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USAID Report 1999

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USAID Report 1999 Fiscal Year 1999 Annual Report Presented to the U.S. Agency for International Development by the Eurasia Foundation January 31, 2000 Table of Contents I. Overview II. Actual Accomplishments Compared to the Goals Established for the Period Of Oct. 1, 1998 - Sept. 30, 1999 (FY99) Through grantmaking and projects, provide on-the ground assistance to the widest possible audience: a. Reach b. Responsiveness c. Measuring Impact – Strategic Plan and Evaluation d. Leverage funds e. Complement USG efforts f. Raise private funds III. Report By Strategic Objective (SO) A. SO 1.2: Increased soundness of fiscal policies and fiscal management practices. B. SO 1.3: Accelerated development and growth of private enterprises. C. SO 1.4: A more competitive and market-responsive private financial sector. D. SO 2.1: Increased, better-informed citizens’ participation in political and economic decision-making. E. SO 2.2: Legal systems that better support democratic processes and market reforms. F. SO 2.3: More effective, responsible, and accountable local government. IV. Appendices A. Expenditure Chart By Strategic Objective B. Description of Foundation Projects 1. Small Business Loan Program (SBLP) 2. Economics Education and Research Consortium (EERC) 3. Media Viability Fund (MVF) C. FY99 Grants List By Strategic Objective (includes description of FY99 Grant Competitions) D. Status of Loan Portfolio as of Sept. 30, 1999 I. Overview 1 The Eurasia Foundation The Eurasia Foundation promotes the development of democratic institutions and private enterprise in the twelve New Independent States of the former Soviet Union (NIS). Created in 1993 with a major grant from the U.S. Agency for International Development (USAID), the privately managed Eurasia Foundation began its mission by establishing a grantmaking network specially designed to meet the needs of organizations in the field. By 1995, the Foundation had opened seven grantmaking offices throughout the NIS: Kyiv, Moscow, Saratov, Tashkent, Tbilisi, Vladivostok, and Yerevan. The Foundation added a grantmaking office in Almaty in 1999 and is currently expanding its Baku office—increasing its grantmaking network to nine field offices. In addition to managing grant programs, the Foundation directly implements several projects in areas where achievement of its goals requires more comprehensive efforts. This report summarizes the accomplishments of the Eurasia Foundation in Fiscal Year 1999 (FY99). In addition to the ongoing implementation of its grant and project activities, the Foundation undertook in FY99 an in-depth assessment of its programs and conducted a strategic planning process with a five- year perspective. This year’s achievements are rooted in the results of this long-term review and include: more targeted grantmaking in private enterprise development, public administration, and civil society; key milestones in the Foundation’s projects in small business lending, economics research and education, and promoting independent media; an increased focus on program evaluation; and a remarkable $8.3 million in funds raised from non-U.S. government sources. Eurasia Foundation Grantmaking In just six years, the Foundation has awarded over 4,466 grants, totaling more than $94.8 million of funds from USAID and other sources. In FY99 alone, the Foundation made 970 grants, totaling $18.2 million, with an average grant size of $19,000. The field offices are responsible for approximately 85 percent of all Foundation grants, which they make directly to local organizations in the areas of private enterprise development, public administration, and civil society. These grants can range from as little as a few hundred dollars to as much as $35,000 or more. The Washington, D.C., office conducts a partnership grant program that comprises roughly 15 percent of the total grants budget. These partnership grants link U.S. and other Western institutions to their counterparts in the NIS with the aim of transferring skills and institutional capacity. Since its creation, the Foundation has funded more than 450 partnerships, 28 of which were in FY99. A complete list of grants made in FY99 is available in Appendix C of this report. 2 Eurasia Foundation Projects In addition to its grantmaking program, the Foundation mobilizes private and government resources to address critical needs not being met by other assistance programs. The Foundation currently operates several such projects, including a small business loan program, an economics education and research project, and an independent media initiative, which are outlined briefly below. More detailed information about these three lead projects can be found in Appendix B. Other project initiatives are discussed in Section II and in Appendix C of this report. The Small Business Loan Program (SBLP) seeks to generate a more robust small business sector by providing working capital to small and medium businesses while offering hands-on training in effective lending practices to its partner banks in Armenia and Ukraine. In FY99, SBLP received a $3 million donation from the Izmirlian Foundation to expand its program in Armenia. Appendix D contains the Status of Loan Portfolio as of September 30, 1999. The Economics Education and Research Consortium (EERC) promotes increased capacity in economics through teaching and research and their connection to sound policy. In Russia, the EERC provides small research grants and a series of complementary seminars, publications, and practical application of research. In Ukraine, the EERC administers a Master’s in Economics program at the University of Kyiv Mohyla Academy. EERC Ukraine has graduated two classes, with almost half of the graduates continuing their studies in North America or Europe and some 35 percent finding employment in the public sector in Ukraine. The Media Viability Fund (MVF) is a joint effort of the Eurasia Foundation and the Media Development Loan Fund (MDLF) to promote a financially independent news media. MVF provides loans to independent regional media for equipment and technical consulting in financial and media management. The MVF has been working with nine clients in Russia and Ukraine, and in FY99 its first two printing presses began operating in Chelyabinsk, Russia, and Lviv, Ukraine. Also in FY99, the MVF received a grant of $528,000 from the Dutch government to expand the project’s technical assistance activities. New Strategic Approach Five years into its operations, the Foundation conducted in FY99 a nine-month strategic planning process to reexamine its purpose and potential and to set priorities appropriate to the current stage of development in the NIS. Foundation trustees, worldwide staff, and outside experts reviewed the Foundation’s programs and conducted more than 40 interviews of grantees, technical assistance providers, and U.S. government officials. The process yielded a new conceptual framework emphasizing outcomes rather than activities that now guides the Foundation’s approach to program implementation and resource allocation. 3 This new approach does not change the scope of the Foundation’s mission or its programs. Section III of this report shows how the Foundation continues to make contributions to and reports on these contributions for all six USAID strategic objectives (SOs): 1.2, 1.3, 1.4, 2.1, 2.2, and 2.3. The new conceptual framework concentrates the Foundation’s activities in three program areas, outlined below. Grantmaking and projects in these areas are intended to promote simultaneously both democratic institutions and private enterprise. This linkage reflects the Foundation’s belief that developing market- oriented democracies is an interdependent process that happens over time. Below is a list of selected grants made in FY99 organized under the three program areas: · Private Enterprise Development Accelerated Development and Growth of Private Enterprise · Women’s Entrepreneurship Support Foundation, Kaluga Oblast, Russia: To expand a microfinance program in the Kaluga region, including training credit officers and providing approximately 120 loans. · Experts and Consultants Intergroup, Moscow, Russia: To promote business development through consulting services to small, technology-based enterprises located in the Moscow region. · Kyrgyz National State University, Bishkek, Kyrgyz Republic: To improve management and marketing programs for business and economics students. · Public Administration More Effective, Responsive, and Accountable Local Government · Tashkent State Economics University, Tashkent, Uzbekistan: To support the introduction of a new Bachelor’s degree program in municipal management and economics as well as a retraining program for government employees. · Association for the Protection of Landowners’ Rights, Tbilisi, Georgia: To privatize agricultural land more rapidly by developing legislation based on public hearings with government agencies, interest groups, local and foreign experts, and nongovernmental organizations (NGOs). · Civil Society Increased Citizen Participation in Political and Economic Decision-making · Sakhalin Support Center for Public Initiatives, Yuzhno-Sakhalinsk, Russia: To offer NGOs technical training seminars on management and organizational development, electronic communication, and intersectoral cooperation. 4 · Adilet Higher School of Law, Almaty, Kazakhstan: To support the establishment of legal clinics administered by advanced law students, offering consultation services in civil, administrative, labor, and juvenile law to low-income
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