For Immediate Release
February 24, 2006

HOW ARMENIA FUND USA WILL TARGET POVERTY REDUCTION IN NAGORNO-KARABAKH

Establishment of Agricultural Development Associations throughout Mardakert region in Nagorno-Karabakh will set the initial stage of economic development.

NEW YORK, New York – Armenia Fund USA, East Coast Affiliate of Hayastan Himnadram, is pleased to introduce an action plan on how it will target poverty reduction by bringing about a stronger economy in the rural villages of Nagorno- Karabakh. In the spring of 2006, Armenia Fund USA (the Fund) will establish Agricultural Development Associations in the Mardakert region of Karabakh (the region that suffered most during the war in 1991).

Agricultural Development Associations (ADAs), the first stage of the implementation of the Agricultural Initiative — the economic underpinning of a larger regional development program, Rebirth of Artsakh, will provide the necessary managerial and coordinative body to administer this large-scale humanitarian development project that will directly support Karabakh farmers in their fight against poverty and hunger.

ADAs are a voluntary alliance formed to mutually benefit the participating members in their agricultural production activities. The ADAs are structured as independent corporations and are owned by member farmers. The ADAs will establish facilities to own, maintain and operate various types of basic farm equipment and provide mechanized services to farmers to work the land at affordable rates. Besides providing farmers with the access to tractors, harvesters and other farm equipment, the Association will make available veterinary supplies, fertilizers and other necessary farm equipment. The farmers will also be trained in environmentally friendly farm management and animal husbandry practices.

The Haterk Agricultural Development Association will be the first one to open. It will be owned by a cluster of 300-500 subsistence farmers serving 12 villages in the region. The Haterk Association will be based on self-governance, self-financing and voluntarism. The ADA will begin with wheat production, but will eventually help Karabakh farmers expand their agricultural production of field crops, vegetables, fruits and livestock. Members of the ADA will have access to high-quality and up-to-date farm equipment for land preparation, planting and harvesting at affordable rates. More that this, various types of humanitarian and socio-economic activities will be directed toward improving the living conditions of Haterk ADA members.

Most importantly, the function of the Haterk ADA will provide jobs for local people by creating a sizable production center that can attract other companies to invest in food processing and microfinance facilities. The same development model is planned for implementation in three other regions of Nagorno Karabakh – Mardakert, Madaghis and Vank.

After the secession of Armenia and Nagorno-Karabakh from the Soviet Union, the privatization of land created a large number of small family farmers, the majority of whom are only subsistence farmers – they produce just enough to feed themselves relying on inadequate farming resources and often with little access to fertilizers and other agricultural necessities.

As a result Nagorno-Karabakh today imports a large quantity of food spending more than 30% of the cash available to the population the majority of whom live below the poverty line. The establishment of the ADAs will not only help produce most of these products locally, but will also open opportunities for exporting organically grown produce, thus providing a major boost to both the agricultural economy and the living standards of the Karabakh people.

ABOUT ARMENIA FUND USA: ARMENIA FUND USA, founded in 1992, was the first of Hayastan All-Armenian Fund’s 19 international affiliates and serves constituents in all states east of the Mississippi. As a non-profit, non-governmental, nonsectarian organization, the Fund represents all Armenian constituents.

Armenia Fund USA is the largest contributor among the 19 international affiliates – supporting strategic infrastructure projects in Armenia and Karabakh, and having helped build 138 miles of roads, 100 miles of waterways, 36 schools, 3 electric transmission networks, 210 residential buildings and 15 healthcare institutions.

Armenia Fund USA’s Mission is the development of strategic socio-economic infrastructure in Armenia and Karabakh, focusing on major projects such as major highways, schools, drinking water to communities and humanitarian programs in education, training and medical facilities. The Fund has adopted a policy to go “Beyond Bricks and Mortar” to provide sustainability for projects it sponsors.

To learn more about Armenia Fund USA, please visit our website at
www.ArmeniaFundUSA.org or call us at 212-689-5307.

Armenia Fund USA
80 Maiden Lane, Suite 301
New York, NY 10038