PESTLE ANALYSISARMENIA

Team: Arevik Ohanyan, Zaruhi Harutyunyan, Lusine Grigoryan, Lilit Simonyan, Lilit Karapetyan

DEFINITION

P oliticalE conomicS ocialT echnologicalL egalE nvironmental

Goal: Presentation of PESTLE Analysis to facilitate the SEN/D National Awareness Campaign in Armenia.Objectives: To identify opportunities and barriers

that can help to organize the Campaign.

To mobilize human resources and technologies for this reason.

To disseminate awareness rising information about SEN/D through available technologies.

Laws about equality, education, inclusion (Constitution)

All people have the same rights before the law without any discrimination, including disabled people (chapter 2, article 14)

Everyone has the right of education (chapter 2, article 39)

www.edu.am

Political

The main priorities of the Government for 2007-2012

Sustainable development assurance through national security and active economic policy

Reforms in state managementDevelopment of education and

scienceTerritorial equal developmentSocial security assurance www.gov.am

Political

The main priorities of the Government Programme for 2013-2017

Increase of economic competitivenessDevelopment of human resources

(provision opportunities of education for all SEN/D children)

Development of institutional capacity

www.gov.am

Political

All mainstream schools in a few years will become inclusive

Change of SEN/D assessment instruments according to ICF

Change of the basis for recognizing a person disabled

Adoption of international laws about the rights of people with SEN/D

Political

State intervention in SEN/D issues

All interventions are covered by state costsPeople with disabilities are provided with

prosthesis, wheel-chairs, audio apparatus, visual sets, special books, etc., treatment, implementation of programmes promoting and increasing activity and participation of SEN/D

People with disabilities get pension from state according to the level of their disabilities

Report “About Rights of people with disabilities” on UN Convention implementation, 2012

Political

Policy of taxation

Income Tax • up to AMD 120000- 24,4% , • from AMD 120000-2mln- 120000- 24,4 %, < 26%, • from 2mln.1 and above- 120000- 24,4 %, • 120000- 2mln- 26%, • 2mln.1 < 36%Profit Tax - 20%Value Added Tax (VAT) - 20%, some foreign funds are exempted of VATTurnover Tax - less than AMD58.35mln• trade and production- 3%• renting- 10%• others- 5%

www.taxservice.am1/3/13

Political

Economic

Average de jure: 2012

Population : 3 031 200Urban: 1 919 000Rural: 1 112 200

Source: armstat.am

Economic Gross Domestic Product at market prices in 2012

3981506.5 (mln. Drams)

Foreign Exchange Rates

2013 January

1 Euro = 542.0 AMD

working age population

2011

2 286 300 persons

Unemployment rate in 2011

18.4 %

Average monthly nominal wages 2012

121 342 AMD

Real wages in 2012

118 267 AMD

Number of:

children attending pre-school institutions

63542.0

pupils in general education schools

386439.0

students in middle vocational educational institutions

29207.0

students in higher educational institutions

95308.0

Economic

Source: armstat.am

Economic

Source: armstat.am

In the first half of 2012, the education sector’s share in Armenia’s GDP was AMD 32.657bn against AMD 30.289bn in the same period of last year.

Economic

Source: http://tert.am/en/news/2012/11/01/ashotyan/

The competitiveness performance of Armenia steadily decreased since 2005, but reversed to the positive in 2011.

Armenia recorded remarkable improvement in its competitiveness ranking in 2011 compared to the previous study of the Global Competitiveness Report (2010).

In 2011, the competitiveness performance of Armeniawas ranked 92nd among 142 countries due to a 6-point improvement in the rank and a 4% increase in thescore compared to 2010 results.

Economic

Source: http://www.ev.am/media/documents/ACR/2011-2012/ACR%202011-2012_eng.pdf

The dominance of sectors with lowest productivity in the GDP structure is contributing to the economic lag in Armenia.

The top three most productive sectors in Armenia (financial intermediation, mining, and construction) account for just 9% of the total employment in the country. Whereas, exactly half of the labor force is concentrated in the three sectors with lower productivity levels (food and accommodation services, agriculture, and education).

Economic

Source: http://www.ev.am/media/documents/ACR/2011-2012/ACR%202011-2012_eng.pdf

During 2010 Armenia attracted about 40% more Foreign Direct Investments (FDI) compared to the previous year, while in 2011 the growth was only 15%.

The communications sector had a consistently high share in FDI, however, its contribution decreased significantly in 2011.

In addition, the new influx of FDI into non-traditional investment sectors, such as energy supply and land transport infrastructure, triggered the rapid growth of foreign investments in the whole economy.

Economic

Source: http://www.ev.am/media/documents/ACR/2011-2012/ACR%202011-2012_eng.pdf

Since 2005 Armenia’s rank in GCR by macroeconomic performance deteriorated significantly.

Unfavorable developments in public finance and comparably high levels of inflation were the main contributorsto this downgrade. Some other structural factors include:

• Still a large (however, improving) current account deficit maintained a key imbalance in the economy.• The dependence on private transfers from abroad is persistent.• The inequality in incomes and consumption levels is acute.

Economic

Social – Cultural Demographics

Population:3041.0 thousand (as of January 1, 2013)Ethnic Breakdown:Armenians - 96%Minorities: Russians, Yezidis, Kurds, Assyrians, Greeks, Ukrainians, Jews and othersOfficial Language:ArmenianReligion:ChristianChurch:Armenian ApostolicReligious Center:St. Etchmiadzin, the Cathedral of the Armenian Apostolic Church and the Residence of the Catholicos (Patriarch) of all Armenians

Religious beliefs

Armenia is practically the only mono-ethnic country in the region.

Ethnic Armenians make up 97.9% of the population. Yezidis make up 1.3%, Russians 0.5%. Other minorities include Assyrians, Ukrainians, Greeks, Kurds, Georgians, and Belarusians. Over 90 % of the population of Armenia belongs to the Armenian Apostolic Church.

In spite of the fact that Armenians make up 98% of the population of the Republic, the Armenian government does not allow the oppression of ethnic minorities and officially recognizes minority communities.

Social – Cultural

Social – Cultural

The Russian community of Armenia numbers approximately 15 thousand people. The Russian population of the Republic of Armenia has been historically concentrated in a few cities of the Republic though there are also two Russian villages in the northeast of the country (Lermontovo and Fioletovo).

There are several sects in Armenia , which have thir own behavour,manner,and they do not allow their children or relatives with special needs to connect with doctors or to ask them for help and treatment.

Social – Cultural

Income distribution

Prevailing sociopolitical and economic obstacles have been implicated in the inadequate utilization and delivery of the Armenian health care system.Sometimes in the families, where lives a person with special needs, one of the parents should stay at home and take care of their child. As the disability pension in Armenia is lower,so the income of that family isn,t sufficient for them to live. They don’t have any assistance or help from our government.

Social – Cultural

Lifestyle God, you and I know I am lost. I have turned away from You, and lost my way. I humbly ask You to save me from this permanent situation. Thank You for creating me, valuing me and loving me. Thank You for sending the Lord Jesus to cover me by His death from what I eternally deserve and by His resurrection inviting me to eternal rescue. I trust You, Lord Jesus, as my only Savior.”

Social – Cultural

Technological analysis for facilitating awareness raising campaign

Technological

Technology •Is often described as the most important influence upon society•It identifies social interests and causes social change

What is technology?

“Autonomous Technology” by Langdon Winner, MIT Press (1977)

Technological

•materials •tools •techniques •sources of power to make life easier or more pleasant and work more productive.

Whereas science is concerned with how and why things happen, technology focuses on making things happen.

http://www.cantechletter.com/2013/01/what-is-technology0103/

Technology includes the use of

Technological

Awareness raising can cover a huge range of activities for:

• Making people notice things and thus making them commit to something

• Planting an idea in people's heads and leading them to an "awakening“

• Helping people understand that they need to stand up for something

• Sharing passion, common interest• Learning or doing something newmar.zavala http://tinyurl.com/ykcput8

Technological

• Mobile operators• Mass media • Internet providers• Social networks

Innovative developments in Armenia

Technological

Rank Operator Technology Subscribers

1 Viva Cell GSM, GPRS, EDGE, UMTS, HSDPA, LTE

1,750,000[1] (June 2011)1,800,000 (March 2012)

2 Beeline GSM, GPRS, EDGE, UMTS, HSDPA

550,000[2] (June 2011)600,000 (March 2012)

3 Orange GSM, GPRS, EDGE, UMTS, HSDPA

330,000[3] (June 2011)400,000 (March 2012)

Mobile operators

___________________________________

1.http://www.akep.al/images/stories/AKEP/statistika/Treguesit-Statistikore-6_Mujori-I-re-2011.pdf2.http://www.vodafone.com/etc/medialib/attachments/q3_2010.Par.56671.File.dat/vodafone_q3_results_2010.xls3."Eagle Mobile". Eaglemobile.al. 2009-03-12. Retrieved 2011-12-28.

Technological

Radio•Armenia has 9 AM stations, 17 FM stations, and one shortwave station.

Television•Armenia has 48 private television stations alongside 2 public networks with major Russian channels widely available throughout the country

Mass media

Technological

No Providers Changes 08/12

1. Beeline 47.22% / -0.922. Orange 16.42% / -0.963. Ucom 14.62% / +0.834. Vivacell-MTS 9.76% / +0.615. Rostelecom 3.84% / +0.566. ADC 2.71% / -0.267. Arminco 1.91% / -0.018. Karabakh

Telecom0.67% / +0.05

9. MyLan 0.45% / -0.0210. Web 0.42% / -0.03

Internet providers in ArmeniaThere are approximately 1,400,000 Internet users and approximately 65,279 Internet hosts in Armenia (CIA World Factbook, 2009: Armenia)

Technological

Internet usage in Armenia

World Bank and Public Services Regulatory Commission of the Republic of Armenia, 2009-2011

Technological

Social networksMain online mediums for sharing news, opinion and information

Technological

users in Armenia

Total Facebook Users 395340

Position in the list 112

Penetration of population 13.32%

Penetration of online population 29.06%

http://www.socialbakers.com/facebook-statistics/armenia

Technological

The growth of the number of the visitors of Facebook from Armenia in June-December 2012 according to Socialbakers.com

http://www.noravank.am/eng/articles/detail.php?ELEMENT_ID=6820

Technological

Twitter has about 500 million usersThe social media research group estimates that Twitter account holders now make up around one-third of the global internet population.

•Active users of Twitter is about 288 million, marking a 40% of internet users

•Facebook has 693 million active users

http://www.armtown.com/news/en/pan/20130131/143803/

Technological

Financial regulation

Legal

2013 state budget is 1.15 trillion drams (some $2.84 billion) for spending, with a deficit projected at around 120 billion drams.

The 2013 budget envisages AMD 1,031bn – a 13% increase as compared with 2012.

Social expenditures will have a major share in the total expenditures (41.7%), but social expenditures will slip by 4.1 billion drams from 2012.

The deputies claimed it is inappropriate to say the 2013 budget is socially oriented when it has social cuts.

Legal

Employment for people with disabilities

One of the criteria for ensuring equal opportunities for people with disabilities is the employment rate, which is rather low in our country irrespective of the fact that RA legislation includes principles that guarantee the realization of the right of people with disabilities for employment.

Legal

Source: Strategy of Social Protection of People with Disabilities for 2006-2015

An employer cannot fire a person with disabilities who is going through a medical, professional or social rehabilitation process.

The involvement of a person with disability in extra work, work during non-working days or nights is allowed only given his/her consent.

For people with disabilities of the 1st and 2nd groups, a shorter working period is defined, not more than 36 hours per week. No trail period can be applied for people with disabilities when admitted to work.

Employment for people with disabilities

Legal

Issues• Low rate of employment for people with disabilities of

working age. • Unsatisfactory awareness of employers on guarantees

provided to people with disabilities by legislation, their rights and guarantees provided to employers in case of hiring a person with disability.

• Working places are not suited to the needs of people with disabilities.

• The process of professional education and subsequent securing of employment for people with disabilities is not satisfactory.

Legal

“The Law Looks Good, but it is Not Applicable”

• "Newly built buildings must be convenient for disabled people. However, constructors still put into operation and the state structures accept buildings where nothing is made for these people or whatever is made is in the wrong way and not applicable.”

Legal

Environmental

In the past decade, Armenian forests have been aggressively allocated for various economic activities. Today, mining is declared a priority sector by the Armenian government and is being developed intensively. Health problems are particularly acute around big mining areas in the northern and southern parts of the country.

Environmental

One of the most controversial of the government-sanctioned mining initiatives has been the licensing of the copper-molybdenum deposit in Teghut. This initiative has faced widespread opposition from the environmental non-governmental organizations (NGOs), experts and local communities. But the prevention of an environmental disaster will additionally depend on the mobilized support of international organizations.

Environmental

Country background

Armenia is a landlocked country with a territory of 29,000 sq. kilometers. Armenia has serious environmental problems. It has joined the majority of international environmental conventions. It has continuously received technical and financial support for environmental protection from international organizations.

Despite these, the country’s natural environment continues to deteriorate. The country lacks adequate environmental policies and enforcement of environmental laws. In the early 1980s, 11% of the country’s territory was covered by forests. Today this coverage has decreased to 7%. According to experts, at the current rate of deforestation the country will become a desert within 50 years.

Legal infringements

In the opinion of experts, operation of the Teghut mine is in breach of the principles of the UN Framework Convention on Climate Change, UN Convention on Biodiversity, UN Convention on Combating Desertification, UNESCO World Heritage Convention, European Landscape Convention, UNECE Convention on Environmental Impact Assessment in a Transboundary Context (Espoo Convention) and UNECE Convention on Access to Information, Public Participation in Decision-making and Access to Justice in Environmental Matters (Aarhus Convention) – all signed and ratified by the RA.

Environmental

For additional information please see the list of Large Taxpayers in 2013

For fundraising "GRAND TOBACCO" Armenian-Canadian Joint Venture, Co.LtdAcba-Credit Agrecole BankAmeriabank AnelikbankAni Plaza Hotel Ashtarak KatAvshar WineArarat Bank Artfood Bacon ProductGarant Insurance Eurostan Yerevan Cognac FactoryArmenian Champagne and Wine Factory Cascade Insurance Cardinal International ArmrosgazpromHovnanyan International Viva Cell MTS Mentor Graphics Inetrnational Nairi Insurance Jermuk groupRusal Armenal

References• Autonomous Technology” by Langdon Winner, MIT Press (1977)• CIA World Factbook,(2009) Armenia• "Eagle Mobile". Eaglemobile.al. 2009-03-12. Retrieved 2011-12-28.• mar.zavala • http://www.cantechletter.com/2013/01/what-is-technology0103/• http://tinyurl.com/ykcput8• http://www.akep.al/images/stories/AKEP/statistika/Treguesit-Statistikore-6_Mujori-I-re-2011.p

df• http://www.vodafone.com/etc/medialib/attachments/q3_2010.Par.56671.File.dat/vodafone_q

3_results_2010.xls• http://www.armtown.com/news/en/pan/20130131/143803/