This note provides an overview ofdemographic changes and their policy implications inArmenia, with particular reference to the poor. Armenia iscurrently experiencing a significant aging of the populationand decrease in the size of the population, these changeshave far-reaching implications. The fertility rate inArmenia has fallen dramatically, from about 4.5 children perwoman in the 1950s to 1.74 children per woman at present,which is well under the fertility rate required forpopulation replacement. Armenia's population, whichstood at 3.5 million people in 1990, is expected to decreaseto 3 million by 2050. This trend, combined with increasinglife expectancy, underlies the growing rise in thepercentage of elderly persons and the decline in theworking-age population. This note provides an overview ofthe key demographic changes unfolding in Armenia, highlightstheir linkages with social spending, and draws policyimplications for labor force participation, productivity,and ultimately for Armenia's development and povertyreduction trajectory. The note is structured as follows:section two summarizes the key demographic trends underwayin Armenia; section three presents a profile of poverty andsocial spending by age; section four analyzes the fourpolicy issues as listed in column 2 of table 1. In each ofthese three sections, the poverty reduction angle isemphasized. The final section provides a summary of the key messages.