The World Bank has released its Second Systematic Country Diagnostic (SCD) for Armenia, titled “Beyond Boundaries: Unlocking Potential for a Sustainable Tomorrow”. The report revisits the first diagnostic published in 2017 and provides an updated analysis of the country's development challenges and opportunities.
The SCD assesses key areas for potential growth, including human capital investment, job creation, trade diversification, market access, resilience building, and leveraging technology and diaspora resources. The goal is to help Armenia accelerate progress toward ending extreme poverty while maintaining a livable planet.
According to the report, Armenia has reached upper-middle income status over the past five years. However, there are still strategic pathways towards sustainable development that need to be explored.
In terms of human capital investment, the report suggests that focusing on education quality and equal access can transform Armenia's human capital into a dynamic asset. It also highlights the urgent need for healthcare financing reform to ensure affordable access for all citizens.
The SCD further points out that targeted efforts to create more and better job opportunities could reduce high unemployment rates and support poverty reduction in Armenia. This includes bridging the mismatch between job seekers' skills and labor market demands through vocational training and education programs.
On trade diversification, the report indicates that by expanding its trade partners and exports, Armenia can unlock new avenues for economic prosperity. This strategy could also bolster resilience against global economic fluctuations.
Access to markets is another area identified by the report as crucial for Armenia's development. As a landlocked country with difficult topography, improving infrastructure and streamlining logistics could enhance access to goods, services, employment opportunities, and basic public services in remote rural areas.
The SCD also underscores the importance of building resilience against various shocks related to fragility, conflict, and climate change. This includes empowering rural communities and promoting gender equality.
Finally, harnessing technology and leveraging its diaspora as a global resource could foster innovation, entrepreneurship, and knowledge exchange in Armenia.
The report will serve as a foundation for the World Bank Group’s new Country Partnership Framework (CPF) for Armenia, which is due to be released later in 2024. The CPF will outline the World Bank’s financial and analytical support to the country in implementing crucial reforms over the next five years.