A new Country Partnership Strategy (CPS) for the Republic of Armenia for 2014-2017 was discussed today by the World Bank Group’s Board of Executive Directors.

The four-year strategy is a framework document outlining the World Bank Group’s support to the country.

The strategy is anchored in the Armenia Development Strategy 2025 and places private sector-led job creation at the center of the World Bank Group’s response. It also stresses the need for improvement of labor productivity in the agricultural sector that supports the livelihood of over one million of the rural population, and would lead to higher economic growth, shared prosperity, and faster poverty reduction in both urban and rural areas.

The strategy proposes financial support of US$ 873 million over the next four years, with access to the International Development Association (IDA), International Bank for Reconstruction and Development (IBRD), and International Finance Corporation (IFC) funding.

”This Country Partnership Strategy aims to support private sector-led job creation to underpin Armenia’s development”, said Henry Kerali, World Bank Regional Director for the South Caucasus. “It aims to support Armenia’s development by strengthening competitiveness of the economy through the implementation of critical reforms that will help boost job creation, and by ensuring more efficient and equitable delivery of social services.”

The strategy will support Armenia across two main engagement areas:

-Supporting competitiveness and job creation by improving the ease of doing business, promoting exports and tourism, and improving SME access to finance; and

-Improving efficiency and equity in social services delivery by ensuring access of all, especially women, to quality health and education services, and strengthening the social protection system.

Improving governance and anti-corruption measures in public services is a cross-cutting focus. The strategy will help revamp the existing anti-corruption framework, improve efficiency of the public administration, and deepen public finance management reform.

Since Armenia joined the World Bank in 1992, US$1,746 million has been allocated to different operations in the country. Currently, the World Bank portfolio includes 14 active projects with total commitments of US$445.4 million. Areas of support include five investment lending operations in infrastructure, four in social sectors, three in public sector, and two in ICT and agriculture.

With Armenia becoming a member and a shareholder of IFC in 1995, the organization has invested US$271.5 million in the country. Those investments covered 44 projects across a range of sectors, including financial markets, manufacturing, and mining. IFChas also mobilized nearly US$9 million from other lenders. IFC’s Advisory Services provide advice through projects focusing on the financial sector, sustainable energy, regulatory simplification, and food safety.