Poverty and Environment in Armenia

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Poverty and Environment in Armenia

• Bratislava
• 9-10 December

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Content

1. Country overview -Armenia
2. Macroeconomic Indicators
3. Environmental Challenges
4. Finances
5. Decentralization in the management of natural
   resources
6. Ongoing activities -PEI
7. Environmental Concerns in non Environmental
   Sectors
8. New Treats
9. Challenges
10. Future steps

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Main Macroeconomic Indicators of RA
  2002-2006 Average 2007 2008 Forecast
GDP real growth, 12.9 13.8 10.2
Per-capita GDP (US dollars) 1246.5 2853 3311
Unemployment (officially registered), 7.2 7.5 7.1
Inflation, 3.1 4.4 4.0
Natural growth of population 0.34 0.42 0.43
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Level of Poverty /Extreme poverty
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Distribution of Poverty in Armenia
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Environmental Challenges

• 1. Sustainable Land Management
• Lands are under degradation and different level
  of desertification - 82
• 2. Atmosphere Protection
• Urban Air Quality
• dust concentration in Yerevan exceeds the
  permissible limit by 2.7 times, sulphur dioxide
  by 2.6, nitrogen dioxide - 3.3.. etc
• 75 of the air contamination from Transport
  sector In Yerevan 95
• Industrial hotspots Alaverdy SO2 Maximal
  Allowable Limit by 12 times
• 3. Sustainable Forestry
• Depletion of forest resources - in 90s cutting
  of 40,000 hc,. (11.2 /1990 against 8/ 2007).
• 70 of the natural forests of the country are
  depleted and over-mature.

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Environmental Challenges

• 4. Waste Management
• Out of 940 Communities 475 dump sites
• 11 urban and 178 community waste dump sites
  operating illegally
• Absence of sustainable waste management
  practice - no reuse, recycling and recovery
• Hazardous waste management not regulated
• 5. Energy Efficiency/Safety
• No local fossil fuel resources
• High energy intensity of municipal sector -
  wood fuel (33.7) electricity (30.3)
• 6. Disaster Risks
• High to very high seismic hazard rating An
  average of 15 earth tremors every month
  (earthquake in Yerevan could affect up to
  1,200,000 people)
• Frequent landslides, floods, droughts -
  landslides 2 of territory (125 settlements)
  and 1500 km off 8000 km of roads permanent
  landslides

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Resource Mobilization from Environmental Charges
and Nature Use Fees
FINANCE
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FINANCE

• Law on Budgeting of RA - Budget expenditures for
  any given year to support environmental projects
  can not be less then the total of Environmental
  Charges and Nature Use Fees from the year coming
  before the year of planning.
• Depending on scale of existing Environmental
  Problems the Communities receive assistance from
  the Central budget

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Decentralization in the management of natural
resources

• National Forest Policy and Strategy of RA
  September 30, 2004
• National Forest Program July 21, 2005
• Strategy for Sustainable Agriculture Development
  - 2006
• The National Program on Energy Saving and
  Renewable Energy 2007
• National Water Program 2006 - Water Basin
  Management Authorities shall develop and
  implement Water Management Plans

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Natural Resources Management and Poverty
Reduction Project

• Funded WB, SIDA, GEF 2002-2008
• Budget 16 million US Dollars
• Regions - Gegharkunik and Tavoush of RA, 100
  communities
• Agricultural activities
• Community pasture improvement (6300 hc)
• Pasture yield increased by 10-15
• Hay yield increased by 20-25
• Livestock productivity increased. The population
  received additional income from the sale of honey
  (the project provided some households with free
  beehives for the production of honey).

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Natural Resources Management and Poverty
Reduction Project

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• Construction/ installation activities
• Construction of the watering points (103 units)
• Renovation of the field tracks (777 km)
• Installation of the gullies (420units)
• Installation of the gabions (210 units)
• Installation of the equipments for biogas
  production (22 units)
• Environmental activities
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• Tree planting in the community degraded
  territories (220 hc)
• Fencing construction (74 km)
• Community pasture bordering (32 km)
• Small dams (7 units)
• Gabions for reducing the water speed (44 units)

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Environmental Components and integration processes

• National Environmental Action Plan II, Sept. 08
  
• Cross sectoral cooperation Agriculture, Health,
  Transport, Energy, Industry, Education, Science.
• establishment of the Local Environmental Action
  Plans
• piloted in Ararat and Kajaran cities.

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Environmental Concerns in non Environmental
Sectors

• National Council for Sustainable Development
• First meeting - in June 2008 -Chaired by
  Prime Minister.
• PRSP I -2003 - 2007
• PRSP II Transfer to Sustainable Development
  program
• October 2008
• Ensure sustainable and rapid economic growth
• Implementation of targeted social and income
  policies aimed vulnerable (including the poor)
  social groupsTargeted programs for the poor and
  marginalized communities
• Modernize the countrys administration system

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NEW TREATS

• Economic
• Impact of the Financial Crises on the poverty
  level unemployment from mining and Manufacturing
  sectors (total 112.2 thousand currently involved)
  may rich up to 10,000 and first time since 1999
  poverty level will increase 1.2!
• Remittances in 2007 stands for 2 billion USD
• Natural
• Climate Change impact on the economic and social
  sectors
• Climate Change impact on the Economy of Armenia
  Energy, Water, Agriculture and Forestry
• Climate Change Impact on the Ararat and Shirak
  Region of Armenia Lusadzor community of Tavush
  region special consideration on possible impact
  on the Poor Climate Change mainstreaming in
  UNDAF

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Challenges

• Not clear vision of the link of poverty and
  environment among decision makers (dominating
  short term economic benefit decision making)
• Developed legislative framework but weak
  enforcement mechanisms
• Separate consideration of poverty and environment
  related issues in major policy documents
• No poverty-environment and environmental
  mainstreaming indicators

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Future Steps

• New methodology for calculation of Environmental
  Impact Assessment with consideration of the
  Ecosystem Function Valuation For evidence based
  decision making
• Development of methodology for consideration of
  Environmental loses in the National Income
  calculation.

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• THANK YOU FOR ATTENTION