Ministry of Trade & Economic Development Capacity Building The objective of this project is to strengthen the institutional capacity within the Armenian Ministry of Trade and Economic Development (MinTED). The project intends to support  the further elaboration and implementation of the MinTED's institutional development strategy. Specifically, the activities under the project will aim to strengthen the Strategic Planning and Human Resource Management processes at the MinTED, to develop monitoring and evaluation systems to support policy formulation and decision-making at the ministry level, to develop and introduce performance appraisal system, and to strengthen policy analysis capacity through support for MinTED staff's skill enhancement, including targeted training of the staff in econometrics, CGE modeling and application, and through conducting a survey of economic agents, to strengthen MinTED's public relations and its engagement with civil society. TF092478 The development objective of this project is to build capacity at the Ministry of Trade and Economic Development through introducing new and innovative practices into their internal processes and piloting advanced models of policy making. The Ministry is responsible for private sector development agenda including tax policy optimization for further improvement in the business environment. This project brings policy analysis aspects in Armenia closer to international sound practice by providing technical assistance to build up institutional capacity in the Policy Formulation Divisions of the MinTED. This grant will finance activities through engaging international consultants for the Ministry of Trade and Economic Development (MinTED) of Armenia with the goal of building institutional capacity within the ministry. Such a goal will be pursued through supporting the further elaboration and implementation of the MinTED's institutional development strategy and strengthening policy analysis capacity. Specifically, the activities under the project will strengthen the strategic planning and human resource management processes at the MinTED, develop monitoring and evaluation systems to support policy formulation and decision-making at the ministry level, develop and introduce performance appraisal system (note: MinTED is the pilot ministry out of 40 agencies in the civil service system where the performance appraisal system should be applied according to PRSC and PSMP targets), strengthen policy analysis capacity through support for MinTED staff's skill enhancement, including targeted training of the staff with economic and econometric background on Computable General Equilibrium (CGE) modeling and application, and through conducting a survey of economic agents, strengthen MinTED's public relations and its engagement with civil society.  Such assistance will help the MinTED, responsible for observing and planning country wide and multi-sector systemic reforms (in various areas including tax policy) to prepare and implement a medium-term formal policy strategy taking into consideration CGE and econometric modeling and analysis as well as the authorities' plan to promote the development of a monitoring and evaluation systems. In addition, the project aims at fostering sustainable private sector development, mainly through the reform of tax policy framework and improved business environment. This can be measured by effective implementation of revised policies and tested by annual business survey showing private sector#s perception about cost of doing business in Armenia.  The rationale for this project relates to implementation of the second generation of policy reforms. These events will likely require improved public policy formulation and broadening the choices for provision of high quality public services amid significant challenges and opportunities for private sector expansion in Armenia.