WORLD BANK EXPERT: AS A RESULT OF THE GLOBAL CRISIS POVERTY LEVEL IN ARMENIA IN 2010 MAY RETURN TO THAT OF MID 2006

ArmInfo
2009-04-14 22:28:00

ArmInfo. As a result of the global crisis, the poverty level
in Armenia in 2010 may total 27,9% (as against 22,7% in 2008 ),
or 906 thsd people, World Bank expert Lire Ersado said at today’s
press-conference dedicated to the social impact of the global crisis
on Armenia. The extreme poverty level may increase from 3,2% in 2008
to 8,7% (297 thsd people). The possible growth of the poverty level
is conditioned by 21,6% risks connected with increase in transfers,
16,4% – exchange fluctuations, and 61,9% – labor market conditions.

The risks in the sphere of transfers are that most transfers come
from Russia, considerable part of them is sent by remote relatives
or friends whose motivation is lower and may completely disappear
under the crisis conditions, Ersado said.

Under present conditions it is necessary to be more careful in
distributing family benefits so as to ensure that the money goes to
really needy families. The paid public work programs must be enlarged
(especially in communities with low incomes).

Earlier the Ministry of Labor and Social Security said that it was
necessary to optimize the benefit distribution system and not to
give allowances to families whose incomes were higher than the level
stipulated by the law. In Mar 2009 as compared with 2008 the number
of families receiving benefits dropped from 121,000 to 105,000.

According to the WB’s surveys, in 2004 the poverty level in Armenia
was 34.6%, in 2005 – 29.8%, in 2006 – 26.5%, in 2007 – 24.9%, in 2008 –
22.7%, 2009 and 2010 – 27.1% and 27.9%.