U.S. Assistance to Armenia - Fiscal Year 2003

U.S. programming to develop the agricultural and small and medium sized enterprise sectors supports the strong economic growth seen in Armenia in 2003. Armenia's newly elected parliament has the opportunity through our legislative and civil society programs to strengthen the democratic structures and foundations in Armenia.

The $106.5 million budgeted by all U.S. Government agencies for assistance programs in Armenia in Fiscal Year 2003 is allocated roughly as follows:

Democracy Programs	$22.4 million
Economic & Social Reform	$46.8 million
Security & Law Enforcement	$18.4 million
Humanitarian Assistance	$ 7.1 million
Cross Sectoral Initiatives	$11.8 million

Democracy programs in Armenia seek to increase citizen participation in public affairs, strengthen the rule of law, improve local and state governance, and support independent media. U.S. assistance supports grassroots advocacy groups and initiatives that bring together local government officials and citizens to solve community problems; develops civic education materials and curricula; strengthens the work of non-governmental organizations (NGOs); and educates voters. Journalists, editors, and managers of media outlets are trained on business management, fact-based journalism, and investigative journalism.

Small grant-making programs administered by the Eurasia Foundation and by the U.S. Embassy in Yerevan support the work of NGOs to foster civil society, enhance local government accountability, and support independent media.

Training and exchange programs continue to be an assistance priority, reaching out to the next generation of Armenian leaders and giving them first-hand experience with the day-to-day functioning of a market-based, democratic system. Since 1993 the U.S. has funded the travel of nearly 4,000 Armenian citizens to the U.S. on these programs in fields such as management, social service provision, and NGO development. The School Connectivity Program provides Internet access in computer classrooms to support educational programming in secondary schools. To date, 222 schools in Armenia have been provided with Internet computer centers, with the goal of reaching 300 schools by the end of 2003. The Internet Access and Training program supports 11 public access facilities in 8 cities throughout Armenia.

Economic assistance in Armenia seeks to increase access to credit for entrepreneurs of small and medium enterprises, with a focus on agribusiness export development, improve tax and customs performance and budget management, strengthen central bank supervision, develop traditional and non-traditional capital markets, and boost the tourism and information technology sectors. U.S. Treasury advisors support the new Ministry of Finance and Economy training center with equipment, training materials, and technical advice. The U.S. offers technical support to a centralized data administration center that is improving Armenia's poverty family benefit system and is administering the national rollout of the Personal Code. We are also working to strengthen primary health care services, making them more accessible to vulnerable populations. Provision of assistance to the utilities regulators - including the nuclear regulators - is helping Armenia's transition to a more reliable, transparent utility framework. The Earthquake Zone Recovery Program provides assistance for housing compensation/rehabilitation and other economic and social programs in Shirak and Lori regions and the surrounding areas. This program will house roughly 6,500 people through the use of vouchers and housing grants by summer 2004, when the project is expected to be completed.

In FY 2003 the U.S. Trade and Development Agency provided a grant to the Armenian Space Research Center for a feasibility study on developing and operating a commercial satellite earth station. The U.S. Department of Agriculture (USDA) Marketing Assistance Program continues to provide targeted and sustained technical, financial, and marketing assistance to 56 small and medium-sized agribusinesses and 21 farmer-marketing associations. After years of new product development and efforts to raise the quality and quantity of existing agricultural products, Armenians are now realizing significant marketing gains for their agricultural products. Domestic and export marketing helps to support over 3,000 jobs in the agribusiness sector and provides additional markets for produce from 17,000 farmers.

Security programs in Armenia such as the Export Control and Related Border Security Assistance Program (EXBS) aim to enhance Armenian capabilities to prevent weapons proliferation and other illicit trafficking by providing equipment and training to the Armenian Customs and Border Guards. We support nuclear reactor safety enhancement and a program for assessing and countering the threat of radiological dispersal devices. Foreign Military Financing and International Military Education and Training programs focus on professional military education, establishment of peacekeeping capabilities for the Armenian military, and modernization of military communications capabilities. These programs promote interoperability and regional stability. The U.S. also provides grants to former weapons scientists through the Science Centers, Bio/Chem Redirect, and Civilian Research and Development Foundation programs.

The U.S. supports law enforcement and judicial reform through a variety of projects. We are helping to set up computer classrooms and improve curricula at law enforcement academies. An assessment of forensics capabilities is paving the way for the establishment of a modern forensics laboratory system. To enhance Armenia's law enforcement capabilities we provide safety upgrades to police academy computer infrastructure to connect regional police precincts. We also collaborate with the government and NGOs in Armenia to help address trafficking in persons.

Current humanitarian programs for Armenia include the provision of commodities through the Department of State humanitarian transport program. The main commodities shipped and distributed to the most needy individuals, families, and institutions are medicines, pharmaceuticals, medical equipment and supplies, school equipment and supplies, clothing, and food. Since October 2001, the Department of State humanitarian program has funded the operation and support of a medical out-patient clinic in the city of Alaverdi. The total value of State Department humanitarian commodities in FY 2003 is approximately $14 million. The USDA and U.S. Agency for International Development have also allocated a combined $4.8 million in FY 2003 for food aid. USDA conducts a highly successful program to install or repair village wells to supply villages with drinking water for domestic and livestock use and limited cropland irrigation. Seventy-five communities benefited from this program through FY 2002, and USDA will extend the program to 31 new communities in FY 2003. Humanitarian demining efforts are ongoing.

Currently, Peace Corps has 90 volunteers who are working in English language teaching, business and community development, and environmental education.