Armenia : Poverty Update
The report updates the poverty situation in Armenia, largely based on the Integrated Living Conditions Survey conducted during 1998-99, and provides as well, the foundation for the preparation of the Poverty Reduction Strategy. The poverty profile identifies a widespread, and still deep poverty incidence, but while this poverty seems persistent, its depth and severity may be decreasing, and extreme poverty subsiding. Notwithstanding the fact that estimates point to a stabilization of the poverty profile, there are identified population groups facing particularly high poverty risk, i.e., very young children and the elderly, unemployed and adults not participating in the labor market, and people residing in high altitude and earthquake regions. Factors behind the persistence of poverty in Armenia are: low income and high inequality in its distribution; growth which did not generate sufficient employment opportunities; and, the impact of the Russian crisis during the period under review. Recommendations call for the implementation of regular integrated household surveys (quarterly), and, include the need to focus on generating more job opportunities, by creating an environment conducive to private sector development, i.e., small and medium scale enterprises; and, increase public spending on quality education, and health, while pursuing ongoing reforms, namely, in health management and finance.