Competitive Armenian Private Sector (CAPS) Project

from 2006 to 2011, with funding from USAID. The project aimed to enhance the competitiveness of Armenia's private sector, focusing on four key sectors: information technology, tourism, pharmaceuticals, and engineering services. CAPS employed a cluster approach, bringing together private enterprises, suppliers, customers, labor, government, professional associations, and academic and research institutions to address common challenges and opportunities. The project's technical assistance took various forms, including firm-level consulting, business association capacity building, policy research and advocacy, public education, workforce training, and development of public-private initiatives. CAPS worked closely with Armenian business service providers to improve productivity, upgrade marketing practices, introduce good governance practices, and enhance human resource management. One of the key outcomes of the CAPS project was the development of globally competitive products and services. The project helped to build robust companies around these products and services, contributing to the growth of the Armenian economy. The cluster approach used by CAPS fostered the extensive development of its partner industries, leading to improved competitiveness and market access. The project also focused on strengthening business association and think tank sustainability, enabling them to lobby for industry-friendly laws and regulations. CAPS delivered consulting and training to managers of associations and think tanks, assisted in developing new fee-based member services, and expanded and built capacity in public relations. In addition, CAPS enhanced workforce and skills development by improving the skills of the workforce and building job-seeker networks to match suitably qualified labor with employer needs. The project co-sponsored pilot training initiatives, assisted in the development and placement of new curricula, and provided consulting and training to add capacity to job-seeker network managers. The CAPS project achieved significant economic benefits, including rapid growth of Internet broadband subscriptions, a decline in connection costs, increased tourism from Italy, growth of IT software and service firms, and growth of local and export sales by the pharmaceutical industry. These benefits accounted for about $30 million in increased economic activity for Armenia through 2015, representing a 60% return on USAID's investment. The project's success was attributed to the hard work and creativity of the Armenian people, assisted by the superb group who implemented and managed the program, led by Artak Ghazaryan, with the full support and encouragement of senior government officials. The CAPS project focused on sustainability and the creation of long-term expert capacity, ensuring a bright future for the Armenian economy and people. The project's achievements were recognized by the Prime Minister of the Republic of Armenia, Tigran Sargsyan, who highly evaluated the effectiveness of the CAPS project. The project's success was also acknowledged by James Wallar, Senior Vice President of International Development Economics at Nathan Associates Inc., who praised the project's teamwork approach and the creation of a stronger, more resilient, and competitive industry. The CAPS project's legacy continues to benefit the Armenian economy, with ongoing cooperation between the National Competitiveness Foundation of Armenia and USAID. The project's focus on competitiveness, market access, and innovation has raised the competitiveness of Armenia in the tourism sector, with regular cooperation between CAPS and the Competitiveness Foundation resulting in a number of successes.