The Eurasia Foundation has designed, implemented and evaluated numerous special projects with the goal of creating self-sustainable institutions. The following are two success stories.
Economics Education and Research Consortium (EERC)
Good governance relies on sound policy. Nowhere is that more true than in the field of economics. The Economics Education and Research Consortium (EERC), with centers in Kyiv and Moscow, aims to strengthen economics education and research across Eurasia. Started as a project of the Foundation in 1995, EERC completed its first year of independent operations in September 2004 and continues to move forward. Funded by a consortium of European, American, Russian and Ukrainian donors, EERC offers a master of arts degree (MA) in economics in partnership with Kyiv-Mohyla Academy in Kyiv and operates a research and training center for economists in Moscow.
EERC has expanded both its programming and its geographic reach. To date, some 262 students from Ukraine, Belarus and Moldova have graduated from the MA program in Kyiv. With scholarship funding from the Royal Norwegian Ministry of Foreign Affairs, the first students from the South Caucasus were admitted to the program for the 2004-2005 school year.
The degree program will soon become part of the university curriculum as the Kyiv School of Economics at Kyiv-Mohyla Academy. In an effort to assist others parts of Ukraine, the program houses a new Economics Research and Outreach Center, funded by the World Bank, which assists in the development of modern economics curricula in other Ukrainian universities.
The EERC Research Network, based in Moscow, offers services for institutions in the region seeking to establish similar networks in other countries. The network's web site (www.eerc.ru) offers access to an electronic archive of scholarly materials. In Central Asia, EERC has partnered with the Eurasia Foundation, the Organization for Security and Co-operation in Europe, the Global Development Network and several private sector donors to create an Applied Research Network, bringing together academic and policy institutions across Central Asia. In the South Caucasus, EERC is working with the Foundation's Caucasus Research Resource Centers to share best practices in the field of economics. In addition, EERC has led workshops in New Delhi, India, and Dakar, Senegal on the relationship of research to policy development.
Izmirlian-Eurasia Universal Credit Company
Securing a fair loan is one of the most difficult tasks that any small business owner has to face, but the obstacles can seem insurmountable in a transition economy like Armenia's. The Izmirlian-Eurasia Universal Credit Company LLC helps foster the country's economic development by providing loans to Armenia's small and medium businesses.
Geneva's Izmirlian Foundation and Washington, DC's Eurasia Foundation joined resources to make a long-term contribution to Armenia's economy through the creation of this local development institution. To date, the Izmirlian-Eurasia Universal Credit Company has approved 38 loans totaling $2.3 million and created hundreds of jobs. The company has been in operation since August 1, 2004 and held its grand opening on June 8, 2005.
The establishment of the Izmirlian-Eurasia Universal Credit Company was the result of the successful operation of the Izmirlian-Eurasia Foundation Small Business Loan Program (SBLP). The Eurasia Foundation launched SBLP in 1995 with United States Agency for International Development (USAID) funding by signing a contract with Anelik Bank, its first partner bank. Subsequently, the Lincy Foundation provided significant funds to expand the SBLP's lending in the north of the country, which is still recovering from the severe devastation caused by the 1988 earthquake.
In 1999, the Eurasia Foundation partnered with the Izmirlian Foundation to provide additional affordable and reliable financing to small and medium-size businesses. Since that time, the SBLP has disbursed 296 loans totaling $10.5 million, and the businesses which it has supported have created 2,219 jobs. The SBLP ceased its lending operations on December 31, 2004 due to the establishment of the Izmirlian-Eurasia Universal Credit Company. Like its predecessor, the Izmirlian-Eurasia Universal Credit Company provides capital on terms and repayment schedules suitable for long-term investments by small and medium businesses -- a segment of the Armenian business sector which was previously denied this crucial credit. The repayment history of the borrowers is proof that Armenia's small and medium size businesses are able to successfully invest long-term in their operations.
The Izmirlian-Eurasia Universal Credit Company makes loans on a commercial basis in all the regions of Armenia. In fact, 70 percent of current borrowers are located outside of Yerevan, and businesses in the earthquake zone are the largest recipients of loans disbursed in any region. Loans have been granted to businesses in the manufacturing, service and agricultural sectors. The current interest rate is 15 percent per annum, the maximum loan period is 48 months, and the maximum loan amount is $125,000.
The Izmirlian-Eurasia Universal Credit Company LLC is a joint public-private effort which recognizes the need for the creation of a permanent, local institution that will make a significant contribution to Armenia's long-term economic development. In order to help further this goal, all the profits will be reinvested in the Credit Company. Please visit the Eurasia Foundation-Armenia web site for more information (www.eurasia.am).
