Swedish-Armenian-Lithuanian Project 'Support to Armenian Authorities To

Swedish-Armenian-Lithuanian project ‘Support to Armenian authorities to improve active labor market policy’

1 Gevorg Petrosyan - Minister of Labour and Social Issues

A kind and beautiful tradition of European nations is to give a helping hand to young states. With gratitude and happiness we have accepted the willingness of Swedish and Lithuanian coleagues to cooperate and convey their experience to us. The Swedish-Armenian-Lithuanian ‘Support to Armenian authorities to improve active labor market policy’ which started in 1999 was directed to improvement of employment service quality, creation of labor market informational system, investment of strategy on aimed support to the uncompetitive (vulnerable) groups in the labor market, management by objectives, elaboration of strategy on work with mass media and communication. The prolongation of the project in 2005, 2007 and 2008 gave us possibility to provide continuation of activities and bring the most important ones to a happy end. Today the achievements are obvious. In each phase of the project clear assessment of needs, mechanisms of support and definition of priorities have been carried out thus planning activities with certain forecast results. The success of the project was the high professionalism and commitment of experts, the best human qualities and good will, as well as the urge and willingness of Armenian specaialists to learn new things and invest them in work. Our Swedish and Lithuanian colleagues gave us new ideas from the view point of international experience due to which the results are unprecedented. We are grateful and hope for further long-term cooperation and friendship

2 Christer Florman - The Swedish-Armenian-Lithuanian project director

The present document is marking the end of a ten year long and fruitful cooperation between Sweden, Armenia and Lithuania. It is of course with sadness you find that such a good cooperation is about to end. But at the same time it is a great joy to think back on all the great things we achieved during these years in our successful cooperation. Together we have:  Developed a Labour Market Information system with a good forecasting procedure based on interviews with employers all over Armenia  Trained a very good group of managers in many different aspects of management.  Trained a very good group of trainers to find, develop and implement training needs.  Developed a good staff training strategy  Established a staff training organization to promote focused staff training.  Developed organized employer contacts  Developed advanced service concepts  Developed an Information and Communication strategy.  Initiated the establishment of a Youth Centre in Yerevan.  Initiated the establishment of Rehabilitation Centre in Gyumri.  Developed a strategy for work with disabled job-seekers.  Trained staff very thoroughly on how to promote employment for disabled people.  Assisted in the development of measures to combat long-term unemployment.  Supported the development of a system of Classification of Professions inArmenia.

And a number of other things.

All in all this means that this has been a very successful project for us. We have had the assistance from very competent Swedish and Lithuanian experts. But the full credit of this success must rest with the Armenian people, and especially with the staff and leadership at SESA and the support we have had from the Ministry of Labour and Social Issues. Working with Armenian people is a joy. They listen and take on everything they can use, but they also have the right critical eye, to find things which are not suitable forArmenia. This is the basis for our success: the Armenian capacity to take on the things which are good for Armenia and implement them in an efficient way and leave the other things out. 3 The SIDA financedSwedish-Armenian-Lithuanian project “Support to Armenian authorities to improve active labor market policy” played an irreplaceable role and was a huge investment in development of state employment service of Armenia. The project started in 1999 and continued till September, 2009. Each new phase of the project was designed on the basis of previous achievements thus providing logical continuation of the project.

4 Razmik Martirosyan - Minister of Labour and Social Issues (1999- 2003)

For Armenia 90-s were years to search. We were searching new ideas, approaches to be able to find solutions and create new institutions. In social sphere the start was difficult. The issues of social support were in the center of attention, but the active employment programs were rather few... From this view point the Swedish-Armenian-Lithuanian cooperation was a real finding in employment sphere. It became a bridge between Armenia, Sweden and Lithuania and gave a possibility to study the best ideas, and to see the ways of carrying them out in these countries. To my opinion the participation of Lithuania was espcially important. Having been a transition, post soviet country it had the same problems as Armenia and its experience to localize and implement Swedish experience was the best proof and example of success for us. I am very happy that due to this project we had not only good professional results but also discovered Sweden, and people living in a cold Nordic country, but so warm and cordial by nature- Mr. Chriser, Mr. Kenneth and of course Mrs. Gerd.

5 According to the project objectives the phases can be described as follows;

First phase (1999-2001) - time to introduce and time to listen. This period can be characterized as introduction of; . The structure of Swedish Labor Market Board . Swedish and Lithuanian labor market regualtion models . Active labor market measures . System management procedures

Second phase (2002-2004) - time to learn and obtain knowledge. The main achievments of this phase were; . Profound trainings of employment specialists (3 Armenian specialists participated in long- term trainings in Sweden) . Practical use and dissemination of knowledge obtained in previous phase . Investment of new work methods . Localization and pilot investment of Swedish labor market forecast model

6 Aghvan Vardanyan - - Minister of Labour and Social Issues (2003-2008)

Carrying out reforms in any sphere is of utmost importance to walk in harmony with time and the world. From this angle we have much to learn from the world. Without serious reforms in employment sphere it is impossible to await big moves in social sphere since employment is the ground for living. I am very glad that the project which is being implemented for 10 years by RA Ministry of labor and social issues together with Swedish and Lithuanian colleagues has best results. This cooperation gave us possibility to invest new ideas and programs, adapting them to our environment and conditions. While elaborating employment legislation and policy we considered the experience of both Sweden and Lithuania. It is well known that the best examples of social protection belong to the Scandic countries. GORC informational system, new level and quality of management, creation of conditions and work possibilities for the disbaled, new methods of labor market forecast are results of this project. It is worth mentioning that success is partially due to mentality change and recognition of new reality by Armenian specialists. I can say surely that much has been changed in our mentality. I would like to point out the big investment of the two managers of the project, very dear and ‘fantastic’ Mrs. Gerd and Mr. Christer Florman due to whom the project was implemented in the best way. To me the project is unique also due to the fact that we acquired many friends who love Armenia and treat our country as thier home. I would like to mention Mrs. Sona Hrutyunyan’s investment which resulted in establishment of Youth Professional Orientation Center in Yerevan and Job Rehabilitation Center for the disbaled in Gyumri. The project is ending but I am sure the seeds will give fruit in near future.

7 Third phase (2005-2009). Time to see the results

These 4 main directions ended up in visible achievements. As a result we have; . New mechanisms of labor market assessment . Legislation harmonized with European strategy . Invested active employment programs . Improved three-level administration system . Increase of beneficiaries’ number . Continuous staff training system . Invested new methods . The first Youth Professional Orientation Center in Yerevan . Job Rehabilitaion Center for the Disabled in Gyumri . Successful social partnership . Investment of a constantly improved informational system . Targeted labor market surveys . Public communication strategy . Improved employment indicators

8 Sona Harutyunyan – Head of “State Employment Service” Agency

The Swedish-Armenian -Lithuanian project was unique and vital. It was unique in its duraion - 10 years. It was unique with objectives, way of management, and mechanisms of implementation, the depth and volume of inclusion, flexibility of cooperation with other projetcs, methods of study and experience exchange. The project has contributed to development of Armenia’s employment legislation, actualization of programs, and start of new ones, their combination, improvement of service quailty. All these have proved the vitality and realistic nature of the project. From the angle of results the project was unprecedented. Today SESA is a complete and clearly functioning system with legislation and human-oriented state employment programs. The result of the project is Youth Professional Orientation Center in Yerevan which has already opened, and Job Rehabilitation Center for the disbaled in Gyumri which will open soon. This is a result of efforts and devotion. For this I would like to express gratitude to Swedish Government, SIDA, leaders and experts of Swedish National Employment Service, and Lithuanian Labor Exchange and experts. It is worth mentioning the big investment of all ministers and leaders of social sphere having worked in the period of project implementation. Thanks to Mr. Razmik Martirosyan, Mr. Aghvan Vardanyan, as well as deputy ministers and project coordinators Mr. Ashot Yesayan and Arayik Petrosyan. I think where we stand now is important. But which direction we move at present is more than important. And according to the results of this projects the direction was taken correcly already ten years ago. To my opinion Armenia will develop quickly, in case programs, internatioanl cooperation and projects are carried out with the same attitude and commitment as the Swedish-Armenian- Lithuanian project was carried out.

9 Gerd Elmfeldt - The Swedish-Armenian-Lithuanian project director (1999-2006)

I was the project maneger since 1999 until 2006. I enjoyed every minute of this cooperation. The Armenian people have done a fantastic job during these years. Their committment and hard work developed the labour market policy of Armenia and made it closer to European standards. I would like to congratualate you and wish you to be as active and goal-oriented in future as you have been. I also hope the friendship relations between Armenia and Sweden will last for ever.

10 2005-2009 In a best time, best location and best proportions

In February, 2005 a prolongation contract was signed by Mr. Aghvan Vardanyan- the Minister of Labor and Social Issues and Mrs Gerd Elmfeld – the project manager of ‘Support to Armenian authorities to improve active labor market policy’ implemented by Swedish Labor Market Board. This decision was made by independent experts after assessing the project and its results. The results showed big achievements. Due to mutual visits to Sweden and Armenia and careful studies in both countries a period of large reforms started in the Armenian employment sphere. This period continued with a new phase and gave wanted results. The biggest achievement of first two phases was mentality change of Armenian specialists. This was a considerable progress and became a cornerstone for investment of new ideas, new approaches, new work methods and tools. Due to this the role of state employent services have obtained new perception and value among people. The independent experts pointed out some mistakes and shortcomings, particularly the lack of attention to gender issues. This phase was quite different from others with program coverage and frames of cooperation. New, actual objectives and tasks were formulated. They were classified in 4 project components.

. Improvement of employment service quality,

. elaboration and investment of startegy on targeted support to the uncompetitive (vulnerable) groups in the labor market,

. Improvement and investment of labor market information system standard procedures (labor market forecast) in 51 employment offices

. Investment of ‘managment by objectives’ system

11 Component 1. Improvement of employment service quality. To help means to serve and not to dominate.

Before 2005 The issue of employment service quality improvement has always been in the priorities of SESA and became a project priority since the beginning of the Swedish- Armenian-Lithuanian project. During the first two phases the managers and specialists of 3 pilot offices were trained constantly. But the difference between these employment offices and the other offices became troublesome. So a goal was set to overcome these differences and provide equal development for all employment offices. It was planned to train specialists of 12 employment offices on skills and peculiarities of work with different beneficiaries (employers, job-seekers). But the main focus was the support to job seekers. In the next two years the acquired experience should be disseminated in all the other employment offices.

After 2005

WB Social Protection Administration Project started in 2004. It brought a fundamental solution to technical issues. With mutual agreement of two project managers a joint staff training program was planned. In the result of this agreement 51 managers of employment offices and specialists of SESA were trained twice every a year on ’Management skills’, ’Communication strategy’.

Internal and external communication was of utmost importance for SESA image. Swedish experts Mats Silvell in 2007 and Greta Svenson and Gunilla Åbrandt in 2008 conducted a number of seminars with introduction of topics ‘How to work with mass media’, ‘Policy to work with mass media’, ’Presentation techniques’, ’Communication strategy’. With 12 direct participation of Armenian employment specialists the Communication strategy document of SESA was developed. In parallel with these processes SESA web page and logotype, as well as publishment of informational material and booklets was fulfilled. As for staff training it mas mainly carried out by Swedish experts Marita Schwartz and Kent Karlsson but Lithuanian and Armenian counterparts were also involved in conduction of trainings. For feed-back purposes evaluation seminars for managers and trainers were organized in August, 2009. The methodology of mentioned seminars will be used in future. The localized Swedish three-level administration system experience in Armenia heightened productivity of administration system(2006). 10 employment offices of the marzes were given status of marz employment offices with new regulatory functions. The new experience should be disseminated throughout the country. The idea of continuous staff training occured just in time. It was to provide; . Staff training harmonised with reforms, . Dissemination of unified methods, knowledge and skills With motto ’To learn in order to teach’ 20 specialists from all the marzes of the country were selected, and since 2006 were trained by the Swedish experts. After each seminar they trained their colleagues in the marzes.

In 2007 they visited Lithuania. It was worth to see the progress of a country that once started from the same point as Armenia. It had passed through and overcame difficulties, which were still present in Armenian reality.

For coordination purposes a group has been formed at SESA. It will provide a continuous staff training, as well as classification and storing of huge educational material in the frames of this project and other projects. The three members of this group have been trained by the Swedish experts in 2009. Creation of 13 this group was made possible due to structural changes at SESA. 50 secretaries were replaced by civil servants. Their job descriptions included the following requirements; . Assessment of training needs . Elaboration of educational curricula (modules) . Creation and maintenence of staff training data base (including trainings in the frames of international projects) . Provision of conditions for unified work style . Training of trainers and/or organization of trainings . Coordination and evaluation of trainers’ work . Training of managers and staff on central level and/or organization of trainings . Dissemination of international experience It is planned to create a method room, which will complete implementation of above mentioned objectives.

2nd component; Targeted support to uncompetitive (vulnerable) groups in labor market, elaboration and investment of strategy on work with them

’If you are good it means you have work hard enough, it does not mean you were born with that’ Bengt Eklund, Swedish expert in Component 2 Vice President of European Association of supported Employment

This component was designed taking into account the achievements of the previous phase. Since 2000 during study visit to Sweden Armenian specialists studied Swedish model to integrate vulnerable groups (the disabled in particular) in the labor market, the difficulties and peculiarities of work with each group. Since 2003 in the result of legislative reforms RA Law on ’Employment of population and social 14 protection in case of unemployment’ came to power. By the Law certain key approaches, ideas and programs were approved. One of the biggest achievements was definition of ’uncompetitive groups in labor market’ and investment of programs for 7 defined groups. The Component aim was to elaborate a strategy of targeted work with these groups, and to invest it in the pilot offices which were decided in the previous phase (Employment Offices of Vanadzor, Gyumri, Nor Norq, Kapan).

Simultaneously establishment of Youth Professional Orientation center in Yerevan and Work Rehabilitation center in Gyumri was planned with financial and technical support of the World Bank. In reagrd to establishment of both centers the Swedish and Lithuanian counterparts have privided a tremendous consultancy support including trainings and study visits to both countries. In December, 2006 Youth Professional Orientation Center (YPOC) was established according to RA Government Decree. The staff of the center was trained in Armenia conducted by Swedish and Lithuanian experts Kenneth Hake and Nijole Dilbiene, as well as a study visist was organized to Lithuania. The YPOC staff got acquainted with activities and cooperation frames of youth centers in Vilnius and Klaipeda. The project has a much bigger investment in establishment of Job Rehabilitaion Center for the Disabled (JRCfD) in Gyumri. In different periods Armenian specialists were given possibilty to study carefully the work methods with the uncompetitive groups in labor market, and active labor market measures. This greatly contributed formation of new way of thinking, attitude and its dissemination in Armenia. Since 2007 the Swedish experts Claes Ericson and in Bengt Eklund (since 2008) conducted seminars and meetings for and with the managers of Shirak marz employment offices and specaialists, as well as the 20 trainers. The choice of Shirak region Employment offices was conditioned by the fact that they would be in future active partners of the Reahabilitaion Center in Gyumri.

The experience of Gyumri Job Rehabilitation center which is unique will be spread all over Armenia through the training group. In the frames of this component another big investment was introduction of European model of supported employement, and training of job coaching method which is quite a new approch in work with uncompetitive groups in Armenian. With suggestions of Swedish experts SESA initiatied creation of natioanl association of supported employemenet. Cooperation with NGOes was launched in 2008. This will give a chance to involve disabled people in the process of problem solution regarding the disabled. Another achievement in the project frames is implementation of pilot social enterprise programs. According to SESA’s propoasal based on studies in Lithuania two programs of social enterprises (Union of the blinds in Echmiadzin and NGO Astghatsolq) are being presently implemented in the frames of USAID SPSS project. On the basis of this experience a proposal will be submitted to make 15 ammendments in the legislation. Component 4. Improvement and investment of labour market informational standard processes (labour market forecast) in 51 employemtn offices

Before 2005

In 2002 the SESA specialists participated in a long-term training in Sweden on ‘Labour market forecast’. After the training an employer questionnaire was worked out in order to make a survey of employers and find out their needs in Armenia. Swedish and Lithuanian experts contributed to its elaboration greatly. In 2004 a pilot survey was launched in pilot employment offices in Yerevan, Vanadzor, Kapan, Gyumri. The sample included 1200 employers.

After 2005

In 2005 the Swedish model of labour market forecast was invested in all the marzes of Armenia. On the basis of the pilot program results the questionnaire was completed and in November 2005 the first employer sample survey was conducted in the whole country with sample of 3200 employers. The aim was to study and assess labour market situation, and to forecast short-term labor market trends. At the same time a task was set to collect information on the structural changes by interviewing employers (expected redundancies and vacancies, current vacancies). Investment of labour market forecast model gave its results. The circle of employers cooperating with SESA enlarged.

Համագործակցողգործատուներիթվաքանակ The number of coopereting employers 35000

30000

25000

20000

15000

10000

5000

0 1999թ . 2002թ . 2004թ . 2006Ã. 2008թ .

The directions of further cooperation with them was designed. Simultaneousely the reasults helped the targeted elaboration and productive implementation of state employment programs.

16 120 105,2 95,4 100

80 68,1 71,5 ¼µ³Õí³ÍáõÃÛ³ÝThe executive of regulation Ï³ñ·³íáñÙ³Ý å»ï³Ï³Ýof employment Íñ³·ñÇ in% 60 45,4 Ï³ï³ñáÕ³Ï³ÝÁ %-áí 40

0 1999Ã. 2002Ã. 2004Ã. 2006Ã. 2008Ã.

Since 2008 two employer sample surveys were planned (in autumn and spring). In this period the Swedish experts together with USAID SPSS experts continued working with Armenian colleagues, trained labor market forecast and analysis specialists on central and regional level. In parallel with this the questionnaire was completed and refined. With the aim of data registry and analysis the specialists were trained software ACCESS and EXCEL. In summer of 2009 the report on the survey results was published with the support of this project. The next survey is implemented with ILO support.

Component 4. Investment of ‘management by objectives’ system

Before 2005 ‘Management by rules’ can be the short description of the management system in this period. Equal requirements to all the employment offices, ignoring regional peculiarities, project planning without assessment of needs, standard approaches and solutions. And as a result allocated but untouched funds, low program indicators, low performance, low productivity of employment offices and lost efforts.

After 2005 The ‘management by objectives’ system demanded clear definition of prioritised objectives based on labour market needs, according to social economic trends in marzes. It also demanded to strengthen employment office abilities to initiate, self govern, create, and carry out a responsibility, react quickly, evaluate the results of work and review them. In the context of country’s objectives, like poverty reduction, increase of employment volumes, a task was set up to make fundamental reforms in the system. The tasks were;

. Improvemnt of legislation . Improvement of management system . Review of employment programs . Improvement of staff professional skills . Improvement of work conditions at the employment offices . Localization and dissemination of international experience

With solution of these problems it was expected to improve staff administration skills, quality of service provision, to invest functioning monitoring and evaluation systems, to form a healthy competition area between the employment offices, to clarify responsibility according to 17 administration levels.

In December 2006, Armenian and Swedish experts discussed all necessary conditions for the investment of ‘management by objectives’ system. Those were. . Close cooperation of all strategy elaborating and implementing bodies . Upward labor market statistical data . Knowledge of statistcal movements in the past years . Demographic data . Comparison of different surveys describing development tendencies of economy . Correspondence between objectives and budget . Cooperation of state and international programs

Assessing the situation, the experts found out that the Armenian counterpart is not ready yet to invest the ‘management by objectives’ system. The main obstacle was the financing system, which did not allow to share employment office budget according to objectives. With agreement of counterparts it ws decided to review the component ‘management by objectives’ and instead to elaborate performance indicators. This was done with active participation of USAID SPSS experts. In 2008 the indicators were piloted in Vanadzor and Shengavit Employment offices. On the basis of results the USAID SPSS experts elaborated a manual on employment program indicators for employment offices. At present the performance indicators are a ground to assess the work of employment offices. They are included in annual state employment program, which together with conclusion of the Republican Agreement committee is submitted to the Government and to Natioanl Assembly. It is planned to propose these indicators to monitoring organizations and departments.

Project Management Management of this project is unique too. It is being managed by Swedish and Armenian coordinators and Steering Committee. The committee included Armenian, Swedish and Lithuanian experts from all adminstrative levels (Ministry, SESA, employment offices). Steering Committee had meetings twice a year, when the partners discussed activities, obstacles, and ways to overcome them, planned future actions. All the processes contributing SESA development were put in the center of project attention. Taking into consideration the necessity of national classification of occupations, the project has constantly provided technical and consultancy support with the National Institute of Research, MoLSI.

Taking into account necessity of development of IT systems a study visit to Sweden was organised in May 5-11, 2008. The objective was to get acquainted with IT systems in Swedish Public Employment Service, to study IT possibilities in organization and to 18 invest new experience in development of GORC intranet in Armenia. Specialists from MoLSI, SESA, Nork informational analytical center. The cooperation principle of different projects and organizations (TACIS, SIDA, WB, USAID, ILO) was unique and successful. It excluded repeatetion of the same ideas and activities. By keeping the mandate of each project it was made possible to bring projects together, thus to save efforts and funds and gain quality instead of quantity. The financial administration of the project was unique just as the project itself. After the end of each phase the saved financial means were spent to purchase technical equipment for employment offices and SESA, to publish information booklets for SESA beneficiaries.

The partners of the project

Joint work urges people to perform activity which would be impossible to perform alone…

The project has been implemented in parallel with a number of international projects (TACIS, WB, USAID, ILO, UNO). This did not hinder but supported to provide maximum results. By putting the efforts together for the same objective we achieved what we have now. The Youth Professional Orientation Center in Yerevan and Gyumri Job Rehabilitation center for the disabled are the results of productive cooperation. Due to this a system of continuous staff training was invested in the counrty. The USAID SPSS project greatly contributed the practical use of achieved knowledge. Training on work with the employers and job-seekers, elaboration of performance indicators, implementation of pilot programs of social enterprises, provision of continuous labour market forecast (which was a ground for ILO project that started in 2009).

This was a successful project

Difficulties multiply our strength, make us outshine others and ourselves

We have been optimistic but full of doubts since the beginning. But now we can say that Swedish-Armenian-Lithuanian project is surely successful and the efforts are justified. Swedish Minister for Employment Mr Sven Otto Littorin claimed the same statement during his official visit to Armenia in November of 2008. What is the secret of success? The first and biggest secret is • the atmosphere of friendship, respect and mutual understanding which was established since the beginning • responsibility, high professionalism, commitment of Swedish and Lithuanian experts and the urge of Armenian specialists to learn and to put new knowledge into practice 19 • close cooperation with other projects, investment of flexible and non-standard management mechanisms. The future

Today we know what and how. All obstacles are possible to fight if there is good will and optimism.

The biggest achievement of this project is realization of necessity to improve the employment sphere despite of difficulties. This qualitative achievement is a ground for progress. ‘Assess the situation, reveal problems and find solutions’. This is the formula of success that has been the motto of State Employment Service Agency all these years.