The prospect of closer cooperation with the European Union is the motivation for the reform efforts in the countries of South Caucasus. Today, Georgia, Armenia and Azerbaijan are currently undergoing far-reaching economic transition with some major initiatives in political and judicial reform.

Most of the population is still struggling with severe poverty and high unemployment. Due to diverse languages and ethnic allegiances, peaceful co-existence among the peoples of the region is frequently hampered by distrust and deep-seated prejudices. General problems that need to be solved are poor infrastructure, idle branches of industry, extremely small-scale farming, constraints on transport and business, corruption and political and territorial conflicts.

Austrian engagement

Austria began cooperation with South Caucasus as early as 1988 with relief measures after the earthquake in Armenia. Since 2006, it has been a key region of Austrian Development Cooperation (ADC). Till now, the main focus has been on conflict transformation, securing peace and fostering mutual trust. Dialogue and cooperation among the ethnic groups lay the foundation for security and democratic development. ADC cooperates herein with government agencies, multilateral partners and civic organisations in the region.

Better conditions of life in the border regions

Austrian involvement in South Caucasus has been realigned since the beginning of 2011. Under bilateral programmes for Armenia and Georgia, Austrian Development Cooperation concentrates on the sector of agroeconomy and forestry especially in the border regions. Improving the framework for economic activity, transferring know-how for modernising and raising agricultural production and supporting modern and efficient administrative capacities and competitive enterprises will contribute to higher local content, new jobs and better conditions of life as a result.

Local government agencies, civil-society actors and private entrepreneurs are assisted in participatory planning and implementation, such as drafting municipal development schemes and strategies for regional development. Reforms in national legislation aim to pave the way for business investments and effective anti-corruption.

Special attention is paid to integrating women, minorities and socially underprivileged groups into political and economic processes.