OSCE to help Armenia’s Syunik province diversify local economy

PanARMENIAN.Net - The OSCE Office in Yerevan’s Project Implementation Presence (PIP) will help Syunik province administration diversify the local economy and help mitigate the economic security risks of mining, starting in August 2012.

Mining remains the dominant industry in the Syunik region, representing some 90% of industrial output and 60% of total production and services.

“While the mining industry has a strong positive economic impact for the region and the country it also carries economic and environmental risks because it creates dependence on a single industry and limits opportunities for agriculture and tourism,” said Armen Shahbazyan, OSCE PIP Co-ordinator. “It is crucial for the region to plan for jobs in other sectors after mineral resources run out.”

The OSCE will provide advice and consultation to the regional administration of the province for the preparation of the region’s economic diversification plan. The new plan will propose developing industries other than extraction and processing of minerals. The approach will be based on an analysis of competitive resources and capitalization opportunities to help the government and donors prioritize investment initiatives and make development efforts more effective.

The diversification plan, which is expected to be ready by the end of the year, will be in line with the region’s existing socio-economic development plan and the national sustainable development plan and will help to reach their indicators.

The OSCE Programme Implementation Presence was established in Syunik in June 2006 to assist in implementing economic and environmental projects in the region and address local economic development, environmental awareness and participation, and rural poverty, OSCE press service reported.