20 Years of Economic Engagement: Rethinking Values and Approaches

Vahé HeboyanDevelopment 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: www.bized.co.uk

Economic Growth

Economic growth...Copyright: Flicker: Anne Onimous

a common picture…Copyright: http://wvarmenia.files.wordpress.com/2008/12/229288407_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: www.bized.co.uk

Armenia 2030…

Long-term strategy

Capacity building Human Economic

Industrial revival Sustainable jobs

Knowledge

Infrastructure Empowerment

www.proseandletters.com

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

www.proseandletters.com

how?

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our aim…