Decentralization in Armenia: A Re-look
Download as PPTX, PDF
0 likes537 views
Armenia gained independence in 1991 and experienced growth for several years but GDP declined after 2009. The country has a population of 2.97 million and GDP per capita of $5,600. Governance is divided between the national government and 10+1 administrative regions overseeing 915 communities that average only 3,245 people each. This high level of fragmentation results in narrow responsibilities, limited revenue, and lack of capacity and scale for local governments, which account for only 5-6% of public spending. Recommendations include voluntary consolidation, inter-community collaboration, strengthened capacity, improved budgets and tax administration, equalization grants, and expanded local borrowing.
Decentralization in Armenia: A Re-look
- 1. DECENTRALIZATION IN ARMENIA: FRAGMENTATION AND INERTIA
- 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