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Russia
FY 2001 Program Description and Activity Data Sheets
>> Regional Overview >> Russia Overview FY 2001 Program
Consolidating the strategy developed as a result of the 1998 economic crisis, USAID will continue to move away from programs with the central government. In FY 2001, USAID assistance will continue to promote the development of democracy and private enterprise in Russia. In addition, assistance will be directed to mitigating the social costs of the transition. Overall in FY 2001, USAID will direct funding toward reform-minded regions under the USAID Regional Initiative, which includes the Russian Far East, Samara and Novgorod, and a fourth Regional Initiative site in Tomsk. USAID-supported activities in these regions will assist economic, democratic, and health and social sector reforms. Economic reform activities will include the development of micro-credit facilities; small- and medium-enterprise support by Russian-run business development centers; assistance to local and regional governments interested in building an investor-friendly business climate; and the expansion of environmental activities with Russian partners. Activities will also include provision of assistance to targeted banks, the possible continuation of work on tax reform (mostly in the regions); and funding Russian policy think tanks to develop and disseminate applied policy advice on Russia’s most critical economic issues.
In addition, USAID will continue to promote adoption of international accounting standards that are necessary to attract foreign investment. In the area of democratic reform, USAID will support civil society development through assistance that targets non-governmental organizations, independent media, rule of law, and political processes. Human rights, anti-corruption, and violence against women are additional areas of focus. In health and social sector reform, USAID programs support Russian orphans, provide assistance to slow the spread of HIV/AIDS and tuberculosis, and enhance women’s reproductive health, with a focus on maternal and child health. USAID projects will also include evaluations, socio-economic studies, and the provision of targeted training to Russians in technical fields both in the United States and in Russia. The broad economic and democracy small-grants program of the Eurasia Foundation will continue.
A significant share of the FREEDOM Support Act (FSA) funds allocated for Russia in FY 2000 and 2001 will be provided for programs designed to enhance Russian export control capabilities, and contribute to the nonproliferation of weapons of mass destruction and associated delivery systems, materials, technologies, and expertise. Special emphasis will be placed on redirection of former biological warfare scientists and facilities to peaceful research and development activities that address global, public health concerns. Additional funds also will be made available to support the relocation of military forces in Transdniestr and the disposal of ammunition stockpiles located there. Other U.S. Government agencies providing technical assistance to Russia through inter-agency transfers from the FSA account include: the U.S. Environmental Protection Agency, the National Research Council, the National Science Foundation, the U.S. Departments of Health and Human Services (Center for Disease Control tuberculosis activities), the U.S. Treasury (banking, tax and budget reform), State (USIA exchanges, law enforcement and humanitarian transport), and the Departments of Commerce (private sector initiatives), and Justice (anti-corruption initiatives).
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ACTIVITY DATA SHEET
PROGRAM: Russia
TITLE: Accelerated Development and Growth of Private Enterprise, 118-013
PLANNED FY 2000 OBLIGATION AND FUNDING SOURCE: $11,047,000 FSA
PROPOSED FY 2001 OBLIGATION AND FUNDING SOURCE: $11,547,000 FSA
STATUS: Continuing
INITIAL OBLIGATION: FY 1992 ESTIMATED COMPLETION DATE: FY 2010Summary: More than a year after the August 1998 devaluation, the Russian economy remains turbulent although significantly more stable. Despite this stabilization, the Russian Government’s policies are not encouraging the private sector to take advantage of the tremendous business opportunities in Russia. To ameliorate this situation, USAID activities stimulate economic growth by fostering the development of micro, small and medium enterprises in Russia. The ultimate aim is to create a more prosperous market-oriented economy capable of meeting the economic needs of the Russian people. To achieve this objective, USAID supports (1) business training for individual entrepreneurs in marketing and western management practices; (2) on-site client focused business consulting services; (3) the formation of effective and sustainable business associations, trade organizations and business support centers; and (4) access to credit for small private businesses.
The direct beneficiaries of these activities are the entrepreneurs who receive the services and credit provided by USAID-funded organizations. These entrepreneurs will create long-term employment, and their businesses will drive economic growth. As these strong small and medium sized businesses grow and expand their operations, they will attract greater foreign and domestic investment. In addition entrepreneurs will advocate for changes in the policies, regulations and practices that constrain their businesses. The indirect beneficiaries include the people employed by these businesses and the businesses’ customers. This objective directly supports the U.S. national interests of economic prosperity and national security, as defined in the U.S. Embassy’s Mission Performance Plan for 1999. Specifically, the activities under this objective promote Russian economic recovery and strengthen U.S.-Russian commercial relations. As a result, Russian stability should increase, helping to secure U.S. national security and economic prosperity.
Key Results Three key results are necessary to achieve this objective: (1) small- and medium-sized businesses that flourish over time; (2) successful models of private ownership and modern management that are widely replicated; and (3) the widespread adoption of modern management practices by private firms, which then attract external financing.
Performance and Prospects: Over the past seven years, USAID support has played an instrumental role in promoting local initiative to develop viable private enterprises. USAID-assisted businesses have improved their ability to access external financing, as witnessed by the $36.9 million obtained by the client firms of USAID’s business support centers through 1999. During 1999, USAID provided a total of $2.5 million in micro loans to 2,718 borrowers. From the inception of the program, USAID has provided a total of $8.4 million in micro-credit loans to 5,822 entrepreneurs. Since 1997, USAID has allocated over $5 million of this total to women, who have comprised 70% of borrowers. Since 1994, 597,505 Russian entrepreneurs received business training and consulting assistance through USAID programs. Eighty percent of Russia’s oblasts have implemented environmental management activities to help preserve Russia’s valuable resource base in economically efficient ways.
In addition, activities under this objective have improved Russia’s housing sector. USAID assistance has been institutionalized through the development of the Russian-run Institute for Urban Economics to ensure the continuation of reform in the housing sector. According to a recent outside evaluation, USAID’s housing project significantly influenced the passage of 160 pieces of legislation that provided the legal framework for housing and urban development reform. The introduction of mortgage lending, the creation of over 3,000 condominiums of ownership, and the development of the conceptual and legislative framework for housing allowances that paved the way for the acceptance of rent reform have all constituted other major accomplishments for this program.
Despite positive program performance, severe constraints impede further progress in Russia. The major obstacle to private enterprise growth is the Russian government’s lack of political will to adopt and implement stronger contract enforcement, an improved tax regime, and enhanced shareholders’ rights. Private enterprise development receives little budgetary support from the government despite the recognition that the paucity of business skills constrains economic growth. Access by private businesses to finance remains another formidable constraint. Traditional lending institutions are hesitant to supply capital due to poor business plans, lack of management skills, and limited financial knowledge in Russia’s emerging middle market private sector.
Additional initiatives planned for next year will strengthen ongoing activities and address these constraints. Increased economic policy and investment advice to the regions should improve the investment environment in selected oblasts, particularly under the Regional Initiative. Organizational capacity strengthening activities will increase the Business Support Centers’ financial viability. Continuing assistance will strengthen professional real estate associations. A heat efficiency program will improve the energy efficiency of district heating systems in selected cities in the Russian Far East. After USAID launched a Development Credit Authority project in the Russian Far East to provide credit guarantees, banks should make more loans to telecommunications and infrastructure projects such as ports, municipal services, and energy resource management.
Since the fundamental problems faced by private businesses in Russia remains unchanged, responding to Russian initiative and developing Russian capacity continues to be the key to the long-term impact of the sector on the country. The USAID-sponsored network of business support institutions, business training programs, and client focused business volunteer assignments will continue to supply Russian enterprises with tools to weather the current economic crisis and to accelerate private sector growth. Areas with greatest demand, such as micro credit, may receive increased support.
Possible Adjustment to Plans: No changes in the strategic plan for this objective are identified at this time.
Other Donor Programs: As a leader in the small business sector, USAID works with private Russian institutions, the managers and owners of private enterprises and associations of private businesses, and various Ministries and agencies of the government at national, regional, and local levels. Other donors utilize USAID models extensively and coordinate with USAID to ensure that no activity overlap or duplication occurs. For instance, technical assistance from the European Union (EU-TACIS) complements USAID-funded private enterprise development programs through the Small and Medium Enterprise Development Agency (SMEDA) initiative. While this program concluded last year, its results include the creation of 23 business support centers, of which 12 are fully self-sustaining. These centers provide training and consulting services to small and medium enterprises.
Principal Contractors, Grantees, or Agencies: USAID cooperates extensively with U.S. non-governmental organizations and for-profit contractors to implement the Mission’s broad program of support to private sector growth under this objective. They include Counterpart International, ACDI/VOCA, University of Alaska, Foundation for International Community Assistance, American Development Foundation, U.S. Energy Association, Academy of Management and the Market, U.S Russia Business Forum, Citizens Democracy Corps, Opportunity International, and Center for Citizen Initiatives.
Selected Performance Measures:
Indicator Baseline
(year)Actual
(1998)Target
(1999)Target
(2000)Target
(2001)New jobs created/sustained 0 (1997) 80,622 59,250 (estimate) 20,000 25,000 Modern management practices adopted as measured by financing ($ millions) received (cumulative) 8 (1995) 29.2 36.9 50 65 Private sector production as % of GDP* 20 (1995) 70 * 45 * New businesses created** 5,000 (1998) ** ** 25,000 **
*The indicator has been discontinued as too aggregate a measure to serve as a target for USAID.
**The indicator no longer tracked due to difficulties in data collection. The current budget includes funds to improve collection of relevant data in this area.
ACTIVITY DATA SHEET
PROGRAM: Russia
TITLE: Improved Economic Infrastructure to Support Economic Growth, 118-014
PLANNED FY 2000 OBLIGATION AND FUNDING SOURCE: $5,900,000 FSA
PROPOSED FY 2001 OBLIGATION AND FUNDING SOURCE: $5,900,000 FSA
STATUS: Continuing
INITIAL OBLIGATION: FY 1992 ESTIMATED COMPLETION DATE: FY 2010Summary: An improved economic infrastructure will strengthen the Russian economy by providing a transparent legal and regulatory framework to encourage foreign and domestic investment. Economic growth will increase, thus spurring the development of a prosperous and healthy Russian middle class. The improvement of Russia’s economic infrastructure, however, requires cooperation with federal, regional, and local governments. USAID’s ability to work with the central government is limited by law due to Russia’s continued cooperation with Iran. Hence, under this objective, USAID supports only a limited numberof activities with the central government. In FY 2000, USAID will provide technical expertise to the Central Bank, to selected regional and local governments to analyze the budgetary impact of different tax regimes, and to local policy makers to design investment policies to attract foreign and domestic capital. In other areas less dependent on the central government, USAID intervenes significantly to improve economic infrastructure. Specifically, USAID supports two important think-tank initiatives that ensure that sound economic policy analysis will be available to government decision-makers and the general public. In addition, USAID provides assistance to strengthen Russian commercial banks. Direct beneficiaries under this objective include Russian Government agencies, Russian entrepreneurs, foreign and domestic investors, and Russian think tank institutions. Indirect beneficiaries include the Russian public, which benefits from a stronger economy.
This objective directly supports the U.S. national interest of economic prosperity, as defined in the U.S. Embassy’s Mission Performance Plan for 1999. Specifically, the activities under this objective promote broad-based economic growth in Russia and encourage Russia’s progress toward the development of a legal and regulatory infrastructure for private sector growth. Positive progress will provide opportunities for international business, including U.S. business, thereby strengthening economic prosperity in the United States.
Key Results: To build an improved economic infrastructure, USAID will: (1) help develop a system for transfer of resources from center to regions; (2) strengthen the legal and regulatory framework for the financial sector; and (3) strengthen the analytical and advisory capabilities of economic think tanks to support sound policy formation.
Performance and Prospects: Economic recovery has faced two significant obstacles. First, the Russian government has made slow progress to date in implementing structural reform. Second, the Russian government’s lack of political will to invest in economic infrastructure has not only discouraged the development of private businesses but also provided a disincentive for foreign and domestic investment. Nevertheless, USAID activities have shown progress in several key areas. The USAID fiscal team lent economic and legal guidance to the Russian Government and Duma to evaluate the strengths and weaknesses of the proposed tax code and amendments. In addition, the fiscal team provided economic analysis to the Ministry of Finance, demonstrating the impact of changing taxation, in particular the personal income tax, on the hypothetical taxpayer. This assistance contributed to key improvements in Russia’s public finance policy. Amendments to the General Part of Russia’s tax code, signed into law in July 1999, brought this section of the code into compliance with the civil code. Finally, the federal government put a more transparent, objective, and efficient revenue sharing formula into place in its budget. As a result, the Russian Federal budget for 1999 included a revised formula for distribution of funds from the Federal government to the regions.
USAID work in other areas helped improve Russia’s economic infrastructure. Cooperation with the central government strengthened the weak banking system. USAID helped the central government identify insolvent banks and revoke other banks’ licenses. These actions constituted the first steps towards developing the central government’s capacity for regulatory oversight of the banking sector. Regional assistance continued to commercial banks for consulting and training in areas such as credit risk management, liquidity, asset management and mortgage lending. In addition, the Mission began working with economic policy think tanks last year to strengthen these institutions and support the formation of sound economic policies. USAID has strengthened several Russian institutions, including the Institute for Economy in Transition, through institutional and applied research support. Thirty-two papers, on topics ranging from the banking crisis to the social obligations of the state, have been published with USAID support to date - twenty-seven in FY 1999. These papers employed current economic thinking and international expertise to develop policy recommendations, which were then discussed at policy conferences open to Russian decision-makers and the general public. Finally, ongoing assistance strengthened the Sakhalin region’s energy, transportation, environmental, legislative, and financial infrastructure through the Alaska-Sakhalin Working Group and the support of Alaskan firms and banks.
In FY 1999, USAID trained 3,670 Russians in the use of international accounting standards. Over 3,000 books on international accounting standards have now been published in Russian. The International Accounting Standards Committee and the Russia Interagency Committee on Accounting Reform has accepted these standards, which are increasingly being adopted by businesses. In addition, USAID has worked at the regional level in Samara and Novgorod to provide training in international accounting standards to Russian accountants, strengthen local Russian accounting associations, and assist a number of local companies in preparing financial statements based on international accounting standards.
Possible Adjustments to Plans: Congressional legislation concerning restrictions on direct work with the Russian government may affect the Mission’s economic infrastructure program. As seen above in the description of FY 1999 activities, USAID is unable to carry out many of its public finance-oriented activities. Further refinements in these activities depend on progress in tax reform and changes as a result of the 1999 Duma elections. USAID is considering continuing its banking program as the economy stabilizes in collaboration with the World Bank. USAID may fund a Fiscal Policy Resource Center to respond to requests for economic analysis from Russian Government agencies, the Duma, the Presidency, and regional governments. More generally, under this objective USAID will ensure that its activities, to the greatest degree possible, can be replicated and continued by Russians long after USAID leaves Russia.
Other Donor Programs: USAID is a strategic player in the collaborative effort of the donor community. The World Bank. International Monetary Fund, other bilateral donors, including the European Bank for Reconstruction and Development, EU-TACIS, Germany, Japan, the British Know How Fund, as well as the U.S. Department of the Treasury collaborate in the development of technical assistance to the financial sector in Russia. USAID is a member of the Inter-Agency Coordinating Committee for Banking Reform comprised of Russian institutions and donor institutions involved in banking reform. Ongoing collaboration between USAID, the World Bank, the International Monetary Fund, the U.S. Treasury and other donors in bank restructuring will be particularly important as USAID decides whether to increase activity in the banking sector. USAID works closely with the International Center for Accounting Reform and donors such as the European Union and the British Know How Fund in its international accounting standards project.
Principal Contractors, Grantees, or Agencies: USAID implementers include: the Department of Commerce of the State of Alaska, Georgia State University, the Financial Services Volunteer Corps, the Institute for the Economy in Transition, the Moscow Public Science Foundation, Carana Cooperation, and executive ministries of the Russian Government working on tax reform.
Selected Performance Measures:
Indicator Baseline
(year)Actual
(1998)Target
(1999)Target
(2000)Target
(2001)Wider dissemination of Policy advice and publications (# paper disseminated) 1 (1998) See baseline 32 (actual) 10 15 Transparent criteria for distribution of federal funds to regions developed No (1995) Yes Improved Formula
(actual)Improved Formula Improved Formula Bank licenses revoked 225 (1995) 1004 1024
(actual)1150 1200 Legislative authority for bank restructuring agency (ARCO) passed* No (1998) No Yes (actual) * * Fixed capital formation (% increase from previous year) 87 (1995) 95.5 100 ** ** *Since this indicator has been accomplished, other targets are not applicable.
**These data are not applicable due to program completion.
ACTIVITY DATA SHEET
PROGRAM: Russia
TITLE: Increased Environmental Management Capacity to Support Sustainable Economic Growth, 118-016
PLANNED FY 2000 OBLIGATION AND FUNDING SOURCE: $6,780,000 FSA
PROPOSED FY 2001 OBLIGATION AND FUNDING SOURCE: $6,780,000 FSA
STATUS: Continuing
INITIAL OBLIGATION: FY 1992 ESTIMATED COMPLETION DATE: FY 2010Summary: In 1992 when USAID began work on this objective in Russia, few Russians understood the relationship between environmental management and sustainable development. Few environmental non-governmental organizations existed; the general public was not well informed about environmental issues; and policy-makers did not adequately incorporate environmental concerns into the process of economic transition. As a result, severe pollution and environmental mismanagement from the Soviet period continued and caused significant losses in current and future economic productivity. Manifestations include the sub-optimal use of valuable natural resources, deforestation, and the near extinction of many rare and endangered species. To address this situation, activities in this objective have introduced sustainable environmental management practices to environmental managers, policy-makers, private industry, non-governmental organizations, and the general public in 80% of Russia’s oblasts. In so doing, USAID activities have helped Russia manage its rich natural resource base. Improved environmental management capacity has spurred economic growth while reducing air and water pollution levels, preventing forest fires, and generating extra-budgetary revenues for protected areas.
Direct beneficiaries include Russian private and public sector organizations, regional governments, local businesses, schools, libraries, and hospitals. Indirect beneficiaries include all Russian citizens who benefit from a better-maintained natural resource base. In particular, the Russian Far East benefits from the forestry initiatives under this objective. This objective directly supports the U.S. national interest of global issues, as defined in the U.S. Embassy’s Mission Performance Plan for 1999. Specifically, the activities under this objective promote protection of Russia’s environment, which is a key global issue.
Key Results: Three key results are necessary to improve environmental management practices: (1) improved Russian management of natural resources and biodiversity protection; (2) improved economic mechanisms for natural resources management and environmental protection; and (3) increased Russian capacity to deal with environmental pollution.
Performance and Prospects: Performance under this objective has greatly improved environmental management in Russia. The improvement of environmental management practices has been replicated in many regions: 35% of oblasts have implemented environmental management activities; 34% of oblasts have implemented natural resources activities; and 18% of oblasts have implemented improved economic mechanisms. A small grants program that promotes partnerships between Russian organizations to work with each other to improve environmental management capacity has been the key tool utilized by USAID. Since 1996 under this activity, USAID has awarded 137 grants that support approximately 500 organizations to Russian partners to implement environmentally sound practices at the grassroots level. In 1999 under this project, USAID awarded 87 grants that average $28,000 with cost sharing from Russian partners reaching 30%. For example, the Center for Ecological Training in Obninsk introduced environmental education programs to over 4,000 children and educators in five regions in the Russian Far East. Through a multiplier effect from teacher-to-teacher training and regional environmental educational centers, these programs have continued to spread throughout the remote regions of the Russian Far East.
Projects targeted at fire prevention, pest control, reforestation, forest policy, protected areas management, and sustainable use of non-timber and timber products have added considerable value to the program. USAID’s reforestation project has already resulted in the production of over 2.5 million seedlings in 1999, compared to the 6,500 produced before the program began. The Khabarovsk Krai Duma approved a new Regional Forestry Code in 1999. Drafting of a similar code was completed in Amurskaya Oblast and initiated in Krasnoyarski Krai. Eco-tourism programs have generated extra-budgetary income for nature reserves that once received as little as $700 for yearly operating expenses. As one example, the USAID grantee World Wildlife Fund worked with the Marine Reserve to raise $4,500 during a three-month period by conducting 55 excursions for schoolchildren, visitors from Primorski Krai, foreign tourists, and specialists. These successful fund-raising techniques were being taught to eight other park directors throughout the Russian Far East. During FY 1999, eco-business activities in the Russian Far East and Siberia increased the profit of more than 30 non-timber and secondary wood processing companies.
An outside evaluation noted that USAID’s environment activities have strengthened and expanded the network of Russian environmental non-governmental organizations and developed. In addition the report noted that the grant selection process was excellent and that many of recipients whose projects were selected were well designed and responsive to local needs. This evaluation further highlighted USAID’s key role in building institutional capacity in grantees. Despite the successes above, constraints continue impede progress on this objective. Most importantly, the current economic situation in Russia has limited the Government of Russia funding for environmental support, which would strengthen the impact of Mission activities.
Environmental projects are being consolidated to streamline program management. It is not clear at this time that these changes will result in changes to the strategy.
Possible Adjustments: No strategic changes identified at this time.
Other Donor Programs: USAID coordinates its activities closely with other donor governments, non-governmental organizations and international financial institutions, particularly the World Bank and the European Bank for Reconstruction and Development. Most notably, USAID contributes to a multi-donor effort to phase-out the production of ozone depleting substances in the Russian Federation. Donors involved include the United Kingdom, Sweden, Norway, Denmark, Finland, Austria, Japan, Italy, and Germany.
Principal Contractors, Grantees, or Agencies: USAID works with a wide range of partners interested in preserving Russia’s natural environment. They include the World Bank, the United States Forest Service, the United States Environmental Protection Agency, the United States Department of the Interior, and the Institute for Sustainable Communities.
Selected Performance Measures:
Indicators Baseline Actual
(1998)Target
(1999)Target
(2000)Target
(2001)New approaches, actions to prevent and reduce industrial pollution introduced and implemented (% of oblasts) 0 (1992) 35 40 45 50 New approaches, actions to improve management of natural resources and protect biodiversity implemented (% of oblasts)* NA (1993) 34 40 45 50 Eco-business organizations developed and strengthened 0 (1992) 12 25 30 35 Environment-related business plans developed and implemented** 0 (1993) 5 ** 8 ** Number of self-sustaining environmental NGOs** 5 (1993) 19 ** 25 ** Environmental grants provided to local entities throughout Russia** 0 (1993) 43 ** 50 ** *No data was available on this measure at program inception.
**Performance against these indicators was not tracked because data collection was suspended at the completion of the activities reflected here.
ACTIVITY DATA SHEET
PROGRAM: Russia
TITLE: Increased Better-Informed Citizens’ Participation in Political and Economic Decision-Making, 118-021
PLANNED FY 2000 OBLIGATION AND FUNDING SOURCE: $8,824,000 FSA
PROPOSED FY 2001 OBLIGATION AND FUNDING SOURCE: $9,324,000 FSA
STATUS: Continuing
INITIAL OBLIGATION: FY 1992 ESTIMATED COMPLETION DATE: FY 2010Summary: Increased citizen participation in political and economic decision-making is a key component of Russia’s democratic transition. USAID-supported activities under this objective promote enhanced citizen’s participation in three critical areas: civil society, independent media, and elections. Civil society activities help empower non-governmental organizations to ensure that citizens can articulate their opinions and influence decision-makers through collective action. Media programs increase the professionalism and financial management of the independent media. They help media provide objective information through national and local networks, which is critical to creating an informed, educated citizenry. Programs that support electoral institutions and non-governmental organizations enable Russia’s citizens to elect their leaders in a more open and transparent manner. These activities are increasingly important due to the recent Duma elections and the upcoming presidential elections in March 2000.
Direct beneficiaries include non-governmental organizations, public officials, independent TV and radio stations, independent print media, and political parties. Indirect beneficiaries include virtually all Russians who will benefit from stronger mechanisms for substantive participation in civil society. This objective directly supports the U.S. national interest of national security, as defined in the U.S. Embassy’s Mission Performance Plan for 1999. Specifically, the activities under this objective support participatory civil society, which contributes towards Russia’s democratic transition.
Key Results: Three key results are central to this objective. (1) Non-governmental organizations provide alternatives to the ballot box for participation in economic and political decision-making. (2) Increased public access to information, through more programming produced and broadcast by independent stations in the regions, enables more informed political and economic choices. (3) Nationally and locally administered elections are free and fair.
Performance and Prospects: Performance to date has been encouraging although the effects of the ruble’s devaluation and the collapse of the banking system affected most activities throughout 1999 under this objective. Non-governmental organizations experienced serious setbacks in their fundraising efforts. The sharp decline in advertising revenues threatened the very survival of many non-state controlled regional media. The banking and financial crisis also froze political party assets, making it difficult for political parties to support party-building activities.
Despite these setbacks, development of political processes made substantial progress in 1999. A Russian non-governmental organization, the Institute for Electoral Systems Development, was established with USAID assistance to provide electoral advice to Russian officials when USAID funding ends. USAID also provided assistance to the Central Elections Commission and the State Duma Committee in electoral law reform. Russia’s fundamental election law was amended in April 1999, and these changes included 55 USAID recommendations. Related assistance from USAID has assisted the efforts of the major reform parties in Russia to establish strong regional organizations and local party chapters.
Largely non-existent in Russia before 1991, independent media has grown impressively. The share of viewers in Russia’s regions watching private broadcasting (as opposed to state television) jumped from 0% in early 1991 to 40% in 1998 and is estimated to have the potential to reach over 50% in 1999. USAID extended training and production support to over 300 regional non-state television stations that operate in 81 of the 89 regions in the Russian Federation. This support has been instrumental in the rise in the private broadcast media’s audience share. In the non-state print sector, USAID has provided professional consulting to over 1,500 non-state regional newspapers in over 70 regions in Russia since 1993. An emergency media assistance program allowed USAID to provide immediate economic crisis-related assistance in 1999, helping ensure independent media’s survival.
Civil society continued to grow in 1999 as non-governmental organizations made encouraging progress. Between 1997 and 1999 USAID assistance facilitate the passage of more than 50 laws support to promote cooperation between NGOs and the government in 24 cities and regions. There was virtually no legislation of this kind in 1993 when USAID launched NGO support programs in Russia. Since 1995, USAID has fostered the development of 24 NGO resource centers to provide training services, information resources, and technical consultations. Over the last three years, USAID has assisted over 3,000 union activists with training in collective bargaining, financial documentation, and basic trade unionism.
In 1999, USAID supported 24 U.S.-Russian partnerships that conducted joint programs in several key sectors, including civil society, business development, health, and environment. The successful implementation of the partnership programs benefited Russian institutions through training and collaboration with American partners. Over the next year, USAID anticipates that preparations for the presidential elections will be an important focus of our democracy program. After these elections in March 2000, much of USAID’s election support will focus on strengthening Russian civic non-governmental organizations to increase citizen political participation. Another key new area for USAID over the next few years is domestic violence. With other U.S. Government agencies and donors, USAID is increasing civic awareness of the issue to prevent domestic violence; supporting legal institutions to protect victims; improving crisis centers; and training lawyers, prosecutors and judges to prosecute offenders.
Possible Adjustments to Plans: In the area of political processes and elections, USAID will be poised to respond quickly to Russian needs in the run-up to the March 2000 presidential elections. Depending on the outcome of the Duma elections, USAID may also provide training and technical assistance to new parliamentarians at the local level.
Other Donor Programs: Relying on USAID to provide practical guidance in quarterly donor meetings, the Canadian International Development Agency, EU-TACIS, United Nations Development Program, the Mott Foundation, the MacArthur Foundation, the Ford Foundation and the Open Society Institute pursue limited NGO strengthening initiatives. USAID is the lead donor in electoral assistance, but EU-TACIS and the Organization for Security and Cooperation in Europe are the primary coordinators of elections monitoring assistance. Regarding political processes, EU-TACIS, the British Know-How Fund, the Carnegie Foundation, the Ford Foundation, and the McArthur Foundation are involved in political party development. The National Endowment for Democracy also provides grants to support women’s political development programs. In addition, the British Know How Fund provides small grants to strengthen voter education and increase youth participation in politics. USAID support for political education through the Moscow School of Political Studies is closely coordinated with EU-TACIS, the Council of Europe, and the British Know How Fund. USAID and the Open Society Institute coordinate on key media issues, especially on crisis-related media assistance during 1999. Otherwise, the Media Assistance Donor’s Forum includes the Eurasia Foundation, EU-TACIS, the World Bank, and several European Embassies.
Principal Contractors, Grantees, or Agencies: USAID works closely with the following partners: American Center for International Labor Solidarity, World Learning, Institute on Soviet-American Relations, Internews, National Press Institute, Eurasia Foundation, the Moscow School of Political Studies, Sakharov Center, Moscow Helsinki Group, International Republican Institute, National Democratic Institute, and International Foundation for Electoral Systems. USAID also works closely with many local Russian non-governmental organizations that receive grants under USAID’s civil society programs.
Selected Performance Measures:
Indicator
Baseline
(year)
Actual
(1998)
Target
(1999)
Target
(2000)
Target
(2001)
Participation in national elections certified free and fair by observers*
* (1995)
*
*
Yes
*
Percentage of viewers with access to independent TV
0 (1991)
40
40
45
50
Interactions between NGOs and local government
0 (1994)
22
25
35
40
Increased and strengthened party identification among voters**
22 (1994)
26
**
**
**
Number of media partnerships that are fully self sustaining**
0 (1995)
1
**
**
Share of assisted NGOs showing increased domestic funding***
15 (1995)
***
***
***
***
__
*Measurements are not applicable with elections not scheduled or held in these years.
**Performance against these indicators will not be racked beyond 1999 because activities reflected here have been completed.
****This indicator was not tracked in 1998 and has been discontinued because of changed project activities. The improved indicator tracked in this area is "NGOs diversify sources of financial support." Data on this new indicator will be collected in 1999.
ACTIVITY DATA SHEET
PROGRAM: Russia
TITLE: Strengthened Rule of Law and Respect for Human Rights, 118-022
PLANNED FY 2000 OBLIGATION AND FUNDING SOURCE: $5,709,000 FSA
PROPOSED FY 2001 OBLIGATION AND FUNDING SOURCE: $5,709,000 FSA
STATUS: Continuing
INITIAL OBLIGATION: FY 1992 ESTIMATED COMPLETION DATE: FY 2010Summary: USAID support for the rule of law represents a long-term commitment, the program having begun 1993. One principal aim of assistance is to increase investor confidence in Russia by strengthening legal systems to better support democratic processes and market reforms. USAID’s work under this objective for FY 2000 focuses on strengthening judicial administration and training; improving the quality of legal representation through legal education and training; improving the enforcement of judgments; and supporting human rights.
The direct beneficiaries of these activities include the Russian judiciary, attorneys, the Bailiffs Service, and Russian non-governmental organizations. Indirect beneficiaries include local and international private businesses, and the entire Russian population that benefits when USAID programs ensure that rule of law exists in Russia. This objective directly supports U.S. national security, as defined in the U.S. Embassy’s Mission Performance Plan for 1999. Specifically, the activities under this objective help strengthen democratic institutions and values in Russia.
Key Results: Three key results will help achieve this objective: (1) making judicial decisions uniform, predictable and made without delay; (2) strengthening judicial enforcement services to induce greater voluntary compliance with court judgments; and (3) enabling effective advocacy to increase adherence to international human rights commitments.
Performance and Prospects: Many constraints in Russia have impeded progress in rule of law and human rights. These constraints have included lack of financial resources for the judiciary; the absence of strong government mechanisms for enforcement of judgments; violations of the social and economic rights of the poor and vulnerable; and widespread corruption. Working within these constraints, USAID has forged ahead to strengthen rule of law and human rights in Russia during FY 1999.
Despite these constraints, USAID assistance improved the rule of law by strengthening the judiciary. Specifically, over the past year and a half, over 1,300 Russian judges and court administrators have participated in programs aimed at improving judicial understanding of law and judicial ethics, court administration, and continuing judicial education. Support for the new Judicial Department of the Supreme Court, which is the judicial branch organ now responsible for administering the courts of general jurisdiction, has contributed to strengthening judicial administration. In addition, USAID has fostered partnerships between U.S. and Russian judicial agencies, such as the Judicial Department and the Administrative Office of the U.S. Courts. A special project with the Supreme Qualifying Collegium, the judicial branch organ responsible for enforcing discipline against judges accused of ethics violations, raised awareness of judicial ethics among hundreds of regional judicial leaders.
In addition, USAID concentrated on increasing the availability of competent counsel and improving enforcement of court judgments during FY 1999. USAID programs continued to help Russian legal professionals learn about newly enacted commercial laws and issues affecting women’s rights and further promoted clinical legal education in Russian law schools. Support continued for sister bar partner partnerships between the legal communities of five U.S. states and five Russian regions. USAID funded training for members of the Bailiff’s Service of the Ministry of Justice who enforce court judgments, including specialized seminars on such topics as tracing of assets. Finally, USAID supported a human rights program in 30 regions in Russia, resulting in reports for all 30 regions as well as a report about the national human rights situation. Other human rights programs supported and made facilities available to organizations working on issues such as the rights of minorities, refugees, and psychiatric patients among other groups.
Possible Adjustments to Plans: USAID is designing a follow-on assistance program to support the Russian judiciary, including the Judicial Department and the Judicial Academy. USAID is also assessing its anti-corruption activities and plans to initiate new activities in the areas of corporate governance, the legal and regulatory framework for business and investment, and non-governmental organizations.
Other Donor Programs: USAID coordinates with other donors in rule of law and human rights through quarterly meetings for all rule of law donors in Russia. For instance, USAID-funded clinical and legal education activities complement similar activities conducted by the Ford Foundation, the Open Society Institute, and other donors. In addition, USAID works closely with U.S. Government agencies such as the State Department and the Department of Justice, which support criminal law reform and improved law enforcement for law enforcement officials, prosecutors, and judges. In addition, USAID cooperates with local institutions such as the Sakharov Center and the Moscow Helsinki Group. Finally, USAID works with the Russian government, local governments, and legal associations on rule of law issues.
Principle Contractors, Grantees, or Agencies: USAID works with a wide range of U.S., international, and local organizations to implement its rule of law and human rights programs. Major partners include the Center for Institutional Reform and the Informal Sector; American Bar Association/Central and East European Law Institute; Chemonics and the National Judicial College; the Sakharov Center and Museum; Moscow Helsinki Group; and the Organization for Economic Cooperation and Development.
Selected Performance Measures:
Indicator
Baseline
(year)
Actual
(1998)
Target
(1999)
Target
(2000)
Target
(2001)
Increased number of regions with human rights monitors
0 (1997)
30
60
(actual)
70
80
Judicial decisions are viewed as uniform and predictable by commercial lawyers (annual survey on scale of 1 to 4, with 4 as best result)*
*
2.4
2.4
2.4
2.6
Percentage of civil judgments fully executed
10 (1998)
10
15
20
25
Judges have electronic access to laws and judicial decisions**
no (1997)
no
yes
(actual)
**
**
*A change in survey methodology change negates old baseline figure.
**Ten regional commercial courts have computers that allow them to obtain and share information on the Internet. The activity has concluded; thus there are no targets for 2000 and 2001.
ACTIVITY DATA SHEET
PROGRAM: Russia
TITLE: Improved Effectiveness of Selected Social Services and Benefits, 118-032
PLANNED FY 2000 OBLIGATION AND FUNDING SOURCE: $11,750,000 FSA
PROPOSED FY 2001 OBLIGATION AND FUNDING SOURCE: $12,000,000 FSA
STATUS: Continuing
INITIAL OBLIGATION: FY 1992 ESTIMATED COMPLETION DATE: FY 2010Summary: USAID aims to improve the effectiveness of social services in Russia through improvements in the health sector and in community-level social services. Specific focus areas include HIV/AIDS and tuberculosis, women and infant care, orphans, community medical partnerships, and social service delivery systems. Given that many segments of the Russian population associate political and economic reforms with the deteriorating quality of life in the country, and given the continued deterioration of social services, this work is critical. Unchecked, this trend has the potential to negatively impact both economic growth and the development of a more open, democratic society.
Direct beneficiaries of this effort include orphans who will benefit from expanded range of life choices, young people who need information on the prevention of infectious diseases, young families who require housing and communal services, and Russians of reproductive age. Other direct beneficiaries include Russian health care professionals, health facilities, and non-governmental organizations. Indirect beneficiaries include all Russian citizens who will benefit from improved social services.
This objective directly supports the U.S. national interest in global issues, as defined in the U.S. Embassy’s Mission Performance Plan for 1999. Specifically, the activities under this objective promote improvement in the effectiveness of health services, thus helping decrease the spread of disease within Russia and across international borders.
Key Results: Three key results under this objective are: (1) decreasing abortions; (2) increasing the number of family planning clinics that promote modern methods of contraception; and (3) targeting social safety net programs to meet the needs of the most vulnerable populations.
Performance and Prospects: USAID has faced a complex situation in the social service sector in Russia. This year, abortion rates were twice as high as live births. The number of HIV infections tripled in 1997 and doubled again in 1998. Tuberculosis infection rates in Russia this year were ten times higher than those in the United States; and an increase has been registered in the incidence of drug resistant tuberculosis. Local social service entitlements have often left needy young Russian families overlooked in the provision of support. Given these overwhelming problems, USAID’s ability to improve the general well being of the average Russian citizen has been limited, but it has achieved certain significant results.
Survey data on abortion rates in 1996-1997 showed that rates declined by 11% in USAID-assisted areas, compared to 7% in non-assisted areas. These results were attributed to USAID’s comprehensive reproductive health strategy that introduced safe and efficacious family planning services through public education, training of health care providers, and service demonstration projects. This project ended in 1999, after having provided over four million women in Russia with access to modern family planning information and services. A follow-on strategy, which aims to improve maternal and infant health as well as women’s health in general, began in FY 1999.
Two other new strategies, which focus on STD/HIV/AIDS and tuberculosis, began in FY 1999. USAID HIV/AIDS prevention work has provided basic information about HIV/AIDS, and has established U.S-Russian partnerships in Moscow and Saratov. USAID in collaboration with international and local partners has identified sites for pilot tuberculosis projects in Ivanovo, Orel,
and Vladimir. The Mission has made plans to implement tuberculosis therapy, including treatment of multi-drug resistant tuberculosis, in Ivanovo.
Progress occurred in other areas as well. In 1999, USAID initiated a project to address the plight of Russia’s orphans. The program, which focuses on Regional Initiative sites, has emphasized community-based rehabilitation services to enable families to keep their children at home, including disabled children; family-centered alternatives to institutionalization; and life skills training for older orphans. USAID work has helped ensure that over 90% of Russian communities have adopted housing allowance programs to ensure that deserving families receive needed subsidies. Such programs have ensured that families receive housing subsidies based on actual financial need rather than on pre-determined categories (e.g. veterans of wars and military pensioners). While the overall percentage of families that receive housing allowances has remained steady at approximately 10%, more deserving families have now received a greater proportion of subsidies. This program has been shifting to emphasize broader urban issues of social sector support subsidies, including increasing the efficiency of service delivery, the rationalization of service distribution, and reducing the budgetary strain on local government from service provision. In September 1999, a new social service delivery project was started to help selected municipalities build on the success of the housing subsidy work by introducing means testing to other social sector services.
Partnerships continued to be an important theme in USAID’s health portfolio. In October 1998, new U.S. and Russian health partnerships began to focus on community-based primary health care with a broad range of partners. Under this program, USAID established four new community-based partnerships to work with municipal governments, social services, schools, universities, and public organizations to foster more effective and efficient delivery of health services in communities. In 1999, 15 partnerships funded under the original hospital partnership program implemented activities in hospital management and administration, nursing, women’s health, neonatal resuscitation, maternal and child health, hospital infection control, and tuberculosis.
Possible Adjustments to Plans: Key priorities will include assisting orphans, fighting infectious diseases (HIV/AIDS and tuberculosis), women and infant health care, and community partnerships in support of these priorities. A new initiative focusing on local economic development in small cities, most likely in Regional Initiative areas, may receive initial funding in FY 2000. USAID will continue its support to the U.S.-Russian Health Committee under the U.S.-Russia Joint Commission on Economic and Technological Cooperation.
Other Donor Programs: In HIV/AIDS/STDs, the United Nation’s AIDS Program (UNAIDS) and Russia’s health authorities look to follow on to USAID pilot efforts. The Open Society Institute, EU-TACIS, DFID (British Development Agency), Medecins Sans Frontieres, and others are implementing complementary efforts in areas such as harm reduction for injecting drug users. USAID funds the U.S. Centers for Disease Control and Prevention and the World Health Organization to implement a tuberculosis prevention and control program in three regions. More generally, USAID also participates in the U.S-Russia Health Committee’s work on improving the overall health care delivery system.
Principal Contractors, Grantees, or Agencies: USAID uses a wide range of implementers, including the World Health Organization, Holt International Children’s Services, Mercy Corps International, U.S. Centers for Disease Control and Prevention, Population Services International, Boston University, American International Health Alliance, U.S. Department of Health and Human Services, Urban Institute, and Research Triangle Institute.
Selected Performance Measures:
Indicator
Baseline (year)
Actual
(1998)
Target
(1999)
Target
(2000)
Target
(2001)
Abortion rates in USAID-supported areas decrease more than the national average
5% (1996)
5%
5%
5%
5%
Family planning clinics operational
0 (1995)
46
48
(actual)
51
51
Number of communities with quality social safety net programs
0 (1999)
0
0
4
8
Number of facilities using modern cost accounting and financial systems in pilot oblasts*
0 (1994)
20
*
*
*
Infectious disease protocols initiated**
0 (1999)
**
**
**
**
*No 1999 data is available for this indicator, because the health activity that generated these data ended in fall 1998. This indicator will not be reported on in subsequent Congressional Presentations.
**This indicator was discontinued as the health strategy was refined and new indicators developed for tuberculosis and HIV/AIDS in 1999.
EXPLANATION FOR SPECIAL INITIATIVES and CROSS-CUTTING PROGRAMS
Title: Special Initiatives, 118-041
Planned FY 2000 Obligation and Funding Source: $118,480,000 FSA
Proposed FY 2001 Obligation and Funding Source: $96,850,000 FSASummary: This objective includes all of the 632 allocations and transfers to other USG entities. The majority of funding in this objective goes to the State Department for public diplomacy, humanitarian transport, international narcotics and law enforcement programs. Other recipients include the Departments of Commerce, Treasury and Justice and the Environmental Protection Agency.
USAID activities under this objective meet criteria oulined in Agency guidance for special objectives and interests. That is, they are of linited scope and/or duration and respond to particular windows of opportunity. For USAID/Russia, these activities generally support the accelerated development of private enterprise.
Title: Cross-cutting Programs, 118-042
Planned FY 2000 Obligation and Funding Source: $9,990,000 FSA
Proposed FY 2001 Obligation and Funding Source: $13,740,000 FSASummary: This objective is designed to accommodate activities that make significant contributions to more than one objective. The activities included in this objective for Russia are the exchanges and training program, the Eurasia Foundation and program development and support activities.
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Last Updated on: February 01, 2001 |
