The World Bank Group’s Board of Executive Directors has approved a new five-year Country Partnership Framework (CPF) with Armenia. The framework aims to reduce poverty and promote prosperity by creating better jobs, enhancing human capital, and improving resilience to economic shocks and climate challenges. This was announced by the World Bank’s Yerevan office.
In recent years, Armenia has achieved notable development progress. However, challenges persist, including infrastructure gaps, low levels of domestic and foreign investment, and high unemployment. Limited access to quality education and healthcare further constrains productivity and the workforce’s potential. Armenia is also highly vulnerable to climate change impacts, necessitating targeted strategies to enhance resilience.
The CPF outlines priorities to strengthen Armenia’s capacity to address economic shocks, natural disasters, and climate-related risks. It identifies three key pillars:
- Better Jobs: By fostering private sector growth and addressing labor skill gaps, the CPF aims to improve employment opportunities and create a more competitive economy.
- Stronger Human Capital: Enhanced access to healthcare and social protection will contribute to better outcomes for citizens and reduce inequalities.
- Resilient Economy: Investments in climate-resilient infrastructure, governance reforms, and sustainable economic practices will drive long-term growth and stability.
Caroline Geginat, the World Bank’s Country Manager for Armenia, emphasized, “This new partnership framework reflects our commitment to supporting Armenia in building a more resilient and inclusive economy. By focusing on job creation, human capital, and resilience, we aim to improve living standards for Armenians and address future challenges effectively.”
The CPF also highlights the role of mobilizing private capital through close collaboration between the International Bank for Reconstruction and Development (IBRD), the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA).
The IBRD expects to provide $1 billion in financing over the next five years, focusing on reform implementation that enables private sector participation. The IFC, prioritizing sustainable development, will channel $500–700 million into infrastructure, green energy, and digital transformation. MIGA will continue to provide risk guarantees to attract private investment.
This strategic framework marks a continuation of the World Bank Group’s longstanding partnership with Armenia, which began in 1992. With over $3 billion in cumulative financial support, the World Bank has been instrumental in advancing Armenia’s economic and social development. The new CPF builds on this foundation, ensuring a more inclusive and resilient future for Armenia.