Decentralization Reforms in Armenia: the Road to Stronger Local Government and Sustainable Communities

This paper focuses on the perspectives of further decentralization in Armenia. Since 1996 the Government of Armenia has attempted to overcome the legacy of the communist system of self-government and conducted a policy of reforms in this area. Among many challenges on this way is the devolution of government from the central to local level and strengthening the capacity of local governments. More than 40 laws and decrees currently constitute the legal framework for the local government (LG) operation. Some of them had undergone serious amendments in the past two years. However, in order to move further some additional constitutional and legal amendments have to be done. On the other hand strengthening institutional and fiscal capacity of local governments will allow them to manage the cities more efficiently and provide better services to their constituents. I argue that the road to building a modern economy and powerful state lies through creating stronger local governments and building sustainable and self-reliant communities. This paper is based on personal experience of the author during his four-year work with Armenian local governments and uses materials published by the Urban Institute, BearingPoint, the Open Society Institute, Internet sources and academic publications. The views expressed in this Working Paper are those of the author(s) and do not necessaril