Activity Data Sheet

PROGRAM: Georgia
TITLE & NUMBER: Cross-Cutting Programs, 114-042
STATUS: Continuing
PROPOSED FY 2001 OBLIGATION AND FUNDING SOURCE: $6,770,700 FSA
PROPOSED FY 2002 OBLIGATION AND FUNDING SOURCE: $6,050,000 FSA
INITIAL OBLIGATION: FY 1994 ESTIMATED COMPLETION DATE: FY 2003

Summary: This SO includes funds previously reported under SO 4.1. USAID/Caucasus' cross-cutting program in Georgia complements the needs and fills implementation requirements in support of the five Mission Strategic Objectives, assistance comprising activities that make significant contributions toward achievement of the strategy. These activities include training, small grant-making, promoting regional cooperation, and public information and outreach.

Program Categories include Eurasia Foundation, Participant Training, Program Development and Support.

Key Results: USAID/Caucasus' cross-cutting programs support and contribute to the intermediate results in all five of the Mission's strategic objectives. Most prominent among the intermediate results are: improved policy, legal and operating environment for small and medium enterprises (SMEs); increased private sector participation in the energy sector; policies, laws, and regulations promoting democratic processes and market reform established; increased availability and access to different sources of objective information; increased partnerships between local government, business and communities to provide services; vulnerable communities meet own needs.

Performance and Prospects: The Georgia Mission's cross-cutting program is comprised of two components directly related to the effective implementation of the Strategy. They are (1) training and (2) small grants assistance to selected local organizations. Since both activities are regional programs they are also important contributors to other activities focusing on establishing and improving regional cooperation and understanding within the three countries of the Caucasus. In this respect, they are a critical vehicle in implementing activities dealing with conflict resolution.

Participant training remains an important element of USAID's program in Georgia. USAID and its contractor, the Academy for Educational Development (AED), as well as key Georgian organizations and individuals, tailor training to assist all of USAID's strategic objectives to achieve their respective results. Training is intended to equip leaders and professionals with skills and attitudes needed for transition to free market economies and democratic governance. In FY 2000 AED implemented 15 training programs, providing training to over 2,400 Georgians. Training took place in the United States, third countries and throughout Georgia in support of USAID's on-going technical assistance activities. Examples of this training follow.

In support of social system reform, USAID conducted a series of training programs to assist non-government organizations (NGOs) and governmental agencies in development of an affordable and sustainable alternative to the centralized state-funded social welfare system. The program led to greater collaboration between the NGO sector and the Government for the successful implementation of social reform.

The Youth Development Program, started in 1998, brought together 500 Abkhaz and Georgian youth in the U.S. to help them begin the process of building a bridge of understanding and reconciliation between the two communities. The conflict-affected youth were trained in conflict resolution and actively engaged in constructive behavior.

USAID supported accounting reform through NGO Training of Trainers and Accounting Reform Scholarship programs. Intensive training took place to convert a broad spectrum of Georgian enterprises to International Accounting Standards from Soviet-era accounting methods. A series of training courses were conducted to strengthen the capacity of State Agency for Regulating Gas and Oil Resource in Georgia, thus contributing to the development of an efficient and sustainable energy sector in Georgia. Seminars were initiated to start a dialogue among energy professionals about regional cooperation and collaboration in the energy sector.

In FY 2001, USAID proposes to obligate $2.0 million for the participant training program.

The Eurasia Foundation's (EF) small grants program has been implemented in Georgia since 1995. The program serves to meet the rising demand for funding from a variety of local citizen initiatives. These grants support business education and management training, business development, public administration and policy, rule of law, NGO development, media and communications and electronic communications.

In FY 2000, 34 grants for a total of $963,556 were awarded. Grants were focussed on supporting the development of private enterprises, effective public administration and civil society. Through the June 2000 Rule of Law (ROL) Competition, EF in close collaboration with USAID's ROL Team, initiated the first stage in an effort to address the problem of government corruption by supporting the development of mechanisms for citizen participation in decision making.

In September 2000, the five winners of the Local Government Competition from different regions of Georgia were announced. USAID/Caucasus' Democracy Office worked closely with EF to design a grant competition for the development of an effective and transparent system of local governance. Until FY 2000 relatively few grants had been awarded in this area.

In anticipation of the establishment of Georgia's stock market, the Caucasus Stock Exchange received a grant to initiate activities for the preparation of brokerage professionals and to conduct public awareness campaigns to address the public's linking of illegitimate financial schemes with legitimate securities markets

In FY 2000 the Eurasia Foundation, in consultation with USAID, expanded grant-making activities to South Ossetia. By initiating this activity USAID has furthered the implementation of its regional approach to development while contributing to the process of conflict resolution. In this regard, an innovative and key component of Eurasia's program was the development of the Synergy Program in the Caucasus. This program seeks to establish points of common ground and collaboration between Georgian, Armenian, and Azerbaijani NGOs.

In FY 2001 USAID proposes to obligate $2.0 million for the Eurasia Foundation. This funding will continue to support business efforts to identify common interests and collectively advocate for these interests before the government, the establishment of municipal information centers that will enable citizen participation in local governance, and live civic forum television programming to open communication among representatives of various societal sectors and promote community problem-solving. Special attention will be focused on cross-sectoral interaction, expanded outreach to the regions, and capacity building of independent media.

Previously funded under SO1.3, the public education and outreach activity will be expanded in FY 2001 and will be implemented in support of all strategic objectives. Special emphasis will be on creating and strengthening indigenous capacity to identify and disseminate information critical to the success of market reforms and democratic initiatives. This activity will work closely with other programs in this aspect. In support of the Mission's strategy, the new activity will also focus on extending its reach into the regions, assuring that information is disseminated to critical groups outside of the capital. In FY 2001, USAID plans to obligate $1.05 million for this activity.

Funds in the program development and support category support personnel and administrative costs; program designs, evaluations, and assessments; and the Mission's program information initiatives (e.g., website). In FY 2001, USAID plans to obligate $1,720,000 in this category.

In FY 2002 all of the cross-cutting programs will continue, supporting and facilitating the implementation of USAID's strategy and strategic objectives.

Beneficiaries: NGOs and government agencies, private businesses, small and medium enterprises, media, academic institutions.

Possible Adjustments to Plans: None anticipated.

Other Donor Programs: The World Bank, Soros Foundation, European Union.

Principal Contractors, Grantees, or Agencies: USAID-sponsored activities are implemented by the United Nations Children's Fund, the American International Health Alliance, PA Consulting, the International Federation of the Red Cross and Red Crescent Societies, the International Rescue Committee, Save the Children Federation, Mercy Corps International, CARE International, United Methodist Committee on Relief, Salvation Army, Management Science for Health, Johns Hopkins University, Population Service International, and the Centers for Disease Control and Prevention-Atlanta.

Selected Performance Measures: These programs are cross-cutting in nature and support the achievement of results under other strategic objectives. Overall, more than 3,800 people were trained in support of USAID strategic objectives in Georgia during FY 2000; women participants constituted about 53% of those trained. In FY 2001, USAID estimates another 3,500 Georgians will receive training in relevant sectors, with the largest number being trained in social transition and youth development issues.

U.S. Financing

(In thousands of dollars)