This role is particularly significant for the city of Yerevan even though Districts in the capital, unlike the other Communities, do not have the power to enact rules for this sector. Informal and formal local government connections are essential for launching and operating a small business. It is no wonder then that many Community leaders, especially in Yerevan, are wealthy and well-connected individuals Urban Communities may see their already limited powers decline with the upcoming plan for the privatization of public utilities. Armenia's power grid is due to be privatized in the year 2000, and the government has found a foreign operator for the water supplies and sewage network. The national telephone company, ArmenTel, was sold to a Greek firm in 1998.
Public transportation is increasingly in private hands.
Similarly, most hospitals and policlinics are run by the ROA Ministry of Health. Pensions and other social benefits are paid from a centralized fund which is managed by and accountable to the ROA Ministry of Social Welfare.