There is more to foreign aid than just providing financial assistance to cash-strapped nations, and in Armenia one autonomous agency is breaking new ground by encouraging community involvement.
The concept is the brainchild of the World Bank and is being implemented by the Armenian Social Investment Fund (ASIF), one of Armenia's most transparent autonomous entities whose work is subjected to regular international audits and the scrutiny of the beneficiaries themselves.
In operation since January 1996, ASIF's broader goal is to assist in the rehabilitation of social and economic micro projects in Armenia, the formation and development of its community structures, and the solution of their most urgent social problems.
But what makes ASIF unique is the way these objectives are achieved.
Since its establishment, the ASIF has organized town meetings and discussion sessions in more than 1,000 rural and urban communities and helped identify 420 micro project proposals, of which 200 have been approved by a team of highly trained experts, construction started on 110 of them with 65 completed, including the renovation of 26 schools and 19 potable water and irrigation facilities benefiting 400,000 people across Armenia.
Awaiting completion are regional medical facilities, orphanages, old age homes, child care and community centers, telephone and telegraph lines for small and isolated villages, sewage networks, disposal and treatment of solid and liquid waste, and environmental improvement projects.
"We don't dictate anything, but rather encourage grass-root involvement. In effect, we help those who also want to help themselves. This is a new concept for Armenia, and progress so far has been very encouraging," the ASIF's Director Gagig Khatchadrian said in a recent interview.
According to a published report out- lining the ASIF's operating guidelines, communities should assume the obligation of providing their own contribution amounting to about 10 percent of the micro project’s estimated cost which could be in be cash, building materials, or labor.
As a rule, the ASIF staff tour the nation regularly and meet local communities, and not just their elected or appointed representatives.
They organize town-hall gatherings where everyone is given a chance to speak out and make suggestions.
Taking the process one step further, the community is briefed on the mechanics of applying for assistance. Sparing no detail, the community is encouraged to get together, identify its own most pressing needs, draw up a cost estimate for implementation, find a contractor, and set a specific deadline for the work to be completed.
"As a result of our unique approach, every community has an opportunity to submit its proposals to ASIF provided they get organized and work as a team," Khatchadrian said.
"We scrutinize proposals very closely because we in turn are under constant scrutiny by the World Bank which audits our activities at least two or three times a year along with an independent international auditing firm," he said.
Because of these rigid—and for Armenia, unique—guidelines, project cost-effectiveness is high, and micro project implementation periods—from community general meetings and proposal formulation to completion of construction—seldom run more than seven months.
ASIF's activities have already won international recognition. Only recently, government delegations from Tajikistan and neighboring Georgia visited Armenia to study ASIF's method of operation and its employees were invited to serve as international consultants.
Funding comes from a variety of sources, the lion's share of which is provided by the World Bank. According to published figures, the World Bank has allocated 12 million dollars over a four year period to sustain ASIF—one of 12 such pilot projects around the world, including one in Russia.
Other sources of financing to supplement ASIF's 20 million dollar four year budget include donor countries like the United States and the Netherlands, the Armenian government, private entities and individuals.
For a country like Armenia which depends heavily on foreign aid, 20 million dollars spread over four years may not be much. More important is the impact of community involvement on the democratic process and the opportunity given to the people to decide what is best for them.
"At ASIF we have recognized that the current situation of rehabilitation of social infrastructures greatly depends on the institutional, intellectual and material capabilities of the communities themselves", Khatchadrian said.
