2. ARMENIA
• Attained independence from Soviet Union in
1991
• Achieved double-digit growth for several years
• GDP started declining post 2009
• GDP growth in 2012 – 3.8%
• GDP - $ 10.5 billion (official exchange rate)
• Population – 2.97 Million (July 2013 est.)
• GDP per capita - $ 5,600 (2012 est.)
3. ARMENIA - GOVERNANCE
Govt. of Armenia
10+1 Administrative Regions
(Governed by State Appointees)
915 Communities
- 866 Rural
- 49 Urban
4. FRAGMENTATION
• 915 Communities – Avg. community size 3,245
people
• Narrow scope of responsibilities and revenue
sources
• Local government expenditure – 5-6% of
consolidated public expenditure
• Lack of capacity & diseconomies of scale
5. RECOMMENDATIONS
• Emphasis on voluntary consolidation and
inter-community collaboration
• Focus on strengthening capacity of local
communities
• Sound local budget processes and improved
local tax administration
• Equalization grant + Capital Development
Grants + Expansion of local borrowing