Reform of the social sector is a key element of Armenia's poverty reduction strategy. The idea was to release additional funds for promoting reintegration of the unemployed into the job market – so-called active labour market policy – by axing certain social benefits. But the responsible ministry opposed the proposed abolition of unemployment insurance and family allowance. For that reason the Ministry of Labour and Social Affairs conducted a PSIA in 2004/05. GIZ advisors assisted the ministry with the analysis, supporting the analysis and facilitating the policy dialogue.

The analytical part of the PSIA consisted of a combination of quantitative and qualitative studies. But the central element was the dialogue in which experts and decision-makers discussed a number of reform scenarios with the help of innovative, software-based moderation tools. This process encouraged more factual analysis of the various options on the basis of transparent success criteria.

The recommendations emphasised the important role of passive labour market measures to reduce poverty among the target groups. However, here too, measures are necessary to curb abuse. The capacities of the responsible institutions must be strengthened for the passive measures and, particularly, for the active measures. In the longer term these measures must be complemented by economic promotion and job creation, if a sustainable reduction in poverty is to be achieved.

One important finding was that a process-oriented PSIA approach can be open-ended. It was possible, for example, to adapt the strategy step-by-step as the discussion went along. Yet the planning and decision-making process has not ended with the presentation of the study. The forecasting instruments developed will be used to answer other questions in the reform process, and the experts involved will continue to work with the responsible decision-makers.

Downloads

• Social Sector PSIA Armenia – Summary
  Summary May 2005
  en-social-sector-psia-armenia-summary-2005.pdf, 0.07 MB (English)
• Poverty Social Impact Assessment Armenia – Final Report
  en-final-report-psia-armenia-2005.pdf, 1.67 MB (English)

Link

• PRSP Armenia
  www.prsp.am/moderation.php