Yerevan, Armenia's capital. © Fernando Moleres (Panos)
Armenia gained independence from the Soviet Union in 1991. Although it has suffered severe economic and social dislocation following the collapse of the Soviet Union, Armenia has made considerable progress during the last several years.
The economy is stronger – the Real Gross Domestic Product (GDP) growth has been in the double digits since 2002, exceeding 13.8% in 2007. Poverty rates have fallen from 50% in 2000 to 26% in 2006, and extreme poverty dropped from 16% in 2001 to 4% in 2006. Armenia’s re-classification as a Middle Income Country in January 2006 by the Organisation for Economic Cooperation and Development (OECD) was a clear sign of progress.
Yet, the strong economic growth in recent years has not translated into substantively improved living conditions or enhanced employment prospects for the majority of the population. There are major issues concerning poor governance, endemic corruption and lack of civil society access to the process of policy development.
DFID's bilateral aid programme closed in December 2008. However, we will continue to support Armenia’s poverty reduction and economic development efforts through our membership of the European Union, the World Bank, the European Bank for Reconstruction and Development and the United Nations.
Total UK aid received (2008/09): £3.2m (Source: Statistics for International Development 2009)