Key Accomplishment of 17 years of USG Assistance - Page 6

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Financial Sector Reform (1999-2009)

Over the past decade USAID/Armenia has devoted significant resources to developing the required infrastructure for a vibrant financial system. This development effort has led to the creation of the required building blocks for an effective, modern system, including the basic legal and regulatory framework, a strong financial regulator in the form of the Central Bank of Armenia, electronic market systems for currency and securities, the required clearance and settlement systems and central depository, new information nodes such as the credit bureau, stock exchange disclosure filings and a growing financial media, and private sector participants in each of the financial system’s sub sectors.

As a result, the indicators of financial system activity have begun to increase significantly. All of this indicates that the architecture that USAID has helped to create is now gaining “traction” and that more and more potential users of financial system products are turning away from the old “informal” ways of financing their activities to the more organized and official markets. Beginning in 2008, however, this dynamic appears to be changing. Though Armenia’s banking system remains liquid, its economic vulnerabilities have been acerbated by the crisis. The global financial crisis poses new challenges for Armenia’s economy heavily affected by declining commodity prices for mining exports and reduced remittances threatening to roll back recent economic gains.

Social Protection and Social Insurance Systems (1996-2009)

Our interventions in social sector have resulted in the introduction of the Social Security Card that assigns a unique number for each individual with the intention of improving the quality of social services, simplifying procedures for eligibility and claims processing, and reducing corruption. Currently, more than 80% of the Armenian population has and uses a social security card. A Personal Account Registration, Numbering and Analysis System (PARNAS) that enables the social security system to track all contributions paid by and on behalf of individuals into the State pension fund was developed and introduced. In the meantime, efforts aimed at improving the livelihood of the most vulnerable have resulted in renovation of orphanages, nursing homes, hospitals, kindergartens, and schools for the handicapped throughout Armenia. Many of these programs were accomplished through Public Works Programs which provide work opportunities and training for the unemployed and engage communities in the development process. Food provision and social services provided daily to 8,000 vulnerable elderly individuals in 6 Marzes throughout Armenia. In the area of labor market development the capacity of the State Employment Services Agency (SESA) has been strengthened to address the needs of the unemployed resulted in increase utilization of SESA services by 20 percent in 2008.

Primary Healthcare Reform (1998-2009)

USAID has developed an innovative health care reform strategy repositioning development efforts from providing humanitarian assistance, renovation and trainings to institutionalizing these gains for long-term Government of Armenia support and maintenance of quality health services throughout the country. Overall the USG has renovated, equipped, and trained staff of nearly 50% of the neediest rural health clinics throughout the country. USG assistance directly contributed to reductions in maternal mortality by reducing post-partum hemorrhage rates - the leading killer of women during delivery - going from 5.4% in 2005 to 1.7% in project supported facilities. The USG supported the development of a successful Round 8 Global Fund application, contributing over $2 million dollars to strengthen health systems to address HIV/AIDS and TB in Armenia. Our efforts have contributed to greater government spending on Primary Health Care, which increased from 15% to 35% over the last 10 years. USAID has been a lead donor in helping the Government of Armenia to introduce and utilize a model of family medicine.