REVIEW OF UNDP PROGRAM IN ARMENIA

UNCLAS YEREVAN 001239

SIPDIS

SENSITIVE

DEPT FOR EUR/CACEN, IO

E.O. 12958: N/A
TAGS: EAID ECON AORC ARMENIA'>AM UNDP
SUBJECT: REVIEW OF UNDP PROGRAM IN ARMENIA

REF: STATE 106429


1. (U) Sensitive but unclassified. Please protect
accordingly.

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SUMMARY
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2. (SBU) UNDP provides a valuable service to ARMENIA
and supports U.S. goals. UNDP's current country
program and goal statements are based on realistic
assessments of ARMENIA's needs and reflect a knowledge
of past programs' weaknesses and strengths. Post
commends UNDP for its efforts in ARMENIA. End Summary.

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WEAKNESSES AND STRENGTHS
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3. (SBU) Post fully concurs with UNDP's self-assessment
of program strengths and weaknesses as described in the
country program. As stated in the UNDP Country Program
for ARMENIA, structural factors play a large part in
poverty and corruption, and these factors were not
sufficiently taken into consideration in the 2000-2004
cooperation framework. In addition, Post verifies that
the GOAM did not fully implement the intended better-
governance applications of some UNDP projects.


4. (SBU) The new country program emphasizes building
partnerships and developing strategies, which focus on
nationally-identified goals, and Post believes this
approach will alleviate most of the previous
programmatic shortcomings. The country program also
proposes to revise the management structure of the UNDP
mission in ARMENIA. This restructuring has already
resulted in increased efficiency, tighter focus of UNDP
programs, and more accountability.

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USG GOALS AND UNDP
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5. (SBU) The UN Development Assistance Framework
(UNDAF) governs the direction of the local UNDP
mission. The UNDAF fits well with U.S. interests in
ARMENIA, and it focuses on sustainable economic
development and strengthening democratic institutions,
which are two of the highest priorities for Post.
USAID partners with UNDP on approximately 80 percent of
UNDP's current and proposed economic development
projects. Both agencies help ARMENIA implement its
Poverty Reduction Strategy, both encourage development
of small- and medium-sized enterprises, and both
emphasize corporate social responsibility. UNDP and
Post conduct different projects to encourage democratic
institution building, but the projects are
complementary and encourage transparent institutions,
which are accountable to the citizens of ARMENIA.

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SUCCESSFUL PARTNERSHIPS
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6. (SBU) As proposed in the country program, UNDP
effectively supports public/private partnerships to
encourage corporate social responsibility. In December
2003, UNDP and Post officials began a dialogue with ten
of the most powerful businessmen in ARMENIA in an
effort to instill principles of corporate social
responsibility in ARMENIAn business. In early March
2004, UNDP and Post launched a similar effort aimed at
medium and large ARMENIAn enterprises with the full
support and participation of GOAM officials. Post
believes these partnerships will effectively engage the
GOAM and business in poverty reduction strategies, and
they offer an example of improved performance of UNDP
cooperation, based on its country program and UNDAF.

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COMMENT
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7. (SBU) UNDP is an extremely effective development
partner in ARMENIA. Under its current management,
UNDP's efforts are effectively targeted and result
oriented. Post values its partnership with UNDP.
ORDWAY