Organization

Programs

Copyright © 1998-2002
All Rights Reserved

                                   Volume VIII, Number 2, 2001

Executive Director's Corner

Whenever my wife, Arpi, and I return from our annual visits to BAFA projects in Armenia, we are asked, "How are things in Armenia?" "Have things improved since your last visit?" "How is BAFA doing?"

It is never easy to answer these types of questions. When you take a long view of Armenia all you can really see is the tip of an iceberg. The small segment of what you discern on the surface does not account for the entire story.

On the surface, we found Yerevan to be livelier place during our April visit. Spring had come and most sidewalk cafes were crowded with people until late at night. Many new restaurants had opened and were catering to the cell-phone toting generation. The various cultural programs we attended enjoyed full houses.

On the other hand, as the article included in this issue of ARIT, Excerpts from Republic of Armenia - Interim Poverty Reduction Strategy Paper from Ministry of Statistics of Armenia in cooperation with World Bank, reports that over 68 percent of the Armenian population are designated poor according to global standards and 23 percent extremely poor. In other countries undergoing transition economies, the average poverty level is 31 percent versus Armenia's 68 percent. To put it in another way, almost two thirds of our compatriots live on $21 per month and almost a quarter live on just $13 per month.

From the vantage point of downtown Yerevan, the picture is misleading. So to respond to the question, "Have things improved since your last visit?" For the economically upper 20 percent of the population things appear to be better while for the extremely poor class of people, conditions have continuously deteriorated during the last eight years. There is no doubt, for instance, that without BAFA's humanitarian projects targeted to the extremely poor, many would go hungry most of the time. It saddens me to report that I see no immediate hope for any substantive improvement in the near future.

In this issue of ARIT, Arpi Haleblian tells us how she shared her experiences with BAFA projects in which she has been intimately involved, with members of her extended family. In turn, Arpi's Brother, Vahe and his wife Ruth, offer their impressions of the various BAFA projects.

In July, Dr. Haik Avagyan's BAFA supported orthopedic training at University of California at San Francisco comes to an end. Haik is ready to return to Armenia and transfer his newly acquired knowledge and fine-tuned skills to other orthopedic surgeons. I have asked Dr. Avagyan to reflect on his training and what BAFA's support has meant to him.

As with every trip to Armenia, I had the opportunity to visit 11 schools. As the Republic of Armenia - Interim Poverty Reduction Strategy Paper reports, our schools are in dire need. The annual government expenditure per student is equivalent to $40. Teachers are paid monthly salaries of $10 to $20 and in most cases are paid with a two to six month lag periods. As in previous years, BAFA allocated $1,000 per school of which $500 was designated for supplementing teachers' salaries and $500 to cover student needs or physical/infrastructure improvements.

Time and again we are asked how you can be sure that funds granted to various schools are, in fact, used according to specifications. You can be assured that the BAFA Board consistently follows up with all the projects it undertakes. For your review, the attached letter from Mr. Arshalouys Baghdasarian of Hnapert Michnagarg School is an example in detail of how each dollar was used in his school.

Finally, some of you have inquired if BAFA can accept securities or stocks as donations. The answer is definitely yes. 'Donations of Securities' article states that this type of donation can be very advantageous from a tax perspective in the case of appreciated securities.

As Executive Director of BAFA, I thank each one of you for your past support of BAFA programs, and encourage and urge you to continue to help us assist our less privileged and extremely poor 'hayrenagitz's.

John Haleblian


EXCERPTS FROM REPUBLIC OF ARMENIA - INTERIM POVERTY REDUCTION STRATEGY PAPER

The following are excerpts from sections 7 and 10 of the March 2001 report presented by the Ministry of Statistics of Armenia in cooperation with the World Bank, Republic of Armenia - Interim Poverty Reduction Strategy Paper. The report gives insight on two areas in which BAFA has vested interest-the level of poverty in Armenia and the plight of educators.

I. Socio-economic indicators have been constantly deteriorating and poverty increased.

The survey conducted in 1996 by the Ministry of Statistics in cooperation with the World Bank, showed that the poor (footnote 1) represented 55 percent of the total population, while the extremely poor (footnote 2) constituted 28 percent of the total population. Though since then there has been no notable change in the share of the poor, as demonstrated by a similar study conducted for 1998/99, there has been a significant decrease in the share of the extremely poor - to 23 percent, which may be attributed to the introduction of a system of family allowances targeted at the very poor groups of the population. Another 13.5 percent of the population are subject to poverty risk as well - being above the poverty line only marginally. As a result, the share of the population requiring social protection exceeds two thirds of the general population (over 68 percent). This compares to an average poverty level of 31 percent in transition economies (footnote 3).

II. The decline in funding for educational materials, unpaid teachers' wages, and lack of heat and maintenance for more than half of the schools contributed to the decline in the quality of schooling.

Almost 20 percent of the schools lack water supply or water is delivered only for few hours, and 60 percent of the schools do not have dispensaries. There is also a critical problem with sewage and heating due to the absence of adequate public expenditures on social sectors, mostly owing to the adjustment affecting first of all social expenditures. Government expenditures on education have decreased sharply in the past decade, and now the annual government expenditure per student is equivalent to US$40. Also the monthly salaries of teachers range from US$10-20, and in most cases are paid with a 2-6 months lag. This situation is adversely affecting the quality of education, as almost 60 percent of the surveyed teachers (footnote 4) admitted that their professionalism has deteriorated. In addition, because of low salaries teachers are forced to look for other sources of income, which thus digresses from their primary responsibility and may create additional burden for students' families. Many qualified teachers are quitting their jobs in an attempt to find better opportunities in other sectors. As a result of all these developments, there has been a sharp decline in the availability of high-quality education, especially for the poor, thereby limiting the possibilities for the poor to benefit from enhanced economic opportunities.

Footnotes:

1. Those below the poverty line as measured by the value of the minimum consumption basket equal to 11,735 drams per month. And calculated based on minimum food basket, taking into account the relative shares of food and non-food expenditures of an average household with monthly expenditures on food equal to the minimum food basket.

2. Those below the food line equal to minimum food basket of 7,194 drams per month.

3. Source: World Economic Outlook, 2000.

4. 1996 household survey, conducted by the Ministry of Statistics in cooperation with the World Bank.


A FAMILY VISIT TO NOR HADJN SOUP KITCHEN

My visit to the Soup Kitchen in Nor Hadjn was especially exciting this year because members of two of my sister's and three of my brother's families accompanied me. Over the years I had told them about the BAFA Soup Kitchens and had shared compelling pictures. They were always interested to learn more about the project, and finally this past April, we journeyed together.

All 14 of us, ages ranging from 16 to 66, visited the soup kitchen at noon just about time for lunch. We all scattered around and seized the opportunity to meet and visit with people. We each paired up with someone close to our own age. Throughout our visit, we asked a lot questions and received a lot frank answers. Our conversations kept on going. Even when lunch was served, people were more interested in talking and telling their stories than eating.

Several individuals thanked us for coming and showing interest and encouraging them. They also thanked all the donors in the United States for their generosity. A mother told us the story of how her husband had left for Moscow for work 10 years ago, and that she and her two children had not heard from him since. Another woman shared a similar story of abandonment. Her son, who had gone to Moscow three years ago, had left behind two small children and a young wife. He had not been heard from since. She admitted that life was a struggle. Yet another elderly lady, who had two grandchildren with her, said that their father had drowned and so she was taking care of them while their mother worked. These sad stories seemed endless.

Our day included a delicious lunch-lentil soup, side dish of rice and a good portion of meat and bread. We topped it all off with Armenian coffee. We then lined up to have our fortunes read by Alicia, one of the cooks, who delighted us with her ceremonial interpretations. Fond memories of the camaraderie and warm atmosphere of that wonderful day still linger on.

We came away from our soup kitchen experience deeply touched, humbled and full of sadness in our hearts. It was important to have met and become more intimately acquainted with the plight of our needy compatriots. It reconfirmed the fact that we each have an important role to play in helping alleviate hardship in Armenia. I was pleased to hear four of my young nieces and nephews express a desire to return in a service capacity.

Our BAFA Soup Kitchens save lives and that is why your continued support is so very crucial.

Arpi Haleblian

 

Some of the Soup Kitchen guests

 

 

Food being served at Nor Hajin Soup Kitchen

 

 

Children served at Nor Hajin Soup Kitchen

 

 

Nor Hajin Soup Kitchen staff with Arpi and John Haleblian


DONATIONS OF SECURITIES

We are pleased to inform you that BAFA accepts securities or stocks as donations. As you well know, this form of giving can be very advantageous from a tax perspective. By transferring securities to BAFA, you will enjoy the deduction of the current appreciated value of the securities without payment of any capital gains taxes on any increase in the value of the securities over your original cost.

A written request to your broker or an endorsement of the relevant share certificates to BAFA will transfer the shares and establish the tax basis of your donation based on the closing price on the date of the transfer.

Should you wish to make securities donations, please contact Mr. John Haleblian, BAFA Executive Director, at (408) 257-0799 to get the account number and name of the brokerage where the BAFA account is maintained. For specific procedures and benefits, we suggest that you consult with your tax accountant.

BAFA Board of Directors


IMPRESSIONS OF BAFA PROJECTS

In April of this year, our family, the Touryans, visited a few of the BAFA-sponsored projects in Armenia. Our first stop was at the Ojantag Boarding School number 8. The school is housed in an old building with no heating or air conditioning. It was cold in April and we hated to think what it would be like in the winter. The building needs total remodeling. There is no playground. The bathrooms on the upper floor do not get water because there is no water pump.

The students at Ojantag School treated us to an impressive performance of recitations and dances, and the principal of the school, a very dedicated woman, made an emotional and moving presentation on the problems the school/orphanage faces. The school seems to have good teachers, and although it was obvious that the children are learning and making remarkable arts and crafts, the visit left us feeling depressed. Other than teacher's salaries, no assistance comes from the government-a government that even works to the detriment of the school. Not only has it ignored this orphanage, but has intercepted funds designated to the school in order to take over and tear down the building, and replace it with a business structure of some kind. For this reason, John Haleblian takes your donations directly to the school to guarantee that the moneys are used for the needs of the school.

We also visited the BAFA sponsored Soup Kitchen in Nor Hadjn. This was a very emotional and moving experience. Nor Hadjn used to be one of the more prosperous towns near Yerevan during the Soviet era. It had two diamond cutting factories that employed several thousand workers. One of these factories is now shut down and the other just reopened and employs only 10% of its previous workforce. Consequently, Nor Hadjn is now one of the poorest towns. The Soup Kitchen at Nor Hadjn is open five days per week and serves one meal a day. The food, on the day of our visit, consisted of lentil soup with a dish of rice and a good portion of beef. We met with as many of the people who eat there as we could. These were mostly older people since younger and middle-aged men have moved elsewhere to find work. But there were many young women with children whose husbands have left. They all seemed very grateful for the meal they receive and thanked us for the privilege. Armenians are a proud people even in this state of abject poverty.

While providing sustenance for compatriots is a noble mission, it is obviously not the entire solution. What Armenia need is work so that the people can achieve independence and self-reliance. In our opinion, the Diaspora needs to make massive investments in Armenia to boost its economy. Just as wealthy Jews from around the world have been supporting Palestine before and since 1948, similarly, we must invest in Armenia to help achieve prosperity.

We encourage you to visit our homeland and learn first-hand about the BAFA sponsored projects that you support. We urge you to visit Armenia and experience first-hand the joys and sorrows of our people.

Vahe and Ruth Touryan


REFLECTIONS ON MY POSTGRADUATE ORTHOPEDIC TRAINING

I am an orthopedic surgeon from Armenia who was given the unique opportunity to be a part of BAFA's medical training program for a period of fourteen months at UCSF/San Francisco General Hospital. I am writing this letter to express my heartfelt appreciation to BAFA for supporting me financially throughout my stay.

The idea of training physicians from Armenia was born a few years ago and since then several physicians have gone through this wonderful program. Upon their return, these trained doctors have become the most up-to-date specialists in Armenia and leaders in health care in Armenia and the surrounding regions.

I am immensely grateful to BAFA and its supporters for giving me the opportunity to further develop as a physician. I have learned advanced techniques in orthopedics that will enable me to provide patients in Armenia with more appropriate treatment and care. I am, additionally, excited to be able to share my newly gained knowledge and skills with my colleagues and the next generation of physicians. Of course, apart from the medical skills I acquired, I also gained many new friends and colleagues in the U.S. who have demonstrated their willingness to collaborate and make direct contributions to Armenia's health care system. For instance, one of the most popular humanitarian health care organizations in the world, Operation Rainbow, gathered over 30 boxes of advanced medical equipment and supplies to be used in Armenia.

Having well trained medical personnel in Armenia is far more beneficial for the country than having foreign doctors visit Armenia for short periods of time. I believe that it is local physicians who should ultimately enhance and take charge of the medical system in Armenia with the support and benefit of training opportunities from abroad. Unfortunately, Armenia still lacks a strong postgraduate educational system that is so common in the United States. BAFA's training program will, undoubtedly, benefit the Armenian people. Needless to say, a country without a strong medical system is confined to remain forever a third world country. I am hopeful that thanks to the strength of its people, both at home and in the Diaspora, Armenia may someday become a prosperous modern country with top quality medical care for all of its citizens.

Sincerely,

Haik Avagyan, M.D.