundation for Electoral Systems (IFES), the Armenian Assembly of America sponsored NGO Training and Resource Center, and Junior Achievement of Armenia. Additional grants and contracts will be established with other private US firms for expanded assistance in this area.
Major Results Indicators: Baseline Target Number of Active NGOs working on public policy issues 3 (1996) 10 (2000) Number of Independent television stations providing objective news reports 11 (1996) 25 (2000) % of national legislation passed that is published/covered in media 5% (1996) 25% (1999) Law enacted protecting press freedom No (1996) Yes (1998)
ACTIVITY DATA SHEET
PROGRAM: ARMENIA
TITLE: Legal Systems, 110-S002.2
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $4,300,000 FREEDOM Support Act
INITIAL OBLIGATION: FY 1996; ESTIMATED COMPLETION DATE: FY 2000
Purpose: Legal systems that better support democratic processes and market reforms.
USAID Role and Achievements to Date: USAID began its assistance with programs in legislative drafting, with particular emphasis placed on the Civil Code. Parts I through III have been completed with extensive USAID assistance. Parts I and II have been passed by the National Assembly in the Fall 1997 session; Part III is expected to pass, after USAID-supported international review, during the Spring 1998 session. Limited GOAM political will for judicial reform began to emerge in late FY 97. USAID assistance has been instrumental in the establishment of an independent judicial association, which, is now actively promoting judicial independence, judicial ethics, and continuing legal education for judges. USAID is currently working closely with the GOAM State Judicial Reform Commission, which has been tasked to achieve full judicial restructuring by the constitutionally mandated July 1998 deadline. USAID has provided extensive international legal expertise to the Commission's leaders, in cooperation with the World Bank, for the establishment of a system which is functionally independent from the Ministry of Justice and the Procuracy, both of which controlled the judiciary during the Soviet period, and still do to some degree. USAID will be providing vital assistance to support the development and implementation of a certification exam system for judges and procurators, including methodologies for testing, transparency and security. USAID is also providing legal assistance on the key pieces of legislation, such as the Law on the Bar, Law on the Courts and Law on the Procuracy, which will be necessary for implementation of the new judicial structures. USAID has also committed to support the training-of-trainers and development of curriculum for short and long term training and retraining of judges and procurators. USAID has also begun a long-term program for supporting the reform of the State Law School, including training and retraining for junior faculty, restructuring of the curriculum to meet international norms and new national legislation, and the establishment of an electronic legal research facility. The successful implementation of this program will assure the sustainability of legal reforms in Armenia, by assuring that the next generation of lawyers, procurators and judges are well trained in their own national laws, international norms, and ethical standards of conduct.
Description: While work continues on legislative drafting issues, the main focus in the coming two fiscal years will be on the critical reform and restructuring of institutions, such as the judiciary, the procuracy, the Bar, the Law School, and to a lesser extent, the Ministry of Justice. These programs are facilitated by American, European and local legal experts, working at both the grass-roots and government levels, using seminars, workshops, U.S. and third-country training, and most importantly, one-on-one cooperative efforts to develop materials and methodologies for training. Specifically, direct assistance has been provided to the National Assembly committees responsible for key legislation, the Constitutional Court, the Yerevan State University Law Faculty, the Armenian Independent Judicial Association (AJARA), the Procuracy, indigenous legal reform and human rights NGOs, and a handful of fledgling bar associations in advance of the advent of a national bar association.
Host Country and Other Donors: Since its establishment, all USAID legal reform programs have been coordinated through the GOAM's State Judicial Reform Commission. In addition, USAID is closely coordinating and cooperating with German Aid and the Dutch government. USAID also has established good working ties with the Council of Europe, which is funding significant programs in the region in the areas of constitutional and criminal law reform. Finally, USAID has established a working partnership with the World Bank Judicial Assessment Team responsible for determining the type and extent of assistance the World Bank will be providing to Armenia for judicial reform.
Beneficiaries: These efforts will benefit Armenia's legal institutions and legal advocates in the transition to a governmental system based on the rule of law and market principles, and thus will benefit Armenian citizens who rely on these institutions, both governmental and non-governmental, to support and protect their individual and property rights in accordance with the constitution and internationally recognized human rights statutes.
Principal Contractors, Grantees, or Agencies: The American Bar Association's Central and East European Law Initiative (ABA/CEELI), AMEX International, Inc., and IRIS.
Major Results Indicators: Baseline Target Civil Code passed by National Assembly No (1996) Yes (1998) Judicial reform laws (e.g., regarding the Bar, Courts, Procuracy) enacted No (1996) Yes (2000) Proportion of population understands civil and economic rights 5% (1997) 10% (1999)
ACTIVITY DATA SHEET
PROGRAM: ARMENIA
TITLE: Human Suffering and Crisis Impact Reduced, 110-S003.1
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $5,000,000 FREEDOM Support Act
INITIAL OBLIGATION: FY 1993; ESTIMATED COMPLETION DATE: FY 1999
Purpose: Reduce human suffering and crisis impact.
USAID Role and Achievements to Date: USAID humanitarian assistance in the areas of food, winter fuel, and pharmaceuticals, has been instrumental in avoiding a humanitarian crisis and in buying time for the government to begin to implement economic and social reforms. With the immediate crisis passed, USAID has also funded a program designed to improve the targeting and delivery of humanitarian and government assistance to vulnerable households. Other successful initiatives have included the pilot phase of a Social Investment Fund, which continues to operate with World Bank Funding, and a Community Development activity. These initiatives have enabled numerous communities to supplement their own resources to address community problems. A USAID-funded NGO training and resource center, which has identified over 150 viable indigenous NGOs, trained over 50 NGO representatives in principles of management and leadership and facilitated the creation of a cohesive, active NGO sector. USAID-funded NGOs have also implemented bridging activities in micro-credit enterprise development and provision of inputs and technical assistance in agriculture.
Description: USAID will concentrate increasingly on the development of longer term health and related social service delivery mechanisms. While these transitional programs are being implemented, limited humanitarian programs for the most vulnerable groups will continue.
Host Country and Other Donors: The World Bank continues to provide major funding for social infrastructure rehabilitation. Armenian Diaspora contributions continue to be significant. The European Union plays a significant, although diminishing, role.
Beneficiaries: These activities are intended to provide improved targeting of humanitarian assistance and social benefits to the most vulnerable parts of the population, which may number as high as 250,000 families.
Principle Contractors, Grantees, or Agencies: USAID implements activities through U.S. and local organizations including most prominently Save the Children Federation, Fund for Democracy and Development, CARE, World Vision International, and Fund for Armenian Relief, among others.
Major Results Indicators: Baseline Target Number of sustainable civic action groups created 0 (1995) 141 (1999) Number of community development projects completed. 0 (1995) 96 (1999) Increase in school attendance due to heating fuel deliveries Not applicable 54% (1999)
![[USAID Home]](/images/usaid.gif)
[USAID Home]
[CP 99 Home]