Country Assistance Strategy

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Executive Summary

This Country Assistance Strategy outlines U.S. foreign policy interests in Armenia and the region, reviews Armenia’s democratic and economic trends and deficiencies and reflects USG commitment to partnership with the Government of Armenia in supporting country’s sustainable development.
 
Accomplishments over the past years both contributed to and were enhanced by strengthened foundations for growth in the country. However, the global crisis poses new challenges for Armenia’s economy heavily relying on external sources of funding thus threatening to roll back economic gains of the past. The Strategy addresses effects of global crisis both on macro- and micro- level while supporting the sustainability and competitiveness of the country’s economy, the development of its democratic institutions, and its capacity to provide adequate health and social services to its citizens.
 
Following flawed presidential elections and democratic backsliding in 2008, the CAS focuses on working with civil society, alternative media, local government, women and youth, and reformers within the GOAM to reverse the negative trend through strengthening public demand for reform and democratization and increasing accountability and transparency in government. 
 
The Mission’s efforts focused on cross-border relations will increase in intensity starting in 2009 and will support initiatives to foster energy, telecom, and trade linkages in the region, and further promote regional cooperation. Achieving a rapprochement with neighboring Turkey will lead to short-term improvements to Armenia's economic development and regional stability, and incalculable benefits for Armenia's long-term future. 
 
Over the five-year period the USG can and will work to accomplish this strategy by focusing on the following priority goals:
 
1. To develop Armenia's ability to be a constructive and peaceful regional neighbor through encouraging the peaceful resolution of Armenia's troubles with its immediate neighbors and assisting the GOAM in developing its peacekeeping potential, as well as securing Armenia's nuclear facilities and material, while supporting Armenia's attempts at exporting its surplus energy to its neighbors.
 
2. To bolster those institutions that effectively promote democracy through empowering civil society and promoting democratic governance and the participation of informed citizens in the political process.
 
3. To improve Armenia's justice sector institutions and structure though focusing on law enforcement, improving judicial independence and justice system, human rights and ability to counter WMD proliferation and combat WMD terrorism.
 
4. To increase Armenia's private sector competitiveness and economic sustainability through supporting reform of the business environment, improving infrastructure and increased competitiveness of key industries with enhanced access to credit and better public services.
 
The growing worldwide economic crisis, the persistence and pervasiveness of corruption, and Armenia's precarious international position are only the most obvious factors that create a difficult environment for reform.  Despite numerous internal and regional challenges Armenia has faced, USG assistance efforts have brought forth relevant and tangible results. There is a steady progress and opportunities to propel country’s development out of this critical period and succeed in the medium and long term in overcoming obstacles to the completion of its transition to a more open, prosperous, democratic state well integrated into its region.