December 23, 2010, Yerevan, Armenia – As part of its Comprehensive Rural Development Program, the Children of Armenia Fund (COAF) continues its work to secure a brighter future for the children living in the impoverished rural communities of Baghramian Region in Armavir Marz that includes over 22,000 children and adults. The new approaches COAF has unfolded to bring economic vitality to the villages in 2010 and 2011 focus on developing local businesses, improving access to better financing, providing training, technical support and counseling in business planning, encouraging value chain development and the formation of cooperatives. “Our primary objective,” says Rshtun Martirosyan, COAF’s Manager of Economic Development, “is to provide them with the necessary tools so that rural residents may establish their own businesses. Our approach is to empower them and help them achieve their goals.” “At the same time,” he continues, “our goal is to inspire local business communities to become socially responsible citizens in their villages, to work collaboratively with their community members and to celebrate their accomplishments collectively.” COAF’s efforts – in fostering healthy competition, strengthening small and medium enterprises (SME) and providing local business owners with the necessary knowledge and resources – instill confidence in rural residents, sustain the progress they have achieved and expand the scope of economic development activities to the adjacent districts of the Republic. In 2011, COAF’s economic development programs will encompass not only its principal target communities of Argina, Baghramian, Dalarik, Hushakert, Lernagog, Miasnikian, Karakert, Shenik and Yervandashat, but the new villages of Arteni and Aragatsavan in the neighboring Aragatsotn Marz. The inclusion of Arteni and Aragatsavan in the program followed a thorough study of the region’s communities, summarized in terms of their strengths and weaknesses, opportunities and threats (SWOT analysis), followed by specific projects designed based on the gathered data. In conjunction with specific economic projects implemented in individual villages – in the area of cattle breeding, the production of dry fruits, cheese and handicrafts, as well as the upgrading of machinery parks – COAF realizes economic programs cluster-wide. These initiatives also contribute to the improvement of local infrastructure, education, social services and culture. One such concept is the application of an innovative method in the construction of a school road in Aragatsavan village, using the basalt stone available in the region, cost-effective in terms of financing, esthetically pleasing and ecologically viable. Another project planned for 2011 and one which includes rural youth, is the promotion of handicrafts production in the “Levon Galchian Studio” Arts and Crafts Center located in Miasnikian village. The Center focuses in large part on the arts of ceramics, embroidery, carpentry and metal arts. As a teaching institution, the Center offers scheduled classes in handicrafts and enables students to exhibit their works on the premises of the Center, throughout the region and in the capital city of Yerevan. As such, partnerships in all target areas are critical to COAF and serve as one of the pillars of its approach to development. In 2011, COAF will continue to work with its principal partners, including HSBC Bank Armenia and the “Levon Galchian Studio”, along with other potential local and international organizations. The Successful Business Project, to be launched in 2011, will enable about 45 starter and more experienced farmers and entrepreneurs to be trained in the general business planning and practice, and subsequently apply for interest-free loans through the SME Development Fund facilitated in the cluster by COAF. Together, these projects will become the driving force for progress on the local level and will ultimately stimulate overall economic activity and long-term impact throughout the region. # # # # # About COAF The Children of Armenia Fund (COAF) is a non-profit organization, founded in 2003, that aims to reduce poverty through the revitalization of rural Armenia and realization of projects that are instrumental for the development of rural children and youth. With the introduction of its novel approach to clustering, COAF implements the “Model Cluster” Comprehensive Rural Development Program working in ten villages in Baghramian Region of Armavir Marz and two villages in Aragatsotn Marz. The key components of COAF’s Model Cluster comprise community development including Health, Social and Education Programs, as well as Infrastructure Rehabilitation and Economic Development. For the past six years, more than 22,000 rural residents and over 5,000 children from Argina, Arteni, Baghramian, Dalarik, Hushakert, Lernagog, Karakert, Miasnikian, Shenik and Yervandashat communities have benefited from COAF’s continuous development efforts and improved schools, kindergartens, health clinics, sport complexes, community and psycho-social centers, capacity building trainings and workshops and multi-faceted business development opportunities.

---