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Armenia Development Strategy for 2014-2025

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Armenia Development Strategy for 2014-2025 Annex To RA Government Decree # 442 ‐ N On 27th of March, 2014 Armenia Development Strategy for 2014‐2025 Contents PREFACE.......................................................................................................................................8 I. MAIN RESULTS OF IMPLEMENTATION OF THE SUSTAINABLE DEVELOPMENT PROGRAM AND THE NEED FOR ITS REVISION .........................................................................10 1. MAIN OBJECTIVES AND PRIORITIES OF SDP.......................................................................10 2. 2008‐2012 GENERAL DEVELOPMENT TRENDS AND THE NEED FOR SDP REVISION..........12 II. ARMENIA DEVELOPMENT STRATEGY (ADS) PRIORITIES AND MAIN OBJECTIVE...................15 3. THE ADS TIME COVERAGE AND PRIORITIES.......................................................................15 4. ADS MAIN OBJECTIVE, POLICY DIRECTIONS AND TARGETS...............................................16 III. MACROECONOMIC FRAMEWORK.......................................................................................18 5. 2008‐2012 MAIN MACROECONOMIC DEVELOPMENTS ....................................................18 5.1. THE REAL SECTOR..........................................................................................................18 5.2. PRICES ...........................................................................................................................21 5.3. EXTERNAL SECTOR DEVELOPMENTS.............................................................................21 5.4. PUBLIC FINANCE............................................................................................................22 6. PROJECTIONS OF 2014‐2025 MACROECONOMIC FRAMEWORK ......................................23 7. FORECASTING RISKS...........................................................................................................28 7.1. RISK IMPACT DIRECTIONS .............................................................................................30 7.2. RISK MANAGEMENT......................................................................................................31 IV. ADS ECONOMIC DEVELOPMENT STRATEGY ........................................................................32 8. ECONOMIC DEVELOPMENT FRAMEWORK POLICIES.........................................................32 8.1. COUNTRY’S INTERNATIONAL COMPETITIVENESS AS AN INTEGRAL INDICATOR OF FRAMEWORK POLICIES .................................................................................................32 8.2. BUSINESS ENVIRONMENT AND INVESTMENT CLIMATE...............................................33 8.3. MONETARY POLICY AND FINANCIAL INTERMEDIATION DEEPENING...........................36 8.4. PUBLIC REVENUES POLICY ............................................................................................37 9. DIRECT POLICIES AIMED AT VARIOUS SECTORS AND AREAS.............................................41 9.1. INDUSTRY AND EXPORT PROMOTION..........................................................................42 9.2. TOURISM DEVELOPMENT .............................................................................................46 9.3. INFORMATION TECHNOLOGIES DEVELOPMENT ..........................................................48 9.4. AGRICULTURE AND RURAL DEVELOPMENT..................................................................49 9.5. SMALL AND MEDIUM‐SIZE ENTERPRISES .....................................................................56 10. LABOR MARKET AND EMPLOYMENT .................................................................................57 10.1. LABOR MARKET OVERALL DESCRIPTION ......................................................................57 10.2. LABOR MARKET DEVELOPMENT PROJECTIONS............................................................58 10.3. LABOR MARKET POLICIES..............................................................................................61 10.4. EMPLOYMENT IN THE PUBLIC SECTOR AND AGRICULTURE.........................................64 11. INFRASTRUCTURES.............................................................................................................65 11.1. DRINKING WATER .........................................................................................................65 11.2. IRRIGATION ...................................................................................................................68 11.3. TRANSPORT...................................................................................................................70 11.4. ENERGY ......................................................................................................................... 72 V. PROPORTIONATE REGIONAL DEVELOPMENT......................................................................75 12. SITUATION AND TRENDS....................................................................................................75 13. OBJECTIVES AND PRIORITIES.............................................................................................80 VI. POVERTY AND INEQUALITY.................................................................................................83 14. CURRENT SITUATION AND TRENDS ...................................................................................83 15. POVERTY AND INEQUALITY BY REGIONS ...........................................................................88 16. POVERTY REDUCTION OBJECTIVES ....................................................................................89 VII. SOCIAL PROTECTION...........................................................................................................91 17. CURRENT SITUATION AND TRENDS ...................................................................................91 18. OBJECTIVES ........................................................................................................................92 19. SOCIAL ASSISTANCE SYSTEM .............................................................................................93 19.1. FAMILY LIVING STANDARDS ENHANCEMENT BENEFITS...............................................93 19.2. OTHER SOCIAL ASSISTANCE PROGRAMS, .....................................................................95 20. PENSION SYSTEM ...............................................................................................................97 20.1. SITUATION AND TRENDS...............................................................................................97 20.2. PRIORITIES AND OBJECTIVES ........................................................................................98 VIII. HUMAN CAPITAL DEVELOPMENT......................................................................................101 21. HEALTHCARE ....................................................................................................................101 21.1. CURRENT SITUATION AND TRENDS ............................................................................101 21.2. PRIORITIES AND OBJECTIVES ......................................................................................103 21.3. PROGRAMMING PUBLIC EXPENDITURES AND REFORMS OF FINANCING MECHANISMS ..........................................................................................104 22. EDUCATION......................................................................................................................106 22.1. CURRENT SITUATION AND TRENDS ............................................................................106 22.2. OBJECTIVES .................................................................................................................114 23. SCIENCE............................................................................................................................116 23.1. SITUATION AND TRENDS.............................................................................................116 3 23.2. VISION .........................................................................................................................119 23.3. OBJECTIVES .................................................................................................................119 24. CULTURE...........................................................................................................................123 24.1. PROTECTION OF TANGIBLE AND INTANGIBLE CULTURAL HERITAGE.........................123 24.2. DEVELOPMENT AND MANAGEMENT OF CULTURAL INFRASTRUCTURES ..................125 24.3. EXTENSION OF INTERNATIONAL CULTURAL RELATIONS............................................127 24.4. PUBLIC TELEVISION .....................................................................................................127 IX. ENVIRONMENTAL PROTECTION........................................................................................129 25. ENVIRONMENTAL PROBLEMS AND PLANNED MEASURES..............................................131 X. ESTABLISHING AND STRENGTHENING A MODERN SYSTEM OF PUBLIC ADMINISTRATION 134 26. PUBLIC ADMINISTRATION SYSTEM DYNAMIC’S INDICATORS OF ARMENIA 2008‐2010 AND THEIR TARGET VALUES UP TO 2025 ...................................134 27. FUNCTIONAL REFORMS OF THE PUBLIC ADMINISTRATION SYSTEM ..............................137 27.1. DEVELOPMENT ELECTRONIC ADMINISTRATION SYSTEM...........................................137 27.2. INSPECTION SYSTEM REFORMS AND OPTIMIZATION PROGRAM ..............................140 28. DEVELOPMENT OF LOCAL SELF‐GOVERNANCE SYSTEM AND REFORM PRIORITIES .......141
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