Due to lack of public awareness, experience and mechanisms for including environmental concerns into overall socio-economic development, the current period of intensive social, economic and political change has unfavorably impacted all aspects of Armenia's environment. These conditions have negatively affected life expectancy and public health, as well as economically important wild plant and animal species, ecosystems, and the economy in general. Current prospects for improving environmental conditions are slim. There is a great disparity between the funds available and the numbers of polluted areas needing rehabilitation, and it is unrealistic to expect an increase in expenditures in the near future. Even economic recovery and increased funding for environmental protection will not greatly help given the current reactive management system and the lack of public awareness and involvement in decision making.
Economic issues are an important aspect of the struggle for sustainable development.
Along with financial shortcomings there are capacity development problems that have to be addressed. Armenia's legacy includes a neglect of environmental issues during the process of developing and implementing economic policy, an inefficient environmental management system, a poor communications infrastructure, regional isolation, and the dislocation caused by the transition to a market economy. However, analysis shows that the most acute problem is the lack of public involvement in decision making. This is a recent problem. Before independence, Armenia had a strong but extremist environmental movement fighting for the closure of all hazardous industrial enterprises in the country.