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International Conference

Public Financial Management in the Era of

The New Normal ocial Control Mechanisms for

reater Transparency andccountability

,Varazdat Karapetyan PhD

Armenia,GCCI Advocacy and Assistance Center

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:A visitor of AAC told his story .My daughter was born five months ago

,She was born prematurely in her seventh, .month and was very weak The doctor

worked hard to successfully improve her.strength Now each time we visit him for,a consultation his assistant requests

. ,50 USD I give him the money althoughaccording to health care legislation in

,Armenia medical care is absolutely free.for children under seven years old

llustrative Case ofCorruption

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- H e is re a d y to p a y th e b rib e e a chtim e fo r h is fa m ily a n d ch ild s

.w e llb e in g

- H e d o e s n o t w a n t to fig h t fo r h isrig h ts b e ca u se h e w a n ts to h a v e

.g o o d re la tio n s w ith th e d o cto r

- T h e sa m e situ a tio n e x ists in th e, , ,fie ld s o f h e a lth e d u ca tio n ju stice, .sta te ca d a stre ta x a tio n e tc

ow can we solve this problem?

ase Analysis

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ystemic Analysis ofhe Case

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hat Needs to Happen?- All parties must realize the holistic

picture of the cycle, and the role andresponsibility of each participant.

- Dialogue and cooperation between allstakeholders and parties of the cycle:doctors, hospital administrations,government, citizens, etc.

- New approaches of management:from a central planned economy to afree market economy.

-

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AC as the Local Leaderf Systemic Reform

- Works in all regions of Armenia, islocalized.

- Creates public-private dialogueand cooperation.

- Supports systemic reforms throughquick responsive actions andadvocacy work.

- Directly responds to localcorruption cases, helping citizens

and companies to be protected

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:egharkunik AAC Examplef Systemic Reforms

- Tax legislation changes created adispute between 100 businesses ofGavar and the Tax Office.

- The Tax Office heavily fined 10businesses. All other businessesfaced corruption risk and tax officials

started to extort them.- Businessmen threatened to close the

shops and stop working, givingreasons that it is impossible to paythe heavy tax fees or bribes.

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- AAC organized three meetingsbetween business owners and the

Tax Office.

Results:- The Tax Office promised not to finebusinesses for a period of twomonths.

- The Tax Office held seminars toexplain tax changes in a more easilyunderstandable language forbusiness owners.

- The business owners promised towork in accordance with the new tax

:egharkunik AAC Examplef Systemic Reforms

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A survey of corruption shows that oneof the most corrupted offices inArmenia is the State Registry ofEnterprises.- The businessmen are uninformed

about fees, documentation,timelines, etc. for registering newenterprises.

- Officials take advantage of their lackof information and extort startupbusinesses.

AACs response:- Gegharkunik AAC installed

:egharkunik AAC Examplef Systemic Reforms

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- A disabled citizen applied to AAC becausea medical committee unjustifiablydeprived her from her disability pensionwithout any reason.

AACs response:

- An application to the correspondingmedical committee. They refused tocomply.

- A second medical examination wascarried out in the capital.

In the result:

Re-establishment of the right to receive theension and re a ment of the amount that

:egharkunik AACndividual SuccessStories

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- The citizen applied to AAC,announcing that the traffic policegave him a fine for no real reason.

AACs response:- Requested a copy of the traffic finefrom the Regional Police Department.

- Filed an appeal against the traffic

police actions before the NationalPolice.Results:

The fine was annulled, and the visitors

rights were protected.

:egharkunik AACndividual SuccessStories

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hank you for your time!nd attention

Questions are welcome