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MERCY CORPS 2002 Annual Report TABLE OF CONTENTS Introduction Inside front cover Letter from the Executive Team 2-3 Afghanistan and Pakistan 4-7 Kosovo 8-11 Ferghana Valley 12-15 Indonesia 16-19 Guatemala 20-23 Realizing Solutions 26-33 Global Map 36-37 Acknowledgements 38-47 Mercy Corps The Mercy Corps Family Making a Difference, Changing the World 2002 Annual Report Partners in Mercy Founders Circle Mercy Corps is an Good Samaritan Society United Nations and Government Partners international relief and Resource Partners development organization Foundations and Corporations Faith Communities that reaches more than five Financials 48 million people in 38 countries Officers and Board Members 49 and regions torn by poverty and conflict. With support from donors worldwide, the more than 2,000 staff, volunteers and partners of Mercy Corps change lives each day by working hand in hand with those who seek to build a better future for their families and their communities. We renew hope. We find solutions. We leave behind a legacy of change. ow does change happen? Today Mercy Corps is bringing these And can it be sustained in a world torn lessons to a new humanitarian arena Hby war and poverty? — Iraq. The needs are intense and Those were the two questions we set out the task of rebuilding will be long. to answer in this year’s annual report. But as this report shows — even in the most difficult circumstances — Our methodology is to explore four case change is possible when people set studies from Mercy Corps’ recent past in aside differences and search for which communities have succeeded in common bonds. overcoming obstacles once thought insurmountable. Each example comes from a different part of the world, with a different set of problems. There is a common thread. In each case, Mercy Corps helped community members find their own voices, their own strength, and ultimately their own solutions. In the process, we left behind stronger com- munities and stronger civil societies. A Letter from the Executive Team Dear Friends and Partners, e are living in historic times. Since September 11, 2001, our together, if we engage our political leaders, if we bring new ideas directly to sense of security has been shattered. Afghanistan, the war on hurting communities, if we push for greater transparency and W terrorism, homeland security, pre-emptive strikes, now Iraq — accountability, if we focus daily on results — then we will succeed. Our these are the signs of our times. world will become more just, secure, and productive. Hope will prevail Where will all this lead? What will the future hold for our where fear and uncertainty once resided. children, for all the world’s children? We search for understanding, This is exactly what Mercy Corps is doing daily in more than 30 for the right kind of action. struggling countries and republics, directly touching more than five There are no simple solutions, fast fixes or easy answers. Mercy million people. We seek not just to meet needs but to eliminate them, Corps believes this — military might alone will not end terrorism. to redress the root causes of poverty and despair, to provide both The battle for a better world requires a sustained assault against relief and long-term solutions. We work not simply as angels of those terrible conditions upon which terror and violence breed and mercy, but as ambassadors for peaceful problem solving, for Dan O’Neill Neal Keny-Guyer feed — abject poverty, hunger, disease, ignorance, intolerance, and fear. promoting the rule of law, and strengthening civil societies. Winning the peace always and everywhere means bringing hope — for This year’s annual report provides four case studies on how positive the one billion people on our planet who live on less than $1 per day, for change happens, frequently in the aftermath of war and conflict, when those millions who live without basic political and human rights, for the solutions seem impossible. We offer them as proof positive that successful seven million children who die each year from preventable diseases, for the strategies can help build a better world with the help of loyal donors, an 42 million individuals infected with the AIDS virus, for the 100 million expert team, tireless volunteers, and enthusiastic local partners. For all your children who never go to school, and for those millions of families forced commitment and sacrifice, we offer our sincere gratitude. from their homes because of war and conflict. Unprecedented commitment, creativity, coalitions, and resources compose the cornerstones for building a better, safer world. If we work Dan W. O‘Neill Neal L. Keny-Guyer President and Co-Founder Chief Executive Officer 2 3 afghanistan ercy Corps is committed to providing M humanitarian support that is appropriate, timely and respectful of people’s dignity, empowering the people with whom we work to move beyond crises and lay the foundation for a more hopeful future. Nowhere is this commitment more vital than in Afghanistan. Twenty-three years of war and five years of ongoing drought — with no end in sight — have left this country uniquely impoverished and virtually destroyed. More than four million Afghans are still refugees in neighboring countries. Mercy Corps’ work supports Afghans in their desire to return home by equipping them with the skills and tools needed to reinvigorate a land devastated by conflict and drought. Long-term development in Afghanistan means not just rebuilding local economies, but also recognizing that without addressing issues of inclusivity and community stability, Afghanistan could remain mired in poverty, insecurity and intolerance. 5 change in afghanistan ercy Corps has been working in long-term stability within Afghanistan. M Afghanistan and in Pakistan assisting Through a dual approach of providing both Afghan refugees since 1986. Our long-term financial and technical services to new and programming there — agricultural and infra- existing businesses, Mercy Corps ensures that structure development, drought mitigation, program participants have the skills needed to health care, and orthopedic rehabilitation — launch their own small businesses in has continued with only minor interruptions Afghanistan’s embryonic business climate. due to the military action that followed To this end, we recently launched the September 11, 2001. Chelsitun Women’s Center in Kabul — notable But many Afghans are returning to villages because it was constructed brick by brick by that are completely destroyed and land that both men and women. The Center’s cornerstone has been devastated by drought. Mercy Corps activities connect low-income women from one quickly realized that we needed new ways to of the hardest hit neighborhoods in Kabul with implement our programs and ensure commu- vocational training opportunities, and provide nity stabilization by including all Afghan citi- microcredit loans and technical assistance to zens in rebuilding this ravaged country. male and female entrepreneurs. Through these Infrastructure reconstruction and agricul- activities, Mercy Corps’ program in Kabul will tural projects are a major priority in help build a foundation for economically stable Afghanistan. Mercy Corps has taken a cash for communities by increasing income and employ- work approach to many of our reconstruction ment for all. initiatives, focusing on labor intensive projects Today, Afghans are heading home in record that require a large number of workers. The numbers. This unprecedented repatriation goal: to create employment opportunities and demonstrates the hope and optimism of the increase family purchasing power, while pro- Afghan people, but also presents new chal- viding desperately needed improvements in lenges for the international community. We rural infrastructure. This injection of cash into must continue our collective commitment to local economies enables families to buy much stay engaged. As Molly Little, Mercy Corps’ needed commodities and services, pay off Shelter Project Manager in Kabul, was quoted debts, and minimize the need for migration in in the New York Times, “What has taken many search of income. years to destroy will require a patient, sus- Mercy Corps also considers the creation of tained effort to rebuild.” economic opportunities critical to achieving 6 7 < < < case study : Kosovo challenge: A decade of ethnic hostility, culminating in the 1999 conflict between NATO forces and Yugoslavia, destroyed Kosovo’s largely rural economy. With so much tension between Serbs and Albanians, how can the region rebuild its economy and create jobs? 9 case study : practical peace building in Kosovo Vesco Savic solution: Citizen of Kosovo ercy Corps believes in practical peacebuilding. If people Initially, there was considerable I am a Serb living in Kosovo. M have been fighting each other for years, one cannot fear and suspicion. How can I trust a I own a greenhouse business. I have an Albanian friend, simply hold a meeting at the town hall and expect everyone to Serb not to cheat me? How can I trust Xhelal Ramadani, who also speak freely and work together amicably. One way to start a an Albanian not to poison the milk? owns a greenhouse. dialogue is to find shared interests — But optimism and economic self- I believe it’s possible to creating jobs, building roads and interest are powerful incentives for expand this industry. Mercy Corps is helping us to generating income, to name but a few. risk taking. Soon, hundreds of farmers achieve this by providing opportunities for Serbs In Kosovo, ethnic Serbs and Albanians and small entrepreneurs were taking and Albanians to work closely together for the have been fighting for years. But in this part in the program. good of both groups. primarily agricultural region, each group In the village of Livoc, for example, Mercy Corps’ May 2001 and June 2002 shared one overpowering common Mercy Corps provided a loan to an regional conferences helped enormously by interest: the need to produce and sell food.