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Social Protection

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Holding HandsThe social protection challenge for Armenia is to strike the right balance between providing an adequate social safety net and promoting economic growth.  This entails development of a competitive labor market that promotes growth as well as fostering social protection system to enable individuals to cope with sickness, disability, old age, and unemployment.   Armenia has recovered from the collapse of the Soviet Union, reduced poverty, and reestablished its social protection system, yet faces a global economic downturn that seriously threatens the robust poverty reduction that Armenia enjoyed in recent years.  According to the World Bank, the overall poverty incidence in Armenia could increase from 23% in 2008 to 28% in 2010 affecting about 900,000 people.

Shifting from humanitarian to technical assistance over the past decade, USAID’s social sector programs now focus on creating sustainable social protection systems with the long-term goal of building the capacity of the Government and social services NGOs. USAID projects contribute to the establishment of an active labor market, encompassing job-search assistance, counseling and job-matching and increased employment services for youth, disabled and other vulnerable groups. Impressive strides have been made through USAID’s programs in the areas of social insurance, social assistance programs, social service provision for vulnerable populations, training and employment, and public awareness of the Government of Armenia’s social protection systems. 

Major accomplishments to date include:

  • 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. 
  • The development and introduction of 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.   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 about 6,000 vulnerable elderly individuals in 7 Marzes throughout Armenia.
  • Strengthening the capacity of the State Employment Services Agency (SESA) to address the needs of the unemployed (resulted in increased utilization of SESA services by 20% in 2008).

CURRENT ACTIVITIES

Social Protection Systems Strengthening (SPSS) (10/2006-09/2009, $10.9m): USAID’s flagship project for strengthening Armenia’s social protection system operates in four key areas – (1) social insurance, (2) employment services, (3) occupational safety and labor code, and (4) social assistance.  The program is focused on the design  and implementation of national social security programs (including the pension program), and improving policy, regulatory, and administrative systems that guide the delivery of social assistance to vulnerable populations and social services for all citizens in need (unemployment, disability benefits, occupational safety, etc).  [Implemented by The Services Group]

The Building and Rehabilitating Infrastructure for Development and Growth in Employment (BRIDGE) Program (04/2005-03/2010, $6.1m): This public works program aims to assist vulnerable communities in target regions of Armenia to achieve greater self-sufficiency by providing them with vocational training in construction skills and short-term employment opportunities on public works projects that will rehabilitate community-prioritized infrastructure. BRIDGE is currently working in 5 regions (Aragatsotn, Lori, Sevan, Syunik, Tavush) of Armenia.  [Implemented by CHF International]

Social Protection
USAID/Armenia is helping to improve the well- being of children with special needs in institutional care and integrate them into mainstream life.

The Support for Soup Kitchens Program (02/2004-01/2011, $6.8m) addresses the immediate nutritional, social and health needs of over 8,000 of Armenia’s most vulnerable elderly population through the operation of 25 soup kitchens and 5 community centers, located in 7 regions (Gegharkunik, Lori, Shirak, Syunik, Tavush, Kotayk, Ararat) and Yerevan. Program components include (1) provision of integrated community-based services and capacity building trainings to Armenia’s most vulnerable elderly and extremely marginalized populations; (2) social partnership initiatives with local self-government bodies for cost-shared activities that jointly address the needs of the vulnerable; and (3) public awareness initiatives. [Implemented by Mission Armenia NGO]

Building DPO Outreach for Greater Disability Inclusiveness (09/2008-11/2009, $300K): This 15-month project proposes to strengthen the capacity of Disabled Persons Organizations (DPO) and non-governmental organizations (NGOs) with the intended result of establishing a stronger collaboration between DPOs/NGOs and government agencies and supporting/promoting inclusive education in 12 schools and 20 pre-schools in Yerevan, Gyumri, Alaverdi and Stepanavan. At least 15 DPOs/NGOs will be trained who will then be linked with targeted mainstream educational facilities to support the establishment of inclusive child-friendly environments in selected sites. The project will also conduct disability awareness campaigns for government representatives on barriers faced by people with disabilities, as well as organize public awareness campaigns to encourage inclusive development issues and practices in the Armenian society.  [Implemented by World Vision]

FUTURE DIRECTIONS

USG’s long-term goal is to help build the Government of Armenia’s and the private-sector’s capacity to develop adequate and affordable social protection systems that promote equity and sustainable development within the country.

Labor Market and Pension Reform: To further improve social protection systems, USAID will build upon the successes of its SPSS program and target four specific areas: 1) building GOAM’s institutional and human resource capacity to implement a multi-pillar pension system;  2) giving greater attention to countering the effects of the global economic crisis which significantly affected the already inefficient Armenian labor market, 3) improving Armenia’s workforce readiness and competitiveness with an integrated economic and social approach; and 4) better targeting of social assistance benefits and services to the most vulnerable, including increasing public-private partnerships in provision of services.