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ADB approves $10 million loan to help improve education and health in Armenia

The Asian Development Bank (ADB) has approved a $10 million policy-based loan (in euro equivalent) to assist the Government of Armenia’s efforts to improve the quality and accessibility of education and health services.

Armenia is experiencing a demographic shift with the share of children under the age of 18 declining from 37% of the national population in 1990 to 25% now, signaling an impending decline of the country’s labor force. Access to and funding for quality education and health services are poor, resulting in many people not having the skills to meet employers’ needs and avoidable ill health having a detrimental effect on the population.

In 2017, for instance, public expenditure on education was about 2.2% of gross domestic product (GDP), which is lower than the 5% recommended by the Organisation for Economic Co-operation and Development. Government health spending was at 1.3% of GDP, below the 5% threshold observed by the World Health Organization as expenditure of countries with low shares of out-of-pocket payments.

To address this, the Government of Armenia has implemented reforms since 2010 to improve education and health services, with a focus on helping women and girls. A preschool law was endorsed to the National Assembly with the aim of boosting the number of children in elementary schools to 70% in 2023, from around 30% in 2017. Teachers have also been receiving training and skills development. A new set of guidelines and protocols, meanwhile, have been implemented in most of the country’s hospitals and health centers, covering topics ranging from preventing hospital-acquired infections to methods in continuing medical education.

“A well-educated and healthy population is essential for the growth and development of a country like Armenia, where human capital is significantly unrealized,” said ADB Senior Health Specialist for Central and West Asia Ms. Rouselle Lavado. “ADB’s assistance will support the government’s ongoing efforts to ensure that citizens are educated, healthy, and productive.

The main focus of the Human Development Enhancement Program is children and youth, starting from the preschool age. As well as improving the accessibility and enhancing the quality of education and health services in the country, the program will also increase financing for these efforts.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. In 2018, it made commitments of new loans and grants amounting to $21.6 billion. Established in 1966, it is owned by 68 members—49 from the region.

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