Armenia is a presidential republic and a transitional democracy. The Armenian Constitution provides for the separation of powers. But the President, who is elected by the people in universal direct elections every 5 years, is recognised as both head of state and head of government. He has broad executive and legislative powers. The Prime Minister is nominated by the President and approved by the unicameral National Assembly. Parliamentary and Presidential elections in 2003 saw the re-election of the incumbent President for a second 5-year term.

The elections were marred by serious voting irregularities. The governing coalition holds 92 seats in the 131-seat National Assembly, independents hold 17 seats and the opposition holds 22 seats. There are 6 women in the National Assembly but none in the Cabinet. Nor are there any ethnic minority representatives in the Assembly or Cabinet. The continuing situation of large numbers of refugees from the Armenian enclave of Nagorno-Karabakh in Azerbaijan remains a serious issue.

Discrimination on the basis of race, gender, disability, language or social status is prohibited, but social discrimination is reported against women, ethnic minorities and persons with disabilities.

During the slow transition to a market economy, a 7% inflation rate and 20% unemployment have resulted in 43% of the population living below the official poverty rate. Income levels are highly skewed, with wealth consolidated in the hands of a few.

The judiciary is reported to be under pressure from the executive branch. Corruption and impunity are problems, with the National Police and National Security being independent of any government ministry. Military hazing of recruits is said to be widespread.

Freedom of speech and of the press are guaranteed in law but limited in practice. Violence and intimidation cause self-censorship among journalists. Television and radio provide most people with news and information. Senior officials in the President's office influence news coverage by providing policy guidance to Public TV of Armenia. The law on Freedom of Information is rarely followed.

Armenia is a source, transit and destination country for women and girls trafficked for sexual exploitation. HIV/AIDS levels are relatively low but rising among intravenous drug users. There are reports of harassment of homosexuals and of Yezidis, a non-Muslim, Kurdish, religious-ethnic minority.

The Armenian government's Poverty Reduction Strategy Paper indicates that, primary education having been universalised, the government's focus has shifted to increasing access to secondary education. Secondary education begins at age 10. Legally, education is compulsory for ages 6 to 17, with girls and boys having equal educational opportunities.

Officially, compulsory education is free of charge, but schools levy informal fees. Private tuition is paid to teachers by parents for lessons provided privately to students. The overall cost of such tuition is said to be the equivalent of state funding for teachers' salaries. Textbooks are no longer free of charge. The high costs of attendance and transportation have become prohibitive for some parents and are reported to be responsible for lowering attendance rates. Yezidi children are reportedly discriminated against by teachers and classmates. Many facilities are in poor condition. Concern is being raised that a two-tier system of education is developing.

A 4-year programme of ECE begins at age 3. 2% of ECE is now private. The Gross Enrolment Ratio (GER) is 31%. All 5,422 ECE teachers are women, and 56% are trained. The pupil/teacher ratio (PTR) is 9 : 1.

Primary education begins at age 7 and ends at age 10. The Net Enrolment Ratio (NER) is 94% (92% of boys, 95% of girls). 1% of primary education is private. 82% of children complete primary school, and 99% of graduates enrol in secondary education. There are 6,646 primary teachers, of whom 99% are women and 67% are trained. The PTR is 22 : 1.

Secondary school begins at age 10 and lasts for 7 years. 1% of secondary education is private, but private tuition by teachers in public schools is common. 50% of secondary students are female. 29,092 teachers are employed in lower secondary and 10,867 in upper secondary schools. 67% of secondary teachers are trained (54% of men, 70% of women). The PTR is 10 : 1 in lower secondary and 9 : 1 in upper secondary school.

There are 79,321 students (55% female) in tertiary education, but it is reported that all doctoral candidates are men. 28% of tertiary education is private. There are 12,161 tertiary educators (46% female). There are 3,346 students (24% female) from abroad studying in Armenian tertiary institutions; they come from Central Asia (1,014), Central and Eastern Europe (718), the Arab States (658) and East Asia. Meanwhile, 3,346 Armenian students study overseas, mainly in the Russian Federation (1,239), the USA (412), Germany (371), France (290) and Belgium (42).

Discrimination against persons with disabilities exists in education and in other public services. Institutionalised adults and children are reported to receive substandard care. International agencies work with the government to improve special schools and integrate children with special needs into public schools Adolescents held in juvenile facilities rarely get the schooling required by law.

Despite the 1994 settlement of a conflict between Azerbaijan and Armenia that was mainly in the border region, internally displaced persons (IDPs) were relocated within the country. The issue of internal displacement in Armenia has remained outside the political debate. The Representative of the UN Secretary-General on IDPs reported that issues of shelter, safe access to land, opportunities for self-sufficiency and access to health care and education had not been addressed. The government cooperates with the office of the UN High Commissioner for Refugees to assist the 360,000 refugees from Azerbaijan and 12,000 Armenian refugees from Chechnya.

A lack of Yezidi teachers and books in the Yezedi language results in a high proportion of Yezedi children not attending school. Economic reasons are also cited. Economic and social conditions of minority groups have deteriorated substantially since independence. National minorities have the right to preserve their cultural traditions and language. Although linguistic minorities are allowed to publish and study in their native language, only token publications in minority languages are readily available. By law, all children of citizens must be educated in Armenian-language schools, with very few classes available in the languages of minorities.

Reports do not indicate that the government restricts academic freedom, but the political climate is conducive to self-censorship. Access to the Internet is not restricted.

Men and women have equal status in law, but discrimination is a problem in both the public and private sectors. Women are entitled to receive equal pay for work of equal value, but remuneration for women can be as low as 40% of men's earnings. Women do not have the same professional opportunities as men and are reported to be relegated to lower-skilled jobs. Discrimination in employment and hiring because of pregnancy is forbidden, but high unemployment rates have resulted in discrimination.

There is no law banning domestic violence against women, which is widespread. NGOs provide shelter to battered women. The law does not prohibit sexual harassment.

The minimum age for employment is 16, but, with the permission of parents and the labour union, children may work from age 14 in non-dangerous situations. Children under 18 are prohibited from working overtime or in harmful and dangerous conditions or at night or on holidays. Since the law is enforced by community councils, different regions have different enforcement patterns. It is not illegal for children to work in family businesses and on family farms. Children work in the informal sector and sell on the city streets or work in local markets.

There is little access to education in rural areas, and for many children during harvest season work in fields takes precedence over school. The number of homeless children continues to grow.

Workers have the right to form and join trade unions and to organise and bargain collectively. Little collective bargaining takes place, and employers set pay scales without consultation or negotiation. Personnel in the armed services and law enforcement have limited labour rights. Forced and compulsory labour is prohibited but occurs.

The monthly minimum wage of $24 (13,000 drams) was set by decree and does not provide a decent standard of living for a worker and family. 43% of the population lives below the poverty level of $2 (1,000 drams) a day, and an estimated 15.9% of the population has a daily income even less than $1 (500 drams).