Blogrel: Targeting poverty

June 29, 2004

Targeting poverty

Eurasianet.org has a relatively upbeat article on investment in Armenia. New funds from the World Bank and also the Millenium Challenge Account set up by the US will be targeted at trying to aleviate rural poverty through investment in roads and utilities, and other rural infrastructure.

For the past few years, Armenia has had one of the best performing economies in the former Soviet Union. Annual economic growth has averaged over 10 percent. Price liberalization and privatization programs and the accession of Armenia to the World Trade Organization in 2003 have all contributed to the surge. Foreign direct investment has increased by 74.5 percent since 2003, according to the National Statistics Service, with much of that coming from the far-flung Armenian Diaspora. Last year, the European Bank for Reconstruction and Development cited Armenia as the most likely candidate among the former Soviet Union for accession to the European Union.

I think that EU membership is on the other side of the rainbow, as it were, but pushing for such investment could have beneficial effects on Armenia's politics. At least that is what both the EU and the US seem to hope.
The World Bank, it was announced earlier this month, plans to spend $250 million on rural infrastructure projects.

Read the full article.

Posted by Matt on June 29, 2004 | TrackBack | Email to a friend

Comments

I must have missed the EBRD's statement on Armenia being the most likely former Republic to enter the EU and anyway, I find this very unlikely. Perhaps the statement, if it was made, came before the 2003 Presidential Elections in Armenia and before last year's November "Rose Revolution" in Georgia. I can't believe that it was made in the past year and a half.

Still, I hope that otherwise re. external carrots being used to promote real development in Armenia is true. If not, I fear that Armenia will lag behind Georgia in the democracy stakes and behind both when it comes to investment. Anyway, unless Armenia seizes the opportunity to reform and implement real changes (including a genuine rule of law), it might find itself left out of any regional process.

Anyway, this in from Radio Free Europe / Radio Liberty (http://www.armenialiberty.org) and I have to agree with it. If anything, like membership of the Council of Europe and the WTO, Armenia and Azerbaijan will enter the EU only after Georgia does.

---
EU Confirms Star Treatment Of Georgia In Caucasus Policy

The November “revolution of roses” and drastic anti-corruption initiatives by President Mikhail Saakashvili are earning Georgia greater support from the European Union than neighboring Armenia and Azerbaijan can boast, a senior EU diplomat confirmed on Monday.

http://www.armenialiberty.org/armeniareport/report/en/2004/06/89B14629-AC39-4752-9D7D-38E4A6E5A53F.ASP

Posted by: Onnik Krikorian at June 29, 2004 08:01 PM

I wouldn't count on Saakashvili being the most democratic leader in Georgia. From what I see, he is pretty much the same kind of a dictator as Shevardnadze. His main selling point is that he is the West's dictator. Let's hope that the Georgian nation, or the Armenian minority there won't be harmed.

Posted by: Hrair at July 2, 2004 03:16 AM

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June 29, 2004

Targeting poverty