The report updates the poverty situationin Armenia, largely based on the Integrated LivingConditions Survey conducted during 1998-99, and provides aswell, the foundation for the preparation of the PovertyReduction Strategy. The poverty profile identifies awidespread, and still deep poverty incidence, but while thispoverty seems persistent, its depth and severity may bedecreasing, and extreme poverty subsiding. Notwithstandingthe fact that estimates point to a stabilization of thepoverty profile, there are identified population groupsfacing particularly high poverty risk, i.e., very youngchildren and the elderly, unemployed and adults notparticipating in the labor market, and people residing inhigh altitude and earthquake regions. Factors behind thepersistence of poverty in Armenia are: low income and highinequality in its distribution; growth which did notgenerate sufficient employment opportunities; and, theimpact of the Russian crisis during the period under review.Recommendations call for the implementation of regularintegrated household surveys (quarterly), and, include theneed to focus on generating more job opportunities, bycreating an environment conducive to private sectordevelopment, i.e., small and medium scale enterprises; and,increase public spending on quality education, and health,while pursuing ongoing reforms, namely, in health managementand finance.
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