The relationship between the Armenian people and the natural environment dates back many thousands of years, and in that time nature has influenced Armenian culture, while man has in turn shaped the landscape of modern Armenia. A large sector of the economy is based upon agriculture, and this has developed using the natural resources of the country. The use of wild genetic resources of plants and animals for agriculture has been complemented by preparation of the land for cultivation through widespread irrigation. Further changes to the natural landscapes of Armenia have resulted from the development of mountain terraces to increase the land available for farming. Today the socio-economic situation of the country reflects the availability of biological resources, and also determines the context for biodiversity conservation.

Economic situation and reforms

Until the late 1980s Armenia experienced rapid growth, and showed high levels of development with regard to industry, power generation, and production, as well as high levels of social support. The industrial base in Armenia during the Soviet era relied heavily on the use of natural resources, and caused lasting environmental impacts.

However, as a result of the effects of the disastrous Spitak eathquake in 1988, followed by substantial social and economic changes after the break up of the Soviet Union, the war with Azerbaijan and associated energy and economic blockades, the current situation is very different. This has been further exacerbated by the influx of refugees from Azerbaijan, with around 219,000 now living in Armenia.

Over the past decade almost all key economic and social indicators have constantly declined, as the country entered a deep economic crisis. For example, between 1989 and 1994 GNP fell by over 60% to 652 million USD. By the beginning of the 1990s the economy of Armenia faced total collapse, with the closure of many factories and businesses, drastic declines in production and loss of electricity to many regions. Over 50% of the population is considered to be living below the poverty line, and the unemployment rate is one of the highest in CIS countriesAt present, the economy in Armenia is undergoing a slow recovery. Over the past years there have been significant socio-economic reforms in Armenia, including a shift to democracy, a market-based economy and privatisation of land and industry. Armenia has successfully undergone the transition to a free market economy, and following decentralisation, the private sector now accounts for over half of production in the country. The legal system now encourages business development and foreign investment. In 1998, the GNP increased for the first time over its figures in the previous years, indicating a reversal in the economic slow down.

Social situation

The economic crisis of the early 1990s resulted in extreme social problems, resulting from sudden declines in incomes and the standard of living. This has resulted in significant declines in development indicators such as life expectancy, education and GDP, to levels nearer those expected in the developing world. In response to this situation emigration from the country has increased, with nearly a third of the earning population now seeking work abroad.

Armenian society is becoming increasingly polarised, with a growing gap between the richest and poorest in the population. Sources of economic production (except land) are owned by less than 10% of the population, while the remaining 90% is on the verge of poverty. The income of the richest 10% of the population was over 110 times that of the poorest 10%. The average monthly income in Armenia is currently between US$20-26, well below the estimated subsistence costs of $50 per month ($1.7 per day). Poverty is becoming a way of life for much of the population, and this has significant effects for society as a whole. Unemployment is high (around 25%), and land reforms have resulted in increased immigration to urban centres from rural areas. New social problems are becoming apparent, along with changes in moral behaviour patterns, with increases in begging and petty theft.

The population has also been affected by reforms in the payment system for healthcare. This has reduced access to medical assistance amongst the poorest in the population. Significant increases in death rates from heart disease, cancer, tuberculosis and AIDS have been recorded since the mid-1980s. There are also significant problems supplying clean water for much of the population, given the degradation of the infrastructure and over-use of water resources for irrigation.

Relationships between socio-economic issues and biodiversity

The links between biodiversity and socio-economic issues are clear in Armenia. Natural habitats and biodiversity have been a key factor supporting various branches of the economy - particularly agriculture and tourism, as well as providing raw materials for many industries, including food production. Recent economic change has in turn had significant impacts on biodiversity. While levels of air, soil and water pollution have been reduced following economic collapse, other impacts have led to increased degradation of natural habitats and loss of species.

The combination of economic crisis, unemployment and poverty have severely affected biodiversity and natural resources. This was clearly visible as a result of the energy crisis between 1992 and 1995 where fuel requirements led to damage to over 27,000 ha of forest. Illegal felling still continues in many areas, as a result of high energy prices. At a local level, the need for survival has changed attitudes towards natural resources, as wild plants and animals become an important source of food and other materials. As a result, there have been significant recent increases in the levels of hunting, illegal felling, and collection of wild plants, particularly among economically vulnerable sectors of society. Unlicensed collection of food - including hunting and fisheries - is an important source of sustenance, and limits in the availability of health care have increased the reliance on traditional remedies based upon medicinal herbs and snake venom.

Over the last decade the economic transition of Armenia, as in other CIS countries, has resulted in a unique series of economic and social difficulties, which differ from traditional patterns of human development. Changes in the economy and society have led to the development of changed relationships between society and nature, many of which have resulted in increased pressures on biodiversity. Biodiversity conservation needs to be considered in the context of the impacts and opportunities of the new economic situation in Armenia (including factors such as land privatisation and tax reform).