Armenia is a small, landlocked nation between the mountainous edges of Asia and Europe. Armenian culture is rich with familial bonds and social connections, forming a strong community. The people’s strength is evident in their perseverance through a newly won independence from the Soviet Union in 1991, leaving about 30% of its people struggling with poverty. Here is everything to know about poverty in Armenia. 

Agriculture

While 35% of Armenia’s workforce is in agriculture, most farms are smallholder-based, and dividing food crops among the nation becomes difficult. As of March 2023, 23% of Armenian households are food insecure. 

The International Fund for Agricultural Development (IFAD) has been working to limit the food insecurity rates in Armenia, implementing grants and low-interest loans to help vitalize a country’s resilience in agricultural contexts. Poverty in Armenia commonly hits those in rural areas with unfavorable agricultural land — IFAD seeks to limit the disparity that food insecurity inflicts on those already suffering from poverty.

IFAD offers Armenian people loans for small subsistence farmers to expand their growth and increase surplus for sale. They can support the diversification of the agricultural market, a vital point in expanding food security to rural areas, and encourage those suffering from poverty to start businesses and enhance the Armenian economy. 

In 2017, agriculture generated 15% of Armenia’s GDP and is vital to the livelihood of those in rural areas suffering from extreme poverty. Policies and grant support like that of IFAD’s programs work to enhance the lives of those affected by a lack of arable land and an unsteady farming environment. 

Unemployment

Armenia’s high unemployment rate of 16% has been a persistent factor in poverty levels. Access to jobs that are well-paying and accessible is vital to maintaining the lifeblood of an economy. They are essential to declining poverty rates — providing people with an income that can spread across a household and afford necessities. 

Not only does Armenia have poor employment rates, but also low labor participation due to poor working conditions and a lack of opportunity for women — 45% of working-age women do not have employment. A quarter of jobs offered are low-wage, which keeps workers under the poverty line despite having an income, leaving several working poor. 

Those who find work in Armenia tend to be more highly educated. Urban areas have a high percentage of workers with tertiary education degrees, but rural areas have significantly lower levels of upper-level education. Even despite upper-level educational achievements, workers are not saved from the risk of poverty and often still work low-wage jobs that inhibit their growth in the economy.  

Enhancing labor laws that protect workers will provide better working conditions for the Armenian people. Policy improving health and safety standards is vital to bettering the general well-being of workers and, thus, their ability to continue working. Education standards and improving access to quality education are also vital to a thriving workforce.  

Education 

Low-quality education — especially in rural areas — has exacerbated poverty in Armenia. Accessible and advanced education is vital to maintaining steady economic growth as it equips workers with vital critical thinking and resources to be continuously learning post-schooling age. 

Education has been a priority in Armenia since it deviated from the Soviet Union in the early 90s. Still, it lacks the quality necessary to equip its youth effectively for the workforce. Armenian children learning with current Armenian education standards are 58% less productive than those who received higher-quality education. 

Education is a necessary step in laying the foundational knowledge needed for higher-paying jobs that will allow for more opportunities for those facing poverty in Armenia to raise themselves above the line.

The World Bank’s Efforts

The World Bank is currently helping to support and improve the Armenian education system through systems like the Education Improvement Project, a project that aims to tackle financial barriers to Armenian education by covering lab fees and equipment costs.

The organization granted a $25 million loan to fund the Education Improvement Project in Armenia on May 20, 2022. The project functions to improve multiple scales of education within Armenia; it funds the development of new schools while also providing supplies and enhanced training to Armenia’s educators. It also funds development in higher education institutions: the project focuses on creating improved STEM programs to open students to a higher-paying labor market. It creates opportunities for inclusion programs incentivizing young women to enter STEM-related fields. 

Moving Forward

Armenia only gained independence from the Soviet Union in 1991, so the struggle to steady its economic, social and political environment continues to slip through the cracks. Still, Armenia continues to show steady growth. Poverty levels have steadily declined since 2010, from 35.8% in 2010 to 23.5% in 2018. The strength of the Armenian people has persisted through the years, and poverty in Armenia will continue to decline with continued agricultural and educational advancements. 

– Eden Ambrovich
Photo: Unsplash