Speaker: Rouben Shugarian

Mr. President,
Mr. Secretary General, Excellencies,
Distinguished Delegates,
Ladies and Gentlemen,

Mr. President,

As we reflect on the years since the 1995 World Summit for Social Development, we find ourselves at the crossroad of globalization and of a new information age bridging geographic distances, transcending borders and replacing traditional sources of global wealth.

Since the Copenhagen Summit the course of development in the world society has highlighted the importance of social development and adequate standards for the well-being of all, to be one of the highest priorities in building up the twenty-first century democracies.

The outcome of the world Summit has focused on recognizing social development as a political priority even if the achievement of the goals of the summit is going to be a lengthy and complex process.

The Summit reaffirmed that social development should be an integral part of domestic policy, and all national economic programs lay responsibility on Governments because they carry important social consequences. The decisions of the 1995 Summit assigned concrete tasks and defined common approaches towards ensuring further social progress in improving the living conditions in the world. Although non-mandatory, these decisions set out standards that represent the goals for the next century for worldwide social development.

In order to evaluate to what extent the Summit objectives have been implemented, one should concentrate on the progress made since Copenhagen. In this regard this special Session offers an excellent opportunity to share positive experiences well as to examine the existing obstacles and difficulties. It also allows us to review the ability of nations to adequately address major social challenges.

Mr. President,

Today, it is evident that all countries in the world Հ advanced, developing or transitional Հ are substantially affected by globalization. Specialization and the further widening of markets through trade, division of labor, more efficient and diversified allocation of financial resources should increase  overall productivity and raise living standards. However, no country can benefit from this trend spontaneously.

The major tasks faced by governments is to pursue sound policies of structural adjustment to meet social challenges and take advantage of opportunities that globalization offers today. Domestic economic planning and reforms are as essential as regional cooperation and integration to maximize benefits and opportunities, Therefore improvements in the social sphere must be an integral part of effective economic policies and programs.

The World Social Summit was also a landmark on the road of the world community towards the advancement of the social development. We believe that the UN activities in social and economic fields  should focus more on the specific requirements of countries with economies-in-transition to facilitate their integration into the world  economic space by overcoming unavoidable obstacles inherent in the transitional period. While shifting from totalitarian regime to a democratic and an open society, Armenia must simultaneously consolidate  it's state structures . Above  all it must improve its economic potential, set up a new social  agenda as well as resolve the Karabagh conflict . And what is the most difficult, Armenia must do all those things at the same time for they are all in fact, interdependent.

Mr. President,

The period of economic transition in Armenia was characterized by the collapse in trade with Central European and former Soviet Republics followed by a drastic fall in production, a high rate of inflation and the erosion of incomes and purchasing power. Disproportion in the labor market had led to conditions where the average salary did not even ensure minimal living conditions . The past Հ Soviet social policy system Հ was no more functional. It did not have the means to provide a social safety net of the guarantees stipulated by the Armenian Constitution.

According to some alarming estimates the actual population of Armenia has decreased in size over the last five years. The emigration rate, which is due to the high unemployment rate, has produced demographic changes.

Severe social and economic conditions primarily affected also people's health, resulting in increased morbidity mortality rates. Although there is well Հ developed net of hospitals, clinics and drug stores, a well as impressive number of medical personnel in Armenia, only 80% of the population  had access to the health care services in 1997. Though socially vulnerable groups were still covered by the state, in the reality for many of them access to the health care was hampered.

Mr. President,

Just like in the other countries of Central and Eastern Europe with economies-in-transition, the path to market economy in Armenia, has defined a number of issues of high priority for the government. These issues were exactly those discusses and considered in Copenhagen, back in 1995. During the past five years the Armenian Government has implemented a complex program aimed at improvement of country's social environment. Certain structural changes were introduced, some of them having been incorporated in the new legislation. The government considers the elaboration of a state program on the social policy to be of major importance.

The strategic program on the reduction of poverty has been launched in the country, some of the components of which are the promotion of economic activity, reduction of unemployment , improvement of the system of state administration, strengthening of the anti-corruption campaign, improvement of the state services provided to the socially vulnerable groups of the population.

In line with the Prime Minister's decree of 1996 on improving social conditions, the Ministries of Social Security and Statistics put together a plan of action. A series of surveys were carried out, the results of which were used to improve the social security system. The  ՁPharosձ system has been the basic means to assess the vulnerability of families and also the distribution of the humanitarian assistance provided to Armenia by the international organizations, governments andArmenian Diaspora. A commission on the methodology of calculation of the minimum consumption basket was established by the Government in 1998. As a result, a methodology was developed, according to which the food and consumption budget was being calculated on a quarterly basis. On the basis of the work done, a system of family allowances was introduced in 1999.

An interim document on the National strategy on eradication of poverty was developed in the beginning of this year, which underlined the priorities in social development and poverty eradication. Currently, the Steering committee of National strategy on eradication of poverty is in the process of creation in Armenia. It will include the representatives of the Government, the Parliament and the civil society.

The policy of creation of favorable atmosphere for the operation of small-and-mid-size enterprises both in the urban in the rural communities, fulfillment of all-encompassing state an investment program is aimed at the reduction of poverty. This program also envisages wider accessibility of social services, in particular those in the sphere of education and healthcare. These activities will, in their turn, create possibilities for a full access to education and improvement of the situation with the financing of the education system. The healthcare, and in particular, children's healthcare, will be central in expanding the package of the free of charge healthcare services.

The vulnerable groups, such as the refugees and internally displaced persons are also in the focus of the government policies. During 1988-1993, some 300000 refugees settled in Armenia as a result of ethnic cleansing in the neighboring Azerbaijan. Besides, there are about 170000 internally displaced persons, both as a result of the earthquake and the systematic shelling of Armenia's border regions by Azerbaijan.

The unsettled Nagorno Karabagh conflict has had its negative impact on the social situation not only in Armenia but in the region as a whole. As distinct from Azerbaijan, Armenia has never politicized the social problems of the refugees and the IDPs. The government with the help of the international community  has taken serious steps in addressing their needs.

Another important program that the Government is [planning to launch is the encouragement of the public works, which is also expected to become an important part of the anti-unemployment campaign. The government is encouraging the increasing role of the NGO's, charitable and religious organizations and funds, engaging in cooperation with many of them, and even entrusting some spheres of social support to them.

Mr. President,

Armenia today has some 200000 unemployed. The introduction of the social security system will designate a qualitative change in the Government's policy and its transition from the stop-gap measures to a long-term strategy in addressing the poverty and unemployment issues.

Another important step in social development is the training of the appropriate specialists, None of the universities of Armenia had anything resembling a department of social service in past. Exactly five years ago an oldest school of Armenia-Yerevan state University- started teaching relevant subject and this year we had the first class that graduated receiving diplomas of Ձspecialists of social serviceձ. These graduates are our asset; students who have studied the Copenhagen Declaration on social development  and program of Action as part of their curricula and who are entering their professional lives, with an aim to assist the fulfillment of the Summit Decisions and social Development of Armenia, region and the world at large.

Thank You