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• The Index of Economic Activity increased by 8.6% in January-May 2018. Construction output grew by 17.4%, Industrial output increased by 3.3%, Agricultural production - 1.5% .
• I n January-May 2018 Consumer prices increased by 2.8%.
• I n January-May 2018 Exports increased by  24.1% and Imports - 37% .
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Established in 2001, the Economic Development and Research Center is a Yerevan based non-profit, nonpartisan think-tank dedicated to addressing economic and social challenges and contributing to public policy discourse in Armenia.

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Regional Studies Center (RSC)

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Since our founding as an independent think tank in 2012, the Regional Studies Center (RSC) has been conducting a wide range of strategic analysis and objective research, and implementing a number of educational and policy-related projects. As a leading think tank based in Armenia, the RSC conducts research and analysis and develops policy initiatives aimed at bolstering political and economic reform and conflict resolution in the broader South Caucasus region. 

Moreover, as an independent think tank, the RSC is actively engaged in the public policy process and, over the longer term, seeks to serve as a catalyst for democratic reform and sustainable economic development through the empowerment of civil society and by contributing to the formulation of public policy through innovative and objective research, analysis and policy recommendations. Our research and project activities consist of five main program areas:

• Regional analyses and assessments of political, economic and security issues in the South Caucasus, but also including Iran, Russia and Turkey;
• National security and defense reform;
• Democratization and good governance;
• Economics and sustainable development;
• Educating and empowering youth as an “agent of change.”

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And by virtue of our role as an independent think tank, we seek to offer objective analysis and innovative ideas as parts of a broader effort to elevate the level of political discourse and spur debate in Armenia, often by leveraging our professional, non-partisan reputation to bridge political differences and to broker policy cooperation and compromise. In addition, the RSC is also actively involved in contributing to the public policy process, working both formally and informally with government ministries, state bodies and the Armenian parliament. At the same time, we are also engaged in efforts to encourage, enhance and empower civic activism, through measures aimed at capacity-building both among and between civil society organizations in Armenia, often by forging new networks based on issue-based advocacy. 

Our efforts in this area also concentrate on “creating, defending and expanding the space” for civil society, while also empowering emerging “agents of change,” such as youth and civic activists. And in terms of our strategy, therefore, we seek to actively inspire, involve and institutionalize a broader degree of constructive engagement in the public policy process by civil society organizations (CSOs) and more informal civic groups, and among individual concerned citizens, such as students, activists and youth. In this way, the RSC partners with various actors within society, including civil society, international organizations, representatives from the private sector, academia and state bodies and institutions. 

The RSC is also actively involved in supporting the Armenian-Turkish “normalization” process and works closely with other think tanks, research institutes and civil society organizations in both Armenia and Turkey. Similarly, although more limited, the RSC is also engaged in a consistent dialogue with Azerbaijani counterparts and partners and media outlets.

And as part of our education and training activities, the RSC also offers a regular series of certificate-based professional development training courses, analytical briefings and interactive “focus groups,” and convenes simulation exercises focused on diplomatic negotiations and “war gaming” models.

Regional Studies Center (RSC) 60 Aram Street, #53, 3rd floor 0010 Yerevan, Armenia Tel: (+374) 11 70 99 69

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Socio-economic situation of the republic of Armenia In January - December of 2023

A special working group has been established within the Ministry of Economy of the Republic of Armenia to provide support to businesses which are planning to move to or set up new businesses

20 March, 2024

06 march, 2024, gevorg papoyan has been appointed as the minister of economy of the republic of armenia, 05 march, 2024, deputy minister narek teryan participated in the conference "armenian capital markets: future outlook" at the first financial and investment forum, 01 march, 2024, rafayel gevorgyan participated in the official presentation of the sme policy code 2024 by the organization for economic co-operation and development (oecd), 12 january, 2024, the report "aluminum foil production in armenia (opportunities for market expansion and profit increase)" was carried out by the ministry of economy of the republic of armenia, contracts within the framework of the assistance measure "infrastructure for investment" have been signed, minister vahan kerobyan had a meeting with minister sarbananda sonowal within the framework of the "vibrant gujarat" global summit held in the state of gujarat, india.

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Inclusive and Sustainable Economic Growth

To enhance inclusive growth, USAID programs seek to develop new and sustainable value chains, create jobs, and increase access to markets and finance, enabling Armenians to stay in their communities and reducing migration and dependence on remittances. Activities that promote agriculture, agribusiness, and cultural and natural tourism serve to promote rural economic opportunities across the country, including in some of the most marginalized areas.  

USAID also supports the inter-linked energy and water sectors, which are critical to Armenia’s economic security and independence. USAID promotes energy market liberalization and regional integration to lay the foundation for developing a more diverse mix of energy sources and to promote transparency, accountability, and self-reliance in the sector. In addition, USAID works with the Armenian government and local communities to improve the management and sustainability of groundwater reserves in the Ararat Valley, which sustain nearly 40 percent of the country’s agricultural GDP and provide cooling water for Armenia’s nuclear power plant, Metsamor. Through partnerships with the private sector, the Government and academia, USAID is also helping to unlock and strengthen Armenia’s considerable comparative advantages in the IT industry and research and development (R&D), incubating talent, accelerating start-ups, and contributing to youth employment.

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Armenia Business Enabling Environment

Partner: International Development Group   |   Active: July 2020- July 2022

Collaborates with the Government of Armenia, the private sector, and other stakeholders to promote the business enabling environment and support the development, adoption, and implementation of policy and legal and regulatory initiatives through strengthened public-private dialogue.

Armenia Workforce Development

Partner: Enterprise Incubator Foundation (EIF) |   Active:  September 2021-September 2026

Will support youth empowerment, workforce readiness and skills development.  Assistance wil promote a productive and self-reliant workforce, bridge the mismatch between labor market supply and demand, and address policy and regulatory constraints on the labor market. 

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Partner: Center for Agribusiness and Rural Development Foundation (CARD)  |   Active: February 2019-February 2024

Promotes inclusive, sustainable economic security and growth by connecting producers and buyers, establishing networks to support economic development, and improving Small Medium Enterprises and farms to develop and grow. The project works in 60 communities throughout all 10 marzes in Armenia and focuses on the horticulture value chain and the hospitality sector.

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Partner: International Center for Agribusiness Research and Education Foundation (ICARE)  |  Active: May 2020- April 2023

Builds partnerships between the agriculture sector, university graduates and young professionals, and provides agribusiness training and skills building to build professional knowledge and bridge the gap between the labor market supply and demand.

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Partner: Dalberg Consulting  |   Active: June 2019-March 2020

Supports the Government of Armenia’s economic reform agenda by providing technical assistance on a broad range of economic growth initiatives, including tourism, agriculture, employment, trade, ICT, and sectoral strategy development.

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Partner:  Smithsonian Institution    |   Active:   July 2015-December 2021

Bolsters the rural private sector to develop and offer a wider range of cultural tourism products, helping local economies benefit from this rapidly growing sector while preserving Armenia’s unique cultural heritage. The project works Vayots Dzor, Syunik, Lori, Tavush, and Shirak marzes.

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The project assisted the ATC and the International Center of Agribusiness Research and Education (ICARE) in building their capacity to serve as a leading educational and research institution and center of excellence in agriculture and agribusiness in Armenia and in the region.  

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Partner:  Enterprise Incubator Foundation   |  Active:  December 2014-June 2019  |   http://istc.am/en/

The public private partnership helped develop the education and research potential of Armenian universities in the areas of IT and hi-tech, while empowering students and entrepreneurs to innovate and contribute to Armenia’s broader development. ISTC also hosted research teams and start-ups in its business acceleration area, providing them with the latest IBM technologies and software, business consultations, and networking opportunities.

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Partner:   Mendez England and Associates   |   Active: September 2015-July 2021

Works with regulatory bodies, through the Ministry of Environment and its Water Resource Management Agency, and the private sector to encourage investments for employing efficient water management systems in the Ararat Valley, support environmentally friendly fish-farming practices, inform decision making on water management through data and modelling, develop policy and regulatory frameworks, and invest in clean energy options. 

Participatory Utilization and Resource Efficiency of Water in the Ararat Valley (PURE Water)

Partner:   Urban Foundation for Sustainable Development   |   Active:   March 2017-March 2020

Supports development of a policy and regulatory framework for improved access to water, facilitates participation and oversight of integrated water management practices in 12 target communities in Armavir and Ararat marzes, raises awareness and fosters water-related behavioral change among water stakeholders.

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Ukraine: third review of the extended arrangement under the extended fund facility, requests for a waiver of nonobservance of performance criterion, and modifications of performance criteria-press release; staff report; and statement by the executive director for ukraine.

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March 22, 2024

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Two years of Russia’s war in Ukraine have taken an enormous humanitarian and economic toll. Skillful policymaking supported by external financing has helped maintain macroeconomic stability, and the authorities have advanced important structural reforms. Households and business have continued adjusting to wartime conditions, leading to growth and inflation outturns in 2023 that were better than expected at the Second Review. The decision to open EU accession negotiations and approval of the €50 billion Ukraine Facility are positive developments. However, headwinds include discussions on a new round of mobilization and delayed approval of committed external support, which are both weighing down sentiment.

Country Report No. 2024/078

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Tests show high-temperature superconducting magnets are ready for fusion

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In the predawn hours of Sept. 5, 2021, engineers achieved a major milestone in the labs of MIT’s Plasma Science and Fusion Center (PSFC), when a new type of magnet, made from high-temperature superconducting material, achieved a world-record magnetic field strength of 20 tesla for a large-scale magnet. That’s the intensity needed to build a fusion power plant that is expected to produce a net output of power and potentially usher in an era of virtually limitless power production.

The test was immediately declared a success, having met all the criteria established for the design of the new fusion device, dubbed SPARC, for which the magnets are the key enabling technology. Champagne corks popped as the weary team of experimenters, who had labored long and hard to make the achievement possible, celebrated their accomplishment.

But that was far from the end of the process. Over the ensuing months, the team tore apart and inspected the components of the magnet, pored over and analyzed the data from hundreds of instruments that recorded details of the tests, and performed two additional test runs on the same magnet, ultimately pushing it to its breaking point in order to learn the details of any possible failure modes.

All of this work has now culminated in a detailed report by researchers at PSFC and MIT spinout company Commonwealth Fusion Systems (CFS), published in a collection of six peer-reviewed papers in a special edition of the March issue of IEEE Transactions on Applied Superconductivity . Together, the papers describe the design and fabrication of the magnet and the diagnostic equipment needed to evaluate its performance, as well as the lessons learned from the process. Overall, the team found, the predictions and computer modeling were spot-on, verifying that the magnet’s unique design elements could serve as the foundation for a fusion power plant.

Enabling practical fusion power

The successful test of the magnet, says Hitachi America Professor of Engineering Dennis Whyte, who recently stepped down as director of the PSFC, was “the most important thing, in my opinion, in the last 30 years of fusion research.”

Before the Sept. 5 demonstration, the best-available superconducting magnets were powerful enough to potentially achieve fusion energy — but only at sizes and costs that could never be practical or economically viable. Then, when the tests showed the practicality of such a strong magnet at a greatly reduced size, “overnight, it basically changed the cost per watt of a fusion reactor by a factor of almost 40 in one day,” Whyte says.

“Now fusion has a chance,” Whyte adds. Tokamaks, the most widely used design for experimental fusion devices, “have a chance, in my opinion, of being economical because you’ve got a quantum change in your ability, with the known confinement physics rules, about being able to greatly reduce the size and the cost of objects that would make fusion possible.”

The comprehensive data and analysis from the PSFC’s magnet test, as detailed in the six new papers, has demonstrated that plans for a new generation of fusion devices — the one designed by MIT and CFS, as well as similar designs by other commercial fusion companies — are built on a solid foundation in science.

The superconducting breakthrough

Fusion, the process of combining light atoms to form heavier ones, powers the sun and stars, but harnessing that process on Earth has proved to be a daunting challenge, with decades of hard work and many billions of dollars spent on experimental devices. The long-sought, but never yet achieved, goal is to build a fusion power plant that produces more energy than it consumes. Such a power plant could produce electricity without emitting greenhouse gases during operation, and generating very little radioactive waste. Fusion’s fuel, a form of hydrogen that can be derived from seawater, is virtually limitless.

But to make it work requires compressing the fuel at extraordinarily high temperatures and pressures, and since no known material could withstand such temperatures, the fuel must be held in place by extremely powerful magnetic fields. Producing such strong fields requires superconducting magnets, but all previous fusion magnets have been made with a superconducting material that requires frigid temperatures of about 4 degrees above absolute zero (4 kelvins, or -270 degrees Celsius). In the last few years, a newer material nicknamed REBCO, for rare-earth barium copper oxide, was added to fusion magnets, and allows them to operate at 20 kelvins, a temperature that despite being only 16 kelvins warmer, brings significant advantages in terms of material properties and practical engineering.

Taking advantage of this new higher-temperature superconducting material was not just a matter of substituting it in existing magnet designs. Instead, “it was a rework from the ground up of almost all the principles that you use to build superconducting magnets,” Whyte says. The new REBCO material is “extraordinarily different than the previous generation of superconductors. You’re not just going to adapt and replace, you’re actually going to innovate from the ground up.” The new papers in Transactions on Applied Superconductivity describe the details of that redesign process, now that patent protection is in place.

A key innovation: no insulation

One of the dramatic innovations, which had many others in the field skeptical of its chances of success, was the elimination of insulation around the thin, flat ribbons of superconducting tape that formed the magnet. Like virtually all electrical wires, conventional superconducting magnets are fully protected by insulating material to prevent short-circuits between the wires. But in the new magnet, the tape was left completely bare; the engineers relied on REBCO’s much greater conductivity to keep the current flowing through the material.

“When we started this project, in let’s say 2018, the technology of using high-temperature superconductors to build large-scale high-field magnets was in its infancy,” says Zach Hartwig, the Robert N. Noyce Career Development Professor in the Department of Nuclear Science and Engineering. Hartwig has a co-appointment at the PSFC and is the head of its engineering group, which led the magnet development project. “The state of the art was small benchtop experiments, not really representative of what it takes to build a full-size thing. Our magnet development project started at benchtop scale and ended up at full scale in a short amount of time,” he adds, noting that the team built a 20,000-pound magnet that produced a steady, even magnetic field of just over 20 tesla — far beyond any such field ever produced at large scale.

“The standard way to build these magnets is you would wind the conductor and you have insulation between the windings, and you need insulation to deal with the high voltages that are generated during off-normal events such as a shutdown.” Eliminating the layers of insulation, he says, “has the advantage of being a low-voltage system. It greatly simplifies the fabrication processes and schedule.” It also leaves more room for other elements, such as more cooling or more structure for strength.

The magnet assembly is a slightly smaller-scale version of the ones that will form the donut-shaped chamber of the SPARC fusion device now being built by CFS in Devens, Massachusetts. It consists of 16 plates, called pancakes, each bearing a spiral winding of the superconducting tape on one side and cooling channels for helium gas on the other.

But the no-insulation design was considered risky, and a lot was riding on the test program. “This was the first magnet at any sufficient scale that really probed what is involved in designing and building and testing a magnet with this so-called no-insulation no-twist technology,” Hartwig says. “It was very much a surprise to the community when we announced that it was a no-insulation coil.”

Pushing to the limit … and beyond

The initial test, described in previous papers, proved that the design and manufacturing process not only worked but was highly stable — something that some researchers had doubted. The next two test runs, also performed in late 2021, then pushed the device to the limit by deliberately creating unstable conditions, including a complete shutoff of incoming power that can lead to a catastrophic overheating. Known as quenching, this is considered a worst-case scenario for the operation of such magnets, with the potential to destroy the equipment.

Part of the mission of the test program, Hartwig says, was “to actually go off and intentionally quench a full-scale magnet, so that we can get the critical data at the right scale and the right conditions to advance the science, to validate the design codes, and then to take the magnet apart and see what went wrong, why did it go wrong, and how do we take the next iteration toward fixing that. … It was a very successful test.”

That final test, which ended with the melting of one corner of one of the 16 pancakes, produced a wealth of new information, Hartwig says. For one thing, they had been using several different computational models to design and predict the performance of various aspects of the magnet’s performance, and for the most part, the models agreed in their overall predictions and were well-validated by the series of tests and real-world measurements. But in predicting the effect of the quench, the model predictions diverged, so it was necessary to get the experimental data to evaluate the models’ validity.

“The highest-fidelity models that we had predicted almost exactly how the magnet would warm up, to what degree it would warm up as it started to quench, and where would the resulting damage to the magnet would be,” he says. As described in detail in one of the new reports, “That test actually told us exactly the physics that was going on, and it told us which models were useful going forward and which to leave by the wayside because they’re not right.”

Whyte says, “Basically we did the worst thing possible to a coil, on purpose, after we had tested all other aspects of the coil performance. And we found that most of the coil survived with no damage,” while one isolated area sustained some melting. “It’s like a few percent of the volume of the coil that got damaged.” And that led to revisions in the design that are expected to prevent such damage in the actual fusion device magnets, even under the most extreme conditions.

Hartwig emphasizes that a major reason the team was able to accomplish such a radical new record-setting magnet design, and get it right the very first time and on a breakneck schedule, was thanks to the deep level of knowledge, expertise, and equipment accumulated over decades of operation of the Alcator C-Mod tokamak, the Francis Bitter Magnet Laboratory, and other work carried out at PSFC. “This goes to the heart of the institutional capabilities of a place like this,” he says. “We had the capability, the infrastructure, and the space and the people to do these things under one roof.”

The collaboration with CFS was also key, he says, with MIT and CFS combining the most powerful aspects of an academic institution and private company to do things together that neither could have done on their own. “For example, one of the major contributions from CFS was leveraging the power of a private company to establish and scale up a supply chain at an unprecedented level and timeline for the most critical material in the project: 300 kilometers (186 miles) of high-temperature superconductor, which was procured with rigorous quality control in under a year, and integrated on schedule into the magnet.”

The integration of the two teams, those from MIT and those from CFS, also was crucial to the success, he says. “We thought of ourselves as one team, and that made it possible to do what we did.”

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World Bank Japan Social Development Seminar “Reducing Income- and Health-Related Vulnerability of Older Persons in Vietnam”

The World Bank and partners launched “Reducing Income- and Health-Related Vulnerability of Older Persons in Vietnam”  project aiming to reduce economic and health vulnerability of older persons in Vietnam, under a US$2.75-million grant, funded by the Government of Japan through the Japan Social Development Fund , administered by the World Bank. Implemented by HelpAge International in collaboration with Association of the Elderly in Vietnam, the project is supporting the scale up of a community-based model for elderly care that promotes economically productive, healthy, and active ageing. It is estimated that 27,000 people in six provinces will benefit from the project’s interventions, 70% of them are elderly.

A core activity of the project is to expand the Intergenerational Self-Help Club (ISHC) network through building at least 180 new clubs. This model, first implemented in Vietnam in 2006 and whose effectiveness has been recognized by the government and included in national policies, adopts a holistic approach to meet the multiple needs of older persons. These self-managed clubs, which host 50-70 members, runs a variety of inter-generational activities to help members boost incomes, improve physical and mental wellbeing, and know their rights. Through a network of volunteers, also offers homecare services who are largely housebound including social care, personal care and related care.

At this seminar, the task team from the World Bank and the implementing partner HelpAge International will share experiences through the project.

2pm-4pm, Tuesday March 26, 2024 (Japan Standard Time)

Maitreyi Das Director, Trust Funds and Partner Relations, World Bank

Emiko Masaki Senior Health Specialist, East Asia and the Pacific Region, World Bank (Task Team Leader) 

Nga Thi Nguyen Senior Social Protection Specialist, East Asia and the Pacific Region, World Bank (Task Team Leader)  *online participation

Tran Bich Thuy Country Director, Viet Nam, HelpAge International   *online participation 

Yuji Takeshita Representative of Nepal, Shapla Neer   *online participation

Yasuko Hara General Manager, MuranoMirai   *online participation

Yolanda Azarcon PHRD and JSDF Administrator, World Bank

Koichi Omori Senior External Affairs Officer, World Bank

Registration: 

To participate, please register via online form posted on this website.  Please indicate your preferred mode of participation.

EVENT DETAILS

• DATE/TIME:  2pm-4pm, Tuesday March 26, 2024 (JST)
• FORMAT:  Hybrid
• VENUE (Participation at venue in person):  World Bank Tokyo Development Learning Center (Please refer "ACCESS" in RELATED below)
• WEBEX Webinar information for online participation:  Webex link will be sent later to the registered participants.
• LANGUAGE:  English and Japanese (with simultaneous interpretation)
• REGISTRATION:  To participate, please register through the form below. If the registration form does not work, please email to the contact address with your full name, company name, division name and email address.
• CONTACT:  Koichi Omori, World Bank Tokyo Office 
• [email protected]

ACCESS： World Bank Tokyo Office (Tokyo Development Learning Center) 

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WNY elected officials, UB leadership and tech leaders support Empire AI, putting New York at forefront of responsible AI innovation

New York State Assembly Majority Leader Crystal Peoples-Stokes speaks Friday at a press conference at UB in which area lawmakers and UB leaders expressed their support for Empire AI. Photo: Douglas Levere

Release Date: March 22, 2024

BUFFALO, N.Y. – Western New York elected officials joined University at Buffalo Provost A. Scott Weber, UB Vice President for Research and Economic Development Venu Govindaraju and members of the Empire AI consortium today in support of Empire AI, a bold and first-in-the-nation initiative that will position New York as the national frontrunner in responsible artificial intelligence innovation.

Empire AI will allow UB and New York’s other research institutions to pioneer safe, equitable and accessible AI research and development that will benefit every corner of New York’s economy and quality of life.

In January, Governor Kathy Hochul unveiled her proposal to create a consortium, named Empire AI, that will launch a state-of-the-art artificial intelligence computing center at UB. The center will be used by New York’s leading public and private institutions to promote responsible research and development, create jobs and develop AI innovations focused on tackling societal challenges – from health care, climate change and crime prevention to education, poverty and world hunger.

The consortium comprises the State University of New York, the City University of New York, Columbia University, Cornell University, New York University, Rensselaer Polytechnic Institute, the Flatiron Institute, as well as philanthropic backers such as Tom Secunda and the Simons Foundation.

“As a leader in AI for over four decades, we, at the University at Buffalo, are very excited to be named the home of Empire AI — the epicenter of AI research, innovation and education for New York State,” said UB President Satish K. Tripathi . “With Empire AI, we will be able to leverage this vast computing power to solve the most vexing issues facing our state, nation and world. Empire AI will spur transformative research and attract federal funding while expanding 21st-century business and industry in Western New York and across the state.”

“Technology can be an immensely powerful tool – being completely dependent on the minds and hands wielding it. With great power comes great responsibility. The Empire AI consortium presents an innovative opportunity to further solidify New York State as a national leader in artificial intelligence, while growing our tech ecosystem and talent pipeline. The ability to improve New Yorkers’ quality of life by way of addressing societal ills using AI is something that we owe to our residents to pursue. I applaud Governor Hochul, Tech: NYC and the members of the Empire AI consortium on their collective vision. I look forward to learning more about this initiative in the weeks and months ahead,” said State Assembly Majority Leader Crystal Peoples-Stokes .

“For years, New York has led progressive policy and innovative research on a national scale, and Empire AI is just another form of that commitment to forward-thinking development and exploration,” said State Senator Tim Kennedy. “I look forward to watching UB play a prominent role in advancing this initiative, and discovering new ways that AI can elevate access to opportunities for the greater good of our community.”

“Investing in the industries of the future is a time-tested strategy for effective economic development. It allows us to leverage groundbreaking research and technological innovation to bring good-paying, stable jobs to our region. The role of artificial intelligence in our society is growing exponentially, and AI will have a major role in the global economy for many years to come. Housing Empire AI at the University at Buffalo will make Buffalo a leader in AI research and development, and make UB an even more attractive destination for the next generation of tech leaders,” State Senator Sean Ryan said.

Assemblymember Karen McMahon said: “As the premier institution of higher education and research in Western New York, and a flagship university in the SUNY system, it is altogether fitting that the University at Buffalo be the home for Empire AI. This is an overwhelming vote of confidence in UB and its role on the cutting edge of science and technology. AI is an intriguing new frontier with seemingly limitless possibilities and applications in many aspects of our lives. This investment ensures that New York will be at the forefront of this new technology. I’m proud to represent UB in the State Assembly, and thrilled that UB will be the home of New York State’s exploration in this field for years to come.”

“Empire AI will spearhead New York’s pioneering efforts in artificial intelligence, making our state a hub of technological innovation with Buffalo at its epicenter. It’s an honor to stand with fellow legislators and academic leaders in tech to support this project – one that will not only leverage AI’s potential and safeguard against its risks, but also bridge the digital gap through research and training. With the promise of both economic and educational benefits across our state, now is the time for New York to pass this transformative initiative,”  Assemblymember Pat Burke said.

Assemblymember Jon D. Rivera said: “We know that artificial intelligence is already transforming industries, economies and societies at an unprecedented pace. Empire AI is our state’s solution to ensuring that New York remains at the forefront of AI development and research, and we will do that by providing our universities, students and faculty with access to unparalleled AI resources. Western New York’s abundance of low-cost, renewable hydroelectricity makes Buffalo the best location statewide to host the hardware needed for this consortium, which will ensure that our workforce is equipped with the tools and knowledge needed to thrive in an AI-driven economy.”

The Empire AI consortium will lead the development for responsible AI that is focused on serving the public good. In the majority of cases, projects like these are funded by private entities and serve private interests. Empire AI will be the first project of its kind geared toward the public and overseen by educational institutions, and it will place New York in the driver’s seat for future AI development.

Through its partnership with New York’s leading colleges and research universities, Empire AI will also help to prepare the workforce of the future by championing skills and talent that will future-proof the jobs New York’s economy will rely on, taking the national lead on building and attracting the next generation of tech talent in New York.

About Empire AI

Empire AI is a proposed consortium that would create a state-of-the-art artificial intelligence computing center at the University at Buffalo. The consortium is comprised of the State University of New York, the City University of New York, Columbia University, Cornell University, New York University, Rensselaer Polytechnic Institute, and the Flatiron Institute. Intended to promote responsible research and development, create jobs, and unlock AI opportunities focused on public good in New York, this initiative will bridge the gap between private funding and public interest through investments in both sectors to accelerate the development of AI centered in public interest for the state.

Additional information can be found at this memo of support .

Media Contact Information

Cory Nealon Director of Media Relations Engineering, Computer Science Tel: 716-645-4614 [email protected]

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What New University of Minnesota Extension Research Reveals About Business Owners' Plans for the Future Transition of Their Firms

By Michael Darger (University of Minnesota Extension) , Ashley Petel*, Cameron Macht (DEED) , Joshua Hebeisen*, Caleb Reed*, Joseph Dragotta* * students at the University of Minnesota

While the ages of owners and businesses change every year in small businesses, the combination of those two factors is well worth studying. According to a report from the Minnesota Center for Employee Ownership , in Minnesota there are an estimated 50,000+ businesses with owners aged 55 years or older. Likewise, according to the 2021 Annual Business Survey from the U.S. Census Bureau , nearly 53% of businesses had owners who were 55 years and over. This is notable because the share of business owners in the oldest age groups has increased over time, with that trend accelerating in recent years (see Figure 1).

The Annual Business Survey also shows that Minnesota has a higher reliance on long-time businesses, with more than 40% of businesses operating for 16 years or more, which is over 8% more concentrated than the U.S. overall. These long track records suggest these businesses are successful and will continue to enhance Minnesota's economic vitality (see Table 1).

Table 1: Age of businesses in Minnesota and the United States

Using this same Annual Business Survey data, we can assess some further demographic details of business owners in the state. The largest percentage of business owners identified as white alone, and not Hispanic, accounting for over 85% of total businesses in Minnesota. In comparison, about 76% of the state's total population reported white alone as their race, and not of Hispanic or Latino origin.

It's important to note that race data was not available or reported for almost 6% of business owners in the survey, which may reflect people of some other race or two or more races, which combined make up about 7.6% of our population. Asian and Other Pacific Islanders accounted for just over 5% of the state's total population and just over 4% of business owners. Black or African American residents make up almost 7% of our population, but just 2% of business owners in the state. People of Hispanic or Latino origin comprise 5.7% of the state's population, but own only 1.3% of businesses in the state according to the Annual Business Survey. And finally American Indian and Alaska Natives account for the smallest share of population and business ownership, at 0.9% and 0.5%, respectively (see Table 2).

Table 2: Minnesota Business Ownership Statistics by Race or Ethnicity, 2021

Another interesting facet of ownership is gender. Annual Business Survey data show about 60% of businesses in Minnesota were owned by males, just over 22% were female-owned, and about 16% were owned equally by males and females, with data not available for another 2% of businesses. These shares held relatively consistent across owner tenure, with one notable exception: females make up a higher share of new businesses that have been around for 5 years or less (see Table 3).

Table 3. Minnesota Business Ownership Statistics by Gender, 2021

Business Succession and Transition Research

The future of these businesses is a critical economic development topic that will affect communities across the state. Business succession and transition planning is a process where business owners prepare for their departure with a plan to transfer their business to new ownership and leadership. Keeping these businesses open when owners or leaders move on is an important opportunity for Minnesota, especially in rural communities. In many cases, small businesses are the lifeblood of small towns, and research shows that after a succession event, new leadership of the businesses tend to hire more employees and increase sales.

University of Minnesota Extension has provided research and education to communities on business retention and expansion (BRE) for many years. This practical activity is a fundamental part of economic development because most new private sector jobs are attributable to existing businesses . As part of this work, Extension assists communities in their efforts to support businesses through the succession and transition process. In 2023, the Extension team embarked on a research project to explore business owner awareness, attitudes, aspirations and action on succession and transition planning . The goal of this research is to inform the public and private sectors on barriers and gaps in the ecosystem for helping businesses transfer ownership.

This research involved administering a paper survey through U.S. mail in spring 2023, using a four-wave methodology informed by Don Dillman's Tailored Design Method . A scientific sample was created and nearly 300 valid responses were received from small business owners and leaders in Minnesota. Most respondents had the joint role of owner and senior leaders (84.6%), but some were only leaders (10.1%) or only owners (3.8%).

Research Findings - Key Takeaways

The survey included questions for business owners and leaders about their awareness of, attitudes towards and action taken on business succession and transition planning. Many questions relied on a Likert scale in which respondents answered the question with a 1 to 6 rating, 1 indicating "not at all" and 6 indicating "to a great extent." The Likert scale questions asked about degree of agreement, familiarity, likelihood, importance, or readiness. In analysis, average ratings were calculated to investigate general responses while ratings were grouped for a deeper look at the data (e.g. 1-2 as not familiar, 3-4 as somewhat familiar, and 5-6 as familiar). We received 286 survey responses, usable for analysis. For the full descriptive statistical results of the survey, visit  https://sites.google.com/umn.edu/businesssuccessiontransition/results .

Respondents

The average age of respondents was 59, with a range from 33 to 90 years old. Approximately 66% of respondents were aged 55 and older, which is higher than the estimated 53% of owners aged 55 and older in Minnesota (see Figure 1). Approximately 72% of respondents identified as male, 26% as female, and less than 1% as non-binary. Participating businesses came from across Minnesota, with 72% in urban areas (207 businesses) and 28% in rural areas (79 businesses). A majority of the respondents were white (95%) while few respondents identified as American Indian or Alaska Native (1%), Asian (1%), or Black or African American (1%). Less than 1% of respondents identified as Hispanic or Latino.

Awareness of and Attitudes Toward Business Succession and Transition

Respondents indicated how familiar they are with business succession and transition planning (see Figure 2). A large portion of respondents are somewhat familiar with planning for business succession and transition (43.7% rating a 3 or 4 on a 6-point scale from "not at all" familiar to familiar "to a great extent"). A much smaller share of respondents are not familiar (18.3% rating a 1 or 2) while more than one-third of respondents considered themselves familiar with the process (38% rating a 5 or 6).

Respondents were asked how important they believe a written plan is for business succession and transition (see Figure 3). A majority believed that a written plan was important (43.3%) or somewhat important (37.6%). Just 19.1% of respondents believed that a written plan is not important. However, only 19.2% of respondents reported creating or updating a written business succession and transition plan within the last three years. Furthermore, 60.8% of respondents indicated they spend less than one hour per week planning for business succession and transition.

Business owners and leaders responded to questions that asked how important different factors are with regard to their planning for succession and transition. In the first instance (question 11), they rated the factors on a 6-point scale. In the second instance (question 12), they ranked the top three most important factors. The factors with the highest average rated scores mostly matched those with the highest rankings: business financial success after transition, retaining good jobs for current employees, business longevity after transition and maximizing their personal financial situation (see Figure 4 and Table 4). It should be noted that two other factors received high average rankings yet they were ranked by many fewer respondents.

Table 4: Which three factors below are the most important to you? (Rank 1st, 2nd, and 3rd)

Looking at these factors from the perspective of a community economic development professional offers unique insights. Three of the four top factors that business owners and leaders value are key concerns of communities: business financial success after transition, retaining good jobs for current employees, and business longevity after transition. Other factors relevant to communities that owners were asked about included keeping the business in the community and adding new jobs in the future.

Interestingly, rural business owners were highly correlated with increased concern for keeping the business in the community (p-value 0.002; see Figure 5). Rural communities tend to be more concerned about the retention and expansion of businesses. If a community has only one grocery store or manufacturer or funeral home, it is a big deal if that business leaves. Additionally, older business owners are correlated with more concern over business longevity after transition as an important factor (p-value 0.016) and adding new jobs in the future (p-value of 0.05).

Personal and Business Readiness for Succession and Transition

Respondents were asked to identify how ready they were personally to step away from the business and how ready their business was for an ownership and leadership transition (see Figure 6). Average readiness for both questions was 3.6. Approximately one-third of respondents are personally ready for transition (33.9%), 38.2% are somewhat ready, while 27.9% are not personally ready to step away from the business. Similarly, 31.9% of respondents believe their business is ready for transition, 42.6% believe it is somewhat ready, while 25.5% believe their business is not ready for succession.

A compelling trend emerges when analyzing the relationship between a business owner's personal readiness and the readiness of their business to transition (see Figure 7). Notably, as the personal readiness of the owner increases on the 6-point scale, so does the readiness of their business for transitioning ownership. This upward trajectory suggests a positive correlation between personal readiness and business readiness.

The answers to these readiness questions are correlated with answers to other questions in the survey. For example, there is evidence of a meaningful relationship between personal readiness and seeking advice and resources from a partner/spouse (p-value of 0.005). Additionally, personal readiness is correlated with having family discussions (p-value of 0.021), engaging in discussions inside the business (p-value of 0.049), and obtaining a formal business valuation (p-value of 0.04996).

Business readiness is correlated with seeking advice and resources from a partner/spouse (p-value of 0.006), from an attorney (p-value of 0.019), and from an accountant (p-value of 0.035). Separately, certain preparation actions that business owners take are correlated with higher scores on business readiness, including the following: creating or updating a written succession and transition plan, obtaining a formal business valuation, having family discussions, and training a successor (see Table 5). These are confirmatory findings because these activities are associated with successful transition planning in the academic literature.

Table 5: Succession and Transition planning activities that are highly correlated or correlated with business readiness

To that end, past research on succession and transition planning has found that owners and leaders find it easier to let go of their business if they have a plan for what they will do next. Extension's research seems to confirm this. The respondents were asked if they had plans for retirement. The survey found a statistically significant relationship between a business owner or leader's personal readiness and working part-time or full-time elsewhere after stepping away from the business (p-value of 0.047), and if the owner is unsure about their next steps after leaving the business (p-value of 0.011). The readiness of the business is correlated to working part- or full-time after parting ways with the business (p-value of 0.037). However, there was no correlation with personal or business readiness when a respondent indicated they would fully retire.

Considering Transfer Routes

The survey explored awareness of and intentions for ten different routes for the transition of business ownership. Four options are external, that is selling to buyer(s) outside of the business. Six options are internal, that is selling to family members (of the owner), or employees, partners, or managers in the business. With regard to intentions for transfer (question 21) there were only two very likely routes and several less likely routes. In the very likely range, only selling to strategic buyers (i.e., a buyer from the same industry or sector) (average score 4) and selling/transferring to family members (3.6) received scores above the midpoint on the 6-point scale (1 = not at all likely and 6 = to a great extent).

In the likely range were: third-party buyer (i.e., an investor or entrepreneur) (3.3), management buy out (i.e., selling to existing management) (3), sell to existing partner(s) (2.7) and private equity (i.e., capital investment made into privately held companies) (2.6). In the less likely range were all three forms of employee ownership: employee stock ownership plan (ESOP) (2.1), employee ownership trust (1.9) and worker-owned cooperative (1.8). In fact, all forms of employee ownership were less likely than liquidate and sell assets (2.2) (see Figure 8).

Some of the factors referred to in Figure 4 above (question 11) were found to be predictive of certain transfer routes (question 21) using ordinal logistic regression. Maximizing their personal financial situation was strongly correlated with likeliness to transfer to either a strategic buyer or private equity (p value < 0.001). Retaining good jobs was correlated with management buyout or employee ownership trust (p value < 0.01).

Only one of these correlations was true in the opposite direction. When strategic buyer was the independent variable, maximizing their personal financial situation was strongly correlated. This is not a surprising result because business transition experts will point out that buyers from the same industry are typically willing to pay the highest price for a business. For economic developers and other community officials, the news here is that some transfer routes align with owner priorities that also can be beneficial for the community (i.e. retaining good jobs being correlated with management buyouts and employee ownership trusts).

Relevance and Future Plans

The results from this research will inform future efforts at Extension and beyond. The data and findings are valuable to a wide swath of people, which can be organized into messaging relevant to specific audiences. Different segments of this data can inform each of these audiences in their involvement with business succession and transition planning. These audiences include:

Business owners

The data from this research project offers a glimpse into what business owners are thinking about regarding business succession and transition. Business owners may be interested in knowing what their peers are thinking about this topic, how they are preparing for succession, who they are consulting with and what pathways they are considering. This message can be shared with business owners through classes, chambers, newsletters, networking and more.

Many insights from the survey results can support efforts and decision-making of community economic development professionals supporting business succession planning. Data relevant to this population include correlations with personal and business readiness, perceived barriers to planning for succession, advisers and resources that business owners find trustworthy and how business owner priorities align with community economic development efforts. Efforts taken may include building awareness, connecting business owners with advisers, facilitating connections between business owners' priorities and the transition options and providing resources to create and update written succession and transition plans.

Business advisers

Business advisers such as accountants, attorneys, financial planners, spouses and other business owners can play integral roles in business succession planning. The results show that the more advisers a business owner consults, the higher they score on personal readiness and business readiness for transition. For every additional adviser a business owner uses to aid their business succession and transition planning, their expected level of personal readiness increases by approximately 0.125 units, and business readiness increases by approximately 0.162 units on a 6-point scale.

Notably, there are specific advisers that are correlated with a dramatic increase in business readiness: spouse (0.56 units), attorney (0.43 units) and accountant (0.40 units; see Figure 9). If no advisers are consulted, the expected business readiness is 3.22 on a 6-point scale. However, if a spouse, attorney and accountant are consulted on business succession and transition planning, the business readiness is expected to increase to 4.61 on a 6-point scale. Based on these findings, Extension has begun discussions with accountants about this topic to involve them in the effort to support business owners to plan for succession and transition.

Employee ownership

Employee ownership models offer a unique alternative to traditional business models and serve as a viable pathway for business succession and transition. Three main types of employee ownership exist in the United States: Employee Stock Ownership Plans (ESOPs), worker-owned cooperatives and employee ownership trusts. Awareness, expertise and financials have been identified as barriers to implementing employee ownership models.

This research explored business owners' awareness of and attitudes toward employee ownership models. Future publications from Extension will highlight these findings. As shown above in Considering Transfer Routes, the three forms of employee ownership were unlikely transfer routes and were even less likely than owners liquidating the business. It is the opinion of the lead author that employee ownership is an underutilized pathway for retaining and expanding Minnesota businesses. Future research may investigate this topic more deeply, including employee awareness of and attitudes toward employee ownership. In Minnesota, the Minnesota Center for Employee Ownership and the Employee Ownership Working Group network are leading the charge to increase awareness and resources around employee ownership.

Certain data relevant to this audience includes questions about business owners' familiarity with and likelihood to consider transitioning to an employee ownership model. Additionally, certain segments of the business owner population may be more inclined to consider employee ownership, and this data may help identify owners who may be interested in discussing employee ownership for their situation.

Conclusion: It Takes a Village

Supporting business succession and transition is a critical community economic development strategy to ensure that small and local businesses remain an integral part of Minnesota's economy. To assist business owners and economic developers in their efforts to retain companies and jobs in their communities, a concerted, widespread support system is needed. This research highlights that business owners need to increase their awareness and engage with resources to support their planning for business succession and transition.

Endnote on statistics:

• A p-value gives the probability that a result found in our analysis would occur purely by chance rather than an actual difference. In practice, findings are typically considered "significant" if they have a p-value less than 0.05. Given the exploratory nature of our research and the large number of statistical tests we carried out, it is more appropriate to consider our significant results as indicative of trends and areas for future research rather than "proof" of a relationship between variables. Read more at The P Value and Statistical Significance: Misunderstandings, Explanations, Challenges, and Alternatives"
• An ordinal logistic regression model is used to analyze data that are measured on an ordered scale. This technique was the most appropriate method for our analysis of survey questions on a six-point Likert scale where higher numbers indicated a more positive response. Read more at Ordinal Logistic Regression models and Statistical Software: What You Need to Know
• Though the results summarized in Figure 9 were found to be significant using both standard and ordinal logistic regression, the actual numbers presented were taken from the standard regression model for easier interpretation. The standard regression model was shown to fit the data well enough to justify this choice.

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MTEF & Annual Budgets

The present Section contains Annual Budget programs and Budget Implementation reports of the Government of Armenia, as well as public finance Medium-Term Expenditure Frameworks public finance (MTEF).

MTEF is developed and adopted by the Government of Armenia every year. It outlines the main expenditure directions and priorities of the Government during the next three years and lays a basis for drafting the next year’s Annual Budget.

The Government Budget is an annual document which is in force for respective calendar year From January to December. It is drafted by the Government of Armenia and submitted to the National Assembly. The Annual Budget is adopted by the National Assembly and, hence becomes a law.

Annual Budget Implementation Report of the Government is subject to the approval by the National Assembly not later than the 40 th  day after the end of the first quarter of the next financial year.

Relations in drafting the Annual Budget, implementation, reporting and report approval thereof are regulated by the Constitution of Armenia, as well as the Law of RA on Budget System.

Publications section contains analyses of Government Budgets and budget programs in certain sectors.

RA Medium-Term Expenditure Framework

RA Laws on State Budget 

Annual Reports on RA State Budget Execution

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