Armenia needs $131 mln more to cope with poverty

Armenia needs $131 mln more to cope with poverty

Regnum, Russia
July 25, 2006

In addition to the money allocated for social assistance, Armenia
will need around $131mln, or 2.9 percent GNP, to overcome poverty
in the country, according to a recent report on planning, monitoring
and evaluation of income-generating and employment programs in Armenia.

To eradicate extreme poverty, around $12.5mln or 0.3 percent of GNP
will be needed. Much more will be needed, since impeccable realization
of the help-rendering process is impossible. The assessment is based
on many countries’ experience, including Poland, Hungary, Bulgaria,
Estonia, and Russia, where expenditures for giving to the poor $1
range in between $1.5-$8.

Among the factors influencing the level of poverty in Armenia are
household demographic situation, household migrants’ income, and
household employment. The living standards of households in which
women are breadwinners are lower than those of households where
men do the business. The availability of migrants in a household
significantly lowers the risks of poverty. Yerevan dwellers have much
higher living standards than residents of other towns and regions.
About 34 percent of population, or 1mln people, are considered poor,
of which 200, 000 are extremely poor.