U.S. Assistance to Armenia - Fiscal Year 2004

Armenia has been one of the leading performers in Eurasia in economic and political reform, which is why it was only one of two countries in the region deemed eligible this year to receive grants from the Millennium Challenge Account. While economic growth has been strong, it has yet to provide significant benefit to the vast majority of the population. As such, U.S. assistance focuses on the growing small- and medium-scale enterprise sector. Our democracy, economic, and law enforcement programs will help to strengthen the democratic structures and foundations in Armenia, as well as support regional stability and security.

The estimated $89.7 million budgeted by all U.S. Government agencies for assistance programs in Armenia in fiscal year 2004 is allocated roughly as follows based on information available as of the date of this fact sheet:

Democracy Programs	$13.0 million
Economic & Social Reform	$50.2 million
Security & Law Enforcement	$15.4 million
Humanitarian Assistance	$6.3 million
Cross Sectoral Initiatives	$4.8 million

Democracy programs in Armenia aim to increase citizen participation in public affairs, strengthen the rule of law, build the capacity of the National Assembly, improve local and state governance, and support independent media. U.S. assistance programs will continue to support grassroots advocacy groups and initiatives that bring together local government officials and citizens to solve community problems; develop civic education materials and curricula; strengthen the work of non-governmental organizations (NGOs); and educate citizens about their rights.

Small grant-making programs administered by the U.S. Embassy in Yerevan and the Eurasia Foundation support the work of NGOs to foster civil society, enhance local government accountability, and support independent media. Journalists, editors, and managers of media outlets are trained on business management, fact-based journalism, and investigative journalism. Training and exchange programs reach out to the next generation of Armenian leaders and give them first-hand experience with the day-to-day functioning of a market-based democracy. Internet connectivity, as well as related programming and exchanges, will be provided to more than 300 secondary schools throughout the country this year. Last year, the U.S. Government sent approximately 560 Armenian citizens to the United States on academic and professional exchange programs. 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.

Broadening the base of economic growth through job creation and labor market development is the primary goal of our economic assistance programs. Through our assistance programs, we are seeking to increase access to credit for entrepreneurs, develop markets for agribusinesses, improve tax and customs performance, improve budget management, strengthen central bank supervision, and boost progress in promising sectors, such as information technology. U.S. advisors support a budget training center with equipment, training materials, and technical advice.

The U.S. Agency for International Development’s (USAID’s) social reform programs provide technical support to a centralized data administration center to improve the administration and tracking of Armenia's poverty family benefits. U.S. Government technical assistance will help the Ministry of Labor and Social Issues design, administer, and distribute a new social security card to ensure that benefits flow to the unemployed and the needy. USAID’s health programs are working to strengthen national institutional capacity for Primary Health Care reform and to reinvigorate the provision of primary health care services at the facility level in order to meet immediate needs of Armenia’s population.

The U.S. Department of Agriculture (USDA) Marketing Assistance Program continues to provide targeted and sustained technical, financial, and marketing assistance to small and medium-sized agribusinesses and 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 and law enforcement assistance programs aim to improve stability in Armenia and in the region. To promote interoperability with U.S. and other North Atlantic Treaty Organization (NATO) forces, the Foreign Military Financing and International Military Education and Training programs will provide professional military education, establish peacekeeping capabilities, and modernize military communications. The U.S. Government also provides nonproliferation assistance for Armenia, including funding for joint research activities with biological and chemical scientists. The U.S. funded science centers, bio-chem redirect, and bioindustry initiative programs and is working through the multilateral International Science and Technology Center in Moscow to engage scientists from the former Soviet Union in transparent, sustainable, cooperative civilian research projects. U.S. funding also provides nonproliferation assistance to the Civilian Research and Development Foundation (CRDF). The U.S. will continue to fund security improvements at the Metsamor nuclear reactor.

Our Export Control and Related Border Security Assistance (EXBS) program continues to work with Armenian export control officials, customs, and border guards to improve their prevention capabilities against weapons proliferation and other illicit trafficking. A variety of U.S. programs, primarily those overseen by the Bureau of International Narcotics and Law Enforcement Affairs, provide assistance to reform Armenia’s law enforcement and judicial sectors. These programs have helped to establish computer classrooms for law enforcement training and provide expertise for modern curricula at law enforcement academies. The U.S. is also providing upgrades to the law enforcement computer infrastructure in order to connect regional police precincts with central offices. In addition, assistance programs support the government and NGOs in Armenia to help address trafficking in persons.

Donated humanitarian commodities valued at approximately $15 million - including medicines, pharmaceuticals, medical equipment and supplies, school equipment and supplies, clothing, and food – are shipped and distributed to the most needy Armenians in the country's rural towns and villages. The U.S. has supported a medical outpatient clinic in the city of Alaverdi since October 2001. In addition, the U.S. Government will provide additional food-aid commodities to be distributed to vulnerable groups through the World Food Program's relief operations. USDA executes a program to install or repair village water wells in selected villages with drinking water for domestic and livestock use and for crop irrigation. One hundred communities benefited from this program through FY 2004.

Humanitarian demining programs help communities in border regions by recovering valuable lands that can now be used for agricultural development and public use. The Earthquake Zone Recovery Program provides assistance for housing compensation/rehabilitation and other economic and social programs in the 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 the end of 2004, when the project will be completed.

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