Results of the Territorial and Administrative Reform in Armenia: Challenges and New Opportunities

Today, the results of the review and analysis of the territorial and administrative reform in Armenia as well as the public perceptions of the reform were presented in Yerevan. The conference titled “Results of the Territorial and Administrative Reform in Armenia: Challenges and New Opportunities” brought together representatives from the Government of Armenia, international partners, Armenian municipalities, experts and consultants involved in the reform. 

The Territorial and Administrative Reform in Armenia (TARA), initiated in 2015, was a strategic response to the fragmented municipal landscape that included 915 municipalities with significant differences in population size and operational capacity. This fragmentation, combined with limited decentralisation, posed challenges to the efficiency and effectiveness of local governance, revenue generation, infrastructure maintenance, and service provision. TARA&՚s primary objective was to consolidate municipalities into larger, more viable territorial entities to improve local governance and enhance service delivery. As a result of TARA, Armenia has reduced the number of municipalities to 71, including 64 consolidated and 7 single entities. 

This structural change was complemented by fiscal policy reforms, the introduction of proportional representation in Local Self Government (LSG) Bodies, and the indirect election of mayors. Instruments such as the Municipal Management Information System and Citizen Offices were introduced to centralise service delivery, promoting transparency and efficiency. These reforms aim to foster local economic development, reduce regional disparities, and increase public trust in local governments. In light of these significant changes, the Review and Analysis of TARA assessed the reform՚s impact on LSGs, financial outcomes, and opportunities for future reforms. 

The Review demonstrated that while the reform has created opportunities for improving local governance, service delivery, and financial management, there is still significant work to be done to ensure that these opportunities are fully realised. In the meantime, the countrywide survey on public perceptions revealed that the reform has led to noticeable improvements in service delivery in some areas. However, the findings also suggest that more efforts are needed to engage the public in governance processes, improve service quality in underserved areas, and raise awareness about the ongoing decentralisation process. 

The results of the review and survey will help inform future policy decisions and contribute to enhancing local governance. Ursula Läubli, the Deputy Head of Mission of the Swiss Embassy in Armenia, as well as the Deputy Regional Director Swiss Development Cooperation for the South Caucasus, emphasised in her opening speech the importance of the conference presenting the results of Swiss-funded studies - the first comprehensive evaluation of the TARA reforms. 

This is also an investment in the promotion of evidence-based and participatory decision-making in Armenia and comes at the right time, especially in the context of ongoing preparation of decentralization reform. She concluded by announcing the recent decision to allocate an additional CHF 1.2 million to GIZ, bringing the total Swiss investment in local governance sector to almost CHF 18 million since 2014. Madeleine Rauschenberger, GIZ Country Director said: “Since the inception of TARA, Armenia has witnessed immense progress in this regard. At GIZ, we have been privileged to support this process with funding provided by the German and Swiss Governments. Together with all of you, we have embarked on a mission to consolidate municipalities, enhance local governance, and create stronger, more resilient communities. The results of these joint efforts are visible and inspiring.” 

The aforementioned analysis and survey results can be found here: https://www.mtad.am/pages/concepts-and-research ․ The Conference was supported by the Good Governance for Local Development in the South Caucasus Programme implemented by GIZ with the support of the German Federal Ministry for Economic Cooperation and Development (BMZ) and in Armenia co-financed by the Swiss Agency for Development and Cooperation (SDC). The Ministry of Territorial Administration and Infrastructure (MTAI) of the Republic of Armenia is the main political partner of the Programme.