PRESS RELEASE
United Nations Development Programme / Armenia
14 Petros Adamyan St., Yerevan 0010
Contact: Mr. Hovhannes Sarajyan, Communications Associate
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UN, IFIs Discuss with RoA Government Ways to Offset Social Impact of
the Crisis
Yerevan, 14 April 2009 – The Ministry of Labor and Social Issues, the
United Nations (UN), World Bank (WB) and International Monetary Fund
(IMF) offices in Armenia, organized a conference on "Social Impact of
the Global Economic Crisis on Armenia." The objective of the
conference was to discuss consequences of the global economic and
financial crisis and find measures to mitigate its impact on
vulnerable groups. The conference brought together around 120
participants.
Representatives from international organizations warned today that the
global economic and financial crisis could have a serious impact on
the Armenian economy and affect the country’s ability to achieve the
Millennium Development Goals (MDGs) by 2015. UN, WB and IMF officials
told a conference that while the effects on the Armenian economy are
already being felt, the population is now starting to feel the social
impact as well.
The exposure and impact of the crisis varies across countries and
sectors, but it is becoming more apparent that what started as an
economic crisis is now turning into a human development crisis. During
the first two months of 2009 the unemployment rate in Armenia has
increased, while the Gross Domestic Product (GDP) has decreased by 3.7
percent compared to the same period in 2008. Moreover, non-commercial
private transfers dropped by about 35 percent in February 2009
compared with a year earlier.
According to the World Bank report on "Implications of the Global
Economic Crisis for Poverty in Armenia," the current crisis could push
172,000 more people below the poverty line in 2009-10, increasing the
total number of poor to an estimated 906,000 people, out of which
297,000 people will be extreme poor. A large part of Armenia’s gains
in reducing poverty over the last years would be erased.
"In many developing countries, the consequences of the crisis could be
a possible reversal of the gains in human development and progress
towards the achievement of the MDGs, especially in the areas of
healthcare, including reduction of child mortality, improvement of
maternity health, and education," said Ms. Consuelo Vidal, UN Resident
Coordinator.
Acknowledging the government’s commitment to maintain the current
level of funding for the social sector, including salaries, pensions,
family and other benefits, UN Agencies will support the government’s
efforts in devising solutions that will draw together all
stakeholders, including international organizations, private sector
and the civil society. In addition, the UN in Armenia is in the
process of tailoring its current programmes to address the needs of
those most affected by the crisis.
"We need to be fast and flexible and seek cost-effective solutions to
emerging problems, particularly, focusing on bringing international
experience and knowledge to help in developing recovery mechanisms,"
Ms. Vidal emphasized.
"Economic growth in Armenia has led to substantial poverty reduction,
but these achievements are now at risk. The global economic crisis
will have potentially serious implications for poverty and this calls
for significant responses by the Government of Armenia and its
development partners," said Aristomene Varoudakis, World Bank Armenia
Country Manager.
The Government has shown commitment by accelerating the implementation
of World Bank funded projects under the new IDA Fast Track Facility.
Such policy responses may include support to the development of small
and medium sized businesses, design and implementation of labor
intensive programmes, including public works, better monitoring of the
human development impacts of the crisis, development of food security
initiatives, efficient budgetary allocation and spending in social
sectors, continuous support to the government in capacity building to
provide quality social services, adjustment and expansion of existing
basic social safety net instruments to better target the most
vulnerable groups, as well as generation of reliable data on children
and women for tailored policy interventions.
From: Baghdasarian