Preface

From the very start, Human Development Reports (HDR) prepared under the sponsorship of the United Nations Development Program, have been conveying, through the concept of Human Development, commitment to the greatest value in the world, the human being, who deserves to live in a better world, and has to meet the challenge of changing it. With each new publication of the Global HDR, the Human Development concept widened to encompass all the vital spheres of the people's lives and raise common issues through its main themes. These were; Concept and Measurement of Human Development (1990), Financing of Human Development (1991), Global Dimensions of Human Development (1992), Popular Participation (1993), New Dimensions of Human Security (1994), Gender and Human Development (1995), Economic Growth and Human Development (1996), and Social Cohesion and Human Development (1997), Consumption (1998) and Globalization (1999).

The success and usefulness of Global HDRs have "provoked" the preparation of sectoral, regional and national development reports. Armenia prepared its first Report in 1995 and since then Armenian national experts have been consistently contributing to presentations of an unbiased and independent view of Armenia.

Over the seven years of its presence in Armenia, beginning in 1992, the United Nations has witnessed the determination and dedication of the Armenian people to head toward democracy. It has also witnessed obstacles, both of objective and subjective nature, that make such a leap difficult, but never impossible. We do believe in the optimism and constructive force of the people and its authorities, which very often has been presented in National Human Development Reports (NHDR) of different years.

Sponsoring preparation of NHDRs is another rewarding activity for the United Nations. NHDRs promote democracy by featuring a pluralism of opinions and approaches towards the goals and the means of growth and by spreading new concepts and people- centered development models, and build national capacity. NHDR 1999, as well as the previous Reports, has been prepared by a team of independent national experts under the auspices of UNDP. It does not necessarily represent the opinion of the United Nations and its Agencies, and is not a governmental report. Its value rests on the intellectual independence and professional integrity of the authors.

NHDR Armenia 1999, prepared in cooperation with the Presidency of the Republic of Armenia as its executing agency, is the fifth and jubilee report. It summarizes the experience of Human Development over the past five years and, in fact, evaluates the transition processes that have taken place in the country. Such an approach facilitates an evaluation of both developments during the transition period, as well as the impact and usefulness of the previous NHDRs, through analyses of these developments and proffered recommendations.

The Report focuses on the achievements accomplished in curbing the deep crisis, establishing a basis for a democratic State, laying the legal foundation for market relations and institutional changes. At the same time, it tries to evaluate the social cost of reforms, which very often turned to be too high and has made the public at large experience mainly the negative impact of modernization. Of concern for the group were lack of social cohesion, the restricted regulatory role of the state, the haphazard implementation of reforms and the narrowed access to social services.

We believe that the group of authors, through a sincere, dedicated and tolerant attitude toward the set tasks, has succeeded in presenting Armenia's integrated picture while also providing for diversity of approaches and visions. In an attempt to look at Armenia from the point of view of Sustainable Human Development and in order to prepare for the next millennium, the authors offer recommendations which may be debatable. However, they are certain to generate debates around Armenia's ultimate goals and the means of attaining them.

Armenia slowly though irreversibly, is becoming integrated into the world economy. Given the ever-widening process of globalization, which has not at all bypassed Armenia, the need for new approaches and mechanisms becomes evident. The need for good governance indirectly dominates all chapters of NHDR 99, since only through good governance will it be possible to complete the transition period, alleviate the social cost of reforms and realize their positive impact, and bring society to a deeper level of cohesion and mutual trust.

Once again, we would like to congratulate the authors' group on their successful completion of the Report and hope that it will generate nationwide discussions on Armenia's future.

UN Resident Coordinator
UNDP Resident Representative