In a signing ceremony at the State Department?s Benjamin Franklin room on March 27, Chief Executive Officer of the US Millennium Challenge Corporation, Ambassador John Danilovich and Armenia?s Minister of Finance and Economy, Vardan Khachatryan signed a $235.65 million Compact between MCC and the Republic of Armenia. Armenia?s Foreign Minister Vartan Oskanian and MCC Chair, US Secretary of State Condoleezza Rice spoke at the signing.

I am here today, on behalf of the President of the Republic of Armenia and my colleagues here from the Armenian government, to thank President Bush, Secretary Rice, Ambassador Danilovich, the US government and the American people, for including the Republic of Armenia in the Millennium Challenge Compact.

President Bush’s visionary approach to development, which complements the invaluable assistance that has already been provided to Amenia through USAID and other US programs, continues the best tradition of American missionaries, from whom Armenians had benefited greatly.

The MCC is a natural extension of their practice –doing good born of one’s own convictions, but with the intent to nourish the recipient’s sense of self-worth and ability. In the 21st century, when philanthropy is not about charity but about finding solutions to deep-seated problems, we welcome the US government’s decision to assist and support directly those countries who have determined to rule justly, to invest in people and to promote economic freedom – in order for their citizens to live in dignity and security.

I see here our colleagues from other recipient countries, and I am certain that they join me in saying that with this grant, the US is recognizing the reality and duality of our lives – persistent poverty in the face of progress.

On the one hand, one third of Armenia’s population continues to live in poverty, two-thirds of our rural communities are not directly connected to a central water distribution system, and most of our secondary and tertiary roads do not provide the necessary access.

On the other hand, Armenia has managed, against great odds, with an unresolved conflict and with closed borders, to be ranked first in the world in best utilization of foreign assistance, to privatize and to legislate such that our economy is ranked among the world’s most liberal, and to register the highest economic growth in the region, without the benefit of extractive resources.

That is why a long consultative process concluded that for significant poverty reduction, we would request MCC funds to be spent in two critical areas of infrastructure. Our program has been consciously designed to complement the work of other donors.

With this signing of the Millennium Challenge Compact, Armenia is aware that we have the obligation to build on the confidence that has been placed in our government and people. Just as economic development is a facilitator of democratization, so is democracy a tool for further and deeper economic development. We understand that the US Government has chosen to use these funds for economic development, only when a society and its leadership comprehend their political responsibility to nurture and sustain democratic practices.

Armenia is among the world’s youngest democracies and our democratic and economic reforms are irreversible. Our significant progress notwithstanding, we recognize that much remains to be done to make these reforms comprehensive. We know that corruption must not be tolerated and that the law must rule, that the principles of democracy must be transformed to traditions of democracy in our country.

Madame Secretary, the elections of 2007 and 2008 will test our democratic practices. Our task, until then, is to partner with the US and European governments to implement the necessary corrective steps to improve the conditions necessary for an honest and fair expression of people’s voices.

In this regard, we welcome the American proposals for certain structural reforms and education and public outreach efforts. We’ve already begun the process of verifying voter lists, we’re making progress in reforming the electoral law with the active participation and agreement of all political forces in parliament. As in years past, OSCE monitors will be present and will monitor elections.

In other words, Madame Secretary, Armenia and Armenians are determined to benefit from the intent and content of the Millennium Challenge Compact. Because our people deserve no less.