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Reversing the Depopulation of Armenia: People Need Reasons to Stay

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  • Reversing the Depopulation of Armenia: People Need Reasons to Stay

    REVERSING THE DEPOPULATION OF ARMENIA: PEOPLE NEED REASONS TO STAY
    By Gabriel Armas-Cardona

    http://hetq.am/eng/opinion/20947/fixing-the-depopulation-of-armenia-people-need-reasons-to-stay.html
    11:28, November 27, 2012

    Armenia has a people problem. While many Hayastancis may be proud
    of their country, they're leaving in droves, having less children,
    and aren't hopeful about their futures.

    Emigration and a low birthright are existential challenges for
    Armenia that its leaders are not able to face. Instead of promoting
    bad policies like paying for families to have children, we could use
    those resources to make Armenia a country people want to live in.

    Since the fall of the Soviet Union, Armenia has had an emigration
    problem. The World Bank estimates the peak of Armenia's population at
    3.54 million in 1990. Now there are 3.1 million. During the Soviet
    Union, Armenia had a growth rate of 1.5%. If Armenia had the same
    growth rate since 2003, when the population started to increase
    again, Armenia would have 3.5 million people. We're missing 400,000
    people. Where are those people?

    Emigration and a dropping birthrate are the key explanations. The
    birthrate per woman was 1.74 in 2010, below the approximately
    2.1 children needed to sustain a population. It's estimated
    that 97,000 people have left Armenia as of September, with
    about 39% ofHayastan's wanting to leave permanently. Fortunately,
    Armenia's emigration rate is improving, as it is currently -3.35 per
    1,000 people instead of 2010's net migration rate of -4.9 per 1,000
    people.

     [chart-pop.jpg]

    What the government has done hasn't helped

    The government has tried to limit emigration through ineffective
    mechanisms. The government can't stop people from leaving, but it
    has tried to make it harder for people to leave rather than try to
    make them want to stay.

    This summer, the government instituted a new policy
    requiring Hayastancis that leave the country for six months to tell
    the local embassy or be fined 3,000 dram. The fine, for now, isn't
    large, but the concern is the government is keeping watch over the
    people that leave, maybe to dissuade them from leaving. Some even
    say the government delayed giving passports to children during the
    summer to stop families from leaving.

    The government's single-shot solution of paying people for having
    children is a much worse waste of government money. Armenia has been
    paying people to have children for a long time. The government is
    currently planning to start paying in 2014 a massive 1 million and 1.5
    million drams payment to families for any child past the second child.

    This is an expensive policy is a terrible waste of money because
    there is no multiplier effect. In any policy, the government should
    try to increase its multiplier effect. If building a new road costs
    50 million drams but creates 300 million drams worth of activity,
    then it has a multiple effect of six. The money given for a first
    child will likely go to buy new clothes or items for the child. This
    has a multiplier effect of one. For the third and fourth child, the
    family already has many of the items they need, so they'll buy fewer
    things, causing a multiplier effect of less than one. Considering
    the abundance of challenges Armenia faces, to promote a policy with
    a multiplier of less than one is a waste.

    Even worse, the poor families that are most incentivized to take
    advantage of the million dram offers are the least able to afford to
    have children. Poor families desperate for money might have a child
    primarily for the money. The million drams can help the family to
    live for at most a year or two. Afterwards, the family may still be
    poor and won't be able to take care of the new baby. The baby may
    be sent to an orphanage or maybe worse; poor children are the most
    vulnerable to being trafficked by criminal groups.

    Government must pursue a different approach

    What the government needs to do is to make people not want to leave
    and feel confident about their futures to want to raise families in
    Armenia. To do that, the government needs to focus on why people are
    leaving. From 2002 to 2007, 94% of Hayastancis left to find better
    work. In 2010, 89% of Hayastancis said that unemployment, poverty or
    low income was the most pressing issue for their families. Without
    increasing employment options, Hayastanci will continue to leave,
    no matter what stopgap policies the government attempts.

    Increasing the number of jobs in Armenia is hard but doable. Use the
    millions of dram that would have gone to the third or fourth child and
    use that money on policies with high multiplier effect, or institute
    (free) policy choices that open up the market to newentrepreneurs,
    or make sure that foreign investors have redress for any fraud or
    corruption to encourage more investments. Any of these things will
    promote the economy and allow Hayastancis to stay.

    The Diaspora also needs employment prospects

    On a personal note, I want to mention how much more the government
    could do to encourage the Diaspora to return to Armenia. I am a
    member of the Diaspora who was able to come and live in Armenia for
    six months thanks to Birthright Armenia. I was a fellow at theHuman
    Rights Defender's Office through the coordination of Armenian Volunteer
    Corps. As my time was reaching an end, I spoke with as many people
    as possible to find a job that could keep me in Armenia longer.

    I was unsuccessful and still have yet to secure anything that can bring
    me back. I don't deserve a job more than any Hayastanci, but without
    opportunities for young members of the Diaspora to work in Armenia, we
    can't and won't come back to live in Armenia. New programs like Repat
    Armenia are helping solve this problem, but the government could do
    more to encourage this immigration and help repopulate Hayastan.

    Gabriel Armas-Cardona is a graduate from New York University Law
    School and was a legal fellow at the Office of the Human Rights
    Defender of the Republic of Armenia. He regularly comments
    on the politics and human rights situation of Armenia on his
    bloghttp://humanrightsinyerevan.wordpress.com.




    From: A. Papazian
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