The Competitive Armenian Private Sector (CAPS) project improved performance in four sectors in Armenia: IT, computer-aided engineering, pharmaceuticals, and tourism.

Taking an industry cluster approach, Nathan Associates fostered cooperation among firms, regulatory agencies, training institutes, and providers of business development services that improved each sector’s image, workforce, and regulatory environment.

For each industry cluster, CAPS

  • Identified ways for firms to increase sales and exports, improve operations, and broaden involvement in new markets;
  • Helped firms improve strategy, management, and product offerings;
  • Showed business service providers (BSPs) how to deliver excellent training and consulting services;
  • Developed the capacity of associations to form coalitions and advocate and lobby for industry-friendly policies, laws, and regulations policies;
  • Helped training institutes meet the workforce needs of the private sector; and
  • Raised public awareness of the value of competitiveness.

The program had tangible and quantifiable results:

  • 10,818 full-time jobs and 18 industry-friendly legal and regulatory reforms.
  • 11 IT-related policy reforms formulated in a public-private quarterly forum launched with the Union of IT Enterprises.
  • 26 percent increase in sales and exports among tourism and IT firms and BSPs
  • 25 new markets targeted by firms and BSPs in tourism and IT.
  • 45 percent increase in Italian tourists staying in Armenian hotels and a 100 percent increase in requests for Armenian visas at the Embassy in Rome.
  • Large segment of the pharmaceutical cluster certified in good manufacturing practices.

CAPS also helped a local think tank, the Economic Values and Research Center, prepare and publish the first-ever Armenia National Competitiveness Report in 2008 as well as the second report in 2009.

To learn more about CAPS, visit the project website or contact

Artak Ghazaryan, Chief of Party

Timothy Moore, Project Director

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