Syndicate content

Armenia

Protecting Armenia’s future: Let’s make it great to be a girl!

Laura Bailey's picture
One of the most striking things I first noticed after moving to Armenia was the importance of strong extended family networks – and the extent to which this aspect of Armenian social structure has evolved over time, transcending distance and getting ever-stronger through adversity.

This solid social network is an essential element in understanding and responding to the challenges that Armenia faces – and it can, if well-mobilized, help boost the country’s ability to reduce poverty and ensure that economic growth and prosperity are shared among all.

Apply for SAFE Trust Fund grants

Soukeyna Kane's picture



The SAFE Trust Fund application (Word document) is now open until 27 February 2015.
 
What is SAFE?
 
SAFE means Strengthening Accountability and the Fiduciary Environment. It is a Trust Fund group administered by the World Bank and established by the Swiss State Secretariat for Economic Affairs (SECO) and the European Commission with the aim of improving public financial management in the Europe and Central Asia region. This Trust Fund group provides support for activities to assess public financial management (PFM) performance, identify and implement actions to achieve improvements and share knowledge and good practices across countries in the region.

Rising Financial Pressures from the East

Aurora Ferrari's picture
It’s hard to get a break in the Europe and Central Asia region, it seems – even a short one. Hit hard by the troubles in the Eurozone at the beginning of the decade, emerging and developing countries in Eastern Europe are, at the beginning of this year, contending with renewed fears. Meanwhile, external pressures have built up on the Central Asia side as well.

All eyes turned to Russia recently, when on 16 December the ruble plunged by more than 11 percent, despite the Central Bank of Russia’s last-minute interest rate hike of 6.5 percentage points to 17 percent. When it looked like Russia’s turmoil might spread to global markets, western economies sat up and paid close attention.

What may have gone unnoticed, however, is the ongoing impact on our client countries in the Europe and Central Asia region.

Lessons Learned from Armenia's Open Skies

Daniel Saslavsky's picture
"Flight 2." Source - Ken Douglas


Air transport is an increasingly critical area for trade and trade facilitation. As such, our World Bank trade teams are always searching for global good practice and promising policy results.

This search recently brought us to Armenia, where an “Open Skies” policy has been in place since late 2013. For a country with a long legacy of tight regulations in its commercial aviation market, this new policy signaled a sharp break from tradition.

Although there are no single accepted definitions of Open Skies, it refers to a set of provisions typically agreed on a bilateral basis, that enable each party to set freely the number of flights, carriers, types of aircraft and destinations; but also pricing freedom, as well as establishing the conditions for fair competition and provisions for carriers to engage in commercial cooperation.  

Armenia’ Open Skies policy is particularity important when considering the country’s historically limited connectivity with international markets – partly determined by geography, and partly determined by geopolitical considerations. Besides being landlocked, the country has open land borders with only two of its four neighboring countries.

On the Road from Yerevan to Tbilisi

David M. Gould's picture
 
On the road from Yerevan to Tbilisi
On the road from Yerevan to Tbilisi
I recently spent three days in Yerevan on a mission to learn a bit more about Armenia’s overall development challenges for a World Bank study on “Connectivity”, before heading off to Tbilisi, Georgia and Baku, Azerbaijan to do the same.

It was my first time visiting Armenia, so it was a fascinating trip and I learned a tremendous amount about the country and its people.

Of course, in three days one can only get a small sample of the major issues that challenge development, rather than a rich flavor for the deep subtleties that represent the people or factors that drive the economy. But, given my basic knowledge of the country, the new information I gained was a tremendous leap forward.

Identifying poor-rich gaps in accessing maternal health care

Haruna Kashiwase's picture

The most recent data show significant strides in reducing maternal mortality at the national level over the past 20 years.  Improvements in access to maternal health care, especially in skilled birth assistance, have contributed to the reduction of maternal mortality. 

While these improvements are impressive, the national level data often mask inequalities in skilled birth assistance within countries. There may be gaps within a country, for example, where wealthy women might have better access than women from poor households. According to the World Health Organization, "The high number of maternal deaths in some areas of the world reflects inequities in access to health services, and highlights the gap between rich and poor."

In Armenia, Perception Matters For Tax Reforms

Jean-Michel Happi's picture

Would you be more willing to pay taxes if you didn’t have to spend hours doing it, or if you see that money being used in the right way? Well, you are not alone.
 
Armenians, like people around the world, feel the same. According to the recently conducted Tax Perception Survey in the country, easier tax compliance and more visible link between taxes paid and public services received was found to be particularly important.


















Between 66 percent and 75 percent of respondents said they would be more willing to pay more taxes if the procedures were easy and less time-consuming, if they saw more useful social and other public services, or if they saw less corruption.

Over 95 percent of respondents felt the tax burden is heavy or very heavy, while almost 50 percent reported that evading tax payments was not justified under any circumstances.
 
About 57 percent noted that high taxes or desperate financial situations were the main reasons for avoiding or evading tax payments.
 
The data unveiled by the latest Tax Perception Survey,  carried out with USAID support and World Bank Group technical assistance covered around 1,500 households and 400 business taxpayers.  The analysis strengthened the need to modernize the tax system, which has remained a major challenge for Armenia. Despite Armenia’s ranking as 37th in Doing Business, the taxation system, at 103rd on the list, still requires a lot of work.
 
To be sure, there have been some improvements to the system in the past few years. They include the introduction of electronic filing of tax returns, e-government applications, risk-based audit principles, and taxpayer service centers and appeal system. These achievements contributed to increasing the tax to GDP ratio from 19.5 percent in 2010 to 22.8 percent in 2013.
 
But much remains to be done to further streamline and simplify tax procedures, modernize the tax administration, and enact a tax code.

From Risky to Responsible Business

Jean-Michel Happi's picture

Responsible Mining in ArmeniaIf I had to pick one critical source of exports and a key driver of economic growth for Armenia, I would pick mining.
 
But mining is a risky business and is fraught with hurdles. Exploration often comes up empty. Investments are very large, in excess of hundreds of millions dollars. Commodity prices can change dramatically and governments can change policies and taxes. Moreover, there can be large environmental and social risks associated with things like tailings, dams, and resettlement policies.
 
A risky business does not, however, mean that mining is or should be an irresponsible business. Many of these risks can be mitigated or eliminated. This requires proper policies, laws, regulations, careful implementation, and planning for life when the mine closes – all of this even before the mine opens.  Supporting policies, such as easy access to updated geological information and predictability in transferring licenses, reduce the risk in exploration.

Dreaming about a better future in Armenia

The World Bank recently interviewed several families in Armenia to depict the hardships people face when they cannot earn more than $5 a day per person. The country faces long, harsh winters and paying to stay warm and eat enough to survive the cold can quickly eat into the poor's meager incomes.

The Face of Poverty package aims to show how tough life can be for these families and their belief that education is the singular way out of poverty for their children.

Watch the full documentary here.

Creating Jobs in Armenia

Ulrich Bartsch's picture

 

Tim Richards, Mine Manager of the Amulsar Gold Mine explains the mine lay-out to Chris Sheldon, Sector Manager of Mining at the World Bank
Tim Richards, Mine Manager of the Amulsar Gold Mine explains the mine
lay-out to Chris Sheldon, Sector Manager of Mining at the World Bank.
Armenians love beach vacations. The problem is, their local options along the shore of Lake Sevan are not always good enough. Armenia being  a landlocked country,  reaching other beaches involves a long drive to the Georgian coast on the Black Sea, or at least two flights—one to reach Moscow or a European hub, and the next to get to an actual  beach. The latter option has another snag: flying out of Armenia is expensive, and offers little flexibility when it comes to choosing routes and departure times. 

Until recently, Armenia was not only landlocked, but also policy locked: a restrictive aviation policy limited options and increased prices for passengers and cargo coming in to or leaving Armenia’s Zvartnots airport outside of Yerevan, the capital. The  government had granted exclusive rights to a private, Armenian-owned airline, Armavia, for ten years starting in 2003, and therefore restricted competition from foreign airlines. So, even a regular holiday  sometimes started with a long road trip to Georgia’s capital Tbilisi to connect with cheaper flights there.
 

 


Pages