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Issues of elderly in Armenia
The elderly issue is crucial in Armenia. People of the former Soviet Union, looked forward to retirement the same way most Americans would do before the collapse of the country: they believed that they would live simple but secure lives. Accumulated savings and government pensions at that time provided a seemingly stable safety net. In early 1990s, however, this system broke down. In some countries, inflation rates soared above 10,000 percent. Life savings could not purchase even a loaf of bread. Pensions sank as governments struggled to meet monumental financial obligations. In 1992, the concept of a poverty line officially became irrelevant in many former Soviet republics because vast majority of people lived below it. Armenia is not an exception, unfortunately, and during the last decade it occurred in the situation of transition from planned economy to market economy as well. Since 1991 when Armenia became an independent country, its economic and political life faced huge challenges. Previously established economic relations and markets collapsed with the breakdown of the central planning system. In addition to the challenges of transition to the new economic mechanisms and principles a number of catastrophes, such as the 1988 earthquake, the conflict in Nagorno-Karabakh, which caused trade blockade by Azerbaijan and Turkey has added huge difficulties to the development of Armenian economy. Declining economic activity, growing unemployment, decreasing wages and the growing informal sector of economy have caused a near collapse of the old social insurance and safety nets mechanisms. The destruction of the former Soviet Union has also led to a serious deterioration in the health and welfare of its people, especially the aged. Every sixth person in Armenia is a pensioner. The number of elderly people is growing in Armenia. With the 650,000 pensioners there is no an explicit social policy addressing the issue of pensions. In the past 4 years, two laws were passed on pensions. The first was nearly the continuation of the Soviet pension law adopted in 1958. The latter came into force in 1996, made an attempt to regulate pension relations under a market economy. Unfortunately, the law was not based on the labor of the individuals and payments, and thus, provided an equal attitude to all regardless of their contributions, services and work. Presently, the average monthly pension is 3, 600 drams (=$6), the minimum monthly pension is 2, 200 drams [=$4]. With a compensation ratio (average pension relation to average salary) of only 23 percent, the average pension is now inadequate and unable to satisfy basic needs. Despite that fact there are more pensioners than the employees contributing to the funds. According to the statistical data the share of the pensioners in 1991-96 increased in 22,9 % and represents 11 % of the whole population of the country. Among the pensioners 55,6 % are below the poverty line. The amount of the pension is insufficient to satisfy even basic needs of pensioners. According to the sample research 31 % of elderly from 50-59 y/old are poor, 19% are very poor and 31,5% of elderly from 60-91 y/old are poor and 22,1% are very poor. According to the Ministry of Statistics, 22,3% of single pensioners survive mainly as a result of humanitarian assistance, this being the sole source of subsistence for about 7% of this group. A study conducted on the single elderly taken care of and provided with medical and social services by the Mission Charity Union, has revealed that 15% of single elderly in Yerevan are in an extremely insecure socio-economic situation. 98.2 % of single elderly are in constant need of food, 74,4% have an acute need for clothing and 72% for bedclothes. Because this group is especially susceptible to diseases and ailments, almost 97% of them need constant medication and medical care and 41% need home care. The government has recently developed a strategy to reduce poverty, which along with the policy of stimulating economic growth should alleviate major social and economic problems of Armenia. Much is said , but not done, unfortunately. What is the responsibility of the Global Community to old people’s lives in this kind of social disaster?
Copyright
© 2002 Global Action on Aging
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