WILL THE NEW POVERTY REDUCTION STRATEGY HAVE THE SAME DRAWBACKS?
By Sevak Hakobian

Yerkir.am
September 01, 2007

Member of the ARF’s parliamentary faction Artsvi Minassian and member
of the Heritage Party’s parliamentary faction Larissa Alaverdian
commented on the implementation of the Poverty Reduction Strategy
Paper during a debate held in Hayatsq Club on August 28.

Larissa Alaverdian was the Ombudsperson during the process of
organization of the Poverty Reduction Strategy and was involved in
the preparation works.

Alaverdian believes the Armenian strategy was more realistic than the
strategies of other countries because all layers of the civil society
were involved in the drafting process. Most importantly, the strategy
was drafted without any external support and consultancy. Nevertheless,
Alaverdian voted against adoption of the strategy since the main
problems facing the society were ignored.

Alaverdian believes the Poverty Reduction Strategy Paper is a document
of not only the government but also of the opposition since all forces
had an opportunity to participate in its creation. It was only the
legislature that did not have the desired role and influence in the
process of drafting and implementation of the strategy. Meanwhile,
the National Assembly should have participated in the discussions
and made its proposals regarding the strategy.

Artsvi Minassian stated the ARF believes that the PRSP had several
drawbacks – a number of sectors were left out of the initial draft. The
Strategy has failed to become a document supporting the economic
development as opposed to similar documents in the neighboring
states that set the goal of economic development and not merely
poverty reduction.

"This document aims at addressing this comprehensive problem without
presenting ways of future development," Minassian said adding that
now when the possibility of extending the strategy till 2021 is under
discussion significant amendments should be made stating what economic,
political and social model Armenia will have by that time.

Demographic policy is one of the outstanding issues left after the
initial drafting of the PRSP. The ARF has addressed this issue in
its electoral program and believes that the country’s economy and
its future cannot be built further unless we find solutions to the
existing situation. It is necessary to implement specific measures
rather than merely presenting the situation.

Even the World Bank has commented on the poor demographic situation
in Armenia in one of its reports. Minassian believes that the minimum
consumption budget and composition should be at the foundation of
any development program.

Equal regional development should be one of the issues discussed in the
PRSP context. "One of the negative factors is that we have the society
and the economic resources concentrated in Yerevan and we do nothing
to achieve equal development in the regions," Minassian said. This
direction is one of the important ones in the ARF’s electoral program.

Minassian believes such development should be based on the special
advantages of the regions. Each region with its resources should be
a more productive unit and each member of the society should have
income generation opportunities. Without these conditions we cannot
speak about equal regional development.

The debaters expressed their hope that the new PRSP will be widely
discussed and the above-mentioned drawbacks will be eliminated because
it is obvious that the existing strategy is doomed to failure.