Contents -- Preface -- Introduction -- Acronyms and Abbreviations -- Part I Policies to Sustain Economic Growth -- Chapter 1 The Pattern of Growth -- Chapter 2 Constraints to Sustained Growth -- Chapter 3 The Framework for Competition -- Chapter 4 Finance as a Barrier to Accumulation -- Chapter 5 Impediments to International Integration -- Chapter 6 Knowledge and Innovation -- Part II Detailed Analysis -- Chapter 7 Growth Analysis from the Perspective of Employment Generation and Poverty Reduction -- Chapter 8 A Social Accounting Matrix for Armenia -- Chapter 9 Taxation and Economic Efficiency in Armenia -- Chapter 10 Strengthening Competition -- Chapter 11 Real and Formal Ease of Doing Business in Armenia in Comparative Perspective: Implications for Regulatory Reforms -- Chapter 12 Armenia's External Performance and Policy Remedies -- Chapter 13 Civil Aviation Policy -- Chapter 14 Moving toward Knowledge-Based Competitiveness -- References -- Tables -- Table 1 Key Policy Recommendations -- Table 1.1 Armenia's External Debt Burden Indicators -- Table 1.2 Armenia's Poverty Indicators, 1999-2004 -- Table 1.3 Armenia: Growth and Inequality Decomposition of Changes in Poverty Incidence between 1998-99 and 2004 -- Table 2.1 Progress with Second-Generation Reform, 1994-2004 -- Table 3.1 Selected Indicators of the Quality of Governance, 1998-2004 -- Table 3.2 Values of CPIs for Selected Countries and Groups, 1999-2000 and 2002-04 -- Table 3.3 Relative Ease of Doing Business in CIS and CEEC-10 Economies, 2005 -- Table 3.4 The Size of the Informal Economy and the "Revealed" Ease of Doing Business -- Table 3.5 Doing Business in Armenia and Selected Comparators in 2004 -- Table 4.1 Financial Indicators in Selected Countries -- Table 4.2 Bank Concentration Indicator, 2000-04 -- Table 4.3 Decomposition of Interest Rate Spreads, 1999-2004.

Table 5.1 Average Applied and Bond MFN Tariff Rates in Selected Countries -- Table 5.2 Telecommunications Sector Overview -- Table 5.3 Percentage of Households with Access to a Telephone -- Table 5.4 Basic Telecommunications Infrastructure Benchmarks -- Table 5.5 Internet Benchmarks -- Table 5.6 Phased Civil Aviation Reform -- Table 6.1 The Size of the Shadow Economy -- Table 6.2 Sequencing of the Armenia KE Policy Agenda -- Table 6.3 Specific Policy Initiatives as Entry Points to Address Systemic Constraints -- Table 6.4 Matching Policies to Capabilities: A Range of Instruments to Support Innovation -- Table 7.1 Sources of GDP Growth in Armenia by Sector -- Table 7.2 Sources of Exports in Armenia, 2002, by Sector -- Table 7.3 Armenia: Revealed Comparative Advantage, 2003 -- Table 7.4 Direct and Indirect Multipliers -- Table 7.5 Armenian Economy, Sectoral Structure Depicted by SAM -- Table 7.6 Sources of Employment in Armenia: Distribution by Sector, 2002 -- Table 7.7 Tables Generated Using the 2002 SAM-based Model for Armenia -- Table 7.8 Simulation Assuming Export Diversification -- Table 7.9 An Alternate Approach That Does Not Rely on Export Growth -- Table 7A.1.1 Effect of a (-50%) Shock on Diamonds -- Table 7A.1.2 Effect of a (-30%) Shock on Construction -- Table 7A.1.3 Effect of a (-5.5%) Shock on Remittances -- Table 7A.1.4 Effect of a (+US135 million) Combined Shock Based on Relative Export Shares -- Table 7A.1.5 Effect of a (+10% = US91 million) Positive Shock in Agriculture -- Table 7A.1.6 Effect of a (+10% = US241 million) Positive Shock in Manufacturing and Industry, except Minerals and Mining -- Table 7A.3.1 Selected Labor Indicator Definitions -- Table 8.1 Aggregate Social Accounts for Armenia, 2002 -- Table 8.2 Replication of Selected National Accounts Measures by the Macro SAM.

Table 8.3 Structure of the Disaggregated (micro) SAM for Armenia, 2002 -- Table 8.4 Detailed Sector Descriptions for Each Industry in the 2002 Armenian micro SAM -- Table 8.5 Armenian Production Statistics by Sector, 2002 -- Table 8.6 Value Added in Production for Armenia, 2002 -- Table 8.7 Tax Payments by Sector in Armenia, 2002 -- Table 8.8 Total Commodity Supply and Component Demand by Consumer, 2002 -- Table 8.9 Household Income by Factor, 2002 -- Table 8.10 Final Demand Disaggregated by Household Type and Commodity, 2002 -- Table 8.11 Consumption and Income for Rural Household Decile No. 4 -- Table 8A.1.1 Input Tables Required for the Structured Approach to SAM Development -- Table 8A.1.2 Input Table #1: Sectoral Production and Trade Values for Armenia, 2002 -- Table 8A.1.3 Input Table #2: 2002 Collected Taxes by Sector and Tax Stream -- Table 8A.1.4 Input Table #3: Production Technology Structure for Armenia -- Table 8A.1.5 Input Table #4: Value Added and Consumption Shares -- Table 8A.1.6 Symbol Table -- Table 8A.1.7 Mapping GTAP V5 Sectors onto 2002 Armenian SAM Sectors -- Table 8A.1.8 Mapping of Armenian Output Statistics to SAM Sectors -- Table 8A.1.9 Mapping GTAP V5 Sectors onto 2002 Armenian SAM Sectors -- Table 9.1 Economic Sectors in the Armenian Model -- Table 9.2 Base-Year Production and Trade Statistics by Sector for Armenia, 2002 -- Table 9.3 Benchmark Import Statistics for Armenia, 2002 -- Table 9.4 Export Statistics for Armenia, 2002 -- Table 9.5 Sectoral Value Added, Ranked by Labor Intensity -- Table 9.6 Estimated Level of Underground and Informal Activity -- Table 9.7 Armenian Tax Collections, 2002 (by source) -- Table 9.8 Benchmark Tax Collections, 2002 by Production Sector -- Table 9.9 Cost of Raising 0.5% GDP (US15 million) in Tax Revenues: A Comparison of Tax Bases.

Table 9.10 Indices of Informality and the Average Cost of Funds -- Table 9.11 Revenue and Welfare Impacts of Selected Tax Reforms -- Table 9.12 Sensitivity Analysis for the Cost of Raising 0.5% of GDP -- Table 9A.1.1 Origin of Each Variable -- Table 9A.1.2 External Data Sources -- Table 9A.1.3 Production Technology Structure for Armenia -- Table 10.1 Business Formation Indicators, 2001-04 -- Table 10.2 Employment Indicators, 2001-04 -- Table 10.3 Average Earnings Indicators, 2001-04 -- Table 10.4 Gross Value Added Indicators, 2001-04 -- Table 10.5 Foreign Exchange Rate Comparisons, 2001-04 -- Table 10.6 Percentage Share of Different Modes of Transportation, 1999-2003 -- Table 10.7 Internal Freight in Volumes and Percentage Shares, 1999-2003 -- Table 10.8 Welfare Calculations in the Petroleum Market, 1999-2001 -- Table 10.9 Sugar Market Data, 1999-2002 -- Table 11.1 Ranking of CIS and CEEC-10 Economies by Ease of Doing Business in 2005 -- Table 11.2 Size of the Informal Economy and "Revealed" Ease of Doing Business -- Table 11.3 Doing Business in Armenia and Selected Comparators, 2004 -- Table 12.1 CIS: Total Exports, Export Growth, and Share of Exports in GDP, 1999-2003 -- Table 12.2 Trade in Services by Mode of Supply, 1999-2003 -- Table 12.3 Recipients of Armenia's Exports, 2000-04 -- Table 12.4 Sector Concentration of Exports in Selected Transition Economies, 2003 -- Table 12.5 Factor Intensities of Armenian Trade in 1997, 2000, and 2003 -- Table 12.6 FDI Inflows Compared, 1995-2003 -- Table 12.7 Receipt of FDI Inflows by Sector, 1998-2003 -- Table 12.8 Progress of Structural Reform in Armenia and Lithuania, 1994-2004 -- Table 12.9 Correlation of FDI (1990-2003) and SRI (1999-2003) -- Table 12.10 Formal Barriers to Doing Business in Armenia, 2003 and 2005 -- Table 12.11 Average Applied and Bound MFN Tariff Rates in Selected Countries.

Table 12.12 Indicators of Telecommunications Penetration in Armenia and Other CIS Countries, 1998-2003 -- Table 12.13 Ratio of Transportation Costs to Trade, 1998-2003 -- Table 13.1 Zvartnots' Airport Freight Volumes, 1997-2004 -- Table 13.2 Comparative Yerevan-EU Air Fares -- Table 13.3 Passenger Throughput, Riga Airport, 1990-2005 -- Table 13.4 Czech Airline Data, 1999-2003 -- Table 13.5 Weekly Frequencies of Air Services Offered -- Table 13.6 Market Shares -- Table 13A.1.1 Key Findings, LHR Only -- Table 13A.1.2 Key Findings, 8 EU Cities -- Table 14.1 Sequencing of the Armenia KE Policy Agenda -- Table 14.2 Specific Policy Initiatives as Entry Points to Address Systemic Constraints -- Table 14.3 Gross Domestic Product by Sector, 1998-2003 -- Table 14.4 Sector Contributions to Export Growth, 2000-02 -- Table 14.5 Countries That Have Successfully Aligned Key Drivers of Growth and Developed Innovation Clusters -- Table 14.6 Countries with Obstacles to Aligning Key Drivers of Growth -- Table 14.7 Exports of Goods and Services, 1995-2002 -- Table 14.8 The Size of the Shadow Economy -- Table 14.9 Key Innovation Indicators, 1997-2002 -- Table 14.10 Interest Rate Spread, 1996-2002: Armenia and Comparators -- Table 14.11 Sequencing of the Armenia KE Policy Agenda -- Table 14.12 Specific Policy Initiatives as Entry Points to Address Systemic Constraints -- Table 14.13 Matching Policies to Capabilities: A Range of Instruments to Support Innovation -- Table 14.14 FDI Incentives in Armenia versus Comparator Countries -- Table 14A.1.1 Annual Growth Rates of Total Factor Productivity -- Table 14A.3.1 Gross Capital Formation, 1995-2002 -- Table 14A.3.2 Performance-Economic Regime Variables -- Table 14A.3.3 Governance Variables -- Table 14A.3.4 Innovation Systems Variables -- Table 14A.3.5 Education Variables -- Table 14A.3.6 ICT Variables -- Figures.

Figure 1.1 Official Development Assistance, Cumulative, 1992-2003.