Since independence, we have indeed registered successes together - significant US assistance to Armenia, trade privileges, military assistance parity, progress in genocide recognition and education efforts, a better understanding by opinion and policy makers of Armenia's geographic, historic and economic limitations.

If I think back, I don't know where Armenia would have been without the Diaspora. The dedicated, focused efforts of the Armenian Assembly of America have resulted in a support base that is essential for Armenia. We know we can always depend on the real, sincere, deep commitment of the Assembly leadership and the dedicated work of the Assembly staff.

In Yerevan, we are very aware that for you to be able to promote Armenia, its policies, its future, Armenia must be the kind of place that you can and want to promote. The Diaspora will promote and support an Armenia that reflects its own best dreams, values and ambitions. The Armenian-American Diaspora will promote and support an Armenia that is a friend of the United States.

And we are. Despite the huge geographic distance between Yerevan and Washington, we are partners in the war on terror, in supporting the non-proliferation of weapons, in searching for global peace thru regional security, in supporting the rule of law, as well as democratic and economic freedoms.

Not only are we ideological partners, but we share the values that have made America. We want those values to be not just aspirations for the citizens of Armenia but solid realities, to be comfortably taken for granted.

The US is the country that makes it possible for individuals to reinvent themselves - to relocate, to take on new careers, to pursue new challenges and new directions.

Armenians have been a people who have reinvented themselves throughout the centuries on every continent. The challenge in this century is: for the first time in history, will we be able to reinvent ourselves on our own land?

Do we want to become a country where every man and woman assumes they have a right to speak their mind, to cast their vote, to affect change? Of course we do.

Do we want to become a country where we can take the impartiality of judges, the decency of policemen and the ethics of teachers for granted? Of course we do.

Do we want to become a country where you pay taxes to the system rather than fees to the official? Of course we do.

Do we want to become a country where the difference in rich and poor is only a matter of time and not a matter of destiny? Of course we do.

Do we want to become a country where each person believes that he or she can individually reinvent themselves? Of course we do.

That is the Armenia we want. That is the Armenia you want.

How do we get there? You are blissfully unaware of the difficulties and travails of the process of becoming a democracy because Americans live in the only country to have been born democratic. America was built from the ground up, democratic institutions were defined and created as you went along. As such, you have the good fortune to be able to take this system for granted.

The entire process of nation-building has been different for us, since we had to undo an existing system and build a new one. That is why we have welcomed the various US programs which have supported our institutional, democratic and economic reforms. We also appreciate that in anticipation of the elections of 2007 and 2008, the US has proposed additional, targeted assistance so we can hold normal elections and rise to the next level of democratic development.

But democracy is more than elections. Democratic institutions and processes are not just ends. They are also means to creating the necessary political and economic environment which lead to distributed growth and dignified development. The cruelties inherent in the process of massive economic readjustment which we have been making have led to a sense of powerlessness on the part of ordinary citizens. So, democracy is a tool for development, just as economic development is a facilitator of democratization.

This afternoon, I will be attending the signing of a visionary instrument that drives both economic development and democratization. The Millennium Challenge Compact is intended to bolster development in countries where the society and leadership comprehend their political responsibility to nurture and sustain democratic practices. This is the single largest government investment in Armenia's economy. It consists of $235 million over 5 years. Before I tell you what we're going to do with the money, let me tell you why we were fortunate enough to receive this grant.

The US government chose Armenia as one of the potential recipients because Armenia is needy. That's no secret. But there are lots of needy countries in the world. Why Armenia? Because the US government determined to contribute to the budgets of those countries that are themselves attempting to grow in the right direction - to govern justly, to encourage economic openness and to invest in people.

Armenia is. And being made eligible for the MCC is evidence of this. Simply put, Armenia is a part of the MCC because not only is there plenty about our society that needs to be put right, but because we are on a path that is right. This farsighted program provides a generous push in the direction that we have chosen for ourselves.

I said to Ambassador Danilovich when the decision was made, and I say this to you now, Armenia has the honor and the obligation to build on the confidence that has been placed in our government and our people. And so, even as we spend these funds to turn mud into asphalt and to give farmers the irrigation water that is their lifeblood, we will work to make sure that good governance and the principles of an open and fair society take root in our homeland.

In the 21st century, philanthropy is more than charity. It is about finding lasting solutions to deep-seated social and economic problems. That is what the MCC intends to do. And so I am going to use this opportunity to say to the Diaspora loudly and clearly that that is what the Diaspora should do as well.

Before I ask you to do more, and I'm going to do just that, let me thank you for all that you have done. The Armenia - Diaspora collaboration has been invaluable in this decade and a half of upheaval, confusion and learning. The value of the Diaspora is in its ingenuity, non-conformity, its belief in a dream, its access to networks, its ability to be international and national all at the same time, and its tremendous resources.

I am now going to ask you to partner with Armenia - even more deeply and broadly and seriously than you have already done -in addressing Armenia's domestic and international challenges.

Look, most of you have been to Armenia. It is clear that not all Armenians have been able to share in the double digit growth of which we are justifiably proud. As soon as one leaves Yerevan, the statistics become reality: One out of every two Armenians still lives in poverty, mostly in Armenia's rural areas. Half of those living in poverty, live on less than one dollar a day. Yet, these rural men and women represent a critical portion of Armenia's economy.

If we want to ensure that these rural communities are not destined to remain stagnant, permanent pockets of poverty, that Armenians are not born into a cycle of poverty, then we cannot allow development to simply take its course. Even at this current fast pace, it will take decades before we reach the average European level of prosperity. We must take practical steps to intervene, to take a short-cut towards an improved quality of life for our rural citizens.

This is the first time that I am announcing from a podium that at the next Armenia Diaspora Conference, we will be launching a Rural Poverty Eradication program - a kind of Diaspora Marshall Plan for Armenia.

The Millennium Challenge Account has indeed taken on the renovation or construction of two of the most expensive infrastructure sectors - roads and irrigation canals.

Imagine that a village will, in a few years, have irrigation water and roads.

But imagine that there will be no drinking water, no health care, no school, no gas or electricity in that village.

Imagine children growing up in a 21st century rural community without access to telephone, television or internet.

Now imagine what we could do together if the Armenian government, Armenia's business community, international organizations, and you, the Armenian Diaspora came together to leverage the MCC contributions and to build on the MCC momentum. Imagine a country where development is comprehensive, even, fair and just.

Imagine an Armenia whose borders are secure because its border communities are stable, where cross-border interaction is possible, where out-migration is minimal. Imagine a day in the village filled with pride and satisfaction, rather than tears and frustration.

As investments and growth spread through Yerevan, this program will coordinate information about the many wonderful, generous programs that are already being implemented in rural Armenia by Armenian and international organizations and individuals. This program will work to remove the real and artificial obstacles to productivity, and will help identify access to markets and finance to make the village economically sustainable.

If you are wondering whether those with personal interests will allow this kind of access and transparency, join me in challenging those who obstruct. Rally the forces of the diaspora and the international community and see if we can't replace obstacle with opportunity.

Through this program, we will approach every individual, organization, parish, family and business in the Diaspora and will solicit your participation. Your time, your money, your expertise, your contacts - they are all needed so that the infrastructure is rebuilt and a village is reinvented. This program will strive to bring a new look, a new ethic, new hope to each rural community in Armenia, starting with the border villages first.

In plain language, by eradicating poverty you will be eradicating hopelessness. You will bring prospect and possibility to the most vulnerable in our society. Hope, faith and confidence transform economically empowered citizens into politically empowered citizens. And it is they who will be the best defenders of their votes, their voices and their rights in meetings, elections and throughout the governing process.

These are the major domestic challenges that Armenia faces today. But our foreign policy challenges are no less difficult and complicated. Fundamental among them are relations with our neighbors, transportation, energy diversification and conflict resolution.

Our agenda with the US today is very broad and diversified. We have transcended from being a one issue country and our relations today are built on mutual respect and interest. Armenia needs America. And America needs Armenia as a reliable partner in the region.

This year we'll be celebrating the 15th anniversary of Armenia's independence. 15 years of independence,15 years of statehood, 15 years that Armenians around the world have had an Armenia that is theirs, to which they belong, that they represent.

No longer are we just Armenian-Americans, but now, we are, whether we want it or not, whether we feel it or not, perceived as being piece of that country, that place. Our identity has changed.

The Diaspora exists, it will continue to exist, and you will need Armenia, not to substitute but to complement what you have.

The Republic of Armenia exists, it is independent, and it is ours. It still needs its Diaspora, more than ever. We must cooperate, not compete, in order to turn the Armenia of our dreams into the Armenia of our future.