20 Years of Economic Engagement: Rethinking Values and Approaches Vahé Heboyan Development Economist

Objectives  Facilitate exploration and understanding of development  Promote use of development factors in designing intervention strategies and policies  Discuss Diaspora potential in promoting development  Set the stage for further exploration and discussions

Diaspora Contribution  Remittances  FDI  Art/Culture  Healthcare  Environment  Foreign Policy  Other  Critical in disaster mitigation Earthquake Post-Soviet War  Helped to avoid a potential catastrophe  Ensured an existence

After 20 years…  22 years after earthquake a large # of people are still waiting for the promised housing  Poverty gap is increasing  Basic services are still unattainable for many  Healthcare is far behind  Education is slipping away  Civil society is weak  Government institutions are weak

After 20 years…  What could have been achieved? Robust long-term development fundamentals Sustainability of Diaspora assistance Strong governmental institutions Empowered civil society Economic development

Question With the massive flow assistance from Diaspora and foreign aid, why did not we achieve all these?

Answer is in us…  Failure to follow the concept of economic development  Lack of coordinated long-term strategy Within Diaspora With Armenia (gov. and others)  Lack of sustainability clause in Diaspora assistance  Lack of accountability  Failure to reform government institutions

Economic Development? Source:

Economic Growth Economic growth... Copyright: Flicker: Anne OnimousAnne Onimous a common picture… Copyright: 12/ _dfa6e10b15_o.jpg  Economic growth does not taken into account income distribution  A small proportion of the population can own a large amount of the wealth

Source:

Armenia 2030…  Long-term strategy  Capacity building Human Economic  Industrial revival  Sustainable jobs Knowledge  Infrastructure  Empowerment

The Diaspora Challenge…  Re-evaluate approaches, priorities, and strategies to Armenia’s development and assistance  Ensure interventions and assistance Are directed to building capacity Have a long-term focus Are sustainable  Reach the recipient

how? 1+1 › 2

our aim…