US embassy cable - 04YEREVAN1239

UNCLAS YEREVAN 001239 
 
SIPDIS 
 
SENSITIVE 
 
DEPT FOR EUR/CACEN, IO 
 
E.O. 12958: N/A 
TAGS: EAID, ECON, AORC, AM, UNDP 
SUBJECT:  REVIEW OF UNDP PROGRAM IN ARMENIA 
 
REF: STATE 106429 
 
1. (U) Sensitive but unclassified.  Please protect 
accordingly. 
 
------- 
SUMMARY 
------- 
 
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. 
 
------------------------ 
WEAKNESSES AND STRENGTHS 
------------------------ 
 
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. 
 
------------------ 
USG GOALS AND UNDP 
------------------ 
 
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. 
 
----------------------- 
SUCCESSFUL PARTNERSHIPS 
----------------------- 
 
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. 
 
------- 
COMMENT 
------- 
 
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