ARMENIA CAN BOOST INCOME GROWTH AND YOUTH EMPLOYMENT THROUGH AGRICULTURE
Targeted News Service
November 12, 2014 Wednesday 2:26 AM EST
ROME
The United Nations International Fund for Agricultural Development
issued the following news release:
The government of the Republic of Armenia and the International Fund
for Agricultural Development (IFAD) signed a US$11.0 million loan
agreement to finance the Infrastructure and Rural Finance Support
Programme in the seven regions of Shirak, a province in the north-west
of the country.
With a total cost of $52.8 million, the IFAD-supported project is
co-financed with a $25-million contribution from the OPEC Fund for
International Development (OFID); $3.5 million from other bilateral
donors; $10.1 million from the government of Armenia; $3.5 million
from the rural women and men benefitting from the project and $0.9
million from national financial institutions. The financing agreement
was signed today in Rome by Armen Harutyunyan, Deputy Minister for
Agriculture and by Michel Mordasini, IFAD Vice-President.
Over 70 per cent of the land area in Armenia is used for agriculture
which provides employment to 44 per cent of the country’s population,
including 65 per cent of people living in rural areas. Agriculture
activities such as horticulture, viticulture and livestock production
are favoured due to the high altitude of the land, small average
farm size and abundant labour. This new IFAD-funded activity in
Armenia helps respond to rapid changes in the business, financial and
agricultural sectors as the country’s economy continues on the road
to recovery. It aims to improve the economic and social status of
the population by generating income growth and sustainable employment
opportunities.
The programme will target more than 66,000 beneficiaries, with
a specific focus on women-headed households which are now more
prominent as increasing numbers of men and young people are leaving
rural areas in search of jobs. The seven regions covered (Lori,
Tavoush, Gegharqunik, Vajots Dzor, Sjunik and Aragatsotn) have the
highest incidence of poverty in rural Armenia, but also have high
agricultural potential to lift beneficiaries out of poverty.
Since 1995, IFAD has invested a total of $78.2 million in 6 programmes
and projects in Armenia benefitting approximately 394,000 rural
households.