"LEGAL ALLIANCE" Law Firm: Localization of EU LAG Institute Experience in Armenia

STEMNEWS.am continues the special project "LEGAL ALLIANCE Law Firm: At the Crossroads of Legal Innovation". In the 2nd article of the special project, "LEGAL ALLIANCE Law Firm: Localization of EU LAG Experience in Armenia", we will present how the company has contributed to the localization of the Local Action Groups (LAG) institute operating in the European Union in Armenia.

LAGs: From EU to Armenia

LAGs began their history in the European Union as a key element of the LEADER program. This model was created to solve rural community development issues and ensure communities' direct participation in development processes.

European experience has shown that the LAG model is particularly effective in countries where there are territorial development disparities. Since 1991, this model has been successfully implemented in EU member states and later spread to Eastern Partnership countries.

This successful model is based on several key principles that ensure its effectiveness. First and foremost, LAGs are based on a "bottom-up" approach, where community members determine their own development priorities. Each LAG operates in a clearly defined geographical area, taking into account local characteristics. The next important principle is local partnership, where government structures, the private sector, and civil society work together. LAGs implement a comprehensive strategy, simultaneously addressing economic, social, and environmental issues. Network cooperation and innovation are also important components of the model. Networks created between LAGs contribute to experience exchange, while innovative approaches allow finding new ways to solve problems. International cooperation opens new opportunities for resource and knowledge exchange. The combination of these principles creates a model that effectively solves local development problems based on active community participation and cooperation. The success of the LAG model in the EU and subsequently in Eastern Partnership countries proves its viability in different contexts.

The implementation of LAGs in Armenia opens new opportunities for community development. This model is particularly relevant for our country, where rural communities often face development disparities and resource limitation issues.

Armenian Context: Study and Application of EU Experience

Through the implementation of LAGs, Armenian communities receive a new development tool that simultaneously:

• strengthens local democracy

• promotes economic development

• contributes to social cohesion

• creates new opportunities for international cooperation

"Legal innovation is part of our DNA," notes Karen Zadoyan, founder and president of "LEGAL ALLIANCE" law firm. "When we received the opportunity to study and localize the EU LAG experience, we accepted it as an opportunity to create a new legal tool for the development of Armenian communities."

The company's legal team carefully studied the experience of EU countries. Particularly noteworthy were the examples of Eastern European countries that had also gone through this path. Some countries chose immediate legal entity status, while others went through phased development.

For Armenia, "LEGAL ALLIANCE" law firm developed a special model based on a phased approach. In the first phase, LAGs were formed based on partnership agreements, in the second phase, LAGs carried out their pilot activities as informal unions, in the third phase, they were registered as non-governmental organizations, and in the fourth phase, they established the "ARMLAG" national network of LAGs.

"This allowed us to solve two important issues," notes the company president. "First, communities had the opportunity to gradually familiarize themselves with and master the new way of working. Second, we were able to find a legal solution without the need for legislative changes."

Five LAGs were successfully registered in Armenia's Lori and Tavush regions:

• "Aghstev Valley"

• "Tashir Plus"

• "Tsili Tsov"

• "Lori Valley"

• "GanDzor"

These organizations now operate as full-fledged non-governmental organizations while maintaining all essential characteristics of EU LAGs. On October 30, 2024, five LAGs operating in Lori and Tavush regions and three LAGs operating in Shirak region established the "ARMLAG" national network of LAGs. "The success of our model shows that it's possible to combine European experience with Armenian reality," concludes Karen Zadoyan. "This opens a new page in the history of Armenian community development."

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"LEGAL ALLIANCE's" Digital Solutions for LAGs

"LEGAL ALLIANCE" law firm has not limited itself to creating just a legal framework. The company has developed a complete package of digital tools to ensure effective LAG operations.

"A modern organization must have digital management tools," notes Karen Zadoyan. "We have created a unified system of digital forms and documents that facilitates the daily work of LAGs."

"These digital solutions are already being successfully applied in all eight LAGs created in Armenia," adds the company's president. "They significantly increase the efficiency and transparency of organizations' work."

The digital solutions are particularly useful for member and volunteer registration. For example, the electronic registry allows viewing member composition, their activity, and payment status at a glance.

"We have created a digital solutions system that can serve as an example for other similar organizations," concludes Karen Zadoyan.

Next Article in the Special Project

In the next article of the special project "LEGAL ALLIANCE Law Firm: At the Crossroads of Legal Innovation", we will reveal how "LEGAL ALLIANCE" law firm contributes to the development of non-profit law in Armenia. We will address the characteristics of this institute and state registration processes. The article will present how the company combines its legal expertise and legal innovation to develop law and legal practice in Armenia.

Details in the video.