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Swiss Cooperation Strategy South Caucasus2017–2020
Table of Contents
Introduction 5
List of Abbreviations 6
Executive Summary 7
1 Context 8
2 Rationale for the Cooperation between Switzerland and the South Caucasus Region 10
3 Past Achievements and Experiences 3.1 Economic Development and Employment 11 3.2 Governance and Public Services 12 3.3 Human Security and Protection 13
4 Implications for the Future Programme 14
5 Strategic Orientations and Priorities for 2017–2020 5.1 Overall aim 16 5.2 Domain “Inclusive and sustainable economic development” 17 5.3 Domain “Effective democratic institutions, human safety and security” 18 5.4 Arts and Culture 19
6 Programme Implementation and Management 20
7 Steering and Monitoring 21
Annexes 1 Overview Results Framework 23 2 Results Framework for Domains of Intervention 24 3 South Caucasus Scenarios and Adaption of Program to Scenarios 37 4 Indicative Financial Planning 42
4The valley of the Azat River, one of the many valleys in Armenia
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Introduction
Throughout history, the South Caucasus has been a complex and strategically important region due to its location at the crossroads of East and West. The three modern-day South Caucasus republics – Ar-menia, Azerbaijan and Georgia – are situated at the frontier between Europe and Asia and lie between the Black and the Caspian Sea. The region, which is crisscrossed by vital energy routes, is surrounded by Russia, Turkey and Iran. All three countries are sub-ject to the competing interests of major geopolitical actors. Several unresolved territorial disputes, ignited by each country’s exit from the Soviet Union, have created now-frozen conflicts that hinder develop-ment and jeopardize the stability of the region as a whole.
Since the end of the Soviet Union, Switzerland has increased its engagement in the South Caucasus. Its active commitment to assisting these countries is based on the Swiss tradition of solidarity. At the same time, Switzerland, as a highly-globalized country, de-pends for its security and prosperity on a stable en-vironment. It has thus developed strong diplomatic ties with all three republics and has contributed to their development as well as to preventing and re-solving conflicts. Switzerland is considered a reliable partner by the governments of Armenia, Azerbai-jan and Georgia thanks to its sustained mediation efforts in the various conflicts and its contributions in humanitarian, technical and financial matters. Ad-ditionally, Switzerland has a protecting power man-date in Georgia, where the Swiss Embassy represents Russian interests.
Swiss engagement with the South Caucasus coun-tries dates back to the devastating 1988 earthquake in northern Armenia and has since expanded and intensified. In 1999, Switzerland opened a Regional Cooperation Office in the Georgian capital of Tbilisi.
The new Swiss Cooperation Strategy South Caucasus 2017–2020 seeks to affirm the Swiss government’s continued commitment to the region’s stability and growth by building on the results achieved through the implementation of the Swiss Cooperation Strat-egy 2013–2016.
The new Swiss Cooperation Strategy South Cauca-sus 2017–2020 was jointly developed by the Swiss Agency for Development and Cooperation (SDC), the State Secretariat for Economic Affairs (SECO), and the Human Security Division (HSD) of the Fed-eral Department of Foreign Affairs and has been de-signed to carefully address the targeted needs of the partner countries, in line with the principles of Swiss development policy as defined in the Dispatch on Switzerland’s International Cooperation 2017–2020. It also aims to contribute to the 2030 Agenda for Sustainable Development adopted by the United Na-tions, while taking into account the demands of the rapidly evolving and volatile context on the ground. Furthermore, given the clear need for cooperation at a regional level to address shared challenges such as climate change and unresolved conflicts, Switzerland will focus on the promotion of cross-border initia-tives.
We trust that the activities to be carried out under the Swiss Cooperation Strategy will contribute to the South Caucasus’ future development in an effective and targeted manner, and we are very much looking forward to another four years of rewarding develop-ment partnership.
We invite you to discover the new Swiss Cooperation Strategy South Caucasus 2017–2020.
Bern, December 2016
Swiss Agency for Development State Secretariat for Economic Directorate of Political Affairs DP and Cooperation SDC Affairs SECO
Manuel Sager Marie-Gabrielle Ineichen-Fleisch Pascale Baeriswyl Director General State Secretary State Secretary
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List of Abbreviations
ADA Austrian Development AgencyADB Asian Development BankCHF Swiss francDRR Disaster Risk ReductionEBRD European Bank for Reconstruction and DevelopmentEEU Eurasian Economic UnionEIB European Investment BankEU European UnionFAO Food and Agriculture OrganizationFDFA Federal Department of Foreign AffairsGEF Global Environment FacilityGIZ Deutsche Gesellschaft für Internationale ZusammenarbeitHA Humanitarian AidHSD Human Security DivisionICRC International Committee of the Red CrossIDP Internally Displaced PersonIFAD International Fund for Agricultural DevelopmentIFC International Finance CorporationIFI International Financial InstitutionIMF International Monetary FundNGO Non-Governmental OrganizationOSCE Organization for Security and Co-operation in EuropePEFA Public Expenditure and Financial Accountability PFM Public Finance ManagementSCO Swiss Cooperation Office South CaucasusSDC Swiss Agency for Development and CooperationSECO State Secretariat for Economic AffairsSME Small and medium-sized enterpriseUNDP United Nations Development ProgrammeUNHCR United Nations High Commissioner for RefugeesUNWOMEN United Nations Entity for Gender Equality and the Empowerment of WomenUSD United States DollarWB World BankWTO World Trade Organization
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Executive Summary
Twenty-five years after the collapse of the Soviet Union, Armenia, Azerbaijan and Georgia are still facing major challenges that prevent them from real-izing their economic and social potential: Unresolved conflicts – over Abkhazia and Tskhinvali Region/South Ossetia in Georgia, and over Nagorno-Kara-bakh between Armenia and Azerbaijan – the lack of economic opportunities, and governance deficits continue to hamper prosperity, stability and security in the region.
Over the years, some encouraging reforms have been implemented and the economic situation has improved in all three countries. Yet, social, eco-nomic and regional disparities remain high and the transition to pluralistic democratic systems has been unevenly embraced. The region as a whole is still affected by problems of governance, including the lack of sufficient transparency and weak rule of law, although to varying levels in accordance with the national and local contexts. Growing pessimism about the future and distrust of political leadership and institutions are worrying. Therefore, continuing Switzerland’s efforts to assist the region to further develop its human and socio-economic potential is crucial.
The new Swiss Cooperation Strategy for the South Caucasus is based on the parameters set out in the Dispatch on Switzerland’s International Coopera-tion 2017–2020 and has been developed in line with each respective national government’s policies and their development priorities. It sets the framework for Swiss cooperation in the South Caucasus for the four years to come, building on Switzerland’s long-standing experience in the region. Jointly developed by the Swiss Agency for Development and Coopera-tion (SDC), the State Secretariat for Economic Affairs (SECO) and the Human Security Division (HSD) of the Federal Department of Foreign Affairs (FDFA), the new Strategy focuses on streamlining interven-tions and strongly promotes a regional approach for the benefit of the entire South Caucasus region. It encompasses the following two domains of inter-vention:
Inclusive and sustainable economic development
Building on its experience, Switzerland will continue to promote broad-based economic development with a strong focus on improving agricultural value
chains, supporting rural SMEs, improving framework conditions and exploring opportunities to foster cross-border economic initiatives. In addition, Swit-zerland will support reforms to enable improvements in the business environment, facilitate access to finance and support rural economic development.
Effective democratic institutions, human safety and security
Switzerland will pursue efforts to increase the effi-ciency and effectiveness of government institutions, including strengthening both local governments and public finance management. To contribute to a safe and secure environment, engagement in integrated environmental risk management will continue, with a focus on sustainable development in rural and mountainous areas. Switzerland will also actively engage in the conflict transformation processes by promoting dialogue and connectivity across conflict lines. Together, these actions will help improve the government’s response to its citizens’ needs and strengthen the accountability of governments. By seeking to build greater trust between the citizens and their respective governments, Switzerland ulti-mately endeavors to make the South Caucasus a less fragile and overall safer region.
With the aim to promote regional cooperation in the face of common challenges, Switzerland will seek to encourage initiatives that both engage the region as a whole and create or strengthen linkages among the three countries in specific areas. For this approach, Georgia will play an important role as a connection point to encourage regional coopera-tion. In light of political constraints, the strategy will focus first and foremost on areas of mutual interest that are of only moderate political sensitivity, such as local economic cooperation and climate change adaptation. In Azerbaijan, primarily SECO will be active. Whenever possible, the SDC will involve Azerbaijan in regional projects in rural economic development, cross-border economic initiatives and natural disaster risk management.
The principles of gender equality, good governance, and conflict-sensitivity are integrated in all Swiss-supported endeavors as cross-cutting topics.
The total financial resources allocated for the time frame 2017–2020 will be around 67 million Swiss francs (CHF).
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1 Context
Located between the Black and Caspian seas − and between the Russian Federation, Turkey, Iran and Europe − the South Caucasus has always been a re-gion of significant geo-political strategic interest and economic value. The countries are influenced by dif-ferent cultures and climates and have adopted differ-ent foreign policy orientations, yet confront common challenges. All three countries share a similar legacy of struggle after the collapse of the Soviet Union, characterized by a difficult transition to a market economy and democracy, serious and chronic gaps in economic and social development, and issues related to territorial disputes and the inclusion of minorities. All three also face the need to reshape their ties and relations with the Russian Federation 25 years after independence.
Since 1991, the three countries have followed diver-gent foreign policy paths, which have affected their domestic policies. From 2003, Georgia has steadily pursued a pro-Western, open market orientation, as signalled by its signing of an EU Association Agree-ment in 2014 and free-trade agreements with EFTA and China in 2016. After an initial rapprochement with the EU, Armenia opted to reinforce its ties with Russia and joined the Eurasian Economic Union (EEU) in early 2015. Although the country still seeks coop-eration opportunities with the EU, its dependence on Russia has markedly increased in recent years. Azer-baijan, in contrast, has maintained a non-aligned position by supplying oil and gas to Europe, forging
stronger strategic links with Turkey, and maintaining strong relations with Russia.
The South Caucasus always has been subject to competing powers who have sought to influence its allegiances. At the moment, the three countries face challenges to maintain their sovereignty as key powers are inclined to pursue their narrow interests and meaningful international cooperation seems more difficult to achieve. Factors that will shape the development of the South Caucasus in the coming four years include: the conflict in Ukraine; Russia’s in-tervention in Syria and its unpredictable relationship with Turkey; the re-positioning of Iran as a regional power; the relative withdrawal of the United States as a regional actor; and the tensions between Russia and the West.
These powers are particularly relevant to the unresolved territorial disputes resulting from the collapse of the Soviet Union. Russia, for exam-ple, remains a central player in the various conflict stabilization and resolution processes. Since the 2008 Russia-Georgia war, Russia has continuously strengthened its influence over Abkhazia and the Tskhinvali region/South Ossetia. Recent Abkhaz ef-forts to decrease isolation and signs of Georgian interest to engage, however, could allow for some pragmatic rapprochement in economic and social areas. Tensions between Armenia and Azerbaijan over Nagorno-Karabakh, on the other hand, have escalated in recent years, culminating in a four-day war in April 2016. While the conflict is not ex-pected to reignite into a full-scale war, the situation remains unpredictable and the status quo seems increasingly unsustainable. Russia plays a cru-cial role as a mediator between the different par-ties. While there has been no progress in relations between Armenia and Turkey, the opening up of Iran may provide new economic and political opportunities in the coming years.
Poverty remains pervasive in all three countries and significantly higher rates persist in rural areas. Roughly half of the region’s population reside in rural areas, which are plagued by poor livelihood prospects, sparse opportunities for quality educa-tion, and limited access to formal employment as they continue to struggle to recover from the post-Soviet economic collapse. In all three countries, women remain underrepresented in governance structures; have less access to finance, education and labour markets; and carry a disproportionate
The South Caucasus is home to highly diverse landscapes and faces growing disparities between mountainous and isolated areas like this village
in Georgia’s Ajara region …
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burden of unpaid domestic work. Gender inequal-ity also remains entrenched in strong social and religious traditions.
After a period of robust economic growth that fos-tered positive economic and social developments, particularly in urban environments, the region has been negatively affected by several global economic events and trends: the recession in Russia, the sharp decline of oil and gas prices, falling remittances and export revenues, depreciating currencies, and rising inflation. Regulatory reforms, an improved business environment, and robust commodities exports have helped mitigate their impact. High unemployment and inadequate public and financial infrastructure, however, hamper the effective provision of public services and hinder economic activity, particularly the emergence of a solid small and medium-sized enter-prises (SMEs) sector. All three countries are in urgent need of reforms and greater commitment to diversify their respective economies, particularly in rural areas. Sectors such as agriculture, tourism and information technologies have substantial growth potential.
The region is highly vulnerable to natural and man-made disasters, which disrupt economic develop-ment, especially in mountainous areas. This vulner-ability is worsened by the impact of ongoing climate change, land degradation, and deforestation. The effects of climate change in particular require a coordinated response across national borders, which has thus far failed to materialize due to political tensions across the region.
Further institutional strengthening is necessary for the executive and the judiciary bodies to mitigate the impact of power struggles and the risks of popu-list legislators. Decisive action is needed to further promote good governance, rule of law, separation of powers and transparency. Growing public dissat-isfaction with political leadership and limited eco-nomic opportunities have led to numerous street protests. Civic participation, however, remains rather low and there has been limited changes to the politi-cal elite. While active civil society groups do exist in Georgia and Armenia, their interaction with the gov-erning agencies could be much stronger. In Azerbai-jan, civil society continues to be strongly controlled by the government. Yet, the pronounced economic downturn in Azerbaijan may provide a window of opportunity for institutional and economic reforms. Cooperation in the area of human rights, however, is expected to remain challenging.
For the period 2017–2020, Switzerland anticipates moderately positive developments in the South Cau-casus. Global economic stagnation will most likely continue to have a negative impact on the region. The region’s geo-political environment will remain largely unpredictable, while the respective orienta-tions of the three countries vis-à-vis the West, Russia and others are unlikely to change. A “fragile stabil-ity” is the most likely scenario for the territorial dis-putes, although temporary flare-ups of armed con-flict over Nagorno-Karabakh cannot be excluded.
… and urban areas like Baku, the capital of Azerbaijan
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2 Rationale for the Cooperation between Switzerland and the South Caucasus Region
Since 1988, Switzerland’s cooperation with the region has contributed to strengthening its political links with the three countries of the South Caucasus. Due to the contributions of its long-standing humanitar-ian, development and financial cooperation and its efforts to promote peace, Switzerland is viewed as an impartial and trustworthy partner by all three countries. The SDC was one of the first development partners to invest in rural economic development and is well-respected for its experience and expertise in local governance reforms, disaster risk reduction and affordable housing. In Azerbaijan, SECO is rec-ognized for the expertise it provides to financial and the non-oil sector development as well as its macro-economic support, including building more transpar-ent and accountable public financial management. The HSD’s engagement in conflict transformation and peace-building has fostered Switzerland’s image as a neutral and honest broker in peace mediation efforts in the region.
The three countries have become of high political and economic relevance for Switzerland. After the rupture of diplomatic relations between Georgia and Russia in 2008, Switzerland agreed to act as a protecting power for both Russia and Georgia: the Russian Federation’s Interests Section in Tbilisi and the Georgian Interests Section in Moscow are now part of the respective Swiss Embassies. In 2011, Switzerland facilitated the signature of a Customs Monitoring Agreement between Georgia and Rus-sia, opening the path for the latter’s accession to the
WTO. In addition, a Swiss diplomat was tasked to lead the EU’s Independent Fact-Finding Mission on the 2008 conflict. Switzerland also contributed to a breakthrough in Turkish-Armenian relations with the signature of the Zurich Protocols in 2009; despite the suspension of their implementation, these docu-ments remain the benchmark for any rapprochement between the two countries. Overall, Switzerland continues to be engaged in a number of mediation efforts concerning the conflicts in the region, either directly or via the Organization for Security and Co-operation in Europe (OSCE). Through its support to the Geneva International Discussions and dialogue projects across conflict lines, Switzerland has steadily supported conflict settlement efforts.
Swiss engagement in the South Caucasus is in line with the priorities of the Swiss Foreign Policy Strat-egy 2016–2019, in particular the third (peace and security) and fourth (sustainable development and prosperity) priorities. Switzerland closely coordinates with other donors in the South Caucasus and its in-terventions are aligned with the respective needs of each country. The main donors active in the South Caucasus include the EU, the United States, Germany, Sweden, the United Kingdom, Japan and Austria, as well as UN organizations (UNDP, UNWOMEN, FAO, IFAD, UNHCR), international financial insti-tutions (World Bank Group, IMF, EIB, ADB, EBRD), and the ICRC. Azerbaijan is a member of the Swiss constituency in the World Bank (WB), the Interna-tional Monetary Fund (IMF) and the Global Environ-ment Facility (GEF); it is also an important partner for Switzerland in terms of energy supplies.
While hazelnut processor Ismayil struggled in the beginning, today he is one of the most successful businessmen in Zaqatala, Azerbaijan.
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3 Past Achievements and Experiences
The Swiss Cooperation Strategy 2013–2016 with a budget of roughly CHF 111 million was structured along the three domains of intervention: (i) economic development and employment; (ii) governance and public services; and (iii) human security and protection.
3.1 Economic Development and Employment
A substantial engagement in rural economic devel-opment based on agricultural value chains supported different private sector actors (e.g. input suppliers, services providers, producers) along value chains such as milk, meat and fruit. As a result, there was a significant improvement of the quality and acces-sibility of farm support services (including veterinary pharmacies, finance, and extension services), which increased farm and cattle productivity, e.g., in Geor-gia, more than 53% of branded cheese (equivalent to approx. 1400 tons of cheese per year) is sourced from project participants. Overall, the income of more than 170,000 farmers and their families sub-stantially increased, and several thousand jobs were created in agriculture-related businesses. Thanks to women taking a more active role in animal hus-bandry and farm management, their involvement in decision making on investments also increased. This success helped reduce migration pressure, e.g., in Armenia, target areas experienced two times less outward migration than other regions. In Azerbaijan, results achieved included an increase in income for milk producing farmers and dairies, enhanced skills of veterinarians, strengthened vocational and edu-cation schools, and better employment opportuni-ties in the milk value chain. Unfortunately, the SDC had to prematurely close its agricultural projects in Azerbaijan in 2015 since the registration of the Swiss implementing partner was not extended by the Azerbaijan authorities.
The financial sector in Azerbaijan was modernized and diversified due to Swiss efforts. The introduction of new e-services, e.g., online business registration, resulted in significant cost reductions (USD 13 mil-lion per year). The national post office “Azerpost” substantially increased access to finance and services for the rural populations by providing new financial services, including money orders and transfers, cur-rency exchanges, and issuance of debit cards.
In Georgia, Switzerland has actively contributed to policy-making related to Internally Displaced Per-sons (IDPs), vulnerable people and natural disaster victims. As a consequence, concerns regarding IDPs’ livelihoods and housing have been addressed in the government’s IDP Livelihoods Action Plan and IDP Action Plan. Newly created income opportunities for 181 households and repairs of small community in-frastructure (such as ambulances or kindergartens), which is serving more than 3,700 families, contribut-ed to the socio-economic integration and enhanced well-being of vulnerable people in Georgia.
Veterinary pharmacies are well-equipped to serve local farmers along all parts of the various value chains.
Enterprises have doubled their production due to improved knowledge of dairy technology, food safety, business, and marketing.
People in rural communities can now transfer, exchange, and receive funds due to new financial services and products offered by “Azerpost”.
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3.2 Governance and Public Services
Under the domain Governance and Public Services, Switzerland supported reform efforts to delegate greater responsibilities to regional and local authori-ties, better integrate citizens in planning and decision-making processes, and utilize state resources more transparently and efficiently. In Armenia and Georgia, national, regional and local authorities are better able to develop legal frameworks and to establish social and economic development strategies and budg-ets thanks to Swiss support. “One-stop-shops” and e-governance have been established and have im-proved delivery of administrative services. Armenia’s community enlargement process, which is supported by Switzerland, has led to more cost-effective and higher quality public services for 165,000 inhabitants so far. Women’s participation in political decision-making processes has also been strengthened. In Azerbaijan, the co-financing of public infrastructure investments and technical assistance led to improved public service delivery, including better utility services and easier real estate registration.
In Armenia and Georgia, Swiss support improved natural disaster risk management and its sustainabil-ity. In Armenia, 1.75 million inhabitants (65% of the country’s population) benefit from a more profession-al capacity to respond to natural disasters. For first re-sponders, Switzerland developed and trained regional rescue teams according to international standards and improved continued professional development. Swit-zerland also helped Armenia create, train, and equip emergency medical response units as well as establish a system for skills recertification. In Georgia, Swit-zerland improved national and local governments’ capacities for integrated risk management of natural hazards, resulting in the better protection of people
and their assets. In addition, Switzerland helped the national government start to develop a country-wide mountain rescue system by supporting efforts to train and equip specialized mountain rescue units.
Switzerland also continued its longstanding work in affordable (social) housing in Georgia. Syllabi on top-ics including social space and urban development, social housing, social work, and homelessness were designed for the first time and integrated into the academic programs of Georgia’s three leading uni-versities. The Ministry of Economy and Sustainable Development adopted urban planning standards and architectural standards for affordable housing.
The deteriorating civil society situation in Azerbaijan hindered meaningful progress on human rights and democracy. Progress was made, however, in Azer-baijan’s public finance management. Swiss support strengthened the external audit system by diversifying the types of audits used and improving its manage-ment capacities. A well-received e-registration plat-form was launched, which improved the cadastre and real estate registration process.
Approximately 20,000 residents enjoy the services provided by a “one-stop-shop” opened in Alaverdi, Armenia.
In Georgia, social housing was built to provide better living conditions for the most vulnerable population groups.
With the rehabilitation and construction of water infrastructure, rural populations in Azerbaijan now have access to potable water on a regular basis.
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3.3 Human Security and Protection
Swiss assistance improved livelihoods and protec-tion for conflict-affected populations in all three countries. Through its work on both sides of the administrative boundary line between Georgia and the break-away region of Abkhazia, Switzerland re-inforced its impartiality. Swiss support substantially improved living conditions for 197 conflict-affected and returnee families in Abkhazia and the region of Shida Kartli, which borders the Tskhinvali region/South Ossetia. Individual grants to 158 families generated better livelihood opportunities by either increasing their self-sufficiency or expanding SME growth. Approximately 4,000 families in both con-flict-affected areas benefited from repairs to com-munity infrastructure, such as kindergartens, schools or irrigation systems. Through its response to UNHCR and ICRC’s respective annual appeals, the SDC con-tributed to greater protection of the conflict-affected populations in Armenia, Azerbaijan and Georgia.
Switzerland continued to play an important role in supporting peace building efforts in the region. Un-der the Swiss and Serbian tenures as OSCE Chair-person in 2014 and 2015, respectively, the Special Representative of the OSCE Chairperson-in-Office for the South Caucasus co-chaired the Geneva Inter-national Discussions and helped to find “status-neu-tral” solutions for problems related to the conflicts in the Georgian context. Switzerland also introduced a plan for “structured and intensified negotiations” intended to advance a comprehensive peace agree-ment for the Nagorno-Karabakh conflict. In 2016, Switzerland continued to support the Special Rep-resentative for the South Caucasus of the OSCE Chairperson-in-Office during Germany’s tenure as Chairperson. Thanks to the Co-Chairs’ engagement, the Geneva Discussions continued in a constructive atmosphere and the parties were assisted to identify pragmatic solutions, e.g., within the Incident Pre-vention and Response Mechanism (IPRM) monthly
meetings in Ergneti and Gali. In the framework of its regional program, the HSD supported civil society initiatives which complemented the Geneva Discus-sions with local and international partners and which helped to advance the issue of “connectivity” in the region.
From 2009 to 2014, Switzerland supported Armenia to establish 27 medical units with 540 healthcare professionals to complement rescue teams in six regions. The medical teams are trained to provide emergency medical care at the scene.
Irakli Kobalia and his friends share a green-house using natural resources for heating in Tsaishi, Georgia. Using a small grant from Switzerland, he managed to expand the business and increase production by 35%.
Vocational education and computer courses are a rewarding opportunity for IDP and refugee women and girls in Azerbaijan to improve their livelihoods.
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4. Implications for the Future Programme
While the unresolved conflicts and mistrust between involved parties pose certain limits to strengthening regional cooperation, both national and international actors agree that many of the region’s challenges can only be solved through collaboration. Such a regional approach can be built through both exist-ing mechanisms of cooperation (e.g., notably in the areas of trade, transport or energy) and established academic and professional networks in various fields (e.g., sustainable mountain development and gender equality). Consequently, the Dispatch on Switzer-land’s International Cooperation 2017–2020 foresees strengthening the regional approach in the South Caucasus. Previous focus areas, such as rural eco-nomic development; disaster risk management and climate change adaptation; governance reforms (e.g., decentralisation processes); and conflict transforma-tion, continue to form the foundation of the Swiss Cooperation Strategy 2017–2020, since they remain highly relevant in the regional context and to the three countries’ political priorities.
Using integrative processes to foster bridges between countries should (i) strengthen the ability of the three South Caucasus countries to handle external negative influences and shocks; (ii) enhance economic coop-eration among the three countries despite different political orientations; and, possibly, (iii) contribute to confidence-building between the Georgian and Ab-khaz sides. Raising awareness about the benefits of stronger regional cooperation is expected to help ease political tensions between the countries. Switzerland
is well positioned to foster regional cooperation due to its long-term engagement in agriculture, economic development and disaster risk management; its track record as a reliable partner in development coopera-tion; its physical presence through its representations in all three countries; and its respected neutrality.
As direct cooperation between Azerbaijan and Armenia remains highly unlikely, Georgia will serve as a base to foster increased collaboration and coopera-tion across the region. The efforts will focus on areas of mutual interest for the three countries which are of moderate political sensitivity, such as economic coop-eration (primarily cross-border trade and developing related enabling policies and frameworks), women’s empowerment, disaster risk management, and cli-mate change adaptation.
Agriculture-based economic development contin-ues to offer significant livelihood opportunities for the substantial rural population of the three coun-tries. Switzerland’s systemic approach has success-fully strengthened selected value-chains. Reforms encouraging economic diversification and weakening monopolies will be encouraged. There is a window of opportunity to further support framework conditions by easing access to finances for SMEs and promot-ing entrepreneurship, with a special focus on wom-en. Targeted programs on women’s empowerment will ensure gender equality improves as the societies develop as a whole. Further strengthening efficient and effective municipal service provision remains crucial given local authorities’ role in both economic development and social welfare. Overall, greater emphasis needs to be placed on policy dialogue and close collaboration with the authorities, both at local and national levels, in order to amplify results and ensure their sustainability.
In Azerbaijan, Switzerland will provide support in the areas of financial market supervision and public fi-nancial management, given the importance of a well-diversified, well-governed financial infrastructure to economic development. Swiss support in this area will possibly grow, seeking to capitalize on the cur-rent reform momentum spurred by Azerbaijan’s eco-nomic crisis. In addition, mechanisms to foster public-private dialogue, including cross-border exchanges, should be established in order to foster economic de-velopment. Civil society organizations and the private sector also require support to more actively advocate for economic and governance reforms, including in-creased female participation in decision-making.
This bridge in Ajara was destroyed by a flood. Natural disasters like floods destroy local infrastructure, cutting off rural villages from their markets and destroying fields.
Protective measures aim at reducing damages to riverbank farms.
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The region remains prone to a high number of dev-astating natural disasters. Risk conscious planning and hazard mapping are therefore essential for sus-tainable economic development, notably in rural and mountainous areas of all three countries. National and municipal capacities for integrated risk manage-ment need to be further developed. Joint efforts in disaster risk management could also strengthen regional cooperation mechanisms. Continued pro-gramming will build on previously achieved results and also link them with efforts to adapt to climate change, while collaborating with established region-al academic networks and encouraging the three countries to share best practices.
The government of Georgia has shown a certain willingness to intensify its efforts for reconciliation with the break-away regions of Abkhazia and the Tskhinvali Region/South Ossetia. Such expanded efforts by the Georgian government might include partnering with donors and investing its own re-sources into confidence-building and reconciliation activities on both sides of the administrative bound-ary lines. Initiatives considered would likely include agriculture and trade across the administrative boundary lines. If this commitment persists, it offers a window of opportunity for the SDC to expand its efforts to strengthen regional economic links to Ab-khazia, which would be a complementary engage-ment to the HSD’s continuing efforts for conflict transformation.
The strategy intends to build bridges among the three countries, e.g., through a regional approach for animal identification and traceability.
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5. Strategic Orientations and Priorities for 2017–2020
5.1. Overall aim
The Swiss Cooperation Strategy 2017–2020 for the South Caucasus is a shared strategy of the SDC, SECO and HSD. Its overall aim for Swiss engagement is “With enhanced regional dialogue and coopera-tion, the three South Caucasus countries cope better with external economic, political and natural disaster shocks; their populations benefit from inclusive eco-nomic development as well as more democratic and legitimate institutions; peace promotion activities help to find political solutions for conflicts and con-tribute to increased human security.” Gender equal-
ity and good governance are cross-cutting topics. With its focus on these topics, the Swiss Coopera-tion Strategy seeks to address interdependent issues at the nexus of peace and development. Meaning-ful and inclusive economic development requires a safe and secure environment with sound govern-ance structures; it is also essential to prevent further conflict and promote better provision of public ser-vices. The Swiss Cooperation Strategy 2017–2020 thus pursues the following two complementary domains: (i) inclusive and sustainable economic development, and (ii) effective democratic institu-tions, human safety and security.
Cultivated farm land on the road to Nakhchivan, Azerbaijan.
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5.2. Domain “Inclusive and sustainable economic development”
The goal for this domain is: Women and men in the South Caucasus benefit from more inclusive and sustainable economic development in the region. Agriculture-based economic development remains a clear priority in the region to tackle the pervasive rural poverty. For this purpose, Switzerland will en-gage in three axes of cooperation.
First, agricultural value chains will continue to be promoted with an enhanced focus on supporting entrepreneurship in rural areas and increasing links and exchanges across the three countries. For in-stance, the establishment of animal identification and traceability systems will be supported in Geor-gia and concurrently collaboration will be fostered among the South Caucasus countries with the in-tention to develop compatible systems in Armenia and Azerbaijan. Having such harmonized systems in place will create supportive framework conditions for regional trade of live animals and animal products. A strong emphasis will be placed on the economic inclusion of both women and the poorest strata of the population, including conflict-affected groups. This inclusion will be achieved through the strategic selection of value chains as well as the use of analy-sis of the differing obstacles and constraints faced by women and men along the value chains selected.
Second, framework conditions and opportunities for integrative processes will be explored to facilitate cross-border initiatives (e.g., trade). As a critical and strategic connecting point in south-north and east-west cooperation across the wider region, patterns of potential economic integration will be taken into account.
Third, together with the SDC, SECO will continue its support to improve the business environment and to foster access to finance for SMEs that have consider-able growth potential, including those based in rural areas. In this respect, efforts will focus on agricul-ture and private sector policies, standards definition and implementation, as well as access to finance, skills, and financial literacy for (rural) SMEs. SECO will deepen its engagement in the development and diversification of financial infrastructure, e.g., en-hanced support for the development of mobile pay-ment and banking services, and improved access for women to financial services. In addition, the private sector will receive support to actively advocate for a sound legal and institutional framework for eco-nomic activity.
Wool offers a considerable export potential for local farmers.
Small dairy factories up-scaled and diversified their production by introducing new hard cheese varieties to local markets.
Bees from the high mountains in Ajara settled on the terrace of one of the hotels in Batumi, Georgia, to produce honey for hotel guests.
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5.3. Domain “Effective democratic institutions, human safety and security”
The goal for this domain is: People in the South Cau-casus benefit from and make use of stronger and more democratic institutions as well as human safety and security. Functioning democratic governance mechanisms and institutions, respect for human rights, and a safe and secure environment constitute the conditio sine qua non for sustainable and inclu-sive development.
This domain complements the other domain of “Inclusive and sustainable economic development” by supporting the governance framework neces-sary for economic development. Within this domain, Switzerland will selectively engage in the following areas of cooperation.
Through continued support to institutional capac-ity building, public finance management will be im-proved to enhance the efficiency and transparency of government spending and institutions, notably in Azerbaijan. Specific topics will include financial market regulation and supervision, as well as debt management.
The capacities of local authorities to promote lo-cal economic development, provide relevant public services, and to guarantee mechanisms for citizens’ participation (e.g., public-private dialogue) will be fostered. Switzerland will support the use of inte-grated development approaches and closer collabo-ration with private sector and civil society partners to better inform decision-making. Regionally, opportu-nities will be explored for cross-border cooperation among local authorities to strengthen regional eco-nomic cooperation as well as for regional exchanges on experiences and good practices in local govern-ance and decentralization.
Building on the positive results of Swiss contributions to institutionalize disaster risk management, a stra-tegic engagement in climate change adaptation and integrated risk management will be developed. It will focus on rural and mountainous areas and provide support to existing transboundary academic and civil society networks for regional collaboration and advocacy. This effort will increase the safety of people and communities as well as the sustainability of investments and economic development.
Mainly through the program of the HSD and with possible complementary support of the SDC in economic development in Abkhazia, dialogue, confi-dence-building and enhanced connectivity in the re-gion will continue to be promoted as well as efforts to help find political solutions to the conflicts.
Improved public finance management will contribute to the development of more efficient and accountable state institutions in Azerbaijan.
The “one-stop-shop” is literally one office offering multiple services. As a result, in many parts of Armenia citizens can pay property taxes, obtain references or permits, or meet the municipal staff under one roof.
A timber crib wall has been built to ensure safe passage for residents of Joko, Ajara. Previously people relied on a narrow, unpaved road on a landslide-prone slope.
19
5.4. Arts and Culture
In line with the SDC’s culture and development policy, promotion of arts and culture in the three South Caucasus countries will be an important element of Switzerland’s engagement in the region. The unify-ing potential of arts and culture will be better ex-plored by employing it more deliberately through the Strategy’s regional approach. Switzerland aims to create spaces and opportunities where artists from the three countries can develop and exhibit their vision for the South Caucasus, contributing to a broader discussion on the future of the region. Simultaneously, the cultural scenes of each country will be supported.
The contemporary dance festival in Tbilisi brought together artists from the region and beyond, providing a unique opportunity for creative exchange and learning.
20
6. Programme Implementation and Management
The Swiss Cooperation Strategy 2017–2020 provides the basis for the joint engagement of various Swiss government entities involved in the South Caucasus region. Particular attention will be focused on test-ing the assumptions that (i) integrative processes can enhance resilience to external shocks for the region; and, (ii) existing networks can foster more regional dialogue and cooperation. For this purpose, an in-tensive dialogue on regional cooperation potentials has been launched with like-minded development partners such as the Deutsche Gesellschaft für In-ternationale Zusammenarbeit (GIZ) and the Austrian Development Agency (ADA), as well as with multi-lateral organizations, such as the UN, the Bretton Woods Institutions and the European Investment Bank.
Given the political context and constraints across the three countries, Georgia will be a connection point for this regional approach. Switzerland will work with a mix of partners, instruments (e.g., contribu-tions to multilateral agencies, bilateral interventions, support to the civil society and the private sector), and aid modalities (e.g., bilateral and regional pro-jects, global initiatives, multi-donor and topical trust funds) to help mitigate risks and increase efficiency and effectiveness. Switzerland will cooperate with like-minded donors to promote reforms through policy dialogue and joint initiatives, while keeping an independent position. For sustainability purposes, particular attention will be paid to the institutionali-zation of interventions and the use of country sys-tems.
In the Swiss Cooperation Strategy 2017–2020, the number of intervention domains has been reduced to two, in order to render Switzerland’s engagement more compact and to further increase its impact. While the engagement of the SDC’s Humanitarian Aid ends in 2016, the continuation of select activities in the fields of disaster risk management and climate change adaptation, as well as in the conflict region of Abkhazia, will help build on the positive results achieved and further use the depth of knowledge acquired over past years for the benefit of the South Caucasus.
Starting in 2017, the Swiss Cooperation Offices in Armenia, Azerbaijan and Georgia, which operate as a single regional office, will be administratively integrated with the Swiss Embassies in the three countries. This consolidation will increase efficiency and effectiveness and will create stronger coherence between the interventions of the different Swiss entities. While shared premises already exist in Baku and Yerevan, a solution for Tbilisi will be realized in the coming years.
Security will remain an important component. Cultural and regional diversity among the staff of the three Embassies and the regional Cooperation Office will be promoted as a means to improve understand-ing of the overall context in the country and region, notably as part of a conflict-sensitive management process. Current staff capacity will be adapted to the new program needs based on the phase-over of Humanitarian Aid and the concomitant consolida-tion and selective expansion of the portfolio. The-matic teams across the three Swiss representations in the region will steer program implementation and facilitate learning among the offices in line with the comparative advantages and experiences of their respective theme. With the deployment of a Human Security Advisor, the HSD will enhance the Swiss presence in the region.
21
7. Steering and Monitoring
A management team led by the Regional Head of Cooperation will be based in Tbilisi and – together with Cooperation staff from the Embassies in Yere-van and Baku – will oversee program implementa-tion. Developments in each country will be closely monitored, both in the overall program and in specific projects, and as per the attached scenarios (Annex 3). Particular attention will be paid to: (i) the imple-mentation of reforms and the enabling environment; (ii) the situation in disputed territories and of ethnic minorities in bordering regions; and (iii) the status of regional dialogue and cooperation. Ongoing result monitoring will be undertaken at national and regional levels. Efforts to understand and reduce gender gaps will be maintained throughout in pro-gram monitoring and steering. The SDC, SECO and HSD staff in all three countries will continue to work as a regional team, with joint planning and review workshops at least twice a year, complemented by regional learning and steering exercises.
The foreseen program disbursements within the Swiss Cooperation Strategy 2017–2020 in the South Caucasus amount to CHF 67.2 million, compared to CHF 103 million (excluding management costs) within the 2013–2016 Strategy (-35%, see Annex 4 for details). The proposed amount excludes manage-ment costs, which will no longer be part of the frame
credit for the Cooperation with the East but will be included in the global budget of the FDFA per coun-try representation. Overall, the SDC’s contribution will amount to CHF 48.2 million, SECO’s to CHF 15 million, and HSD’s to CHF 4 million.
The information on planned commitments and dis-bursements for the four-year period of this strategy is indicative. Actual disbursements will depend on various factors, such as the framework conditions of the partner country as well as available disbursement credits authorized by the Swiss Parliament.
Access to credit is the engine for private sector development, including rural and self-employed households.
Inclusive and sustainable economic development CHF 43.5 Mio
Effective democratic institutions and human
safety and security CHF 21.9 Mio
Others CHF 1.8 Mio
22
Annexes
1 Overview Results Framework
2 Results Framework for Domains of Intervention
3 South Caucasus Scenarios and Adaption of Program to Scenarios
4 Indicative Financial Planning
23
Annex 1
Overview Results Framework Overall Aim
With enhanced regional dialogue and cooperation, the three South Caucasus countries cope better with external economic, political and natural disaster shocks; their populations benefit from inclusive economic development as well as more democratic and legitimate institutions; peace promotion activities help to find political solutions for conflicts and contribute to increased human security.
Domain Goals
Inclusive and sustainable economic development Women and men in the South Caucasus benefit from more inclusive and sustainable economic development in the region.
Effective democratic institutions, human safety and security People in the South Caucasus benefit from and make use of stronger and more democratic institutions as well as human safety and security.
Switzerland’s Domain Objectives
1. Farmers and SMEs establish and conduct business activities more easily domestically and across the region thanks to a conducive regulatory framework and adequate financial infrastructure.
2. Farmers, rural and other SMEs increase their incomes and create new jobs through improved access to economic opportunities (finance, services, skills, information, education and markets).
1. Local government institutions foster local economic development (LED) and environmental sustainability in the Region in close cooperation with national governments, civil society and private sector actors.
2. The financial sector is more transparent and efficient; and national and local institutions manage public resources effectively.
3. Dialogue and economic empowerment contribute to confidence-building and enhanced connectivity, particularly in Abkhazia.
Total Domain Budget
CHF 43.5 million CHF 21.9 million
Crosscutting Topics / Approach
Gender, Governance, Disaster Risk Reduction, Conflict Sensitive Programme Management
24
Ann
ex 2
R
esul
ts F
ram
ewor
k1
Dom
ain
of In
terv
entio
n 1:
Incl
usiv
e an
d su
stai
nabl
e ec
onom
ic d
evel
opm
ent
Dom
ain
Goa
l: W
omen
and
men
in th
e So
uth
Cau
casu
s be
nefit
from
mor
e in
clus
ive
and
sust
aina
ble
econ
omic
dev
elop
men
t in
the
regi
on
(1)
Swis
s Po
rtfo
lio O
utco
mes
(2
) C
ontr
ibut
ions
of S
wis
s Pr
ogra
mm
e (3
) Reg
iona
l/Nat
iona
l Dev
elop
men
t Out
com
es
Out
com
e St
atem
ent A
1.1
Farm
ers
and
SMEs
est
ablis
h an
d co
nduc
t bus
ines
s ac
tiviti
es m
ore
easi
ly d
omes
tical
ly a
nd a
cros
s th
e re
gion
than
ks to
a c
ondu
cive
regu
lato
ry fr
amew
ork
and
adeq
uate
fina
ncia
l inf
rast
ruct
ure.
Indi
cato
rs
A1.1
.1 C
hang
e in
trad
e tu
rnov
er in
% a
nd U
SD
(focu
sed
on a
gric
ultu
re) b
etw
een
Geo
rgia
and
Arm
enia
as
wel
l as
betw
een
Geo
rgia
and
Aze
rbai
jan.
[Bas
elin
e: T
BD
; Tar
get:
TBD
]
A1.1
.1 N
umbe
r and
type
of n
ew fi
nanc
ial p
rodu
cts
and
serv
ices
est
ablis
hed,
out
of w
hich
xx
spec
ifica
lly
addr
ess
the
need
s of
wom
en.
[Bas
elin
e: 0
; Tar
get:
TBD
(AM
); TB
D (A
Z); T
BD
(G
E)]
A1.1
.3 #
and
type
of n
ewly
intro
duce
d st
anda
rds
or
Inte
rmed
iary
Res
ults
/ Mile
ston
es
Impr
ovem
ents
mad
e in
the
lega
l and
regu
lato
ry
fram
ewor
k w
ill ad
dres
s po
licy
gaps
and
rem
ove
adm
inis
trativ
e ba
rrie
rs fo
r far
mer
s, ru
ral a
nd o
ther
SM
Es a
nd e
ntre
pren
eurs
faci
litat
e re
gion
al li
nkag
es
and
acce
lera
te in
clus
ive
grow
th, w
ith a
spe
cific
fo
cus
on ru
ral a
reas
. Cre
atio
n of
add
ition
al
elem
ents
of f
inan
cial
infra
stru
ctur
e w
ill ea
se a
cces
s to
fina
nce
and
gene
rally
boo
st e
cono
mic
act
ivity
. As
sum
ptio
ns
G
over
nmen
ts c
ontin
ue to
impl
emen
t leg
isla
tive
and
regu
lato
ry re
form
s di
rect
ed to
war
ds a
sus
tain
able
gr
owth
and
the
dive
rsifi
catio
n of
the
econ
omy.
G
over
nmen
ts o
f AM
, AZ
and
GE
cont
inue
to
cons
ider
agr
icul
ture
and
rura
l dev
elop
men
t a p
riorit
y in
thei
r dev
elop
men
t age
ndas
.
G
over
nmen
ts a
re s
uppo
rtive
to re
gion
al
Out
com
e St
atem
ent B
1.1
Arm
enia
, Aze
rbai
jan
and
Geo
rgia
hav
e a
mor
e fa
vour
able
env
ironm
ent f
or th
e pr
ivat
e se
ctor
and
ag
ricul
ture
(Syn
thes
is).
AM: R
epub
lic o
f Arm
enia
201
4-20
25 S
trate
gic
Dev
elop
men
t Pro
gram
me;
Rep
ublic
of A
rmen
ia 2
010-
2020
Rur
al a
nd A
gric
ultu
re S
usta
inab
le D
evel
opm
ent
Stra
tegy
.
AZ: V
isio
n 20
20 D
evel
opm
ent C
once
pt; S
trate
gic
road
m
aps
for t
he n
atio
nal e
cono
my
and
mai
n ec
onom
ic
sect
ors.
GE
: Soc
ial-E
cono
mic
Dev
elop
men
t Stra
tegy
of
Geo
rgia
202
0; S
trate
gy fo
r Agr
icul
tura
l Dev
elop
men
t in
Geo
rgia
201
5-20
20; V
ET
Dev
elop
men
t Stra
tegy
for
2013
-202
0.
Indi
cato
rs
1 Bas
elin
es a
nd T
arge
ts w
ill b
e fin
aliz
ed d
urin
g th
e M
id-Y
ear R
evie
w 2
017
25
syst
ems
and
impr
oved
pro
cedu
res.
[Bas
elin
e: 0
; Tar
get:
1 (A
M);
TBD
(AZ)
; TB
D
(GE
)]
coop
erat
ion,
incl
udin
g cr
oss-
bord
er is
sues
suc
h as
an
imal
hea
lth.
Ris
ks
Es
cala
tion
of c
onfli
cts
will
nega
tivel
y af
fect
regi
onal
co
oper
atio
n an
d re
form
s.
Ve
sted
inte
rest
s ca
n bl
ock
or h
inde
r ref
orm
s.
O
utbr
eak
of a
nim
al d
isea
ses
and/
or la
rge-
scal
e na
tura
l dis
aste
rs m
ay n
egat
ivel
y af
fect
agr
icul
ture
se
ctor
dev
elop
men
t.
B1.1
. AM
, AZ,
GE:
Con
tribu
tion
of a
gric
ultu
re to
GD
P
[Bas
elin
e: 2
3% (A
M 2
015)
; 6,2
% (A
Z 20
15);
9.2%
(G
E 2
015)
; Tar
get:
24.
5(A
M);
XX
(AZ)
; 9.5
% (G
E)
Sou
rce:
Wor
ld B
ank]
.
AZ: C
hang
e in
real
non
-oil
GD
P (a
nnua
l % c
hang
e),
non-
oil F
DI a
nd n
on-o
il ex
port
[Bas
elin
e: a
nd T
arge
t to
be e
stab
lishe
d].
B1.2
. AM
, AZ,
GE:
Ran
king
in W
B’s
Doi
ng B
usin
ess
Inde
x (D
BI);
and
Com
petit
iven
ess
Inde
x (C
I).
[Bas
elin
e: D
B 2
016:
35
(AM
), 63
(AZ)
, 16
(GE
); C
I 20
15/1
6: 8
2 (A
M),
40 (A
Z), 6
6 (G
E);
Targ
et (2
020)
: D
B: 3
0 (A
M),
50 (A
Z), 1
8 (G
E);
CI:
70 (A
M),
35
(AZ)
, 63
(GE
); S
ourc
es: W
orld
Ban
k, W
EF]
, Fin
dex
(ava
ilabl
e si
nce
2014
)
Out
com
e St
atem
ent A
1.2
Farm
ers,
rura
l and
oth
er S
MEs
incr
ease
thei
r in
com
es a
nd c
reat
e ne
w jo
bs th
roug
h im
prov
ed
acce
ss to
eco
nom
ic o
ppor
tuni
ties
(fina
nce,
se
rvic
es, s
kills
, inf
orm
atio
n, e
duca
tion
and
mar
kets
).
Indi
cato
rs
A1.2
.1 N
umbe
r of j
obs
(FTE
s) c
reat
ed a
nd re
tain
ed b
y SM
Es a
nd a
gri-b
usin
esse
s (F
/M).
[Bas
elin
e: 0
; Tar
get:
TBD
(AM
); TB
D (A
Z); T
BD
(G
E)]
A1.2
.2 #
of w
omen
and
men
in ta
rget
are
as w
ith n
et
addi
tiona
l inc
ome
in a
gric
ultu
re.
[Bas
elin
e: 0
; Tar
get:
18’0
00 (4
5% w
) (A
M);
Inte
rmed
iary
Res
ults
/ Mile
ston
es
Im
prov
emen
t of t
echn
ical
and
man
agem
ent
capa
citie
s of
priv
ate
sect
or a
ctor
s w
ill co
ntrib
ute
to
incr
easi
ng p
rodu
ctiv
ity a
nd p
rofit
abili
ty o
f tar
gete
d en
terp
rises
.
Assu
mpt
ions
Bu
sine
ss e
nviro
nmen
t is
cond
uciv
e fo
r the
de
velo
pmen
t of p
rivat
e se
ctor
incl
udin
g th
e ag
ricul
ture
sec
tor i
n th
e So
uth
Cau
casu
s.
Pr
ivat
e se
ctor
act
ors
are
will
ing
to in
vest
in th
eir
own
deve
lopm
ent (
incl
udin
g ad
viso
ry s
ervi
ces)
.
B
y ha
ving
bet
ter a
nd c
heap
er a
cces
s to
fina
nces
, sk
ills, i
nfor
mat
ion
and
othe
r ser
vice
s, S
MEs
,
Out
com
e St
atem
ent B
1.2
Incr
ease
in p
rodu
ctiv
ity, t
rade
turn
over
and
em
ploy
men
t, es
peci
ally
in th
e ru
ral a
reas
, co
ntrib
utin
g to
the
redu
ctio
n of
rura
l pov
erty
and
un
empl
oym
ent.
Indi
cato
rs
B1.2
.1 A
M, A
Z, G
E: V
olum
e an
d %
cha
nge
of e
xpor
t of
agric
ultu
re p
rodu
cts
both
to th
e re
gion
and
out
of t
he
regi
on.
[Bas
elin
e: $
390
(AM
201
5); X
X (A
Z 20
15) $
612
m
(GE
201
5).T
arge
t: $4
50 (A
M);
XX
(AZ)
; $70
0 m
(GE
)]
B1.2
.2 A
M, A
Z, G
E: %
of r
ural
pov
erty
.
[Bas
elin
e 20
15: 3
6% (A
M),
11.3
% (A
Z), 2
5.3%
26
TB
D(A
Z); T
BD
(GE
)] (A
RI E
1a)
A1.2
.3 A
mou
nt a
nd p
erce
ntag
e ch
ange
in n
et in
com
e fo
r ben
efic
iarie
s (F
/M).
[Bas
elin
e: 0
; Tar
get:
TBD
(AM
); TB
D (A
Z); T
BD
(GE
). S
CO
will
repo
rt on
this
indi
cato
r in
2018
and
202
0]
A1.2
.4 N
umbe
r of (
agri-
) ent
repr
eneu
rs, S
MEs
that
in
crea
sed
thei
r inc
ome/
prof
it (F
/M) (
ARI E
1b).
[Bas
elin
e: 0
; Tar
get:
TBD
]
A1.2
.5 N
umbe
r of f
arm
ers
and
agrib
usin
esse
s (F
/M)
havi
ng g
aine
d ac
cess
to fo
rmal
fina
ncia
l ser
vice
(s
avin
gs, i
nsur
ance
, loa
n, le
asin
g, e
tc.)
(AR
I E2)
.
[Bas
elin
e: 0
; Tar
get:
TBD
(AM
); TB
D (A
Z); T
BD
(G
E)]
A1.2
.6 A
nnua
l yie
ld in
crea
se fo
r spe
cific
live
stoc
k (k
g or
l/a
nim
al) b
y sm
all f
arm
ers
supp
orte
d (F
/M) (
ARI F
S4).
[Bas
elin
e: 0
; Tar
get:
20%
(AM
); TB
D (A
Z); 2
0%
(GE
). S
CO
will
repo
rt on
this
indi
cato
r in
2018
and
20
20]
A1.2
.7 N
umbe
r of x
x yo
uth
and
yy a
dults
(F/M
) who
ha
ve a
cces
s to
impr
oved
voc
atio
nal s
kills
trai
ning
(AR
I 12
EV3
).
[Bas
elin
e: 0
(GE
); Ta
rget
TB
D (G
E)]
farm
ers
and
FIs
will
impr
ove
thei
r eco
nom
ic
perfo
rman
ce.
Th
e ba
nkin
g se
ctor
has
suc
cess
fully
ove
rcom
e th
e pr
oble
ms
of li
quid
ity a
nd n
on-p
erfo
rmin
g lo
ans
in
the
thre
e co
untri
es re
mna
nt fr
om e
cono
mic
do
wnt
urn
from
pre
viou
s ye
ars.
Tr
ust i
n lo
cal c
urre
ncie
s is
rest
ored
and
lend
ing
in
loca
l cur
renc
y av
aila
ble.
Ris
ks
N
atur
al a
nd m
an-m
ade
disa
ster
s ne
gativ
ely
affe
ct
econ
omic
dev
elop
men
t.
Ec
onom
ic d
ownt
urn
limits
inve
stm
ent o
ppor
tuni
ties
in p
rivat
e se
ctor
.
N
ew w
ave
of d
eval
uatio
n an
d ec
onom
ic d
ownt
urn
may
affe
ct e
cono
mic
situ
atio
n fo
r ban
ks a
nd o
ther
pr
ivat
e se
ctor
pla
yers
.
Pe
rsis
ting
mon
opol
ies
and
corr
uptio
n hi
nder
priv
ate
sect
or d
evel
opm
ent.
(GE
).Tar
get:
30%
(AM
), 10
% (A
Z), 1
8% (G
E)]
B1.2
.3 A
M, A
Z, G
E: V
alue
of t
otal
agr
icul
ture
out
put.
[Bas
elin
e A
MD
1.2
trill
ion
(AM
201
5); A
ZM ?
?? (A
Z 20
15);
GE
L 3.
67 b
illio
n (G
E 2
015)
; Tar
get:
AM
D 1
.5
trilli
on (A
M);
XX
AZM
(AZE
); G
EL
3.8
billi
on (G
E)]
B1.2
.4 A
M, A
Z, G
E: G
ini i
ndex
.
[Bas
elin
e 31
.5%
(AM
201
1-15
); 33
%;
(AZ,
200
8);
40%
(GE
201
1-15
); Ta
rget
: 28%
(AM
), 30
% (A
Z),
38%
(GE
)]
B1.2
.5 A
M, A
Z, G
E: T
he c
hang
e in
num
ber o
f gr
adua
tes
of V
ET s
choo
ls o
n sp
ecia
lties
rela
ted
to
agric
ultu
re.
[Bas
elin
e: x
x (A
M 2
015)
; XX
(AZ
2015
); 35
0 (G
E20
15);
Targ
et: X
X (A
M);
XX
(AZ)
; 700
(GE
)]
B1.
2.6
Num
ber o
f sm
all-h
olde
r far
mer
s w
ith a
gri-
insu
ranc
e.
[Bas
elin
e: 0
(AM
201
5); X
X (A
Z 20
15);
16,0
00
(GE
2016
); Ta
rget
: XX
(AM
); X
X (A
Z);
20,0
00 (G
E)]
27
(4) L
ines
of I
nter
vent
ion
(Sw
iss
Prog
ram
me)
For O
utco
me
A1.1
1.
Impr
ovin
g fra
mew
ork
cond
ition
s an
d th
e ge
nera
l env
ironm
ent f
or b
usin
ess
and
agric
ultu
re d
evel
opm
ent
(pro
tect
ion
of in
vest
men
ts, p
erm
its &
lice
nses
, ins
pect
ion,
in
solv
ency
, nor
ms
and
stan
dard
s) a
nd re
duci
ng a
dmin
istra
tive
barr
iers
.
2.
Prom
otin
g in
vest
men
t pol
icy
and
oppo
rtuni
ties.
3.
Assi
stin
g G
over
nmen
ts in
impr
ovin
g ta
rget
ed s
ubsi
dies
and
pol
icie
s fo
r agr
icul
ture
val
ue c
hain
dev
elop
men
t.
4.
Supp
ortin
g la
nd re
gist
ratio
n an
d co
nsol
idat
ion
polic
ies.
5.
Supp
ortin
g di
vers
ifica
tion
of fi
nanc
ial i
nfra
stru
ctur
e (c
redi
t bur
eau,
sec
ured
tran
sact
ions
, cre
dit g
uara
ntee
-sch
eme,
non
-per
form
ing
loan
s m
anag
emen
t, ris
k m
anag
emen
t, no
n-fin
anci
al s
ervi
ces
to S
MEs
).
6.
Prom
otin
g ne
w a
nd in
nova
tive
finan
cial
inst
rum
ents
and
pro
duct
s, in
clud
ing
gend
er-s
ensi
tive
as
wel
l as
mob
ile fi
nanc
ial p
rodu
cts
(e-m
oney
) and
ser
vice
s.
7.
Con
tribu
ting
to in
crea
sing
see
ds a
nd a
gri-i
nput
s cr
oss-
bord
er tr
ade
in th
e So
uth
Cau
casu
s.
8.
Supp
ort t
he d
evel
opm
ent o
f ani
mal
hea
lth a
nd re
gist
ratio
n sy
stem
and
pro
cedu
res
incl
udin
g cr
oss-
bord
er m
ovem
ents
of a
nim
als.
9.
Incr
easi
ng a
vaila
bilit
y of
dat
a an
d ef
ficie
ncy
of p
astu
re m
anag
emen
t pro
cedu
res
and
regu
latio
ns.
10.
Cap
acity
bui
ldin
g of
loca
l, re
gion
al a
nd n
atio
nal a
utho
ritie
s to
effe
ctiv
ely
impl
emen
t fra
mew
ork
cond
ition
s.
For O
utco
me
A1.2
1.
Econ
omic
and
bus
ines
s sk
ills d
evel
opm
ent f
or fa
rmer
s, ru
ral e
ntre
pren
eurs
and
SM
Es.
2.
Priv
ate
sect
or c
ompe
titiv
enes
s im
prov
emen
t thr
ough
bet
ter a
cces
s to
edu
catio
n, s
kills
, inf
orm
atio
n, fi
nanc
es, i
nput
s an
d se
rvic
es.
3.
Impr
oved
pub
lic a
nd p
rivat
e co
oper
atio
n fo
r enh
anci
ng s
ervi
ces
to fa
rmer
s, ru
ral e
ntre
pren
eurs
and
SM
Es.
4.
Acce
ss to
fina
nce
and
finan
cial
incl
usio
n, o
fferin
g so
und
and
mor
e fle
xibl
e fin
anci
al s
ervi
ces
at a
fford
able
term
s to
agr
icul
tura
l mar
ket a
ctor
s.
5.
Voca
tiona
l Edu
catio
n an
d Tr
aini
ng in
clud
ing
deve
lopm
ent o
f res
pect
ive
curr
icul
a.
6.
Tech
nica
l ass
ista
nce
to re
leva
nt m
arke
t act
ors
(e.g
. vet
s, a
rtific
ial i
nsem
inat
ors,
feed
dis
tribu
tors
) to
impr
ove
the
qual
ity a
nd a
cces
sibi
lity
of th
eir s
ervi
ces
in s
elec
ted
agric
ultu
ral v
alue
cha
ins.
7.
Enha
nce
capa
citie
s of
the
targ
et g
roup
s an
d st
reng
then
thei
r lin
kage
s w
ith o
ther
mar
ket p
laye
rs to
incr
ease
mar
ket a
cces
s op
portu
nitie
s.
28
(5) R
esou
rces
, Par
tner
ship
s (S
wis
s Pr
ogra
mm
e)
Avai
labl
e fu
nds2 fo
r int
erve
ntio
ns a
re 4
3.5
milli
on C
HF,
incl
udin
g SD
C fu
nds
of C
HF
31.5
milli
on a
nd S
ECO
fund
s of
CH
F 8
milli
on fo
r the
per
iod
of 2
017-
2020
.
Follo
win
g pa
rtner
ship
s ar
e an
ticip
ated
to b
e es
tabl
ishe
d in
ord
er to
ach
ieve
the
outc
omes
:
AZ:
Gov
ernm
ent i
nstit
utio
ns: F
inan
cial
Mar
ket S
uper
viso
ry A
utho
rity,
Min
istry
of E
cono
my,
Min
istry
of F
inan
ce, C
entra
l Ban
k, M
inis
try o
f Agr
icul
ture
, Min
istry
of
Educ
atio
n, S
tate
Vet
erin
ary
Serv
ice.
In
tern
atio
nal o
rgan
izat
ions
: WB,
IFC
, UN
DP
, FAO
, EU
, GIZ
, em
bass
ies
and
deve
lopm
ent a
genc
ies.
Pr
ivat
e se
ctor
pla
yers
: Fin
anci
al In
stitu
tions
incl
udin
g m
icro
-fina
nce,
MSM
Es, f
arm
ers
and
agri-
entre
pren
eurs
, coo
pera
tives
and
ass
ocia
tions
, bus
ines
s su
ppor
t or
gani
satio
ns.
AM:
Gov
ernm
ent i
nstit
utio
ns: M
inis
try o
f Ter
ritor
ial A
dmin
istra
tion
and
Reg
iona
l Dev
elop
men
t, M
inis
try o
f Agr
icul
ture
, Min
istry
of E
cono
my,
Sta
te F
ood
Safe
ty S
ervi
ce,
regi
onal
and
loca
l aut
horit
ies.
In
tern
atio
nal o
rgan
isat
ions
: UN
DP,
FAO
, IFA
D, A
DA,
GIZ
, oth
er d
evel
opm
ent a
genc
ies.
Lo
cal o
rgan
isat
ions
: Cen
tre fo
r Agr
ibus
ines
s an
d R
ural
Dev
elop
men
t, St
rate
gic
Dev
elop
men
t Age
ncy,
oth
er N
GO
s.
Pr
ivat
e se
ctor
pla
yers
: ban
ks, m
icro
-cre
dit o
rgan
isat
ions
, ser
vice
pro
vide
rs, f
arm
ers.
GE:
G
over
nmen
t ins
titut
ions
: Min
istry
of A
gric
ultu
re, M
inis
try o
f Edu
catio
n an
d Sc
ienc
es, M
inis
try o
f Eco
nom
y, M
inis
try o
f Fin
ance
, Nat
iona
l Foo
d Ag
ency
.
In
tern
atio
nal o
rgan
isat
ions
: UN
DP,
WB,
EIB
, FAO
, IFA
D, C
GIA
R, A
DA,
GIZ
, EU
D, o
ther
dev
elop
men
t age
ncie
s an
d em
bass
ies.
Pr
ivat
e se
ctor
pla
yers
: Ban
ks, M
FIs,
Impa
ct in
vest
men
t Fun
ds, i
nsur
ance
com
pani
es, S
MEs
, dai
ries,
sla
ught
erho
uses
, con
sulta
ncy
com
pani
es, i
nput
sup
plie
rs.
Lo
cal o
rgan
izat
ions
: IS
ET, C
ARD
, CiD
A, o
ther
NG
Os
and
Thin
k Ta
nks.
2 Sub
ject
to c
hang
e ba
sed
on d
ecis
ions
in P
arlia
men
t
29
Dom
ain
of In
terv
entio
n 2:
Effe
ctiv
e de
moc
ratic
inst
itutio
ns, h
uman
saf
ety
and
secu
rity
Dom
ain
Goa
l: Pe
ople
from
the
Sout
h C
auca
sus
bene
fit fr
om a
nd m
ake
use
of s
tron
ger a
nd m
ore
dem
ocra
tic in
stitu
tions
as
wel
l as
from
hum
an s
afet
y an
d se
curit
y
(1) S
wis
s Po
rtfo
lio O
utco
mes
(2
) Con
trib
utio
n of
Sw
iss
Prog
ram
me
(3
) Reg
iona
l/Nat
iona
l Dev
elop
men
t Out
com
es
Out
com
e St
atem
ent A
2.1
Loca
l gov
ernm
ent i
nstit
utio
ns fo
ster
loca
l ec
onom
ic d
evel
opm
ent (
LED
) and
env
ironm
enta
l su
stai
nabi
lity
in th
e R
egio
n in
clo
se c
oope
ratio
n w
ith n
atio
nal g
over
nmen
ts, c
ivil
soci
ety
and
priv
ate
sect
or a
ctor
s.
Indi
cato
rs
A2.1
.1 #
and
% o
f citi
zens
’ (F/
M) p
artic
ipat
ion
in
targ
eted
loca
l dec
isio
n-m
akin
g an
d/or
bud
get p
lann
ing
in #
mun
icip
aliti
es (A
RI G
O1)
.
[Bas
elin
e: T
BD
(AM
); TB
D (A
Z); T
BD
(GE
); Ta
rget
: TB
D (A
M);
TBD
(AZ)
; TB
D (G
E)]
A2.1
.2 %
of i
ncre
ase
in #
loca
l sel
f-gov
ernm
ents
’ (L
SGs)
bud
get r
esou
rces
due
to im
prov
ed fi
scal
tra
nsfe
r sch
emes
and
/or l
ocal
tax
inco
me
and
priv
ate
inve
stm
ents
(AR
I GO
2).
[Bas
elin
e: T
BD
(AM
); TB
D (G
E);
Targ
et: T
BD
(A
M);
TBD
(GE
)]
A2.1
.3 %
of w
omen
in e
lect
ed a
nd s
enio
r exe
cutiv
e po
sitio
ns in
the
LSG
s (A
RI G
3).
[Bas
elin
e: 5
% (A
M);
8% (A
Z); T
BD
(GE
); Ta
rget
: 10
% (A
M);
10%
(AZ)
; TB
D (G
E)]
Con
tribu
tion
of S
wis
s Pr
ogra
mm
e
Fa
cilit
atin
g pr
ovis
ion
of te
chni
cal a
ssis
tanc
e to
the
coun
tries
of t
he R
egio
n on
(i) t
he ro
les
of lo
cal
auth
oriti
es, p
rivat
e se
ctor
and
civ
il so
ciet
y ac
tors
in
prom
otin
g ec
onom
ic p
artic
ipat
ion
equa
lly
bene
fittin
g m
en a
nd w
omen
and
(ii)
on w
ays
to
inte
nsify
inte
ract
ion
and
coop
erat
ion
betw
een
thes
e ac
tors
, inc
ludi
ng a
cros
s bo
rder
inte
ract
ions
.
As
sist
ing
the
rele
vant
aut
horit
ies
in d
evel
opin
g a
lega
l fra
me
for s
elec
ted
aspe
cts
of C
limat
e C
hang
e Ad
apta
tion/
Inte
grat
ed R
isk
Man
agem
ent
(CC
A/IR
M) a
s w
ell a
s in
inte
grat
ing
CC
A/IR
M in
to
new
and
exi
stin
g po
licie
s, s
trate
gies
and
pr
ogra
mm
es a
cros
s th
e R
egio
n ta
king
into
acc
ount
ge
nder
-spe
cific
nee
ds, w
ith a
par
ticul
ar fo
cus
on
deve
lopm
ent p
lann
ing
in ru
ral a
nd m
ount
aino
us
area
s, a
nd a
cade
mic
cur
ricul
a. S
uppo
rt of
regi
onal
(s
cien
tific
and
aca
dem
ic) n
etw
orks
enh
ance
s re
gion
al/c
ross
-bor
der c
oope
ratio
n an
d ex
chan
ges.
As
sist
ing
the
rele
vant
inst
itutio
ns in
dev
elop
ing
soun
d po
licie
s, e
nfor
ceab
le le
gisl
atio
n an
d or
gani
zatio
nal c
apac
ities
for p
rom
otin
g in
clus
ive
and
effic
ient
dec
isio
n-m
akin
g an
d as
set
man
agem
ent a
t loc
al le
vel.
Faci
litat
e re
gion
al
(Sou
th C
auca
sus)
exc
hang
es a
nd c
oope
ratio
n w
ith
parti
cula
r foc
us o
n so
cio-
econ
omic
dev
elop
men
t of
Out
com
e St
atem
ent B
2.1
Men
and
wom
en in
Arm
enia
, Aze
rbai
jan
and
Geo
rgia
ben
efit
from
mor
e in
clus
ive
and
effe
ctiv
e pu
blic
sec
tors
, as
wel
l as
from
sec
ure
envi
ronm
ents
whe
n re
aliz
ing
loca
l eco
nom
ic
activ
ities
and
/or c
ross
-bor
der i
nitia
tives
.
Sou
rces
:
GE
, AM
: Reg
iona
l Dev
elop
men
t Stra
tegi
es
GE
, AM
: Pol
icy
pape
rs a
nd m
onito
ring
repo
rts o
n on
goin
g te
rrito
rial/d
ecen
traliz
atio
n re
form
s
GE
, AM
: Nat
iona
l Vol
unta
ry R
evie
w R
epor
t of t
he
Nat
iona
lized
SD
Gs
GE
: Mid
-term
Mun
icip
al D
evel
opm
ent D
ocum
ents
(43
LSG
s)
GE
, AM
, AZ:
Roa
dmap
s fo
r Nat
iona
l Ada
ptat
ion
Pla
ns
AM
, AZ,
GE
: Int
ende
d N
atio
nally
Det
erm
ined
C
ontri
butio
ns (I
ND
C) t
o th
e U
N F
ram
ewor
k C
onve
ntio
n on
Clim
ate
Cha
nge
(UN
FCC
)
AM
, GE
: DR
R N
atio
nal S
trate
gies
and
Act
ion
Pla
ns
GE
: Nat
iona
l Env
ironm
enta
l Act
ion
Pla
ns (N
EA
P) 2
and
3,
Nat
iona
l Ada
ptio
n P
rogr
am o
f Act
ion
(NA
PA
)
30
A2.1
.4 #
of m
unic
ipal
ities
with
spe
cific
mea
sure
s re
late
d to
LED
, gen
der e
qual
ity a
nd/o
r CC
A/IR
M
inco
rpor
ated
in th
eir d
evel
opm
ent p
lans
and
bud
gets
be
nefit
ing
# of
per
sons
(AR
I HA5
).
[CC
A/IR
M B
asel
ine:
TB
D (A
M);
7 m
unic
ipal
ities
/ 17
8’00
0 pe
rson
s (G
E)
CC
A/IR
M T
arge
t: TB
D (A
M);
TBD
(GE
)
Gen
der B
asel
ine:
3 m
unic
ipal
ities
/ 38
'000
per
sons
(A
M);
5 m
unic
ipal
ities
(GE
)
Gen
der T
arge
t: TB
D (A
M);
TBD
(GE
)
LED
Bas
elin
e: 3
mun
icip
aliti
es/3
8’00
0 pe
rson
s (A
M);
5 m
unic
ipal
ities
(GE
)
LED
Tar
get:
TBD
(AM
); TB
D (G
E)]
A2.1
.5 #
of n
orm
s, p
olic
ies
and
polit
ical
pro
cess
es
deve
lope
d in
the
field
s of
LED
, gen
der,
CC
A/IR
M.
[Bas
elin
e: T
BD
(AM
); TB
D (A
Z); T
BD
(GE
); Ta
rget
: TB
D (A
M);
TBD
(AZ)
; TB
D (G
E)]
bord
erin
g re
gion
s.
Assu
mpt
ions
Sa
fety
and
hum
an s
ecur
ity c
ontin
ue to
be
prer
equi
site
s fo
r sus
tain
able
dev
elop
men
t in
the
Reg
ion.
Pol
itica
l will
of n
atio
nal g
over
nmen
ts to
pr
omot
e in
clus
ive
LED
sta
ys u
nwav
erin
g.
Lo
cal a
utho
ritie
s, p
rivat
e se
ctor
and
civ
il so
ciet
y ac
tors
are
will
ing
to b
oost
eco
nom
ic p
artic
ipat
ion
thro
ugh
clos
er c
olla
bora
tion
in a
sses
sing
nee
ds,
eval
uatin
g im
pact
of n
atur
al d
isas
ters
and
clim
ate
chan
ge, t
akin
g (r
isk)
info
rmed
dec
isio
ns, m
anag
ing
reso
urce
s an
d im
plem
entin
g ac
tiviti
es c
oher
ently
.
O
ngoi
ng te
rrito
rial a
nd p
ublic
sec
tor r
efor
ms
impr
ove
the
enab
ling
cond
ition
s fo
r loc
al
auth
oriti
es, p
rivat
e se
ctor
and
civ
il so
ciet
y ac
tors
to
faci
litat
e an
d st
ep u
p pu
blic
ser
vice
del
iver
y an
d in
clus
ive
LED
.
Im
pact
of i
nclu
sive
LED
and
the
qual
ity o
f de
moc
ratic
dec
isio
n-m
akin
g w
ill be
incr
ease
d th
roug
h ex
plic
it em
pow
erm
ent o
f wom
en a
nd y
oung
pe
ople
.
Le
gal f
ram
e an
d st
rate
gies
/pol
icie
s on
sel
ecte
d as
pect
s of
CC
A/IR
M a
s w
ell a
s po
ssib
le li
nks
to
Glo
bal F
unds
will
crea
te th
e en
ablin
g co
nditi
ons
for
loca
l aut
horit
ies
to im
plem
ent m
easu
res
on lo
cal
leve
l for
env
ironm
enta
l sus
tain
abili
ty a
nd to
m
ains
tream
CC
A/IR
M.
In
tera
ctio
n be
twee
n lo
cal a
utho
ritie
s, c
ivil
soci
ety
acto
rs a
nd re
gion
al n
etw
orks
, inc
ludi
ng a
cade
mia
, w
ill co
ntrib
ute
to re
gion
al a
nd c
ross
-bor
der
exch
ange
s an
d co
oper
atio
n on
incl
usiv
e LE
D a
nd
CC
A/IR
M.
AM
, AZ,
GE
: Rel
evan
t sec
tor s
trate
gies
with
CC
A/IR
M
goal
s
AM
, AZ,
GE
: Nat
iona
l gen
der p
olic
y pa
pers
Indi
cato
rs
B2.1
.1 #
of m
unic
ipal
ities
with
resp
onsi
ve, i
nclu
sive
, pa
rtici
pato
ry a
nd re
pres
enta
tive
deci
sion
-mak
ing.
[Bas
elin
e: T
BD
(AM
); TB
D (A
Z); T
BD
(GE
); Ta
rget
: TB
D (A
M);
TBD
(AZ)
; TB
D (G
E)]
B2.1
.2 #
of a
dopt
ed p
olic
ies
and
refo
rms,
esp
ecia
lly in
th
e fie
ld o
f fis
cal p
olic
y re
form
, inf
luen
cing
cha
nges
in
the
LSG
s’ b
udge
t res
ourc
es.
[Bas
elin
e: T
BD
(AM
); TB
D (G
E);
Targ
et: T
BD
(A
M);
TBD
(GE
)]
B2.1
.3 #
of s
ound
pol
icie
s an
d/or
enf
orce
able
le
gisl
atio
n ad
opte
d at
nat
iona
l lev
el fo
r the
pro
mot
ion
of
gend
er e
qual
ity a
nd th
e em
pow
erm
ent o
f wom
en a
t lo
cal l
evel
s.
[Bas
elin
e: T
BD
(AM
); TB
D (A
Z); T
BD
(GE
); Ta
rget
: TB
D (A
M);
TBD
(AZ)
; TB
D (G
E)]
B2.1
.4 #
of p
erso
ns b
enef
ittin
g fro
m m
easu
res
rela
ted
to L
ED, g
ende
r and
CC
A/IR
M im
plem
ente
d by
(ta
rget
ed) l
ocal
act
ors.
[CC
A/IR
M B
asel
ine:
TB
D (A
M);
14’0
00 p
erso
ns
(GE
)
CC
A/IR
M T
arge
t: TB
D (A
M);
TBD
(GE
)
Gen
der B
asel
ine:
38’
000
pers
ons
(AM
); 5
mun
icip
aliti
es (G
E)
Gen
der T
arge
t: TB
D (A
M);
TBD
(GE
)
31
R
isks
Th
e ab
senc
e of
a s
trong
ass
ocia
tive
cultu
re, s
ovie
t-in
herit
ed m
ind-
sets
and
wid
espr
ead
apat
hy a
mon
g ci
vil s
ocie
ty m
ay h
inde
r effe
ctiv
e pr
oble
m-s
olvi
ng
and
enga
gem
ent i
n cr
oss-
bord
er a
ctiv
ities
.
O
vera
ll in
stab
ility
of p
oliti
cal p
roce
sses
and
de
velo
pmen
ts m
ight
del
ay in
tend
ed N
atio
nally
D
eter
min
ed C
ontri
butio
ns to
UN
FCC
or h
inde
r ef
fect
ive
impl
emen
tatio
n of
CC
A/IR
M-r
elev
ant
refo
rms,
like
intro
duct
ion
of h
azar
d m
aps
as
rele
vant
/cru
cial
inst
rum
ents
for s
usta
inab
le
deve
lopm
ent.
Pr
ogra
ms
impl
emen
ted
in th
e fie
ld o
f LSG
in
Geo
rgia
mig
ht b
e in
fluen
ced
by th
e ou
tcom
es o
f ne
xt lo
cal s
elf-g
over
nanc
e el
ectio
ns.
Pr
ogra
ms
impl
emen
ted
in th
e fie
ld o
f LSG
in
Arm
enia
wou
ld d
epen
d on
the
inte
ntio
n of
the
Gov
ernm
ent t
o co
mpl
ete
roll-
out o
f ter
ritor
ial
refo
rms
by th
e en
d 20
18.
LED
Bas
elin
e: 3
8’00
0 pe
rson
s (A
M);
TBD
(GE
)
LED
Tar
get:
TBD
(AM
); TB
D (G
E)]
B2.1
.5 #
of i
nteg
rate
d C
CA/
IRM
regi
onal
stu
dies
and
in
itiat
ives
impl
emen
ted
with
the
parti
cipa
tion
of th
e G
over
nmen
t, ci
vil s
ocie
ty a
nd in
tern
atio
nal c
omm
unity
; #
of L
ED a
nd g
ende
r-re
late
d re
form
s ap
prov
ed a
nd
enfo
rced
by
the
Gov
ernm
ents
.
[Bas
elin
e: T
BD
(AM
); TB
D (A
Z); T
BD
(GE
);
Targ
et: T
BD
(AM
); TB
D: A
Z); T
BD
(GE
)]
Out
com
e St
atem
ent A
2.2
The
finan
cial
sec
tor i
s m
ore
tran
spar
ent a
nd
effic
ient
; and
nat
iona
l and
loca
l ins
titut
ions
m
anag
e pu
blic
reso
urce
s ef
fect
ivel
y.
Indi
cato
rs
A2.2
.1 F
or A
Z: K
ey P
FM in
dica
tors
follo
win
g th
e P
EFA
m
etho
dolo
gy (A
RI G
O3)
.
[Bas
elin
e: P
EFA
resu
lts 2
014;
impl
emen
tatio
n of
su
bseq
uent
PFM
act
ion
plan
(AZ)
; Tar
get:
TBD
(A
Z)]
Con
tribu
tion
of S
wis
s Pr
ogra
mm
e
Im
prov
emen
t of c
apac
ities
/stre
amlin
ing
of
proc
edur
es o
f tar
gete
d na
tiona
l and
loca
l in
stitu
tions
will
incr
ease
tran
spar
ency
, ac
coun
tabi
lity
and
effic
ienc
y of
PFM
, and
of a
sset
pl
anni
ng a
nd m
anag
emen
t.
Im
prov
ing
capa
citie
s of
mac
ro-e
cono
mic
pol
icy-
mak
ers
on m
acro
-eco
nom
ic m
odel
ling
cont
ribut
es
to e
ffect
ive
mac
ro-e
cono
mic
fore
cast
ing,
pla
nnin
g an
d de
cisi
on-m
akin
g.
In
trodu
ctio
n an
d ro
ll-ou
t of R
esul
ts-O
rient
ed-
Budg
etin
g; e
nhan
cem
ent o
f pub
lic p
artic
ipat
ion
in
budg
etin
g an
d ex
pend
iture
man
agem
ent,
and
of
Out
com
e St
atem
ent B
2.2
The
publ
ic fi
nanc
e sy
stem
is m
ore
effic
ient
, re
sults
-orie
nted
, tra
nspa
rent
and
resi
lient
. Con
trol
ov
er th
e us
e of
fund
s is
str
engt
hene
d.
Indi
cato
rs
B2.2
.1 F
or A
Z: P
EFA
asse
ssm
ent r
esul
ts.
[Bas
elin
e: T
BD
(AZ)
; Tar
get:
TBD
(AZ)
]
B2.2
.2 F
or A
Z: O
pen
budg
et in
dex.
[Bas
elin
e: T
BD
(AZ)
; Tar
get:
TBD
(AZ)
]
32
A2.2
.2 #
and
type
of m
easu
res
for f
inan
cial
mar
ket
regu
latio
n an
d su
perv
isio
n (A
RI G
O4)
.
[Bas
elin
e: T
BD
(AZ)
; Tar
get:
TBD
(AZ)
]
A2.2
.3 %
of L
SGs
that
man
age
publ
ic fi
nanc
es in
line
w
ith th
e re
sults
-orie
nted
- and
gen
der-
resp
onsi
ve
budg
etin
g.
[Bas
elin
e: T
BD
(AM
); TB
D (G
E);
Targ
et T
BD
(A
M);
TBD
(GE
)]
A2.2
.4 %
of L
SGs
with
est
ablis
hed
asse
t pla
nnin
g an
d m
anag
emen
t sys
tem
s.
[Bas
elin
e: 0
(AM
); 0
(GE
); Ta
rget
: TB
D (A
M);
70
(GE
)]
capa
citie
s fo
r ass
ets
plan
ning
and
man
agem
ent
lead
s to
a m
ore
trans
pare
nt, e
ffici
ent a
nd in
clus
ive
publ
ic fi
nanc
e m
anag
emen
t at n
atio
nal a
nd
mun
icip
al le
vels
. As
sum
ptio
ns
N
atio
nal G
over
nmen
ts c
ontin
ue to
be
refo
rm-
orie
nted
with
rega
rd to
PFM
(AM
, AZ,
GE)
.
Th
e G
over
nmen
t sho
ws
clea
r int
entio
ns to
redu
ce
corr
uptio
n an
d w
eake
n th
e in
fluen
ce o
f ves
ted
inte
rest
s (A
Z).
Th
e G
over
nmen
t dec
ides
to b
orro
w m
oney
from
IF
Is (W
B an
d IM
F) (A
Z).
R
esul
ts-O
rient
ed B
udge
ting
has
been
mad
e co
mpu
lsor
y by
the
Gov
ernm
ent (
AM).
Im
prov
emen
t of a
ccou
ntin
g an
d bu
dget
ing,
ass
et
plan
ning
and
man
agem
ent s
yste
ms
of L
SGs
rem
ains
hig
h on
dev
elop
men
t age
nda
of th
e G
over
nmen
t of G
eorg
ia (G
E: W
B/G
oG a
gree
men
t).
Ris
ks
La
ck o
f gov
ernm
ent’s
refo
rm w
illing
ness
due
to
risin
g oi
l pric
es (A
Z).V
este
d in
tere
sts
may
blo
ck
PFM
refo
rm (A
Z).
B2.2
.3 %
of l
ocal
pop
ulat
ion
repo
rting
an
impr
ovem
ent
in m
unic
ipal
ser
vice
del
iver
y.
[Bas
elin
e: 9
7% (A
M);
TBD
(GE
);Tar
get:
60%
(AM
) TB
D (G
E)]
Out
com
e St
atem
ent A
2.3
Dia
logu
e an
d ec
onom
ic e
mpo
wer
men
t con
trib
ute
to c
onfid
ence
-bui
ldin
g an
d en
hanc
ed c
onne
ctiv
ity,
part
icul
arly
in A
bkha
zia.
Con
tribu
tion
of S
wis
s Pr
ogra
mm
e
Su
ppor
ting
the
diffe
rent
offi
cial
neg
otia
tion
form
ats
and
dial
ogue
pro
cess
es b
etw
een
the
parti
es
(Gen
eva
Inte
rnat
iona
l Dis
cuss
ions
, Lim
ehou
se
Plat
form
, Pra
gue
mee
tings
/Ista
nbul
Pro
cess
, WTO
im
plem
enta
tion,
Min
sk G
roup
).
Su
ppor
ting
sele
cted
initi
ativ
es re
late
d to
the
OSC
E
Out
com
e St
atem
ent B
2.3
Con
flict
-affe
cted
com
mun
ities
in G
eorg
ia a
nd
brea
k-aw
ay A
bkha
zia
bene
fit fr
om in
tens
ified
in
tera
ctio
n, c
oope
ratio
n an
d gr
eate
r tru
st a
cros
s th
e ad
min
istr
ativ
e bo
unda
ry li
ne (A
BL)
.
Indi
cato
rs
A2.3
.1 #
and
type
s of
cas
es w
ith im
prov
ed fu
nctio
ning
of
pol
itica
l for
a, le
vel o
f coo
pera
tion
and
“nor
mal
izat
ion”
of
rela
tions
bet
wee
n th
e pa
rties
.
[Bas
elin
e: T
BD
(AM
); TB
D (A
Z); T
BD
(GE
); Ta
rget
: TB
D (A
M);
TBD
(AZ)
; TB
D (G
E)]
A2.3
.2 #
of e
ntry
poi
nts
for e
cono
mic
dev
elop
men
t (w
ith
emph
asis
on
wom
en) i
dent
ified
and
inte
grat
ed in
trac
k 1
disc
ussi
ons.
[Bas
elin
e: T
BD
(GE
); Ta
rget
: TB
D (G
E)]
A2.3
.3 #
of e
cono
mic
initi
ativ
es/e
xcha
nges
(with
em
phas
is o
n w
omen
) cre
ated
bet
wee
n th
e pr
ivat
e se
ctor
’s a
ctor
s re
pres
entin
g di
ffere
nt d
istri
cts
and
ethn
ic g
roup
s of
Abk
hazi
a w
ith th
e pa
rtici
patio
n of
#
pers
ons
from
vul
nera
ble
grou
ps (A
RI F
1).
[Bas
elin
e: 0
(GE
); Ta
rget
: TB
D (G
E)]
A2.3
.4 %
incr
ease
inco
mes
of #
ben
efic
iarie
s (F
/M) d
ue
to b
eing
eng
aged
in n
ewly
est
ablis
hed
econ
omic
ex
chan
ges/
initi
ativ
es in
Abk
hazi
a.
[Bas
elin
e: 0
(GE
); Ta
rget
: TB
D (G
E)]
Spec
ial R
epre
sent
ativ
e fo
r the
Sou
th C
auca
sus
(i.e.
rela
ted
to c
onne
ctiv
ity a
nd tr
ade
dipl
omac
y).
Id
entif
ying
, sup
porti
ng a
nd li
nkin
g ac
tors
(with
em
phas
is o
n pr
ivat
e se
ctor
act
ors)
in A
bkha
zia
to
impr
ove
thei
r acc
ess
to s
ervi
ces,
kno
wle
dge
and
mar
kets
in a
gric
ultu
re in
this
bre
ak-a
way
regi
on.
Assu
mpt
ions
C
ontin
uous
read
ines
s by
the
Abkh
az s
ide
to
enga
ge w
ith th
e Tb
ilisi-b
ased
don
ors.
A
redu
ced
finan
cial
dep
ende
nce
by th
e Ab
khaz
si
de o
n R
ussi
a to
ope
n up
new
coo
pera
tion
aven
ues
with
oth
er a
ctor
s.
Th
e G
over
nmen
t of G
eorg
ia k
eeps
its
open
ness
an
d fle
xibi
lity
tow
ards
dev
elop
men
t pro
ject
s an
d de
velo
pmen
t act
ors
oper
atin
g in
Abk
hazi
a.
Ris
ks
N
ew a
nd u
npre
dict
able
geo
polit
ical
fact
ors
and/
or
deve
lopm
ents
/sud
den
twis
ts o
f dom
estic
pol
itics
(e
.g. t
wo
new
law
s: o
n fo
reig
n ci
tizen
s an
d en
try/e
xit t
o Ab
khaz
ia) c
ould
rend
er c
oope
ratio
n in
Ab
khaz
ia a
nd a
cros
s AB
L m
ore
diffi
cult.
In
crea
sed
tens
ions
and
con
front
atio
n be
twee
n th
e co
nflic
t par
ties
mig
ht s
pira
l out
of c
ontro
l and
cal
l fo
r tem
pora
ry in
terr
uptio
n of
act
iviti
es.
Le
ss li
kely
sce
nario
of c
onfli
ct e
scal
atio
n in
to
arm
ed v
iole
nce
will
inev
itabl
y ca
ll fo
r a c
hang
e in
th
e co
nflic
t par
ties’
age
nda
and
inte
rnat
iona
l act
ors’
pr
iorit
ies
in te
rms
of th
eir o
pera
tions
in A
bkha
zia.
Ref
orm
s:
GE
: Stra
tegy
on
Occ
upie
d Te
rrito
ries
GE
: Act
ion
Pla
n fo
r Eng
agem
ent i
n O
ccup
ied
Terr
itorie
s
GE
: Sta
te S
trate
gy o
n S
ocio
-Eco
nom
ic D
evel
opm
ent o
f th
e C
onfli
ct-A
ffect
ed R
egio
ns’ P
opul
atio
ns (a
ppro
val
pend
ing)
In
dica
tors
B2.3
.1 #
of v
ario
us lo
cal a
ctor
s (A
rmen
ian,
Aze
ri,
Abkh
az, S
outh
Oss
etia
n an
d G
eorg
ian)
eng
aged
in
conf
iden
ce-b
uild
ing
mea
sure
s.
[Bas
elin
e: T
BD
(AM
); TB
D (A
Z); T
BD
(GE
); Ta
rget
: TB
D (A
M);
TBD
(AZ)
; TB
D (G
E)]
B2.3
.2 #
and
% c
hang
e (in
crea
se o
r dec
reas
e) o
f fe
mal
e de
cisi
on-m
aker
s pa
rtici
patin
g in
var
ious
co
nfid
ence
-bui
ldin
g ac
tiviti
es u
nder
trac
k 1.
[Bas
elin
e: T
BD
(GE
). Ta
rget
: TB
D (G
E)]
B2.3
.3 A
mou
nt a
nd %
incr
ease
in e
cono
mic
tra
nsac
tions
bet
wee
n di
ffere
nt a
ctor
s of
new
eco
nom
ic
exch
ange
s/in
itiat
ives
est
ablis
hed
in A
bkha
zia;
[Bas
elin
e: 0
(GE
). Ta
rget
: TB
D (G
E)]
B2.3
.4 T
ypes
and
sco
pe o
f new
eco
nom
ic
exch
ange
s/in
itiat
ives
est
ablis
hed
in A
bkha
zia.
[Bas
elin
e: 0
(GE
). Ta
rget
: TB
D (G
E)]
34
(4) L
ines
of I
nter
vent
ion
(Sw
iss
Prog
ram
me)
For O
utco
me
A2.1
1.
Loca
l aut
horit
ies,
priv
ate
sect
or a
nd c
ivil
soci
ety
acto
rs tr
igge
r mor
e in
tens
ive,
incl
usiv
e an
d in
nova
tive
loca
l eco
nom
ic d
evel
opm
ent t
hrou
gh fa
cilit
ated
clo
ser
coop
erat
ion
at a
ll st
ages
of d
evel
opm
ent,
ther
eby
impr
ovin
g th
e liv
ing
stan
dard
s of
the
loca
l pop
ulat
ion.
Bet
ter u
se is
mad
e of
eco
nom
y-of
-sca
le o
ppor
tuni
ties
both
in
pub
lic a
nd p
rivat
e se
ctor
s, a
nd s
usta
inab
ility
of
publ
ic s
ervi
ces
and
inve
stm
ents
is
incr
ease
d th
roug
h tra
nsfe
rrin
g ec
onom
ic a
nd b
usin
ess
know
ledg
e an
d pr
actic
es to
the
publ
ic s
ecto
r. R
isks
are
dec
reas
ed th
roug
h in
tegr
atio
n of
CC
A/IR
M a
t all
step
s. L
egis
lativ
e im
prov
emen
ts m
ade
on th
e na
tiona
l lev
els
and
impr
oved
ca
paci
ties
of lo
cal c
ivil
serv
ants
allo
w lo
cal a
utho
ritie
s to
mor
e in
depe
nden
tly s
teer
loca
l eco
nom
ic d
evel
opm
ent.
2.
Reg
iona
l/ter
ritor
ial d
evel
opm
ent
fund
s en
hanc
e th
eir
capa
citie
s in
stre
amlin
ing
avai
labl
e fu
nds
for
loca
l eco
nom
ic d
evel
opm
ent t
hrou
gh: k
now
-how
tran
sfer
s,
orga
niza
tiona
l dev
elop
men
t, re
gion
al e
xcha
nges
of b
est p
ract
ices
and
/or “
lear
ning
toge
ther
from
oth
ers”
.
3.
Wom
en a
nd y
oung
peo
ple
activ
e in
loca
l aut
horit
ies,
the
priv
ate
sect
or a
nd c
ivil
soci
ety
beco
me
driv
ers
of c
hang
e in
loca
l eco
nom
ic d
evel
opm
ent a
nd d
emoc
ratic
de
cisi
on-m
akin
g th
roug
h: s
treng
then
ing
incl
usiv
e an
d ge
nder
-bal
ance
d ne
eds
asse
ssm
ents
; id
entif
ying
and
pro
mot
ing
inno
vato
ry a
ppro
ache
s to
man
agin
g lo
cal
deve
lopm
ent w
ith r
estri
cted
res
ourc
es (
e.g.
rel
ated
to v
alue
cha
ins,
reg
iona
l tou
rism
, pub
lic s
ervi
ce d
eliv
ery,
etc
.); c
ross
-bor
der
coop
erat
ion
thro
ugh
join
t act
iviti
es
betw
een
AM a
nd G
E, n
etw
orki
ng a
nd e
xcha
nges
of b
est p
ract
ices
and
/or “
lear
ning
toge
ther
from
oth
ers”
.
4.
Loca
l au
thor
ities
, pr
ivat
e se
ctor
and
civ
il so
ciet
y ac
tors
joi
ntly
ide
ntify
new
or
enha
nce
exis
ting
cros
s-bo
rder
ini
tiativ
es i
n th
e sp
here
s of
loc
al e
cono
mic
de
velo
pmen
t an
d/or
pub
lic s
ervi
ce d
eliv
ery
thro
ugh:
app
licat
ion
of p
rovi
ded
tech
nica
l as
sist
ance
on
proc
ess
and
cont
ent
man
agem
ent
in l
ocal
eco
nom
ic
deve
lopm
ent
(e.g
. to
uris
m,
trade
, jo
intly
use
d ec
onom
ic i
nfra
stru
ctur
es)
and/
or p
ublic
ser
vice
del
iver
y (e
.g.
trans
port,
was
te m
anag
emen
t, na
tura
l re
sour
ce
man
agem
ent,
land
man
agem
ent,
CC
A, d
isas
ter-
risk
man
agem
ent r
elat
ed to
agr
icul
ture
); fa
cilit
atio
n of
pub
lic-p
rivat
e kn
owle
dge-
trans
fers
and
par
tner
ship
s.
5.
Gov
ernm
ents
are
ass
iste
d to
dev
elop
a h
azar
d m
appi
ng m
etho
dolo
gy a
dapt
ed to
the
loca
l con
text
s an
d to
ela
bora
te th
e re
spec
tive
norm
ativ
e/le
gisl
ativ
e fra
me
and
enfo
rcem
ent m
echa
nism
s pr
omot
ing
and
mai
nstre
amin
g ha
zard
map
ping
thro
ugh
regi
onal
net
wor
ks a
nd in
to a
cade
mic
cur
ricul
a ac
ross
the
Reg
ion.
6.
Gov
ernm
ents
are
ass
iste
d in
the
ela
bora
tion/
upda
ting
of N
atio
nal
Ada
ptat
ion
Plan
s an
d ot
her
rele
vant
stra
tegi
es a
nd p
olic
ies
and
in a
cces
sing
glo
bal
initi
ativ
es/fu
nds
(e.g
. Gre
en C
limat
e Fu
nd) f
or re
sour
ce m
obiliz
atio
n.
7.
Faci
litat
ing
and
supp
ortin
g th
e in
tera
ctio
n of
civ
il so
ciet
y ac
tors
with
sci
entif
ic a
nd a
cade
mic
net
wor
ks f
or e
nhan
ced
advo
cacy
and
lob
byin
g on
sus
tain
able
de
velo
pmen
t in
rura
l and
mou
ntai
nous
are
as.
For O
utco
me
A2.2
1.
Enha
ncin
g Pu
blic
Fin
ance
and
Eco
nom
ic P
olic
y M
anag
emen
t (A
Z):
Publ
ic d
ebt
man
agem
ent;
prog
ram
bud
getin
g (R
esul
ts-O
rient
ed B
udge
ting)
; in
tern
al a
nd
exte
rnal
aud
it; m
acro
econ
omic
fore
cast
ing.
2.
Loca
l aut
horit
ies,
priv
ate
sect
or a
nd c
ivil
soci
ety
acto
rs jo
intly
real
ize
mod
ern
publ
ic f
inan
ce m
anag
emen
t with
the
aim
to s
treng
then
loca
l dem
ocra
tic d
ecis
ion-
mak
ing
and
impr
ove
loca
l eco
nom
ic d
evel
opm
ent a
nd p
ublic
ser
vice
del
iver
y th
roug
h: s
treng
then
ing
of in
clus
ive
budg
etin
g an
d pu
blic
exp
endi
ture
man
agem
ent
35
at
loca
l lev
el; f
urth
er r
oll-o
ut o
f Res
ults
-Orie
nted
Bud
getin
g; p
rom
otin
g op
portu
nitie
s fo
r mix
ed p
ublic
-priv
ate
finan
cing
; ass
istin
g th
e in
trodu
ctio
n of
mun
icip
al c
ost-
reco
very
sys
tem
s fo
r inc
reas
ed s
usta
inab
ility
of p
ublic
inve
stm
ents
; reg
iona
l exc
hang
es o
n be
st p
ract
ices
and
/or “
lear
ning
toge
ther
from
oth
ers”
.
3.
Impr
ovin
g qu
ality
of
mun
icip
al s
ervi
ce d
eliv
ery
thro
ugh
intro
duct
ion
of a
sset
pla
nnin
g an
d m
anag
emen
t sy
stem
s at
LSG
s (G
E, A
M):
esta
blis
hmen
t of
ass
et
plan
ning
and
man
agem
ent a
nd P
CM
sys
tem
s al
ong
with
pro
visi
on o
f on-
job
train
ings
and
nee
ds-b
ased
con
sulta
ncy.
For O
utco
me
A2.3
1.
Con
tinue
sup
porti
ng r
egio
nal p
eace
-bui
ldin
g in
itiat
ives
and
dia
logu
es t
o re
build
rel
atio
nshi
ps b
etw
een
the
divi
ded
soci
etie
s (e
.g.
villa
ges
alon
g th
e in
tern
atio
nal
bord
er b
etw
een
ARM
and
AZE
and
nea
r the
line
of c
onta
ct),
to fa
cilit
ate
parti
cula
r asp
ects
of t
he R
ussi
an-G
eorg
ian
rela
tions
(e.g
. sup
porti
ng th
e im
plem
enta
tion
of
the
WTO
agr
eem
ent (
cust
oms
com
pone
nt) b
etw
een
Geo
rgia
and
Rus
sia,
con
tribu
ting
to th
e Pr
ague
mee
tings
thro
ugh
supp
ort o
f the
Ista
nbul
pro
cess
, etc
.).
2.
Con
tinue
med
iatio
n an
d fa
cilit
atio
n of
Tra
ck 1
act
iviti
es t
o fu
rther
the
pol
itica
l res
olut
ion
of t
he c
onfli
cts
(e.g
. su
ppor
ting
the
Gen
eva
Inte
rnat
iona
l Dis
cuss
ions
, Li
meh
ouse
Dis
cuss
ion
Pla
tform
; con
nect
ing
and
empo
wer
ing
the
Geo
rgia
n an
d Ab
khaz
wom
en’s
org
aniz
atio
ns; a
dvan
cing
com
mun
icat
ion
chan
nels
bet
wee
n th
e G
eorg
ians
/Abk
haz/
Sou
th O
sset
ians
to id
entif
y ne
w s
ecto
rs o
f coo
pera
tion;
sup
porti
ng v
ario
us c
onfid
ence
-bui
ldin
g m
easu
res
thro
ugh
civi
l soc
iety
).
3.
Supp
ortin
g sp
ecia
l ini
tiativ
es p
erta
inin
g to
OSC
E Sp
ecia
l Rep
rese
ntat
ive
for t
he S
outh
Cau
casu
s.
4.
Iden
tifyi
ng a
nd s
uppo
rting
var
ious
eco
nom
ic e
xcha
nges
/initi
ativ
es w
ith p
rivat
e se
ctor
with
in A
bkha
zia
(acr
oss
diffe
rent
reg
ions
thro
ugh
vario
us e
thni
c gr
oups
) an
d po
ssib
ly a
cros
s th
e A
BL w
ith th
e go
al o
f im
prov
ing
thei
r acc
ess
to s
ervi
ces,
kno
wle
dge
and
mar
kets
per
tain
ing
to a
gric
ultu
ral v
alue
cha
ins.
36
(5) R
esou
rces
, Par
tner
ship
s (S
wis
s Pr
ogra
mm
e)
Res
ourc
es
The
finan
cial
reso
urce
s3 allo
cate
d fo
r Dom
ain
2 am
ount
to C
HF
21.9
milli
on (S
DC
: CH
F 14
.9 m
illion
; SEC
O: C
HF
3 m
illion
; HS
D: C
HF
4 m
illion
). D
ue to
lim
ited
finan
cial
m
eans
, im
plem
enta
tion
of a
ctiv
ities
in th
e sp
here
of p
ublic
inst
itutio
ns w
ill m
ostly
rely
on
loca
l par
tner
s an
d/or
low
-cos
t arr
ange
men
ts w
ith in
tern
atio
nal o
rgan
izat
ions
on
capa
city
bui
ldin
g.
Partn
ersh
ips
Whe
reve
r po
ssib
le,
activ
ities
inv
olvi
ng l
ocal
aut
horit
ies
and
civi
l so
ciet
y ac
tors
sha
ll be
em
bedd
ed i
nto
the
alre
ady
esta
blis
hed
prog
ram
mat
ic a
ppro
ach
on l
ocal
go
vern
ance
(AM
), th
ereb
y co
ntin
uing
join
t pla
nnin
g, re
porti
ng a
nd s
teer
ing
arra
ngem
ents
aim
ed a
t joi
nt re
sults
’ ach
ieve
men
t thr
ough
cou
ntry
sys
tem
s.
N
atio
nal G
over
nmen
t in
stitu
tions
: M
inis
try o
f Te
rrito
rial A
dmin
istra
tion
and
Dev
elop
men
t (A
M);
Min
istry
of
Emer
genc
y Si
tuat
ions
(A
M);
Min
istry
of
Nat
ure
Prot
ectio
n (A
M);
Min
istry
for
Reg
iona
l D
evel
opm
ent
and
Infra
stru
ctur
e (G
E);
Min
istry
of
Just
ice
(GE)
; M
inis
try o
f E
nviro
nmen
t an
d N
atur
al R
esou
rces
Pro
tect
ion
(GE)
; St
ate
Min
iste
r’s O
ffice
for R
econ
cilia
tion
and
Civ
ic E
qual
ity (G
E); E
mer
genc
y M
anag
emen
t Age
ncy
(GE)
.
Lo
cal a
utho
ritie
s: m
unic
ipal
ities
, ass
ocia
tions
of m
unic
ipal
ities
, reg
iona
l gov
ernm
ents
(whe
re a
pplic
able
).
D
e fa
cto
auth
oriti
es in
Abk
hazi
a (G
E):
de fa
cto
Min
istry
of F
orei
gn A
ffairs
, de
fact
o Pr
ime-
Min
iste
r’s O
ffice
, de
fact
o H
eads
of R
egio
nal A
dmin
istra
tions
.
O
ther
pub
lic in
stitu
tions
: A
rmen
ian
Terr
itoria
l Dev
elop
men
t Fu
nd (
AM
); M
unic
ipal
Dev
elop
men
t Fu
nd (
GE
), C
entre
for
Effe
ctiv
e G
over
nanc
e S
yste
m a
nd T
errit
oria
l Ar
rang
emen
t Ref
orm
(CEG
STAR
); Pu
blic
Aca
dem
ies
for C
ivil
Ser
vant
s (A
M, G
E).
In
tern
atio
nal i
nstit
utio
ns: e
.g. U
ND
P, U
N W
omen
, WB,
GIZ
, CoE
(for
cro
ss-b
orde
r coo
pera
tion
expe
rtise
); U
N a
genc
ies
and
ING
Os
activ
e in
Abk
hazi
a (G
E).
C
ivil
soci
ety
orga
niza
tions
: wom
en’s
reso
urce
cen
tres,
loca
l and
regi
onal
NG
Os
wor
king
on
peac
e pr
omot
ion,
civ
il so
ciet
y or
gani
zatio
ns w
orki
ng o
n C
CA,
etc
.
P
rivat
e se
ctor
: bus
ines
s as
soci
atio
ns; b
usin
ess
supp
ort o
rgan
izat
ions
(BSO
); di
aspo
ra e
ntre
pren
eurs
; priv
ate
sect
or a
ctor
s in
Abk
hazi
a (G
E).
A
cade
mic
inst
itutio
ns: S
cien
tific
Net
wor
k fo
r the
Cau
casu
s M
ount
ain
Reg
ion
and
rela
ted
univ
ersi
ties
(incl
udin
g Tu
rkey
, Rus
sia
and
Iran)
.
3 Sub
ject
to c
hang
e du
e to
dec
isio
ns in
Par
liam
ent
37
A
nnex
3
Sout
h C
auca
sus
Scen
ario
s an
d Ad
apta
tion
of P
rogr
amm
e to
Sce
nario
s
Neg
ativ
e de
velo
pmen
t
A C
auca
sus
of e
ntre
nche
d po
sitio
ns a
nd
unre
solv
ed c
onfli
cts
turn
ing
mor
e ho
stile
Mod
erat
ely
posi
tive
deve
lopm
ent
A C
auca
sus
of m
ore
incl
usiv
e so
ciet
ies,
nas
cent
re
gion
al s
ensi
tiviti
es a
nd s
tatu
s qu
o fo
r the
un
reso
lved
con
flict
s
Very
pos
itive
dev
elop
men
t
A C
auca
sus
of s
trong
regi
onal
link
ages
and
co
nstru
ctiv
e so
lutio
ns to
the
unre
solv
ed c
onfli
cts
Like
lihoo
d Lo
w-m
ediu
m
Med
ium
-hig
h Ve
ry lo
w
Polit
ical
–
Gov
erna
nce
- G
over
nmen
ts b
ecom
e m
ore
natio
nalis
tic a
nd
popu
list t
o di
stra
ct fr
om e
cono
mic
pro
blem
s -
Infig
htin
g in
pol
itica
l elit
es a
nd c
lans
-
Stro
nger
blo
ck b
uild
ing
- Si
gnifi
cant
redu
ctio
n in
resp
ect o
f hum
an ri
ghts
in
the
who
le re
gion
-
Geo
rgia
turn
s aw
ay fr
om th
e EU
asp
iratio
ns
- A
zerb
aija
n ge
ts u
nder
stro
ng in
fluen
ce o
f R
ussi
a jo
inin
g Eu
rasi
a C
usto
ms
Uni
on
- G
over
nmen
ts c
ontin
ue th
eir m
ain
curr
ent
cour
se, t
ryin
g to
find
a b
alan
ce b
etw
een
Eas
t an
d W
est
- Fi
rst a
ttem
pts
to re
nder
the
diffe
rent
eco
nom
ic
inte
grat
ion
regi
mes
com
patib
le
- St
reng
then
ing
of p
ublic
regu
lato
ry s
yste
ms
- N
asce
nt a
war
enes
s of
ben
efits
of r
egio
nal
linka
ges
in c
erta
in a
reas
- C
ount
ries
activ
ely
stre
ngth
en re
gion
al
exch
ange
s in
cer
tain
com
mon
are
as o
f int
eres
t (tr
ade,
env
ironm
ent)
- EI
TI fu
lly im
plem
ente
d -
Sign
ifica
nt im
prov
emen
ts in
Aze
rbai
jan
with
re
gard
to h
uman
righ
ts a
nd th
e ci
vil s
ocie
ty’s
sp
ace
for a
ctio
n -
Partn
ersh
ip b
etw
een
Geo
rgia
and
Rus
sia
deep
ens
- Im
porta
nt re
form
s im
plem
ente
d, s
uppo
rted
by
soci
ety
Soci
o-ec
onom
ic
- Si
gnifi
cant
cur
renc
y flu
ctua
tions
and
stro
ng
infla
tion
lead
to im
pove
rishm
ent o
f a la
rge
part
of th
e so
ciet
y -
Incr
ease
in c
orru
ptio
n -
Stag
natio
n of
eco
nom
y le
ads
to in
crea
se o
f m
igra
tion
- D
isillu
sion
in G
eorg
ia w
ith th
e D
CFT
A
- R
efor
ms
rele
vant
for t
he S
CO
pro
gram
are
not
ap
prov
ed a
nd/o
r im
plem
ente
d du
e to
stro
ng
indi
vidu
al in
tere
sts
- In
crea
se o
f soc
ial u
nres
ts in
cl. r
elig
ious
or
ethn
ic m
inor
ity g
roup
s -
Incr
ease
in in
cide
nces
of d
omes
tic v
iole
nce,
sc
hool
dro
p-ou
ts, s
ex-s
elec
ted
abor
tions
and
ea
rly m
arria
ges
- Su
bsta
ntia
l inc
reas
e of
refu
gees
from
Syr
ia
- G
row
ing
econ
omic
dow
ntur
n le
avin
g vu
lner
able
- Fu
rther
ste
ps to
war
ds s
trong
er e
cono
mic
re
gion
al c
onne
ctio
ns th
roug
h cr
oss-
bord
er
trade
, ene
rgy
and
trans
port
rout
es
- So
me
refo
rm e
fforts
and
wea
keni
ng o
f in
divi
dual
/mon
opol
istic
inte
rest
s -
Con
sist
ent e
fforts
for e
cono
mic
div
ersi
ficat
ion
and
rura
l dev
elop
men
t lea
d to
sm
alle
r im
bala
nces
bet
wee
n ur
ban
and
rura
l are
as
- St
eady
inve
stm
ents
and
/or r
emitt
ance
s by
m
igra
nts
- At
tem
pts
to fu
rther
incr
ease
the
soci
al
allo
wan
ces
and
pens
ions
-
Spor
adic
dem
onst
ratio
ns o
f pub
lic
diss
atis
fact
ion
- G
row
ing
acce
ss o
f wom
en to
eco
nom
ic
reso
urce
s an
d de
cisi
on-m
akin
g, e
ngen
derin
g di
ffere
nt s
trate
gies
by
line
min
istri
es
- En
hanc
ed c
ompa
tibilit
y be
twee
n th
e tw
o ec
onom
ic in
tegr
atio
n re
gim
es (E
EU a
nd E
U
DC
FTA)
-
Stro
ng e
ndea
vors
for e
cono
mic
div
ersi
ficat
ion
and
attra
ctio
n of
inve
stm
ents
-
Activ
e hi
gh le
vel a
nti-c
orru
ptio
n fig
ht in
clud
ing
abol
ition
of m
onop
olie
s -
Sign
ifica
nt re
duct
ion
of u
rban
-rur
al d
icho
tom
y -
The
sign
ifica
nt p
oten
tial o
f wom
en in
eco
nom
ic
and
soci
al d
evel
opm
ent i
s re
aliz
ed; g
ende
r eq
ualit
y an
d w
omen
em
pow
erm
ent i
s st
rong
ly
supp
orte
d by
diff
eren
t bra
nche
s of
the
gove
rnm
ent
- In
crea
sed
inve
stm
ents
and
rem
ittan
ces
by
mig
rant
s
38
laye
rs o
f soc
iety
, lik
e th
e el
derly
, sin
gle
mot
hers
an
d yo
uth
in m
ore
prec
ario
us s
ituat
ion
- Sl
ight
ly in
crea
sed
oil p
rices
hel
p A
zerb
aija
n av
oid
furth
er e
cono
mic
dow
ntur
n -
Impa
ct o
f glo
bal e
cono
mic
sta
gnat
ion
trick
ling
dow
n on
the
regi
on
Envi
ronm
ent
- D
ecre
asin
g co
mm
itmen
t to
deve
lop
a su
ffici
ent
disa
ster
risk
man
agem
ent i
nclu
ding
CC
A
- Bi
g sc
ale
natu
ral o
r man
-mad
e di
sast
ers
(ear
thqu
ake,
floo
ds, l
and/
mud
slid
es, n
ucle
ar o
r ch
emic
al in
cide
nt e
tc.)
set t
he re
gion
bac
k -
Res
ourc
e sc
arci
ty a
nd d
ispl
acem
ents
thro
ugh
incr
ease
d ne
gativ
e ef
fect
s of
clim
ate
chan
ge
with
impa
ct o
n ag
ricul
ture
bot
h in
term
s of
hu
man
reso
urce
s an
d pr
oduc
tion
- In
crea
sed
awar
enes
s of
dis
aste
r ris
k re
duct
ion
- St
reng
then
ing
of d
isas
ter r
isk
man
agem
ent
mec
hani
sms
- Ad
aptiv
e m
easu
res
with
rega
rd to
clim
ate
chan
ge
- Ex
trem
e w
eath
er c
ondi
tions
cau
sing
sm
all t
o m
ediu
m s
cale
nat
ural
dis
aste
rs (l
and/
mud
sl
ides
, flo
ods,
etc
.) w
ith n
egat
ive
effe
cts
on
popu
latio
ns, i
nfra
stru
ctur
e, e
cono
mic
de
velo
pmen
t
- St
rong
end
eavo
rs fo
r ful
ly e
ffect
ive
disa
ster
risk
pr
epar
edne
ss a
nd re
spon
se m
echa
nism
s de
velo
pmen
t on
all l
evel
s (c
omm
uniti
es,
insu
ranc
e m
arke
t, di
sast
er ri
sk re
duct
ion
finan
ced
by s
tate
) as
wel
l as
for C
CA
- Sh
ift fr
om o
il an
d ga
s in
dust
ry to
sus
tain
able
us
e of
wat
er re
sour
ces
and
othe
r ren
ewab
le
sour
ces
for e
nerg
y pr
oduc
tion
Secu
rity
- Es
cala
tion
of N
agor
no-K
arab
akh
conf
lict f
rom
ce
asef
ire w
ith o
ccas
iona
l exc
hang
es o
f fire
to
full-
scal
e w
ar (e
.g. b
ecau
se o
f rec
ogni
tion
of
Nag
orno
-Kar
abak
h’s
inde
pend
ence
by
Arm
enia
) -
Dia
logu
e pr
oces
s be
twee
n R
ussi
a an
d G
eorg
ia
halte
d -
Abkh
azia
aim
s fo
r stro
nger
inte
grat
ion
with
R
ussi
a w
ith tr
avel
acr
oss
ABL
and
inte
rnat
iona
l pr
ogra
ms
fully
bei
ng re
stric
ted
- Ts
khin
vali
Reg
ion/
Sout
h O
sset
ia in
tegr
ates
into
th
e R
ussi
an F
eder
atio
n -
Viol
ent m
anife
stat
ion
of re
ligio
us e
xtre
mis
m a
nd
terr
oris
m
- Vi
olen
t unr
ests
cau
sed
by p
oliti
cal
diss
atis
fact
ion
or e
cono
mic
rece
ssio
n
- C
ontin
uatio
n of
the
curr
ent G
eorg
ian
polic
y of
pr
agm
atic
rela
tions
with
Rus
sia
- St
atus
quo
in th
e co
nflic
ts o
n N
agor
no-
Kara
bakh
(cea
sefir
e w
ith o
ccas
iona
l exc
hang
es
of fi
re) a
nd T
skhi
nval
i Reg
ion/
Sou
th O
sset
ia
(stre
ngth
enin
g of
Rus
sian
pre
senc
e)
- Sl
ight
ope
ning
up
of A
bkha
zia
and
a ne
w
open
ing”
pol
icy
of G
eorg
ia
- Tw
o ne
w la
ws
in A
bkha
zia
do n
ot m
eani
ngfu
lly
rest
rict a
cros
s th
e A
BL tr
avel
and
spa
ce fo
r op
erat
ions
- R
elat
ions
hip
betw
een
Geo
rgia
and
Rus
sia
is
fully
rees
tabl
ishe
d -
“Ent
ente
” bet
wee
n th
e G
eorg
ian
and
Abk
haz
side
s al
low
s fu
ll ec
onom
ic c
oope
ratio
n -
Adva
nces
are
mad
e w
ith re
gard
to th
e N
agor
no-
Kara
bakh
, Abk
hazi
a an
d Ts
khin
vali
Reg
ion/
Sout
h O
sset
ia c
onfli
cts
- Ts
khin
vali
Reg
ion
agre
es to
allo
w a
cces
s fro
m
the
Geo
rgia
n-co
ntro
lled
terr
itorie
s
39
Adap
tatio
n of
pro
gram
me
to s
cena
rios
W
orst
cas
e sc
enar
io
Mos
t lik
ely
scen
ario
Be
st c
ase
scen
ario
Key
poin
ts fo
r ad
apta
tion
(sel
ecte
d fro
m li
st
abov
e)
Sec
urity
/Con
flict
G
over
nanc
e/R
efor
ms
Legi
timac
y/O
wne
rshi
p
- Es
cala
tion
of N
agor
no-K
arab
akh
conf
lict f
rom
ce
asef
ire w
ith o
ccas
iona
l exc
hang
es o
f fire
to
full-
scal
e w
ar
- D
ialo
gue
betw
een
Rus
sia
and
Geo
rgia
bre
aks
dow
n; A
bkha
zia
mov
es c
lose
r tow
ards
Rus
sia,
w
hile
Tsk
hinv
ali R
egio
n/So
uth
Oss
etia
fully
in
tegr
ates
with
Rus
sia
- G
over
nmen
ts b
ecom
e m
ore
natio
nalis
tic a
nd
popu
list
- G
eorg
ia tu
rns
away
from
EU
asp
iratio
ns,
Aze
rbai
jan
gets
und
er s
trong
influ
ence
of
Rus
sia
join
ing
Eura
sia
Cus
tom
s U
nion
-
Ref
orm
s re
leva
nt fo
r the
SC
O p
rogr
am a
re n
ot
appr
oved
and
/or i
mpl
emen
ted
- Bi
g sc
ale
natu
ral o
r man
mad
dis
aste
rs
(ear
thqu
ake,
floo
ds, l
and/
mud
slid
es, e
tc.)
set
the
regi
on b
ack
- St
atus
quo
in th
e co
nflic
ts o
n N
agor
no-
Kara
bakh
(cea
sefir
e w
ith o
ccas
iona
l ex
chan
ges
of fi
re) a
nd T
skhi
nval
i Reg
ion/
So
uth
Oss
etia
(stre
ngth
enin
g of
Rus
sian
pr
esen
ce)
- C
ontin
uatio
n of
the
curr
ent G
eorg
ian
polic
y of
pr
agm
atic
rela
tions
with
Rus
sia
- Sl
ight
ope
ning
up
of A
bkha
zia
and
”a n
ew
open
ing”
pol
icy
of G
eorg
ia
- Tw
o ne
w la
ws
in A
bkha
zia
do n
ot m
eani
ngfu
lly
rest
rict a
cros
s th
e A
BL tr
avel
and
spa
ce fo
r op
erat
ions
-
Gov
ernm
ents
con
tinue
cur
rent
cou
rse
(bal
ance
be
twee
n Ea
st a
nd W
est)
- Fi
rst a
ttem
pts
to re
nder
the
diffe
rent
eco
nom
ic
inte
grat
ion
regi
mes
com
patib
le; e
fforts
for
econ
omic
div
ersi
ficat
ion
and
rura
l dev
elop
men
t -
Stre
ngth
enin
g of
pub
lic re
gula
tory
sys
tem
s -
Ref
orm
effo
rts
- N
asce
nt a
war
enes
s of
ben
efits
/furth
er s
teps
of
regi
onal
link
ages
in c
erta
in a
reas
(e.g
. ec
onom
ic re
gion
al c
onne
ctio
ns)
- Ad
vanc
es a
re m
ade
with
rega
rd to
the
Nag
orno
-Kar
abak
h, A
bkha
zia
and
Tskh
inva
li R
egio
n/So
uth
Oss
etia
con
flict
s -
Rel
atio
nshi
p be
twee
n G
eorg
ia a
nd R
ussi
a is
fu
lly re
esta
blis
hed
- “E
nten
te” b
etw
een
the
Geo
rgia
n an
d A
bkha
z si
des
allo
ws
full
econ
omic
coo
pera
tion
- Ts
khin
vali
Reg
ion
agre
es to
allo
w a
cces
s fro
m th
e G
eorg
ian-
cont
rolle
d te
rrito
ries
- C
ount
ries
activ
ely
stre
ngth
en re
gion
al
exch
ange
s in
cer
tain
com
mon
are
as o
f in
tere
st (t
rade
, env
ironm
ent)
- En
hanc
ed c
ompa
tibilit
y be
twee
n th
e tw
o ec
onom
ic in
tegr
atio
n re
gim
es (E
EU a
nd E
U
DC
FTA)
-
Impo
rtant
refo
rms
impl
emen
ted,
sup
porte
d by
soc
iety
-
Sign
ifica
nt im
prov
emen
ts in
Aze
rbai
jan
with
re
gard
to h
uman
righ
ts a
nd th
e ci
vil s
ocie
ty’s
sp
ace
for a
ctio
n
Geo
grap
hica
l foc
us
-
No
activ
ities
pos
sibl
e in
the
conf
lict a
reas
, in
thei
r bor
derin
g re
gion
s an
d be
yond
in c
ase
of
a fu
ll-sc
ale
war
(in
parti
cula
r rel
ated
to
Nag
orno
-Kar
abak
h)
- Fo
cus
of d
evel
opm
ent a
ctiv
ities
on
regi
ons
whe
re a
cces
s is
saf
e, w
ork
allo
wed
and
en
cour
aged
-
Enha
nced
eng
agem
ent i
n re
gion
s af
fect
ed b
y th
e co
nflic
ts w
ith m
obiliz
atio
n of
SD
C
Hum
anita
rian
Aid
’s e
mer
genc
y as
sist
ance
- N
o ac
tiviti
es p
ossi
ble
in th
e co
nflic
t are
as o
f N
agor
no-K
arab
akh
and
Tskh
inva
li R
egio
n/So
uth
Oss
etia
-
Sele
ctiv
e en
gage
men
t in
(eco
nom
ic)
deve
lopm
ent i
n Ab
khaz
ia
- H
SD e
ngag
emen
t in
conf
iden
ce b
uild
ing
and
peac
e in
itiat
ives
with
focu
s on
Abk
hazi
a
- D
evel
opm
ent a
ctiv
ities
with
a re
gion
al
appr
oach
incl
ude
sele
cted
bor
der a
reas
(e.g
. cr
oss-
bord
er a
ctiv
ities
)
- D
eepe
r dev
elop
men
t eng
agem
ent i
n Ab
khaz
ia
- Se
lect
ive
and
grad
ual e
ngag
emen
t in
Nag
orno
-Kar
abak
h an
d/or
Tsk
hinv
ali
Reg
ion/
Sout
h O
sset
ia
- En
hanc
ed d
evel
opm
ent e
ngag
emen
t in
bord
er a
reas
40
S
wis
s pr
esen
ce
and
focu
s, S
CO
m
anag
emen
t
- R
e-m
obiliz
atio
n of
SD
C H
A fo
r em
erge
ncy
assi
stan
ce (s
elec
ted
reco
very
act
iviti
es fo
r ne
w ID
Ps/R
efug
ees/
Ret
urne
es to
be
cons
ider
ed) a
nd a
stro
nger
pre
senc
e of
HS
D
for p
eace
- and
/or c
onfid
ence
bui
ldin
g on
all
conf
licts
-
Reg
iona
l app
roac
h fo
r dev
elop
men
t act
iviti
es
beco
mes
mor
e ch
alle
ngin
g or
eve
n im
poss
ible
; cau
tious
bal
ance
of e
ngag
emen
t be
twee
n an
d w
ithin
the
coun
tries
in c
onfli
ct
- En
hanc
ed C
onfli
ct S
ensi
tive
Prog
ram
me
Man
agem
ent (
CS
PM) a
naly
ses
with
in S
CO
te
am a
nd w
ith im
plem
entin
g pa
rtner
s -
Upg
rade
of t
he s
ecur
ity m
anag
emen
t of t
he
SCO
/Em
bass
ies
and
the
impl
emen
ting
partn
ers
(with
inte
nsifi
ed re
gion
al c
oord
inat
ion)
-
Hig
her f
requ
ency
of M
ER
V by
SC
O/
Emba
ssie
s an
d im
plem
entin
g pa
rtner
s
- S
wis
s P
ortfo
lio c
ente
red
on d
evel
opm
ent w
ith
a re
gion
al c
oope
ratio
n pe
rspe
ctiv
e as
wel
l as
on p
eace
-/con
fiden
ce- b
uild
ing
and
conf
lict
trans
form
atio
n -
Who
le o
f Gov
ernm
ent a
ppro
ach/
C
ompl
emen
tary
Offi
ce w
ith S
DC
(new
incl
. G
loba
l Coo
pera
tion
CC
?), S
ECO
and
HSD
(S
DC
HA
only
in c
ase
of e
mer
genc
y, e
.g.
natu
ral d
isas
ters
, con
flict
resu
rgen
ce)
- Se
lect
ive
(dev
elop
men
t) en
gage
men
t as
part
of c
onfli
ct tr
ansf
orm
atio
n in
Abk
hazi
a -
CSP
M e
ssen
tial f
or a
bal
ance
d re
gion
al
appr
oach
in a
ll do
mai
ns, a
s w
ell a
s fo
r se
lect
ion
of im
plem
entin
g pa
rtner
s, e
spec
ially
in
bor
der r
egio
ns (e
.g. e
thni
c m
inor
ities
) -
Usu
al s
ecur
ity m
anag
emen
t of t
he S
CO
/ Em
bass
ies
(with
regi
onal
coo
rdin
atio
n)
- R
egul
ar M
ERV
cons
iste
ntly
min
dful
of e
thni
c m
inor
ities
’ situ
atio
n
- S
wis
s P
ortfo
lio c
ente
red
on d
evel
opm
ent w
ith
a st
rong
regi
onal
per
spec
tive
- W
hole
of G
over
nmen
t app
roac
h /
Com
plem
enta
ry O
ffice
with
SD
C, S
ECO
and
H
SD
- St
rong
dev
elop
men
t eng
agem
ent a
s w
ell a
s H
SD a
ctiv
ities
in A
bkha
zia
- C
ontin
ued
conf
lict t
rans
form
atio
n or
re
conc
iliatio
n m
easu
res
and
prog
ress
ive
enga
gem
ent i
n N
agor
no-K
arab
akh
and/
or
Tskh
inva
li R
egio
n/So
uth
Oss
etia
-
Und
eman
ding
CSP
M w
ithin
SC
O te
am a
nd
with
impl
emen
ting
partn
ers
in a
ll do
mai
ns
- U
sual
sec
urity
man
agem
ent o
f the
SC
O/E
mba
ssie
s (w
ith re
gion
al c
oord
inat
ion)
-
Reg
ular
MER
V m
indf
ul o
f eth
nic
min
oriti
es’
situ
atio
n
Polic
y di
alog
ue,
dono
r coo
rdin
atio
n an
d ai
d m
odal
ities
- En
gage
d po
licy
dial
ogue
cen
tere
d on
con
flict
tra
nsfo
rmat
ion
and
peac
e-bu
ildin
g -
Lim
ited
and
caut
ious
alig
nmen
t of
deve
lopm
ent e
ngag
emen
t with
the
Gov
ernm
ents
-
Cas
e by
cas
e do
nor c
oord
inat
ion
cent
ered
on
peac
e-bu
ildin
g an
d co
nflic
t tra
nsfo
rmat
ion
by
mea
ns o
f con
cret
e pr
ogra
ms
and
polic
y di
alog
ue
- Bi
late
ral a
nd m
ulti-
bi p
roje
cts
mos
tly th
roug
h in
tern
atio
nal o
rgan
izat
ions
or/a
nd IF
Is, o
nly
with
sel
ecte
d lo
cal p
artn
ers
- Su
ppor
t to
Gov
ernm
ents
’ ref
orm
s an
d po
licie
s,
enga
ged
polic
y di
alog
ue; p
ro-a
ctiv
e en
gage
men
t whe
reve
r nat
iona
l gov
ernm
ents
ar
e no
t ful
ly o
pen
to a
ll su
gges
tions
-
Con
tinuo
us d
onor
coo
rdin
atio
n an
d al
ignm
ent
of d
evel
opm
ent e
ngag
emen
t -
Inte
rven
tions
at a
ll le
vels
(mac
ro, m
eso,
mic
ro)
with
a fu
ll m
ix o
f aid
mod
aliti
es, p
artn
ers
and
fund
ing
mec
hani
sms:
bila
tera
l int
erve
ntio
ns
with
diff
eren
t int
erna
tiona
l or n
atio
nal p
artn
ers,
co
ntrib
utio
ns to
mul
tilat
eral
org
aniz
atio
ns e
tc.
(cer
tain
lim
itatio
ns in
term
s of
par
tner
s an
d im
plem
enta
tion
mod
aliti
es im
pose
d by
the
conf
lict r
egio
ns)
- Su
ppor
t to
Gov
ernm
ents
’ ref
orm
s an
d po
licie
s, h
igh
emph
asis
on
activ
e po
licy
dial
ogue
with
adv
ocac
y an
d su
ppor
t for
re
gion
al c
oope
ratio
n -
Con
tinuo
us d
onor
coo
rdin
atio
n, a
lignm
ent o
f de
velo
pmen
t eng
agem
ent,
with
a s
trong
re
gion
al p
ersp
ectiv
e
- In
terv
entio
ns a
t all
leve
ls (m
acro
, mes
o an
d m
icro
) with
a fu
ll m
ix o
f aid
mod
aliti
es a
nd
partn
ers
and
fund
ing
mec
hani
sms
expa
nded
as
wel
l to
form
er c
onfli
ct a
reas
tapp
ing
all
reso
urce
s av
aila
ble:
priv
ate
sect
or
inve
stm
ents
, glo
bal a
nd re
gion
al in
itiat
ives
, m
ulti-
dono
r tru
st fu
nds,
etc
.)
41
Pe
r Dom
ain
Cha
nges
if c
ompa
red
to m
ost l
ikel
y sc
enar
io
Out
com
es a
s in
the
resu
lts fr
amew
ork
Cha
nges
if c
ompa
red
to m
ost l
ikel
y sc
enar
io
Incl
usiv
e an
d su
stai
nabl
e ec
onom
ic
deve
lopm
ent
- N
o re
gion
al a
ppro
ach
poss
ible
, onl
y lim
ited
and
sele
ctiv
e ac
tiviti
es p
ossi
ble,
re-o
rient
atio
n of
eng
agem
ent a
nd s
ourc
es to
inte
rnat
iona
l (fi
nanc
e) o
rgan
izat
ions
with
out d
irect
in
volv
emen
t of c
ivil
soci
ety
and/
or to
sel
f-re
lianc
e an
d in
com
e ge
nera
tion
supp
ort
activ
ities
-
Focu
s of
dev
elop
men
t eng
agem
ent o
n pr
ivat
e se
ctor
and
act
ors
- Sc
ale
dow
n an
d/or
car
eful
scr
eeni
ng o
f en
gage
men
t with
Gov
ernm
ents
-
Sele
ctiv
e po
licy
dial
ogue
on
min
imum
fra
mew
ork
cond
ition
s fo
r agr
icul
ture
and
pr
ivat
e se
ctor
resi
lienc
e
1.
Farm
ers
and
SM
Es e
stab
lish
and
cond
uct
busi
ness
act
iviti
es m
ore
easi
ly d
omes
tical
ly
and
acro
ss th
e re
gion
than
ks to
a c
ondu
cive
re
gula
tory
fram
ewor
k an
d ad
equa
te fi
nanc
ial
infra
stru
ctur
e
2.
Farm
ers,
rura
l and
oth
er S
MEs
incr
ease
thei
r in
com
es a
nd c
reat
e ne
w jo
bs th
roug
h im
prov
ed a
cces
s to
eco
nom
ic o
ppor
tuni
ties
(fina
nce,
ser
vice
s, s
kills
, inf
orm
atio
n,
educ
atio
n an
d m
arke
ts)
- En
hanc
ed s
uppo
rt to
regi
onal
initi
ativ
es a
nd
rela
ted
enab
ling
cond
ition
s -
Acce
lera
ted
supp
ort t
o cr
oss-
bord
er tr
ade
with
in th
e re
gion
-
Supp
ortin
g es
tabl
ishm
ent o
f joi
nt v
entu
res
and
Free
Eco
nom
ic Z
ones
for i
ncre
asin
g ex
port
pote
ntia
l -
Activ
e ad
voca
cy a
nd s
eed-
reso
urce
s fo
r jo
int/p
oole
d re
gion
al fu
ndin
g m
echa
nism
-
Expl
ore
oppo
rtuni
ties
for e
nhan
ced
com
plem
enta
ry e
ngag
emen
t of S
EC
O-
supp
orte
d de
velo
pmen
t ins
trum
ents
for
inve
stm
ent a
nd tr
ade
faci
litat
ion
Effe
ctiv
e de
moc
ratic
in
stitu
tions
and
hu
man
sec
urity
- R
e-or
ient
atio
n of
dev
elop
men
t eng
agem
ent
and
of re
sour
ces
from
loca
l aut
horit
ies
to c
ivil
soci
ety
and
priv
ate
sect
or a
ctor
s -
Scal
e do
wn
and/
or c
aref
ul s
cree
ning
of
enga
gem
ent w
ith G
over
nmen
ts
- Se
lect
ive
supp
ort t
o C
CA/
IRM
act
iviti
es le
ss
focu
sing
on
regi
onal
coo
pera
tion
- Su
ppor
t to
(loca
l) go
vern
men
ts in
dea
ling
with
co
nseq
uenc
es o
f res
urge
nce
of c
onfli
ct/fu
ll-sc
ale
war
(pub
lic s
ervi
ces
deliv
ery,
em
pow
erin
g pe
rson
nel,
etc.
) -
Con
tinuo
us d
ialo
gue
on P
ublic
Fin
ance
M
anag
emen
t with
cau
tious
eng
agem
ent
- En
hanc
ed e
ngag
emen
t for
con
flict
reso
lutio
n,
prom
otin
g pe
ace-
and
con
fiden
ce-b
uild
ing
with
lo
cal a
nd re
gion
al p
artn
ers
with
out
deve
lopm
ent e
ngag
emen
t in
Abkh
azia
-
Sele
cted
reco
very
act
iviti
es fo
r new
ID
Ps/R
efug
ees/
Ret
urne
es b
y SD
C/H
A to
be
cons
ider
ed
1.
Loca
l gov
ernm
ent i
nstit
utio
ns fo
ster
loca
l ec
onom
ic d
evel
opm
ent (
LED
) and
en
viro
nmen
tal s
usta
inab
ility
in th
e R
egio
n in
cl
ose
coop
erat
ion
with
nat
iona
l go
vern
men
ts, c
ivil
soci
ety
and
priv
ate
sect
or
acto
rs
2.
The
finan
cial
sec
tor i
s m
ore
trans
pare
nt a
nd
effic
ient
; and
nat
iona
l and
loca
l ins
titut
ions
m
anag
e pu
blic
reso
urce
s ef
fect
ivel
y
3.
Dia
logu
e an
d ec
onom
ic e
mpo
wer
men
t co
ntrib
ute
to c
onfid
ence
-bui
ldin
g an
d en
hanc
ed c
onne
ctiv
ity, p
artic
ular
ly in
Ab
khaz
ia
- En
hanc
ed s
uppo
rt to
loca
l aut
horit
ies,
civ
il so
ciet
y an
d pr
ivat
e se
ctor
act
ors
to b
oost
cr
oss-
bord
er c
oope
ratio
n (p
rivat
e se
ctor
in
itiat
ives
, etc
.) -
Enha
nced
eng
agem
ent i
n su
ppor
t of r
egio
nal
netw
orki
ng o
n D
RR
/CC
A an
d ge
nder
/wom
en
empo
wer
men
t -
Mor
e in
stitu
tiona
l sup
port
in A
bkha
zia
to
supp
ort t
he s
usta
inab
ility
of e
cono
mic
in
terv
entio
ns
- C
autio
us e
labo
ratio
n of
dev
elop
men
t ac
tiviti
es fo
r Nag
orno
-Kar
abak
h an
d/or
Ts
khin
vali
Reg
ion/
Sout
h O
sset
ia
42
Annex 4
Indicative Financial Planning Total planned disbursements 2017 – 2020 per year in CHF million (incl. disbursements committed before 2017)
Domain 2017 2018 2019 2020 Total
Inclusive and sustainable economic development 43.50
SDC 7.80 7.80 7.90 8.00 31.50
SECO 3 3 3 3 12 Effective democratic institutions and human safety and security 21.90
SDC 3.60 3.60 3.80 3.90 14.90
SECO 0.75 0.75 0.75 0.75 3
HSD 1 1 1 1 4
Other interventions 0.60 0.40 0.40 0.40 1.80
Total 16.75 16.55 16.85 17.05 67.20
Management costs* 2.00 2.00 2.00 2.00 8.00
Grand total 18.75 18.55 18.85 19.05 75.20
The final allocation of funds will depend on the identification of suitable interventions, the absorption capacity as well as the efficiency and effectiveness of the cooperation with the relevant partners in each partner country. Accordingly, the following information on planned disbursements for the four-year period of this strategy is indicative. It cannot be considered a firm commitment or claimed as such by the partner country. This information serves merely as a basis for the forward spending plans that are reviewed each year by the Swiss Parliament. Actual disbursements will depend on various factors, such as the changes in the project portfolio and the framework conditions of the partner country as well as available disbursement credits authorized by the Swiss Parliament. Portfolio and planned disbursements are regularly discussed with the partner authorities.
*According to the FDFA-SDC Budget Process, the Programme management costs are not anymore part of the Frame Credit VI: they are now included as "Own Operational Expenses" into the FDFA Global Budget. However the development cooperation management costs are illustrated in the budget of the Cooperation Strategy.
Note: Development cooperation management costs according to percentage development cooperation catalogue of tasks (Aufgabenkatalog) representations: 2/3 SDC, 1/3 SECO
Total planned disbursements 2017 – 2020 per organizational unit in CHF million (incl. disbursements committed before 2017)
Domain SDC SECO HSD Total
Inclusive and sustainable economic development 31.5 65% 12 80% - 43.5 65%
Effective democratic institutions and human safety and security 14.9 31% 3 20% 4 100% 21.9 32%
Other interventions 1.8 4% - - 1.8 3%
Total 48.2 72% 15 22% 4 6% 67.2 100%
Management costs* 5.4 2.6 - 8
Grand total 53.6 71% 17.6 24% 4 5% 75.2 100%
Imprint
Editors:Federal Department of Foreign Affairs FDFASwiss Agency for Development and Cooperation SDC3003 Bern, Switzerlandwww.sdc.admin.ch
Federal Department of Economic Affairs, Education and Research EAERState Secretariat for Economic Affairs SECO3003 Bern, Switzerlandwww.seco-cooperation.admin.ch
Federal Department of Foreign Affairs FDFADirectorate of Political Affairs DP3003 Bern, Switzerlandwww.fdfa.admin.ch
Design:SUPERSCRIPT GmbH, Julia Curty2555 Brügg bei Biel, www.superscript.ch
Photos:SDC, SECO, DP
Cover page:Visual Communication FDFA
Specialist contacts:Swiss Agency for Development and Cooperation SDCEurasia Division EuraDFreiburgstrasse 130, 3003 Bern, [email protected]
State Secretariat for Economic Affairs SECOEconomic Cooperation and DevelopmentHolzikofenweg 36, 3003 Bern, [email protected]
Directorate of Political Affairs DPBundeshaus West, 3003 Bern, [email protected]
This publication can be downloaded from the following websites: www.sdc.admin.ch (heading “Publications”) www.seco-cooperation.admin.chwww.eda.admin.ch/georgiawww.eda.admin.ch/armeniawww.eda.admin.ch/azerbaijan
Bern, February 2017