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EARLY IN THE 4th century, Armenia became the first nation to adopt Christianity. In 1828, the country was annexed by Russia and later became part of the Soviet bloc. In 1988, Armenia began fighting Azerbaijan, its Muslim neighbor and fellow bloc member, over rights to the area of Nagorno-Karabakh. The fight continued after both countries won independence from the Soviet Union in 1991. A cease-fire was negotiated in 1994, but the war had taken an economic toll on both countries. In 1995, guided by the International Monetary Fund (IMF), the Armenian government initiated reforms that began a period of economic recovery.

Despite its status as a lower-middle-income country, Armenia faces a poverty rate that encompasses 55 percent of the population, with 8.5 percent of the people living in extreme poverty. Single mothers with children under the age of 5 make up 60 percent of Armenia's poor. Poverty has spread in part because of the 30 percent unemployment rate, which has created an environment in which 51 percent of the population are undernourished. Income is distributed unequally, and the poorest 20 percent of Armenia's people share 6.7 percent of the country's income, while the richest 20 percent hold 45.1 percent of the wealth. Armenia is ranked 37.0 on the Gini Index. The United Nations Human Development Report ranks Armenia 82 of 177 on general quality-of-life issues.

Armenia's economy is diversified, with 45 percent of the population engaged in small-scale agriculture. The agricultural sector does not generate sufficient food to feed the country, so Armenia imports most of its food. Some 25 percent of Armenians are employed in industries that revolve around the production of machine tools and textiles. While Armenia's natural resources include gold, copper, molybdenum, zinc, and alumina, none of the deposits are large and mining is limited.

The Armenian population of 2,982,904 enjoys a life expectancy of 71.55 years. Females have a distinct advantage over males, with a projected life span of 75.75 years as compared to 67.97 years for males. This may be partially due to the fact that 64 percent of the male population smoke, but only one percent of the female population smoke. With a median age of 30.07 years, 21.6 percent of the population are under the age of 14, and 10.9 percent have reached the age of 65. There are 287 physicians for each 100,000 residents in Armenia, and roughly half of the population has access to affordable essential drugs.

Armenian infants have a mortality rate of 23.28 deaths per 1,000 live births. Again, females are hardier than males, with a mortality rate of 17.13 per 1,000 as compared to 28.51 for male infants. Infant mortality has steadily declined over the last decade. The mortality rate of children under the age of 5 is 33 deaths per 1,000. Among children in this age group, chronic malnutrition increased from 12 percent in 1998 to 14 percent in 2000. Some 13 percent of under-5s suffer from moderate to severe stunting, and two percent suffer from moderate to severe wasting. Some 7.9 percent of all babies are underweight at birth. Childhood immunizations are stable in the 90 percent range for all children from birth to 23 months, and polio has been eradicated. Approximately 40 percent of Armenian children receive lifesaving oral rehydration therapy when they are ill.

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