Demographic Strategy Will Bring Armenia $44 Billion in Economic Revenue
Armenia has developed a comprehensive demographic strategy for 2024–2040, with a total cost of $6.7 billion. The strategy includes 190 programs. It is expected that, as a result of this plan, Armenia will generate $44 billion in economic revenue over two decades, along with improvements in population structure and human capital.
The co-author of the strategy is Tigran Jrbashyan. According to him, no country in the region has such a professional and detailed strategic plan.
The program was developed by Armenian experts with the support of the UN. It envisions a more balanced population structure, long-term human capital development, and a better quality of life. The focus is not just on birth and death rates but also on human capital development.
Key priorities of the strategy include:
— Armenia has 7–10 years to help parents who want to have children now. In ten years, Armenia may face a South Korean-type issue, where more people decide not to have children for personal, rather than financial, reasons.
— Currently, there is an opportunity to raise the birth rate by improving the financial situation of families who want to have children. Today, families with children are 30% poorer than those without. The government will attempt to reverse this and ensure that by 2040, families with children will be 20% wealthier than those without.
— The demographic strategy will focus on issues such as family formation, accessible healthcare, housing, transportation, taxes, and more.
— Future parents will receive family planning support to make informed decisions.
— The state will treat each birth as a social success. For example, in some countries, the government gives new mothers baby boxes filled with gifts, including essentials for the first few months, educational materials for parents, and more. This is a gesture of appreciation from society to welcome its new member.
— The program aims to shift from traditional childcare subsidies to the mindset that childcare is a community service. Caregivers could include grandparents, parents, or professional nannies. They will be employed for caregiving. Thus, instead of providing direct financial aid to parents, the state will encourage them to hire nannies.
— Significant changes are expected in parental leave. For instance, fathers should be able to take a more active role in raising their children.
— Tax benefits will also be provided for childbirth—1 child = x% tax return, 2 children = x+y%, and so on.
— Based on research, the government should aim to increase the number of families with three children. Many factors have accumulated, reducing the likelihood of having a third child. Women should not be forced to choose between work and children. Measures will be taken to allow women to have a third child while remaining active in the workforce.
— Today, businesses view young women as a “potential threat” who might get pregnant and stop working. The strategy includes options to ensure that the employment status of workers does not negatively impact businesses.