Armenia

On March 27, 2006 the MCC signed a $235.65 million compact with Armenia designed to focus on improving the economic performance of the agricultural sector through rural road rehabilitation, irrigation infrastructure, and agricultural projects.

MCA Status

On December 19, 2005 the MCC approved a five-year $235.65 million compact with Armenia. The compact entered-into-force on September 29, 2006. The compact focuses on reducing rural poverty through a sustainable increase in the economic performance of the agricultural sector, and by investing in roads, irrigation infrastructure, and technical and financial assistance to support farmers and agribusiness.

In December 2008, the MCC Board decided to put a hold on assistance for rural road rehabilitation due to concerns with the Armenian government's commitment to democracy.  The decision was upheld following a board meeting in March 2009 and in June 2009 the MCC board made the official decision not to resume funding for any further road construction and rehabiliation.  To date, 150 kilometers of MCC funded road designs are now being funded by the World Bank.

Country Compact

Armenia MCC compact
Compact Implementation Status Report (The MCC currently does not have a Quarterly Implementation Status Report for Armenia.)
CGD's summary of the proposal
MCA-Armenia website

By comparison, Armenia's Poverty Reduction Strategy Paper (PRSP) focuses on establishing a strong macroeconomic framework and improving the business environment, and outlines plans for public spending on a social protection network, on investments in health and education, and on infrastructure.
Armenia's PRSP
Armenia's Joint Staff Advisory Note (JSAN) of PRSP Progress Report 

Country Eligibility

In the FY2011 selection process, Armenia scored above the median on one of six Ruling Justly indicators (failing the hard corruption hurdle), on three of five Investing in People indicators, and on five of the six Economic Freedom indicators. Recent instability, failing the corruption hurdle, and slippages in key governance indicators continue to raise questions about Armenia’s approval for a compact.  Armenia is a lower middle income country (LMIC).

Review Armenia's performance on the FY2011 selection indicators

Review Armenia's performance on the FY2010 selection indicators

Review Armenia's performance on the FY2009 selection indicators

Review Armenia’s performance on the FY2008 selection indicators

Review Armenia’s performance on the FY2007 selection indicators

Review Armenia's performance on the FY2006 selection indicators

Review Armenia's performance on the FY2005 selection indicators

Review Armenia's performance on the FY2004 selection indicators

Learn more about the MCC's country selection process.

Country Facts

Data are for 2009 (or most recent year available)

Source: World Development Indicators 2010

Armenia Country Brief from the World Bank

Other U.S. Policies

Review USAID Armenia's Mission page

Review the USAID Armenia country page

Other Donors

The top three donors to Armenia in 2009 were:

Other Resources

MCC Armenia web page

Department of State country profile providing background on Armenia’s history and U.S.-Armenia relations

World Bank projects in Armenia

U.S. Assistance