Armenia Handbooks

‌Two thematic policy handbooks have been published in 2015, based on the project work carried out by the OECD, and following the peer-review that took place during the second meeting of the OECD Eurasia Competitiveness Roundtable in November 2014.

These handbooks outline practical steps for policy-makers looking to reform high-potential sectors of the economy, attract foreign investment and improve competitiveness of Small and Medium-sized Enterprises.

The project is conducted in collaboration with the German Agency for International Cooperation (GIZ) and with the financial assistance of the European Union.

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Connecting Armenian SMEs to global value chains: The case of agribusiness

Agribusiness is a strategically important sector in the Armenian economy. Linking to global value chains can benefit small and medium-sized Armenian agribusinesses, but challenges remain, related to export promotion, infrastructure and finance.

Based on international good practice and the current situation in Armenia, the government should:

Improve existing export promotion and export knowledge dissemination:The relevant government bodies should build their knowledge of targeted foreign markets and potential foreign buyers, and then transmit it to both existing and potential exporters through training on export-related topics.

Improve key export-related infrastructure: Reforms should streamline regulatory procedures for exports and introduce a single window for customs and export certification.

Further develop export financing: In close partnership with domestic banks, the government should fully support the newly-launched export insurance agency and ensure appropriate legislation is in place.

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Linking multinational enterprises and Armenian SMEs: The case of the construction materials sector

Armenia’s construction materials sector could tap into the expanding construction industry in the region neighbouring the country. Foreign direct investment could play a major role to support the modernisation of this value chain, but challenges remain, related to demand side, investment promotion and SME capabilities.

Based on international good practice, three sets of actions could help attract more FDI and develop local SMEs in the construction materials sector:

Unlock demand for construction materials produced in Armenia: Upgrade regulations on energy-efficiency requirements in buildings and support their enforcement, promote awareness of the economic benefits of energy-efficiency in construction, and streamline procedures for obtaining construction permits.
Attract more FDI to the construction materials sector: Upgrade the national investment promotion agency to support a strengthened sectoral approach and to act as a one-stop shop for investors through all phases of the investment cycle, while engaging in ad hoc interactions with key selected potential investors.
Increase SMEs’ capabilities to work with foreign investors: Create an FDI-SME linkage programme designed to maximise technology and knowledge spillovers into the local economy.