Targeted grants program [Russian Far East] : final report

ISC awarded 44 competitively selected subgrants of up to $25,000 to a wide range of organizations in one or more of the project"s priority areas. Achievements for each of the program goals are summarized below. Sustainable development. TGP projects have reduced production costs, added value to resources, cleaned up waste while generating profits, provided RFE consumers with quality locally produced products, and opened new markets for these products in Russia and abroad. TGP provided funding that enabled businesses to undertake sustainable business activities they might otherwise not have been able to afford. Now that these activities have been brought to market, grantees are able to build upon them and risk development of new environmentally responsible activities. Additionally, other businesses that hear of the success of sustainable processing and production activities are encouraged to undertake these as well. Investment promotion. TGP contributed to an improved business climate and more efficient use of natural resources, and also strengthened the local economies where projects were implemented. In turn, these stronger local economics can help to attract investors. Implementors from almost all TGP projects have begun to form business partnerships and industry associations and to share successful approaches to incorporating principles of sustainable development. TGP grantees have been very successful in developing sustainable products and methods in such targeted industry areas as non- timber forest products. Businesses funded under TGP have already become more creditworthy since receiving USAID funding through ISC and developing successful business projects through U.S. partnership. Public-private dialogue. TGP has fulfilled its objective of strengthening public-private dialogue through projects that have developed the institutional capacity (and therefore professionalism) of business associations, as well as through projects that have helped to educate government officials about the roles of business and government in developed economies. Government officials in Khabarovsk and Sakhalin have responded to the influence and success of TGP projects through creation of tax breaks for some projects and collaboration with business and industry associations to support development of sustainable products and methods. Also, connection was made between the academic and business communities, with several successful projects identifying practical business applications of research -- an important stimulus for business development. Lessons learned were as follows: (1) Promoting sound businesses and environmentally responsible activities is feasible in the RFE. (2) More outreach is needed with lending institutions to promote support for sustainable development principles in lending. (3) Targeting resources in one region is an effective way to promote synergy. (4) When only Russian ISC staff gave interviews, media coverage focused on program goals and projects. When U.S. representatives were present, coverage sometimes strayed to U.S. interests in foreign aid, Russia, U.S. involvement in Kosovo, and other political topics. (5) Initial assessment trips remain crucial for program design. (6) USAID should consider introducing loans for some activities, especially for the purchase of equipment. It is very difficult for businesses to obtain any kind of financing from Russian sources.