Institutional Partnerships Program Final Program Report

Table of Contents

Executive Summary ............................................................................................................... 1

Introduction............................................................................................................................ 2

Major Accomplishments........................................................................................................ 2

Major Problems and Significant Delays ................................................................................ 8

Achievement Plan Progress ...................................................................................................10

Summary of Evaluation Results.............................................................................................12

Lessons Learned ....................................................................................................................15

Progress and Plans for Sustainability.....................................................................................18

Comments on Partnership ......................................................................................................22

Recommendations for Future Initiatives................................................................................22

List of Annexes

A. Partnership Staff Tree

B. List of US Travelers to Russia

C. List of Persons Trained in the US

D. Updated Training Table for Persons Trained in Russia

E. List of Products

F. List of Press Releases and Coverage

G. AchievementsPlan (Outcome Charts 1, 2, and 3)

H. Evaluation Survey Questions

I. Evaluation Survey Results

J. Pre and Post Test Results

K. Timeline of Major IPP Project Events

L. Success Stories

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Center for International Private Enterprise and the

Chamber of Commerce and Industry of the Russian Federation

Institutional Partnerships Program

Final Program Report

Executive Summary

This final report is an evaluation of the $1.7 million, two-year Institutional Partnership between the Center for International Private Enterprise (CIPE) and the Russian Federation Chamber of Commerce and Industry (RCCI). This program was funded by the US Agency for International Development and administered by the International Research and Exchanges Board (IREX). CIPE and RCCI implemented a 3-pillar program:

Training. Five business association training seminars were held five cities. A total of 133 leaders and key staff of Russian regional chambers participated in training, plus 35 who received training in the U.S. Since then, many Russian regional chamber leaders have used their training materials as a key reference source. The seminars also facilitated greater interaction and networking among the Russian chamber participants.

Small grants. Nineteen chambers at the regional and national level received up to $10,000 each as

seed money for innovative projects. These small grants totaled more than $175,000 and leveraged nearly $330,000 in Russian Chamber matching contributions – or 187 percent of the grant total. This impressive match demonstrated the commitment of our Russian partners. The Small Grants program also enhanced cooperation between the national Chamber and its regional and local chambers.

The successes of these small grants are described in the publication Strengthening Russian Chambers

of Commerce and Industry: Case Studies. That publication, written in English and Russian, is one of the products of this partnership. It is also available via CIPE’s World Wide Web Home Page (www.cipe.org). CIPE has described the book via its ListServ, as have other organizations interested in Russia, such as the Maine Business School.

Accreditation. CIPE arranged for U.S. accreditation experts to provide advice to the Russian Chamber in developing its own accreditation program regional chambers. The presence of U.S. experts added credibility and prestige, an important factor as the national chamber sought to persuade regional chambers of the benefits of the new program. The national chamber has instituted its program, and four chambers – all of whom received Small Grants -- have already received accreditation. In addition, four other Chambers are in the process of applying for accreditation, all of whom have had significant involvement in the CIPE partnership program.

As to be expected in any endeavor of this scope, this partnership project presented challenges to be overcome, ranging from the continual need to improve Russian translations of seminar material to the restructuring of the Russian Chamber’s Business Education Center, whose staff worked closely with CIPE in implementing this project. Considerable effort also was needed to put together a concrete plan of action with the Russian Chamber concerning the partnership’s contributions to the latter’s accreditation

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program. Despite these challenges, the program succeeded in achieving its objectives to assist the Russian Chamber in its development as a modern, effective business association. The experience of the past two years, as well as continuing cooperation between CIPE and RCCI after the completion of the project, confirm the assessment of IREX’s technical evaluator Gina Volynsky, who described the relationship as “a true partnership.” As a senior RCCI official commented to IREX, RCCI’s relationship with CIPE is the best they have ever had with a foreign donor. Both partners remain committed to maintain and expand this unique relationship. In September 1997, the Boards of Directors of CIPE and the National Endowment for Democracy approved funding for a new joint project to develop RCCI’s training capabilities for entrepreneurs as well as Chamber staffs throughout the country. As Russian Chamber President Stanislav Smirnov wrote to CIPE President Richard Lesher on September 1, 1997, the partnership with CIPE “was instrumental in advancing accreditation standards and the professionalism of chamber executives in Russia. I hope for our continued cooperation. ”

Introduction

This report has been designed to be of the most practical use to USAID, IREX, CIPE, and our Russian chamber partners. The findings of this report represent the views of both the Senior Program Officer (Stephen Deane) and the Evaluation Officer (Erik C. Johnson). This combination of perspectives offers both the insight of program management and the critical analysis of a professional evaluator. The analysis includes a review of project documents, including previous interim evaluations by Patrick Leahy and Gina Volynsky, data collected through use of survey instruments, and the findings of numerous conversations with project participants by program staff and trainers. The main objective of this report is to provide a balanced, self-critical review of this 2-year partnership program so that USAID, IREX, CIPE and Russian chambers can apply the lessons learned from this project to improve upon future similar projects and identify areas which are still in need of attention with respect to the development of Russian chambers of commerce and industry. CIPE has invested nearly three years in its partnership with the Chamber of Commerce and Industry of the Russian Federation (RCCI) and it fully intends on developing this relationship further. The experience of these years has taught both CIPE and RCCI a great deal about the similarities and differences of Russian and American chambers. As one RCCI official commented to technical evaluator Gina Volynsky, RCCI’s relationship with CIPE is the best they have ever had with a foreign donor. It is this unique relationship which both partners will seek to deepen and expand in the coming years.

Major Accomplishments This section and the following section on “major problems” are an analysis of CIPE's ability to achieve its stated objectives. The Partnership In the opening paragraphs of her technical evaluation Gina Volynsky, IREX consultant, referred to the CIPE/RCCI partnership as “a true partnership.” Given the high level of interaction between CIPE and RCCI in the organizing of regional seminars, selections of small grants, and in the development of an accreditation program for RCCI, there is certainly much truth in this statement. The fact that CIPE's Moscow office is located in the RCCI building has helped to institutionalize this partnership. In the period following the conclusion of the IPP project, RCCI has continued to grant CIPE space for its office free of charge. This institutional arrangement will allow the partnership to continue to grow.

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Small Grants/Chamber Institution Building

Making Projects Happen Faster - Most of the small grant projects would have likely happened without the assistance of CIPE, but they would have taken much longer to implement. Interviews with chamber project managers revealed a high level of appreciation for the extra push which CIPE funding gave their new projects. In some cases, RCCI had been working with the regional chambers to develop their programs, and the CIPE assistance helped to intensify this effort. Examples include a model ISO 9000 program in Volgograd and a regional electronic information center in Belgorod.

Professional Development Of Staff - Based upon his work on the CIPE-supported arbitration court

project, Vladimir Parshin of the Penza Chamber was asked by the State Arbitration Court to settle an economic dispute. This was his first experience in this area, and it will significantly add to his credibility as the chamber works to develop its own arbitration court.

Equipping Chambers With Improved Technology - A significant amount of the small grants was

spent by chambers to bring their equipment up to modern technological standards. Investments were made in items such as: Pentium computers, laptops, laser printers, presentation equipment, network hardware (i.e. servers and local area networks), and new software. The Tatarstan Chamber even purchased new polygraphic equipment which will allow them to produce magazine-quality publications.

Stimulated Matching Grants From The Chambers And Other Financial Sources - These small grants

totaled more than $175,000 and leveraged nearly $330,000 in Russian Chamber matching contributions – or 187 percent of the grant. This significant amount of matching contributions illustrates the commitment of Russian chambers to their new endeavors.

Improving Relations Between the National Chamber and Regional and Local Chambers - The Small Grants program accomplished this purpose. The National Chamber established an Advisory Council, which comprised national RCCI officials as well as leaders of regional chambers, to review and recommend small grant proposals. Moreover, the Small Grants program demonstrated in concrete, monetary terms how the national Chamber, through its partnership with CIPE, was benefiting local and regional chambers.

Enhanced Inter-regional Cooperation Among Chambers - The Small Grants programs have served as

models of new or improved programs and services, which other chambers can study before embarking on similar projects of their own. In one of many examples, the Novgorod Chamber has initiated discussions with the Volgograd Chamber on its Quality Assurance program, and further collaboration is planned. The case study booklet, which was distributed to every chamber, provides information, analysis and lessons learned from the Small Grants program.

Enhanced Quality And Creation Of New Publications And Databases - The enhanced quality of

Chamber publications has increased the prestige those Chambers. For example, the Governor of the Novgorod Region distributed the Business Atlas (the product of the small grant to the Novgorod Chamber) on his trips abroad.

Relations Between Russian And US Chambers - The St. Petersburg Chamber and the Greater

Pittsburgh Chamber conducted staff exchanges and shared information about each other's programs. As a result, the St. Petersburg Chamber created a new program modeled on a Pittsburgh program.

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They are also currently pursuing the signing of an agreement of future cooperation with the Pittsburgh Chamber. (This effort has been stalled of late because of the departure of the Pittsburgh Chamber Executive Director, who had personally developed a relationship between the two chambers).

Strengthened Management Skills - Small grant recipients have markedly improved their grants management skills, involving both program and financial management. This is evidenced by the fact that at least eight of the chambers that received small grants have subsequently applied directly to IREX for follow-up funding in September 1997. (These are the chambers from Vologda, Volgograd, Kirov, Kaliningrad, Protvino/Serpukhov, Irkutsk, Pskov and Novgorod.)

Small Grants/Local Economic Development

Strengthening Corporate Competitiveness - In Volgograd, courses on quality management have been taught, and approximately 75 employees from 3 factories have been certified. Information systems have enabled companies to make better decisions based on up-to-date information.

Community Economic Development - the Protvino Branch of the Serpukhov Chamber was the first

business institution in the town and the first to establish a program for business training. Young students and unemployed persons received their first exposure to entrepreneurship principles and practice.

New Community Services - The Kaliningrad Chamber established the first technical assistance

center for entrepreneurs in the region. As of January 1, 1997, 38 people had received technical assistance on new business start up. In Murmansk, the establishment of a regional office has allowed many enterprises from the Kivorsk-Apatity region to gain access to chamber services, including a seminar on small business. The opening of that office also resulted in ten new memberships for the North Chamber.

Small Grants/Publicity - The successes of these small grants are described in the publication Strengthening Russian Chambers of Commerce and Industry: Case Studies. That publication, written in English and Russian, is one of the products of this partnership. It is also available via CIPE’s World Wide Web Home Page (www.cipe.org). CIPE has described the book via its ListServ, as have other organizations interested in Russia. For example, the Maine Business School announced the Small Grants book in its July 14 ListServ. The three-page announcement included a description of the book’s findings and instructions on requesting hard copies.

US Trips by Russian Chamber Executives

Increased Awareness Of Democracy - US trip participants noted three specific areas in which they had benefited the most: how open congressional staff members are to engaging in humor and self-criticism; how the doors of Congress are open for children to grow up with an understanding of government and democracy; and how Americans refer to themselves as taxpayers, and therefore demand accountability of government in spending tax dollars.

Learning New Ideas For The Role Of Chambers - A trip to the small town of Winthrop,

Massachusetts showed the Russians how a chamber can play a major role in community development, even in a place where there is little industrial development.

Training

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Formation Of Regional Groupings - Several chambers established new associations following CIPE

training. The Astrakhan Chamber, for instance, created a Union of Chambers Around the Caspian Sea. This came at the initiative president of Astrakhan Chamber following his participation at the seminar training in Kazan. Another example involves the East Siberian Chamber. According to its leadership, shortly after hosting the CIPE training seminar in Irkutsk, they created a "Siberian Forum" to develop new ideas for cooperation based upon common interests found during the seminar. Seminar networking helped to solidify regional cooperation and specifically led to the formation of a "Siberian Forum" of East Siberian Chambers.

Improved Networking - A number of chambers launched initiatives to maintain contacts with each other and improve networking following CIPE training. The Altai Chamber, for instance, followed up its training by organizing a two-day seminar on information processing, to which it invited eight other chambers.

Enhanced Interaction With Business Associations - The Penza Chamber assisted in the creation of a

new Association of Bakers in an effort to support a new type of small bakery.

New Chamber Committees And Guilds - Several chambers, including the Moscow Chamber, have created new chamber committees to promote small business in areas such as consumer goods, women and entrepreneurship. Chambers have also helped to found new organizations, referred to in many cases as "guilds" to support specific industries, The Penza Chamber had helped to found a new "guild" to support the growth of new small bakeries in the Penza region.

Relations Between Russian And US Chambers - The training program in Russia and the U.S. involved substantial interaction between Chamber leaders in Russia and their counterparts who head regional chambers in the U.S. Each training seminar in Russia was conducted by two American leaders of Chambers. The Russian participants at the Institute for Organization Management at the University of Delaware had the opportunity to meet in classroom and informally outside of class with other chamber and association executives and staff from throughout America. The USIA-financed three-week working trips to the U.S. also enabled delegations of 12 Russian chamber leaders to visit leading chambers in the U.S. and see first-hand how chambers here work.

Increased Attention To Staff Development - The East Siberian, Vologda and Orenburg chambers have begun conducting training seminars for staff members on issues such as membership development and the creation of a committee of volunteers. Galina Dubovskaya of the East Siberian Chamber was promoted to Senior Expert and Irina Tikhonova of the St. Petersburg Chamber was made head of their new department for "members to members."

Increased Public Exposure For Chambers - Media coverage of training sessions has helped Russian

chamber to address low public awareness and improve their image in the eyes of some people who still see the chambers in a negative light. For example, the Buryatia Chamber and the Altai Chamber generated extensive media coverage during follow-up visits by CIPE staff.

Enhanced Public Awareness Of Small Business Issues - The Karelian Chamber also worked with a

local TV station to produce a documentary on the problems of small business. The North Chamber held a seminar on small business in conjunction with the opening of a new branch office in Kirovsk.

Strengthened Appreciation of Business Ethics - All seminars included lively discussion of the role of legitimate and ethical business in a democracy. Significantly, the RCCI has suggested that the

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forthcoming joint project with CIPE on entrepreneurship training focus special attention on the topic of business ethics.

Improved Communications With Members - After attending the St. Petersburg seminar, the Pskov

Chamber held 2 seminars for members and interested firms dealing with the Chamber’s marketing and advertising services. The North Chamber in the Murmansk Region hosted a small business roundtable to discuss with their members ways to improve their services.

Creation Of New Membership Services - The St. Petersburg Chamber created the first Russian

"Member to Member" program as a result of ideas presented by a representative of the Greater Pittsburgh Chamber. The Karelian Chamber used the training materials to create the Karelian Center for International Information, a clearinghouse and resource center for local business professionals. The Sochi Chamber has established new committees on tourism, information and telecommunication, and enterprise security.

Strengthening Membership Recruitment Programs - After the head of the Volgograd Chamber

participated in a CIPE training seminar in Kazan, the Volgograd Chamber instituted a new commission-based membership recruitment policy, in which membership salespersons received 10% of first year’s dues. The Altai Chamber has adopted a number of membership recruitment techniques learned from the Irkutsk seminar. For example, the Altai Chamber now distributes a list of membership benefits, which clearly lay out the value of membership to businesses. The Vladimir Chamber, meanwhile, designed new membership recruitment strategies. One member of the Board will be responsible for getting all Board members involved in membership recruitment. In addition, the Vladimir Chamber established a new, sliding dues schedule based on the business member’s number of employees.

Improved Management Mechanisms - The North Chamber prepared a detailed budget for the year

modeled on the budget suggested at the St. Petersburg seminar. The Astrakhan Chamber reorganized committees to become more responsive and flexible by having them organize and disband as issues arise and are settled rather than maintaining standing committees. The Vladimir Chamber followed up on CIPE seminar training in Moscow by writing a new strategic plan and restructuring its Board. The Volgograd Chamber reorganized its structure by establishing Marketing, Consulting and Tutorial centers, each headed by a Deputy Director.

Enhanced Public Policy Role - Although the conditions for public policy advocacy are still quite

challenging in Russia, a number of chambers have launched new governmental relations programs. The Odinstsovo Chamber, for example, has compiled a list of suggested legislative changes from area Chambers in the Moscow Oblast region and forwarded it to the central government for review. One Chamber executive commented that, "this is a first step down the lobbying road." The Vladimir Chamber established a representative at the regional Duma for government advocacy. Similarly, the Sochi Chamber concluded agreements with both the City Council and Mayor’s office to review pending legislation and to represent the business point of view.

Improved Understanding of the Advantages of Voluntary Membership Organizations - The training provided Russian chamber leaders the opportunity to learn and discuss the differences between the U.S. model of voluntary membership and the public law model (in Germany) of mandatory membership. In view of the Russia’s difficult economic conditions, the public law model is tempting because it requires all business to join a chamber and pay chamber dues. The U.S. model, which allows each business to decide for itself whether or not to join a chamber voluntarily, gives chambers an independent base. This independence is of particular significance for chambers seeking to become

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the voice of business and to engage in public policy advocacy and governmental relations programs. The voluntary model gives the chambers the independence to criticize government policies and draft bills. Providing this information to Russian chamber leaders comes at a critical time. The Russian chamber system is currently voluntary (except for a limited experiment in the Krasnodar region), but the a final decision has not been made. The influential head of the St. Petersburg chamber announced that he had changed his mind as a result of the CIPE partnership and now favors the voluntary system.

Providing Chambers With An Ongoing Reference Tool - Many participants use their manuals regularly, one participant even referred to his as an "encyclopedia."

Accreditation RCCI deserves the credit for designing and implementing its own Accreditation Program; it is truly a “home-grown” initiative. CIPE’s role has been to provide information, advice, and prestige in winning over skeptical regional chamber leaders. Russian Chamber President Stanislav Smirnov wrote to CIPE President Richard Lesher on September 1, 1997, that the partnership with CIPE “was instrumental in advancing accreditation standards and the professionalism of chamber executives in Russia.” While CIPE has provided program guidance and chamber education at strategic moments along the course of developing this new program, RCCI has invested a great deal of time into making it a success, and they should be congratulated for their efforts.

Shift In Attitude Among Russian Chambers - Whereas accreditation was once viewed by many as a means of centralizing control over local and regional chambers, most chambers now understand the benefits of participating in such a program. RCCI has credited CIPE with providing substantial assistance in this respect. The use of US chamber executives added credibility to RCCI's efforts to properly portray the accreditation program. Furthermore, RCCI has placed more emphasis on this mechanism as a means for strengthening their members and increasing chamber effectiveness.

Accreditation Of First Four Russian Chamber - After a six month period of review, the St. Petersburg

chamber was first to be accredited by RCCI. Given the extensive development of this institution, it is not surprising that it was the receive recognition for its work. Since then, three other chambers have received accreditation: Vyatka, Vologda and Tula. In addition, four other chambers – East Siberia, Bryansk, Krasnodar and Rostov – are in the process of applying for accreditation.

Formation Of An Accreditation Committee And Program Guidelines - The RCCI Board of Trustees

officially created an accreditation committee comprising executives from regional chambers and the RCCI's Department of Relations with Regional Chambers. This committee is responsible for reviewing accreditation applications and interviewing applicant chambers.

Accreditation Applications Are Quite Thorough - The application by Kirov, which was viewed by a

CIPE accreditation consultant, included 3 bound volumes of legal and planning papers along with a full binder of publications.

CIPE Training Boosted Confidence - A number of chamber executives told CIPE staff that participation in CIPE training activities gave the chamber the confidence to seek accreditation. For example, Ms. Telegina, President of the Vologda Chamber, noted that the partnership with CIPE has

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given her Chamber the confidence to apply for accreditation and measure itself against standards and benchmarks of best practices.

Major Problems and Significant Delays There were no major instances in which planned activities were severely disrupted or cancelled. However, a number of more minor incidents and organizational challenges did arise which will be addressed in this section in an effort to understand how future initiatives may foresee and avoid such occurrences. Administration

Operating in Moscow - Management of an overseas office inevitably raises challenges, which are heightened in Moscow because of an underdeveloped telecommunications infrastructure combined with the overall difficulties of the working environment. Things that are taken for granted in the U.S., such as opening a bank account – and then being able to retrieve funds from your own account – can become convoluted challenges in Russia.

Management of Oversees Office and Volunteers - The Partnership Program owes a special debt of

gratitude to Frank and Wini Dressler, who opened and headed our Moscow office for most of the project. They organized the seminars, ran the programs, served as ambassadors to the project. Without them, we could not have organized all the events and achieved the successes that have defined our partnership project. Mr. Dressler was a retired executive of a not-for-profit business association, which gave him knowledge of the subject matter being addressed in our training. Neither he nor his wife had prior experience in Russia, though CIPE did arrange for him to accompany two Russian delegations on visits to the U.S. The volunteers also had no past experience

with compliance to AID guidelines and regulations. In the future, CIPE will devote additional attention to pre-departure briefings and training to ease the transition.

Restructuring Of RCCI Department Of Business Education - During the Fall of 1996, the RCCI

Board merged the organization's Business Education Department with the Scientific Research and Expertise Department. This move saw the departure of two of CIPE's closest working partners. Given the time and effort made to nurture such relationships, this represented a setback for the partnership. At the same time, however, CIPE was intensifying its interaction with the Department for Relations with Territorial Chambers in addition to the continuing contacts it kept with the remaining staff members from the education department. By the end of the project, CIPE had established excellent relations with the head of the new Business Education and Expertise Department. This has resulted in a new joint training program that CIPE has proposed to the National Endowment for Democracy.

Small Grants

Delayed Receipt Of Payments - Numerous small grant recipients complained about the length of time it took for them to receive their grant money. These delays occurred for a number of reasons. First, many Russian banks would not accept the grants as tax free contributions. This was addressed by making alterations in the language used in CIPE's wire transfer requests. Second, there is a normal time lag in the processing of payment requests which allows for the proper checks and balances to be implemented. In the early period of grant distribution, the Russian chambers did not understand this. As CIPE's Russian staff person was educated about CIPE grant making mechanisms, she was able to explain this to the Russian chambers.

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Inadequate Completion Of Narrative And Financial Reports By Grantees - Small grant recipients had numerous difficulties in preparing their reports in a professional manner. This is largely the result of a total lack of experience in managing grants and working with a donor such as CIPE. Over the course of the program, significant improvements were made in Chamber reporting practices. On the financial side, this reflects an increased level of management control and accountability, concepts which are relatively new to these organizations, but vital to their operation. Programmatic and financial management are important byproducts of the grants process, and the Russian Chambers have learned this well, as evidenced by the fact that eight of the chambers have subsequently applied directly to IREX for follow-up funding in September 1997.

Changes In Project Focus During The Course Of The Grant - In the case of one small grant, the

original project design was abandoned over the course of the grant period as the Chamber’s priorities shifted and the project manager became ill. The periodic narrative reports suggested a problem, but it took a site visit to clarify the situation. Even then, the chamber’s senior management continued to deny there was a problem and insisted that the project manager (then in the hospital) was still in charge. It must be stressed, however, that this case represents one out of 19 small grants (and even here the Chamber did have some accomplishments to show for itself). CIPE recognizes, however, that good grants management nonetheless involves acceptable levels of risk. The overall record of the small grants has proven remarkably successful.

Training

Cancellation Of Plans For A Financial Management Seminar - Plans for a financial management seminar were established toward the end of the grant period when it appeared as though surplus funds would be available for an extra event. As the close of the project came near and RCCI’s accreditation program was still unclear, CIPE decided that it was a priority to focus its limited resources on technical assistance to the RCCI for the accreditation program. Therefore, CIPE secured the support of IREX to cancel plans for the seminar.

Inappropriate Location For 2-Day Moscow Seminars - The condensed 2-day training seminars which

were conducted in October 1996 primarily for the staff of RCCI were not well attended because they were located in the Chamber’s building. Given that these staff members were located in the same building as their offices many left to attend other meetings and conduct office work.

Poor Translation Of Some Terminology In The Training Manual - Some key terms which are used in

the training manual were poorly translated, therefore leaving many of the participants confused about key issues. Corrections were made to the manual as successive training seminars took place.

Accreditation

Finding a Common Language - The RCCI continually expressed its interest in working with CIPE to develop its accreditation program, but for some time it proved difficult to find a common language that would spell out CIPE’s role. This made it difficult for CIPE to know what kind of assistance it might contribute and when this assistance might be appropriate. Without explanation, the RCCI abruptly canceled a planned joint presentation on accreditation that had been arranged during a training seminar in Kazan. Apparently, the national Chamber was encountering resistance from skeptical regional chamber leaders, and the RCCI preferred to keep these developments an internal matter. CIPE’s approach was to work diplomatically and gingerly in working out a way in which CIPE could make a genuine contribution to the accreditation program.

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For instance, CIPE and the RCCI drew up an Accreditation Memorandum of Understanding,

committing both sides to work on the program. This moved the program forward but did not solve all problems, since the MOU left room for interpretation in the program activities and, moreover, lacked a specific budget. At CIPE’s request, RCCI furnished a letter specifically an outline of planned activities and required expenses. Eventually, the CIPE Project Manager visited RCCI to get the program back on track. This resulted in a return trip by U.S. Accreditation expert Larry Milner, who consulted with the national Chamber in Moscow and joined the RCCI Accreditation team for a site visit to the Vyatka Chamber, which was applying for accreditation. (Mr. Milner and the team were unable to fulfill plans to visit the Vologda Chamber also, because the trains were inexplicably canceled that day.) Mr. Milner’s trip followed suggestions by IREX Senior Specialist Bernadine Joselyn, who recommended ongoing consultations which would be central to the partnership and would involve assigning of a single consultant who would work with RCCI over time.

Achievement Plan Progress The following paragraphs describe instances in which activities stated in the Achievement Plan were adjusted to address ongoing opportunities and challenges. The Achievement Plan can be found in the Appendix. Each issue will be addressed in order as it appears on the outcome charts. Delays in a number of areas were the result of an extension in the project period until the end of June 1997. Outcome Chart #1 Objective: A trained cadre of leaders of the central and regional Russian Chambers who have been exposed to the concepts and tools of voluntary business organizations.

In-Country Project Staff - A Russian national was hired at the beginning of the project, and continues to work in the CIPE office within the RCCI building. The two American staff members left in December 1996 and were succeeded in February by CIPE's Evaluation Officer. This staff exchange occurred in the final three months of the project so that project impact could be assessed on the ground by the Evaluation Officer.

Financial Management Seminar - This event was not originally a part of CIPE's planned activities. It

was discussed as a way of using surplus funds from other activities. However, as the end of the project drew near and the status of RCCI's accreditation program was still unclear CIPE, with the permission of IREX, directed these surplus funds to final activities involving a return of the U.S. accreditation expert.

Follow Up Survey - While the Target Completion Date was March 1997, the survey was not sent out

until April, and results received during May. Delays were caused in part by the time lag in getting cover letter signatures by a Vice President of the Russian Chamber.

Certification Of Russian Trainers - While the Target Completion Date was March 1997, certificates

were not awarded until June 1997 when the project had reached its end. This time was needed to assess the performance of some of the potential recipients who had active small grants which were not completed until the end of June. Furthermore, CIPE took advantage of the USIA-sponsored visit of Russian chamber executives to the United States in June to have US Chamber Vice President Willard Workman present several awards at a ceremony at the US Chamber.

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Outcome Chart #2 Objective: Promotion of institutional development projects proposed by local and regional chambers through the disbursement to regional chambers of up to $170,000 in seed moneys through a small grants program.

Small Grants Program Monitoring Guidelines - This document was prepared by the Evaluation Officer and regularly used by the Associate Director of the Moscow office to track the progress of grantees until the end of the project in June. It was originally designed to compile a comprehensive update of all small grant activities, but such information proved impossible to gather at one point in time. The Evaluation Officer also used this document during site visits during March and April.

Disbursement Of Small Grants - The distribution of final installments of the small grants continued

into the extension period of the program. Final disbursements were made in June 1997.

Model Programs Booklet - In order to utilize the information obtained through numerous site visits during the month of April, the Evaluation Officer did not complete this booklet until June 1997.

Submission Of Narrative And Financial Reports - A few of the small grant recipients were granted

extensions until May and June 1997. These extensions were allowed as a result of delays in the requesting and disbursement of funds.

Promotion Of Model Programs Booklet - A press release and electronic information were not

distributed until July 1997 and additional activities are continuing (without being charged to this project).

Outcome Chart #3 Objective: Implementation by the Russian Chamber of Commerce and Industry (RCCI) of an Accreditation Program which sets standards of excellence for regional and local chambers.

US Accreditation Expert Site Visits - Although only two trips were planned for an American to consult with RCCI on their accreditation program, a third trip also took place. This trip took place in May 1997 when the program was nearing its end, and CIPE and RCCI had agreed on a final set of activities. Moreover, the trip followed recommendations of the Technical Evaluation and of IREX. IREX Senior Specialist Bernadine Joselyn wrote to CIPE in January 1997:

“Ongoing consultations an assistance in the implementation of RCCI’s new accreditation process should also be central to RCCI and CIPE’s future partnership activities. Volynsky recommends that the effectiveness of CIPE’s contribution to RCCI’s accreditation process would be enhanced by assigning to this effort a single US consultant who will work with RCCI over time, rather than a series of different consultants.”

Accreditation of Russian Chambers - Four chambers have been accredited to date, and four others

have initiated the application process or are planning to do so. RCCI senior officials have stressed to CIPE their intention of proceeding at a deliberate pace and avoid rushing things, to ensure a thorough, high-quality process.

Summary of Evaluation Results

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Training Participant Evaluations The following findings were compiled based upon post seminar evaluation surveys which were completed by all of the participants at each of the seminars.

Participant Expectations - Almost all of the participants remarked that the training had fully met their expectations. The number of individuals who felt that the seminars had been less than they expected was approximately the same as those who said the seminars exceeded their expectations.

Most And Least Popular Training Modules - While there was certainly variation between seminars,

the public relations, membership development and strategic planning modules were considered by participants to be the most useful. Modules considered to be least useful by the participants varied considerably. Reaction to the finance and budgeting module was consistently lukewarm. Staff development and the overview of business associations were also less well received in a relative sense.

New Topics Desired In Future Courses - More detail regarding the actual programs of US chambers

was requested by a number of participants, and one specifically requested case study information. In response to the distribution of a CIPE-published “Primer” on the role of chambers of commerce, participants also requested more in-depth discussion regarding a comparative analysis of chambers throughout the world. More information concerning the various information/technology services of chambers was also requested.

Pre and Post Tests From the charts presented in Annex J, it appears as though each of the seminars resulted in at least some increase in the knowledge. The East Siberian seminar participants scored the lowest increase at 4%, and the St. Petersburg seminar scored the highest at 36%. It is difficult to clearly isolate factors which might have contributed to this discrepancy, and it is probably unfair to say that the instructors of one seminar were better than those of another. It is possible that changes in the translation from the first seminars to the last contributed to the increase in test scores from 4% in Irkutsk to 8% in Kazan and Krasnodar and 16% in Moscow at the very end. However, this does not explain why the first seminar produced the highest scores. It was certainly true that Moscow and St. Petersburg offered the best seminar facilities, and this may well have played a role. At the very least, the tests acted as one means of reviewing the information presented in the seminar and reminding the participants of the most important topics. Project Evaluation Survey Before discussing the results of the survey of program participants it should be noted that only 10 out of 75 Chambers responded to the survey. This only represents a 13% response rate, which is not unusual for Russian surveys. Unfortunately this means that this data is not statistically significant. In any case, the information is still quite useful in determining the impact of the IPP project, particularly the training seminars, each of which covered all of the topics addressed in the survey. See Annexes H and I for a list of the survey questions and a table of information collected.

Accreditation - 7 of 10 respondents have already, or plan to submit applications for accreditation by the beginning of 1998. One additional respondent anticipates that it may take 3 years before applying, this reflecting a serious approach to the issue. Reasons cited for seeking accreditation include: increase in prestige, confirmation of chamber success, development of chamber activities

13

according to international standards, and creation of an effective infrastructure. All of these reasons indicate that chambers have a clear understanding of the benefits of this process.

Increase In Membership - All 10 respondents have attempted to recruit new members over the last

year. The number of new members which were recruited as a result of these efforts ranged from 72 to 4, with an average of 30. It is unclear whether each of these new members is a "dues-paying" member, but the numbers are still impressive. 6 of 10 chambers possess written membership recruitment plans while 2 of these plan to develop such plans within the next 6 months. Four respondents felt that the CIPE training had been "very helpful" in this effort and other 6 said that it was helpful "to some extent."

Management And Planning Mechanisms - All of the survey respondents stated that they have

mission statements. 7 felt that CIPE training "contributed somewhat" to this and 3 felt that CIPE "contributed greatly." All 10 organizations also stated that they have annual reports, organizational charts, and a set of bylaws. CIPE influence on these mechanisms varied considerably. 3 chambers felt the CIPE "contributed greatly" to the development of their organizational charts. CIPE also "contributed greatly" to the development of annual strategic plans and long-range plans for 3 chambers, computerized membership databases and computerized accounting for 2 chambers, and 3 chambers made changes to their financial and budgetary practices since the CIPE program.

New Services And Publications - 6 chambers stated that they had developed new services as a

result of the CIPE program. 4 of these 6 groups received small grants, but even these groups developed new services beyond the small grant projects. 6 chambers have also developed new publications since their participation in the CIPE program.

Policy Advocacy - 8 chambers observed that they have succeeded in changing government policies since participation in the CIPE program. Most of these initiatives were directed toward passing local legislation which would legally recognize various functions of the chamber. That may well be a first and essential step in becoming a regional voice of business, but it is distinct from the next phase: advocating changes in policies and regulations to improve the business climate and thus benefit the chambers’ business members. These efforts point to the positive development of Russian chambers in overcoming the legacy of Soviet times, when such advocacy had no place in a Communist society. At the same, much remains to be done in developing policy advocacy. Several chambers with energetic leadership, such as the Sochi Chamber, have launched impressive new initiatives in advocacy at the regional and local level. For example, Mr. Levchenko, President of the Sochi Chamber, wrote in a letter to CIPE:

“Getting acquainted with the work of the chambers of commerce in the USA allowed me to gain a new outlook on the idea of developing business advocacy. I was most impressed by efforts of the US chambers of all levels in lobbying. I am happy to inform you that some of the things I saw are being implemented into the work of the Chamber of Commerce and Industry of Sochi.

1. A representation of our chamber was opened at the City Council of Sochi. An agreement of cooperation has been signed. 2. Starting September 1, 1996 all regulations, laws, policy decisions and etc. will be carefully examined at the Chamber of Commerce and Industry of Sochi. This has never been done before. 3. A similar agreement has been reached with the office of Mayor of Sochi.”

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Public Relations - 8 chambers distributed information about CIPE-related activities through

various communication vehicles. 5 chambers used newspapers, 4 used radio, 3 used TV, and 2 chambers even used the Internet.

New Chamber Practices As A Direct Result Of CIPE Training - Chambers named a variety of

new practices which they have adopted based on what they had learned at the CIPE training seminars. These practices include: methods of attracting new members, organization of chamber governing bodies, strategic planning, program development, lobbying of chamber interests, and attraction of volunteers.

Changes In Income And Expenses - Only 7 chambers answered questions regarding changes in

their income and expenses since their participation in the CIPE program. 5 chambers have seen increases in expenses in a number of different areas, while one decreased its expenses in 4 areas. These increases could correspond to an increase in activities. Increases in chamber revenue were mostly in the area of membership dues. One chamber increased non-dues income 40% while other had increases in areas such as publication revenue, foreign assistance and corporate donations.

Networking With Other Chambers - 7 chambers have kept in touch with other organizations

represented at CIPE training seminars, including 2 who also mentioned maintaining contacts with the American Chamber in Moscow and TACIS.

Use Of Instructional Materials - 7 chambers reported using the instructional material they had

received at the training seminars (2 chambers did not answer this question). The chambers used these materials for chamber accreditation, creation of incubators by city administration, training chamber staff, and work with members. Six chambers passed the materials on to colleagues.

Interest In Future Training - All of the respondents expressed interest in new training seminars.

Three chambers wanted to know more about working with members and investments, while two chambers wanted further training in the areas of marketing, government relations and working with small businesses. Other topics of interest included financial management, staff management, and information activities.

Lessons Learned The following points represent lessons learned from both the positive and negative aspects of CIPE's project. Each of these lessons will prove valuable as CIPE continues to develop it relationship with RCCI and in future efforts to strengthen Russian chambers. Building the Partnership

Be sensitive to cultural differences. For example, Russian want to get to know you personally before “getting down to business.” Also, many Russian organizations have a top-down style, which requires approval from top executives before decisions can be made. Time should be built into organizational planning to allow for this. Finally, make sure to observe protocol: if a document is signed by the Russian partner’s vice president, have his or her counterpart in the American organization co-sign the document.

15

Ask the chief executive of the Russian partnership organization to name the key contact person for the project. In our case, Russian Chamber President Smirnov designated Vice President Alexander Chesnokov as the key contact person. Dr. Chesnokov headed a Russian Chamber Advisory Committee set up to serve as a liaison to CIPE.

At the outset of the project, write a Memorandum of Understanding or similar document that spells

out key objectives, activities, and responsibilities of each of the partners. Have the document in both English and Russian.

Be sensitive to possible center-regional tensions that are a legacy of Soviet times. In those days, the

regions outside the capital often resented what they viewed as the centralized and dictatorial bureaucracy of Moscow. This legacy may have potential effects on national associations and chapter relations in Russia today.

Establish a local office staffed with both Russian nationals and American ex-pats. Make sure it has

E-mail for communication with headquarters back in America. Consider asking your partner to donate the space in their own building. In our case, the Russian Chamber donated an office in its building just blocks from the Kremlin. This has helped us enormously in a number of ways: it is a secure building; it serves as a significant matching contribution from our Russian partner; and it enables our staff to interact daily with the Russian staff.

Logistics

Bring lots of patience and good humor with you, especially when it comes to logistics, telecommunications and banking. Once, for example, a Western bank refused to allow the project manager to make a cash withdrawal from the CIPE account without first requiring him to telephone the executive director for authorization – at 3 in the morning Washington time. Paradoxically, the bank made no effort to verify that the person on the other line was indeed the executive director.

Following are specific findings by CIPE’s Evaluations Officer on the three pillars of this project. Small Grants

Moscow Office Staff Needed Better Orientation To Grant Payment Process - As CIPE's only Russian national staff member in Moscow, Elena Mojieko was responsible for communicating the reporting requirements of CIPE and the payments needs of grantees. Ms. Mojieko would have been much better prepared to answer questions on both sides in she had received training by CIPE's Grants Division before the small grant program began.

Potential Grant Recipients Should Not Be On The Review Committee - In order to avoid a conflict of

interest, all chamber representatives who are asked to review small grant applications should, at a minimum, recuse themselves from consideration of their own proposals; a stricter alternative would be to restrict them from the competition.

Small Grant Recipients Need To Be Better Prepared For Report Completion - In order to improve the

way in which small grant recipients prepare their reports, the Moscow office should be trained in how to provide advice on these matters. With this mechanism in place, Moscow staff could hold one-on-one orientation sessions for regional chamber representatives when they visit Moscow.

Changes In Project Staff Should Be Carefully Monitored - In the case of one small grant, the project

manager became ill and the project lost its focus and was transformed into a very different project. In order to avoid this in the future, close attention should be paid to project management staff. However,

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even these efforts can be may difficult when the organization’s leader is not forthcoming with such staff changes, as was the case in East Siberia.

Training

Make a glossary of key terms used in your association. Often these terms do not have exact equivalents in Russian, and some are new concepts. You can explain these terms and concepts in a glossary. The glossary can serve as stand-alone document and is especially useful in training materials.

Seminar Manuals And Pre And Post Tests Should Be Reviewed By In-Country Participants Before

Being Administered - In order to assure that all participants interpret the printed materials the way they are intended, one or two participants should read the questions and discuss the understood meaning with the instructors to give them feedback before the seminar begins. This way, issues of poor translation can be addressed so that all participants understand everything clearly.

Paid Chamber Membership Is Not Yet A Part Of Russian Culture - Russian chambers observe that

they have many problems when attempting to increase their membership. CIPE's survey revealed such obstacles as: inability of members to pay dues as a result of their poor financial condition; companies’ lack of understanding of the advantages of chamber membership; and a shortage of services which could be used to attract members. One chamber even felt that an increase in the membership would burden the chamber by increasing the amount of money they would need to spend on expanded services.

More Concrete Examples Should Be Added To The Training Manual - Numerous training

participants felt that the manual would be more useful as an ongoing reference tool if more sample documents from US chambers would be included in the manual. Examples could include membership applications, real budgets, dues schedules, etc.

Locating Training Seminars In The Same Building Where Participants Work Can Erode Attendance -

During the 2-day Moscow seminars people continuously left to attend to business in their offices. CIPE should always locate their seminars in places which make it inconvenient for participants to return to work. Another key element to the success of such meetings is the assurance of a commitment from high-level management. Had the RCCI president emphasized the importance of the CIPE seminars, attendance would have surely been much higher.

Accreditation

The Russian Approach To Accreditation Is Different Than The US - CIPE's US accreditation consultant observed that, during site visits to chambers applying for accreditation, the host chamber seems to place much more emphasis on “showing off” and impressing the accreditation committee than on the real details of an organization’s operations. When he accompanied the RCCI accreditation team to Vyatka for a site visit, there was no working agenda and no organizational documents were reviewed. Instead the chamber focussed on impressing the delegation with the prestige and impact which it has in the local community. He noted, however, that Vyatka had sent a thick set of reports to the national headquarters as a part of the application process.

Russian Accreditation Model Is More Democratic Than The US One - While the US Chamber uses a

single expert for accreditation site visits, RCCI uses other cities’ chamber of commerce executives to carry out the verification function. This committee then makes a joint recommendation to the formal

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accreditation board, which then passes their recommendation on to the full RCCI Board for final acceptance or rejection.

Progress and Plans for Sustainability

Small Grants One of the criteria for the awarding of small grants was the intention of self sustainability. The following is a review of the current status of each project:

Belgorod CCI - All of the technology is in place to operate a wide area network with subscribers working through the Chamber to access electronic information. The chamber is currently in the process of moving from the free trial period to paid subscriptions. Fifteen companies had trial subscriptions, so there is a strong likelihood that many of these groups will continue their service. In addition, The chamber has a strong possibility of become the exclusive Internet connection in the region. This would provide the Chamber with great opportunities for income generation and information dissemination.

Buryat CCI - The Chamber has demonstrated creativity, talent and thought in designing the layout of

the exhibit center and producing the traveling exhibits, which will be used as basis of permanent exhibit. The Chamber has identified a site in the center of the city and is awaiting a decision by the local government to provide space rent-free, as the Chamber has requested.

East Siberian CCI - The Chamber now has some connections on line and has renovated a room

designated for its information center. The Chamber is working to raise money, but lacks a plan. The Chamber can point to Internet service and speedy information in assisting businesses negotiate deals with international firms. Since the Chamber can obtain world prices quickly through its sophisticated computer and telecommunications facilities, its services offer businesses the potential of saving money in negotiating prices and contracts. Indeed, the Chamber claims already to have saved local companies a great deal of money. Thanks to this service, the information services have the strong potential to become income-generating.

Kaliningrad CCI - The Chamber is in the process of implementing its price schedule for its Technical

Assistance Center's services. Income will be generated from the sale of database information. In the future, the Chamber would like its Technical Assistance Center to be self supporting and possibly even have its own offices. New training courses will also be developed based upon needs stated during consultations.

Kirov CCI - This project is already self- sustainable. The Chamber has found a real niche that

provides a needed service and is generating income. Based on interest from general population, the Chamber is now considering expanding its activities from business tourism to a more all-purpose travel agency.

Lower Volga CCI - The database is on line and will continue to operate and expand and improve as

the chamber and members use it. The Chamber charges for use of the data base, thus building its financial self-sustainability. This service has good potential, especially in view of markedly improved economic conditions in the region.

North CCI (Murmansk) - The office will likely stay open given the support of university administration and the recruiting of new members. The Chamber succeeded in attracting 10 new members thanks to this project, and is expecting more recruitment successes. Moreover, in

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September 1997 the Boards of Directors of CIPE and the National Endowment for Democracy have approved funding for a new joint project proposed by the North Chamber to establish an information and consultative center and to engage in an advocacy program.

Novgorod CCI - The Chamber is continuing to distribute its Business Atlas within its regular

publications program. Some Chamber officials question whether they will be able to raise advertising revenue for such publications. Novgorod and CIPE have applied for a partnership grant from AID and IREX. In addition, in September 1997 the Novgorod Chamber applied to IREX for an additional small grant from the balance of funds remaining in the overall Institutional Partnership Program.

Penza CCI - The structure for the court is fully in place and the obstacles to its success are being

addressed. Plans are underway to develop a legal advisory service. As of the end of the Partnership Project, however, the arbitration court had not tried its first case.

Pskov CCI - The database is on line and will continue to expand and improve as the chamber and

members use it. This is a paid service that can become self-sustaining. Moreover, the Novgorod Chamber has consulted with the Pskov Chamber to create a similar data base and is now seeking funding for the project.

RCCI - The database is used by RCCI for its own programs and, in addition, is used by RCCI to

respond to telephone requests for information on training programs. Spot checks by the Evaluation Officer, however, raised questions as to whether the database will remain accessible via the Chamber network and Web Page. Nonetheless, RCCI has plans to update the database twice a year.

Rostov CCI - The Chamber has established a legal advisory service in cooperation with other

chambers in the region. The service has compiled a data base on laws, decrees and regulations which it will continually update. In addition, the legal advisory service provides short-term assistance to entrepreneurs in drawing up contracts, specifying product deliveries, obtaining export licenses and completing customs declarations and product certification. These services should ensure the self-sustainability of the center.

Serpukhov CCI - This successful project is already self-sustaining. The Protvino town

administration, Lyceum and local employment center have all made commitments to continue the courses begun with under small grant. The newly established training center is the first of its kind in the area and services a clear need. Equipment purchased under the grant enables the center to produce high-quality teaching materials. Finally, and perhaps most importantly, the center enjoys the benefits of strong, dedicated management.

St. Petersburg CCI - The potential for program sustainability is illustrated by the success of the

Pittsburgh program.. The chamber has taken all the initial steps needed to make this program a success. The Chamber has created a new department, and its Board of Directors has approved guidelines for the scope of work of the department. One of the key staff members working on the small grant has been assigned to head the department. The real test, however, will come with the actual viability of the member-to-member program – which only the future will show. As of the summer of 1997, actual member-to-member sales and purchases of products had not begun.

Tatarstan CCI - The Small Grant has given the Chamber the institutional capability to produce high-

quality of publications. The newly purchased printing facilities can be used to raise additional income for the chamber, and also to provide services to members by printing their materials for a fee. Moreover, the high-quality Chamber publication enhances the Chamber’s prestige.

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Tula - The Chamber has established a Business Incubator with an office and equipment. The

Incubator provides accounting and other services. As of the end of the small grant, the Incubator had selected companies to use the facilities.

Volgograd CCI - Future commitments from RCCI and the local administration are encouraging signs

of project continuation. The trial round of on-site training courses has just completed, and the next stage will involve marketing the program and attracting new companies interested in training. Given the high level of receptivity from the first participants, the likelihood of expanded interest is high. Also, the chamber is well-equipped and well-prepared for future training whether on-site or in-house.

Vologda CCI - The Chamber has markedly improved the quality of its publication, and this has come

to the attention of other chambers wishing to duplicate the design. In person and in writing, the President of the Vologda Chamber expressed her enthusiasm for the improvements to the chamber as a result of involvement with CIPE. In an August 1997 letter to CIPE, she pronounced the small grant publication project a “great success” and observed that there were “very good prospects for further publication of the magazine.”

Yaroslavl CCI - This successful project is already self-sustaining. Since the Chamber opened the

Exhibit and Information Hall, it has hosted regional, national and international delegations. Visitors have represented England, Northern Ireland, Israel, Sweden, Finland and Germany, as well as Russian cities such as Rostov. The Center’s activities have been widely reported in the local media. The activities of the center already have resulted in commercial contracts with domestic and international companies, such as Volvo of Sweden, for the manufacture of goods ranging from metal bars and furniture to engines and boats.

Training

Formation Of A New RCCI Fund For Training - The RCCI has established a new Business Education Fund to provide training to chamber staffs throughout the country. This training will likely be expanded to instruction of entrepreneurs on business basics as well as specific areas such as insurance, leasing, and taxation. RCCI is now soliciting domestic and international funding to build a financial base to support the training projects. the RCCI plans to draw on professors from business schools and other higher educational institutions to serve as instructors for the courses. The RCCI has already signed agreements with two academic institutions in Moscow for this purpose. The RCCI also wishes to use US Chamber publications for this program and draw upon US expertise when appropriate. The presidents of the Russian Chamber and the US Chamber have exchanged letters concerning further cooperation. In September, the Boards of Directors of CIPE and the National Endowment for Democracy approved a new joint CIPE-RCCI project involving training in four cities in Russia.

The RCCI’s Business Education Fund has many features in common with the U.S. Chamber training model (called the Institutes of Organization Management), which selected RCCI staff attended. Thus, the new RCCI institutional capability sustains both the CIPE-RCCI partnership and the ideas and practices transmitted in the course of the two-year project.

Use Of The Training Manual As A Reference Tool - Many training participants have said that they

use their manuals as a regular reference tool, or "encyclopedia" on chamber operations. Some chambers have broadened the reach of this educational tool to teach their own staff. Finally, RCCI has discussed the possibility of distributing the manual to all Russian chambers electronically.

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Receptions At Seminars Allowed For Networking Between Regional Chambers And Between RCCI

And Regional Chambers - This networking has subsequently increased the level of communications among chambers and has even led to the formation of regional networks. These networks will allow chambers to pool their resources and share ideas which will make them stronger and more sustainable.

Accreditation

An Institutionalized System Is In Place - RCCI’s commitment to this new program is demonstrated by its actions: it has created an organizational committee, which has met numerous times in various places; has established guidelines for application; has solicited applications; and has awarded four accreditation certificates.

Number Of Applicants Is Growing Rapidly - As noted above, four chambers have already received

accreditation, while four others have already applied or are preparing to do so. There is clear interest in receiving accreditation. This is a major step forward from the initial stages in the establishment of the accreditation program, when it met with skepticism from regional leaders.

New CIPE Projects

National Endowment For Democracy-Supported Projects - CIPE has received approval to launch two new joint projects: a training program with RCCI (as described above), and a project with the North Chamber in Murmansk to build its institutional capabilities involving services and advocacy. In both cases, CIPE/NED funding will be matched by contributions from the organizations themselves and other funding sources.

USAID-Supported Projects - CIPE and the Novgorod Chamber have submitted a joint application for

USAID funding in the Novgorod region.

As noted above, at least eight of the chambers that received small grants have subsequently applied directly to IREX for follow-up funding in September 1997. (These are the chambers from Vologda, Volgograd, Kirov, Kaliningrad, Protvino/Serpukhov, Irkutsk, Pskov and Novgorod.)

Comments on Partnership

Gina Volynsky's Technical Evaluation - The interim evaluation commission by IREX provided CIPE

with useful insight into the status of the overall project. It allowed CIPE the opportunity to think critically about its partnership with RCCI before the conclusion of the project. It is always difficult for individuals who are unfamiliar with a project to discover new issues, but Ms. Volynsky's discussion of the accreditation program revealed useful information. In the end, this report reinforced CIPE’s decision to devote the final balance of uncommitted funding to a return visit by the U.S. accreditation expert.

Joint CIPE/IREX Site Visits - The contrasting perspectives which combined during the joint site visit

with CIPE's Evaluation Officer and IREX's Financial Officer enhanced the depth of issues covered during the visit. According to trip reports by both parties, this type of joint action was mutually beneficial to both CIPE and IREX. Likewise, the combination of an IREX staff person (a native Russian with a specialty in financial reporting) and the CIPE Project Manager (a native English

21

speaker) was particularly useful in communicating financial reporting requirements to the Tatarstan Chamber during a training seminar in Kazan.

Cooperation Between the Washington Offices of CIPE and IREX - CIPE appreciated the wise and

skillful leadership of the Institutional Partnership Director, McKinney Russell, who combined a deep understanding of Russia with a firm grasp of USAID policy objectives. CIPE also wishes to express its special thanks to Senior Training Specialist Bernadine Joselyn, who demonstrated an unwavering commitment to overcome obstacles, solve problems and get the job done and done well. Her understanding of the nuances and subtleties involved in building a true U.S.-Russian partnership proved of invaluable assistance in keeping the ambitious and wide-ranging project on track.

Recommendations for Future Initiatives

As noted above, CIPE has already secured funding to embark on two new joint projects: a training program with RCCI and a project with the North Chamber in Murmansk to build its institutional capabilities involving services and advocacy.

In addition, CIPE and the Novgorod Chamber have applied for USAID funding to deepen and expand

their existing partnership.

CIPE and RCCI have applied for additional funding to hold a conference in December 1997 to showcase the small grants projects. The conference will be held immediately following an RCCI annual meeting to be attended by all regional chamber leaders. Selected chambers will describe the lessons learned in implementing their small grants projects. In addition, CIPE and RCCI will combine forces with the American Chamber of Commerce in Russia to facilitate meetings between regional Russian chamber leaders and business members of the American Chamber.

Annex A

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CIPE/RCCI PARTNERSHIP TREE

Center For International Private Enterprise (CIPE) - Washington, DC

Dr. John D. Sullivan, Executive Director

Stephen Deane, Project Manager Steve Rogers, Deputy Director Margo Jackson-Spencer, Public Liaison Officer Alison Pena, Financial Consultant Bea Celler, Program Officer Erik Johnson, Evaluation Officer Kathy Ford, Program Assistant

Center For International Private Enterprise (CIPE) - Moscow

Frank Dressler, In-Country Coordinator

Winifred Dressler, Associate Director

Elena Mojeiko, Associate Director

Chamber of Commerce and Industry of the Russian Federation (RCCI) - Moscow

Stanislav Smirnov, President Dr. Alexander Chesnokov, Vice President Mr. Sergei Katyrin, Vice President

Center for Business Education Chamber Relations

Alexander Udachin, Deputy Chief Vladimir Vavilov, Director

Alexander Raevsky, Head of the Department Alexei Bogochov, Deputy

Director

Boris Nichipurenko, Chief Expert Dmitri Syssoev, Chief Expert

Department for Business Education , Scientific Research and Examination

Dr. Nikolai Vasiliev, Head of Department Alexander Raevsky, Senior Staff

Annex B Name Dates Location Purpose of Travel

g/evaluate/95-7prtn /etravlrs.doc 11/14/2002, 2:21 PM 1

David Cooley April 15-19, 1996 Krasnodar Instructor for Management Training Seminar held at Krasnodar CCI

Maxie Davie May 27-31, 1996 Moscow Instructor for Management

Training Seminar held at Moscow CCI

Stephen Deane May 1995 Moscow Meet with RCCI officials Oct. 6-7, 1996 Moscow Meet with RCCI officials March 20-21, 1997 Novgorod Evaluation site visit to

Novgorod CCI March 24, 1997 St. Petersburg Evaluation site visit to St.

Petersburg CCI March 25-26, 1997 Volgograd Evaluation site visit to

Volgograd CCI March 31-April 1, 1997 Irkutsk Evaluation site visit to East

Siberian CCI April 2, 1997 Ulan-Ude Evaluation site visit to

Buryat CCI April 3-4, 1997 Moscow Meet with RCCI officials Frank Dressler June 1995-Dec. 1996 Moscow Served as Director of

CIPE’s Moscow office Wini Dressler June 1995-Dec. 1996 Moscow Served Office Manager of

CIPE’s Moscow office John Garman Oct. 30-Nov. 3, 1995 Irkutsk Instructor for Management

Training Seminar held at East Siberian CCI

Shirlean Hackman Feb. 20-Mar. 1, 1996 Kazan Instructor for Management

Training Seminar held at Tatarstan CCI

Erik Johnson March 3-4, 1997 Penza Evaluation site visit to Penza CCI

Annex B Name Dates Location Purpose of Travel

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March 6, 1997 Serpukhov Evaluation site visit to

Serpukhov CCI March 12-13, 1997 Kaliningrad Evaluation site visit to

Kaliningrad CCI March 20-21, 1997 Novgorod Evaluation site visit to

Novgorod CCI March 24, 1997 St. Petersburg Evaluation site visit to St.

Petersburg CCI March 25-26, 1997 Volgograd Evaluation site visit to

Volgograd CCI March 31-April 1, 1997 Irkutsk Evaluation site visit to East

Siberian CCI April 2, 1997 Ulan-Ude Evaluation site visit to

Buryat CCI Mark Levin October 28-29, 1996 Moscow Instructor for Management

Training Seminar held at RCCI

Mark McCord April 15-19, 1996 Krasnodar Instructor for Management

Training Seminar held at Krasnodar CCI

John Meehan Sept. 18-22, 1995 St. Petersburg Instructor for Management

Training Seminar held at St. Petersburg CCI

Annex B Name Dates Location Purpose of Travel

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Larry Milner Sept. 24-Oct. 4, 1995 Moscow,

Krasnodar Worked with officials at RCCI to develop an accreditation program. Met with officials of Moscow CCI and about 20 local and regional chambers.

Feb. 20-Mar. 1, 1996 Kazan Instructor for Management Training Seminar held at Tatarstan CCI

May 12-16, 1997 Moscow, Kirov

Accreditation consultations; Site visit to Kirov chamber.

Richard Schoon Oct. 30-Nov. 3, 1995 Irkutsk Instructor for Management Training Seminar held at East Siberian CCI

Lance Shaeffer Sept. 18-22, 1995 St. Petersburg Instructor for Management

Training Seminar held at St. Petersburg CCI

Sept. 24-28, 1997 St. Petersburg,

Pushkin Site visits to St. Petersburg and Pushkin CCIs

John Sullivan May 1995 Moscow Meet with RCCI officials Oct. 6-7, 1996 Moscow Meet with RCCI officials Oct. 8-12, 1996 Novgorod,

St. Petersburg Site visit to Novgorod and St. Petersburg CCIs

Keith Woods May 27-31, 1996 Moscow Instructor for Management

Training Seminar held at Moscow CCI

Willard Workman Oct. 6-7, 1996 Moscow Meet with RCCI officials Oct. 8-12, 1996 Novgorod,

St. Petersburg Site visit to Novgorod and St. Petersburg CCIs

Participants Trained in the US Annex C

G/evaluate/95-7prtn/finsttut.doc 11/14/2002, 2:22 PM

Institutes for Organization Management University of Delaware August 1995 Name Position Organization Phone Fax E-Mail Nikolai Afanosov

Vice President Amur Chamber of Commerce and Industry

(41622) 2-66-34,2-74-83

(41622) 2-15-77

Tatyana Alexandrova

Director, Agency of Foreign Relations

Kostroma CCI (942) 55-6262 (942)-55-3241

Valentin Doborovich

Vice President Belgorod Regional CCI (07222) 1-52-64, 7-03-47

(07222)6-82-0

Vladislav Garkushenko

Chief of Dept. Moscow Chamber of Commerce and Industry

(095) 132-7396 (095) 132-0547

Renat Sadriev Director, Exhibition Center

Bashkortostan Chamber of Commerce and Industry

(3472) 23-27-55, 53-45-17

(3472)52-52-69

Alexander Udachin

Deputy Head, Business Ed. Dept.

Russian Federation Chamber of Commerce and Industry

(095) 929-03-60 (095)929-0009

August 1996 Name Position Organization Phone Fax E-Mail Viktor Afansenko

Director Pushkin Chamber of Commerce and Industry

(812) 466-24-66 (812) 465-66-69

(812) 465-9158

Boris Chesnokov

Vice President Altai Chamber of Commerce and Industry

(3852)22-1261/26-2361

(3852) 26-2361

Albert Ketov President Kabardino-Balkarian Chamber of Commerce and Industry

(86622) 5-85-07 (86622)5-89-62

Natalia Lankina

Deputy General Director

Tatarstan Chamber of Commerce and Industry

(8432) 46-14-52, 32-05-22

(8432) 38-01-22, 36-09-66

Andrei Pirogov

Vice President Karelian Republic Chamber of Commerce and Indusry

(81400) 7-26-10, 7-59-62, 7-23-24

(81400) 7-26-10

Vadim Prudentov

Deputy Chairman Penza Chamber of Commerce and Industry

(8412) 66-30-43, 66-47-35, 66-5664

(8412) 66-58-87, 55-0420

G/evaluate/95-7prtn/finsttut.doc 11/14/2002, 2:22 PM

Annex E

11/14/2002, 2:22 PM g/evaluate/95-7prtn /hprodli.doc

1

USAID/IREX Institutional Partnership Project

Center for International Private Enterprise

Products List

Title Language Length Description

Strengthening Russian Chambers of Commerce and Industry: Case Studies

Russian and English

53 pages (Rn.) 50 pages (Eng.)

P&R EM

Business Atlas of Novgorod Oblast Russian 38 pages EC Conception of the Constant Exhibition of Commodity and Service Producers of the Buryat Republic

Russian English

22 pages EC

RCCI Business Education Computer Information Database

Russian

n/a EM

Illustrative Materials on the “Establishment of a Court of Arbitration in Penza”

Russian 40 pages EC

Illustrative Materials on the “Primary Business Training Program in Protvino”

Russian 23 pages EC

Regulations for the St. Petersburg Members to Members Program

Russian 6 pages EC

Illustrative Materials on the Volgograd “Regional Quality Assurance Program”

Russian 25 pages EC

Price Schedule for Services of the Kaliningrad “Technical Assistance Center”

Russian 1 page EC

Informational Bulletin, Kaliningrad CCI Russian 1 page P&R Illustrative Materials on the “Development of a New Representative Office of the North CCI in the Town of Kirovsk”

Russian 15 pages EC

Glossary of Terms for Business Association Training

Russian English

3 pages EC

“Ensuring Quality of Local Chambers of Commerce” Economic Reform Today, No. 2, 1995, CIPE.

Russian English

2 pages EC, EM

“Business Associations and Democratic Reform,” John D. Sullivan, Economic Reform Today, No. 2, 1995, CIPE.

Russian English

3 pages EC, EM

Annex E

11/14/2002, 2:22 PM g/evaluate/95-7prtn /hprodli.doc

2

Buryatia: Exhibit Catalog for “Days of Buryatia in Moscow” Exhibit: Buryatia-Baikal 2000

Russian 24 pages P&R

St. Petersburg: ’97: Exhibits in St. Petersburg booklet, issued by the Exhibit Association of the St. Petersburg Chamber

Russian 47 pages P&R

Informational brochures for Belgorod CCI’s regional information network

Russian 2 pages each

P&R

List of information services available from Belgorod CCI

Russian 1 page P&R

Sample contract for subscription to Belgorod CCI’s information network

Russian 1 page P&R

Tatarstan CCI magazine “Business Plan” Russian variable P&R Magazine of the Vologda region (for sale)

Russian variable P&R

Tula Business Incubator Center promotional materials

Russian

variable P&R

Rostov Database of Laws, Decrees and Regulations

Russian n/a EM

Promotional materials for Kaliningrad CCI Technical Assistance Center

Russian variable P&R

Promotional materials for Yaroslav CCI Exhibition Center

Russian variable P&R

Promotional materials for the new Department of Business Tourism in Kirov

Russian variable P&R

Economic database of enterprises in the Saratov region

Russian n/a EM

Annex F

G/evaluate/95-7prtn/Ipublcty.doc 11/14/2002, 2:23 PM 1

CIPE-RCCI Partnership Project Press Releases & Coverage

April 1995 • On April 4, 1995, CIPE distributed a press release entitled, “Russian Chamber Movement

Gets Boost at Local Levels,” announcing its Institutional Partnership with the Russian Federation Chamber of Commerce and Industry.

May 1995 • On 30 May, “CIPE’s Office in Moscow,” an article about the launching of the CIPE/Moscow

office and the CIPE-RCCI Institutional Partnership Project, appeared in the Moscow publication, News of Commerce and Industry.

July 1995 • An article describing the CIPE-RCCI Institutional Partnerships Project appeared in the July

1995 issue of the USIA/Russian Federal Employment Service newsletter Business for Russia. September 1995 • The St. Petersburg Chamber of Commerce and Industry held a widely publicized press

conference on September 17, announcing the kick-off of the first one-week training seminar for Russian Chamber Executives.

• On September 22, CIPE distributed a press release entitled, “Russian Chambers Participate in

CIPE Training in St. Petersburg, Russia.” • On September 22, CIPE Executive Director John D. Sullivan gave an interview on the

CIPE-RCCI partnership project, focusing on the St. Petersburg Training Seminar, to ITAR-TASS Washington correspondent Igor Boriseiko.

October 1995 • CIPE distributed a press release to Russian and US media announcing the training seminar in

Irkutsk. • On October 30, the East Siberian Chamber of Commerce and Industry held a widely

publicized press conference at the start of a one-week training seminar in Irkutsk. Three TV stations, one radio station, and several newspapers covered the event.

November 1995

Annex F

G/evaluate/95-7prtn/Ipublcty.doc 11/14/2002, 2:23 PM 2

• An interview with Russian Federation Chamber of Commerce and Industry President

Stanislav Smirnov entitled, “An Invitation To Partnership,” was featured as the cover article in the November issue of The Russian Magazine.

• An article about the Irkutsk training seminar entitled, “What is a Chamber of Commerce and

Industry?” appeared in the 3 November edition of the Irkutsk newspaper Guberniya. • CIPE Project Manager Stephen Deane attended an ASAE Management conference in

Chicago from November 3-5. He discussed the Institutional Partnership program in a series of formal and informal meetings, including a Networking Dinner for Association leaders involved in international activities.

December 1995 • An article entitled, “A Trip to Russia - A Riddle Wrapped in an Enigma,” written by John

Garman, a trainer at the October Irkutsk Training Seminar, appeared in the December issue of the Northern Kentucky Chamber of Commerce publication, the Business Journal.

January 1996 • On January 11, 1996, Dr. John Sullivan, CIPE Executive Director, referred to the

CIPE/IREX/RCCI project while participating in a symposium organized by White House on The Legacy of the Marshall Plan. During the course of his talk, Dr. Sullivan used the CIPE-RCCI Institutional Partnership project as an example of a program that embodies the spirit of lessons learned from the Marshall Plan’s successes. The symposium was rebroadcast twice nationally by C-Span.

• An article on the Irkutsk training seminar, written by trainer John Garman, president of the

Northern Kentucky Chamber of Commerce, was published in the January 1996 edition of Chamber Executive, a publication of the American Chamber of Commerce Executives (ACCE), with a circulation of more than 3,000 readers.

• The article, “Chamber president headed for Russia,” appeared in the 20 January edition of

the Commercial-News, a Danville, IL newspaper. The article was about Shirlean Langdon Hackman, president of the Danville Area Chamber of Commerce, who volunteered as a trainer for the February/March 1996 Kazan Training Seminar.

February 1996

Annex F

G/evaluate/95-7prtn/Ipublcty.doc 11/14/2002, 2:23 PM 3

• CIPE/Moscow In-Country Coordinator Frank Dressler wrote an article entitled, “CIPE Trains Russian Chamber of Commerce Executives,” which was published in the Winter 1995-96 edition of Initiatives in the New Independent States, a World Learning Inc., newsletter.

• The Chamber of Commerce and Industry of Tatarstan Chamber held a widely publicized

press conference at the start of a one-week training seminar in Kazan. • On February 27, CIPE issued a press release entitled, “Russian Chamber Movement Gets

Boost at Local Levels,” detailing the first round Russian Chamber recipients of small grants. The press release was distributed to all US media contacts listed in the CIPE Public Relations Plan.

• A three-paragraph blurb about the Kazan Training Seminar appeared in the “Parliamentary

Chronicle” section in the February 29 edition of the newspaper Respublika Tatarstan. June 1996 • June 7, CIPE issued a press release announcing the multi-city working visit of Russian

Chamber of Commerce executives. • Russian Chamber delegation met with House and Senate Small Business Committee staff. • Reception for the Russian Chamber delegation at the University Club. Guests included

Congressional staff and several former members of Congress. • Russian Chamber delegation held a news conference in Austin, Texas. • Texas Governor George W. Bush and other officials met with Russian Chamber delegation. • Article on Russian executives’ visit to the US in the June 16-22, 1996 issue of East

European Report, a weekly European newspaper. July 1996 • Project Manager Stephen Deane briefed Senator Bob Kerry (D-Nebraska) in a one-hour

meeting on US assistance to Russia. • Article about Russian Chamber executives’ visit to Austin, TX in TCCE News, a monthly

publication for Texas Chamber of Commerce Executives. • Announcement of Russian executives’ visit in July 1, 1996 issue of Texas Business Report. October 1996

Annex F

G/evaluate/95-7prtn/Ipublcty.doc 11/14/2002, 2:23 PM 4

• October 31, CIPE issued a press release on the RCCI Management Training Seminar held in Moscow October 28-29.

• The October issue of the Russian Chamber’s Trade and Industry Gazette featured a

prominent article by Aleksandr Chistoserdov, President of St. Petersburg Chamber. Mr. Chistoserdov noted the Chamber’s initiative in launching its Member to Member program, for which it has received a small grant under the Partnership Program.

• The October issue of Trade and Industry Gazette also featured an article by Olga

Kudriavtsevo, President of the Dzerzhinsk Chamber on lessons learned from her August, 1996 three week working visit to the US.

• Television interview of Vladimir Ilchenko, Deputy Director of the Volgograd Chamber. December 1996 • American Society of Association Executives (ASAE) competitively selected CIPE to give a

1.5 hour presentation at its annual Management Conference enentitled, “Reaching out to Russia: A Case Study.” Project Manager Stephen Deane moderated a panel discussion and gave an overview of the CIPE-RCCI project. The panel comprised Dr. McKinney Russell, Director, Project for Institutional Partnerships with the New Independent States at IREX; Mr. Willard Workman, Vice President of CIPE and of the International Division, US Chamber of Commerce; and Mr. Frank Dressler, former Director of CIPE’s Moscow office. Mr. Dressler gave an on-the ground view of working in the Russian environment.

• Both the CIPE and ASAE world wide web pages featured references to the above ASAE

event. The ASAE site also featured a summary of the CIPE-RCCI partnership. In addition, ASAE made a cassette tape recording of the panel discussion and sold it at the conference.

April 1997 • CIPE Project Manager and Evaluation Officer were shown at the top of the news hour on the

Republic of Buryatia evening television news report April 2. The news report focused on the visit by CIPE staff and the Buryat Chamber’s Exhibit Hall small grant program.

Annex G

g/evaluate/95-7prtn/Jachieve.doc 1

ACHIEVEMENT PLAN

Outcome chart #1

Objective: A trained cadre of leaders of the central and regional Russian Chambers who have been exposed to the concepts and tools of voluntary business organizations. A scholarship fund of up to $ 30,000 will support this effort by assisting chamber officials to attend the training program . Category Start Date Interim Progress Target Completion

Date Current Status

Resources Baseline of current practices, organizational structure, and plans for change is established, based on focus group.

April 1995 In place throughout the project.

May 1995 Completed on schedule. Additional baseline information gathered at each seminar.

In-Country project staff established. May 1995 6/95 - Moscow office established. 8/95 - Russian national Associate Director hired.

June 1997 On schedule.

CIPE project training materials developed.

June 1995 Materials written - May 95. Translations -- August 95. Edited repeatedly based on comments at each training seminar. Modified and tailored for each training session .

November 1996. Completed.

Instructor/ consultant pool established, consisting of 16 - 20 Americans.

March 1995 Initial pool March 1995, augmented throughout the project.

October 1996 (last training event).

Completed.

Annex G

g/evaluate/95-7prtn/Jachieve.doc 2

Expected Outputs Identification of training needs of up to ten regional Russian chambers as well as the national Russian Chamber of Commerce and Industry (RCCI).

April 1995 In place throughout the project .

May 1995 Completed on schedule.

Media event - press conference, press releases to Russian media.

May 1995 In place throughout the project, occurring with training activities.

June 1997 Completed. Media coverage attained at training seminars.

Advance site visit by CIPE staff for the first training seminar, to be held in St. Petersburg, September 18-23.

July 1995 July 1995 Completed on schedule.

Memorandum of Understanding (MOU) between CIPE and RCCI signed.

June 1995 Once signed by RCCI and CIPE, MOU is in place for duration of project. Target signing date: August 1995.

June 1997 Signed September 1995.

6 Russian chamber officials attend US Chamber's Institute for Organization Management at the University of Delaware, August 6-11. Followed by a visit to Washington, DC, for further training through August 18.

August 1995 August 1995 Completed on schedule.

5 one-week training seminars in various Russian cities for approx. 25 Russians taught by 2 US instructors and CIPE staff. Participants selected, instructors contracted & site selected one month prior to training event.

September 1995 9/95 - St. Petersburg 10/95 - Irkutsk 2/96 - Kazan 4/96 - Krasnodar 5/96 - Moscow

May 1996 Completed on schedule.

Two one-day training seminars on US Chamber of Commerce operations and Committee operations, for key national RCCI staff.

October 1996 October 1996 Completed on schedule.

Approx. $30,000 in Scholarship Funds available to enable out-of-town participants at seminars.

September 1995 Scholarships distributed for each of five one-week seminars.

5/96 - Moscow seminar.

Completed. A total of $40,748 in Scholarship Funds distributed.

Annex G

g/evaluate/95-7prtn/Jachieve.doc 3

Follow-up visits : US instructors and/or qualified CIPE staff visit Russian Chambers that have participated in prior training. Follow-up to reinforce training and provide technical assistance to implement lessons learned.

October 1995 2/96 - Pskov 3/96 - Murmansk 9/96 - Altai CCI (Barnaul) 9/96 - Kuzbass CCI 9/96 - Novosibirsk 9/96 - Kuzbass CCI (Kemerova) 10/96 - Volgograd 10/96 - Astrakhan 11/96 - Vladimir

February 1997 All completed on schedule. Also visited Sochi and Tuapse chambers, 10/96.

6 Russian chamber officials attend US Chamber's Institute for Organization Management at the University of Delaware. Followed by visit to US Chamber .

August 1996 August 1996 Completed.

Measurement of success by follow-up survey to identify progress made in all areas covered by training.

September 1996 8/96 - Interim Evaluation Report 9/96 - Draft of Final Evaluation Plan. 1/97 - Survey Design to be Completed.

June 1997 Completed.

15-25 Russian chamber executives trained in financial management

March 1997 3/97 - Working session with RCCI and local chamber leaders. 6/97 - Financial Management Seminar in Moscow.

June 1997 Canceled in favor of accreditation initiative.

12 Russian chamber executives develop knowledge of US chamber practices in several US cities; funded by USIA

June 9, 1997 June 1997 Completed.

Use of Outputs Enhanced contacts among Russian Chambers and between Russian and US Chambers

April 1995 Ongoing. To continue after project ends.

Activities demonstrating enhanced contacts continue to take place.

Annex G

g/evaluate/95-7prtn/Jachieve.doc 4

Certification of 8 Russian instructors for Russian chamber training programs.

9/95 Selection based on outstanding participation at CIPE training and follow-up events.

June 1997 29 Chamber executives and key staff awarded certificates for outstanding performance.

Reinforce lessons learned, publicize results, and understand program impact.

September 1996 8/96: Interim Evaluation Report 9/96: Draft of Final Evaluation Plan. 1/97: Survey Design to be Completed.

June 1997 Completed.

Outcome Achievements A trained cadre of 120 - 200 leaders of Central and regional Russian Chambers who have been taught the concepts and tools of voluntary business organizations.

September 1995 Ongoing throughout project.

June 1997 168 leaders trained (133 in Russia plus 35 in the US.)

Annex G

g/evaluate/95-7prtn/Jachieve.doc 5

Outcome Chart #2

Objective: Promotion of institutional development projects proposed by local and regional chambers through the disbursement to regional Chambers of up to $170,000 in seed moneys through a Small Grants Program.

Category Start Date Interim Progress Target Completion Date

Current Status

Resources Baseline of current practices, organizational structure, and plans for change.

April 1995 In place throughout the project.

May 1995 Completed on schedule.

Small Grants Program procedures & criteria established. Projects will focus on diversity in terms of geography, size, organization, and project type.

April 1995 In place throughout the project.

May 1995 Completed on schedule.

In-Country project staff established in the U.S.

May 1995 6/95 - Moscow office established. 8/95 - Russian national Associate Director hired.

March 1995 On schedule.

Small Grants Program Monitoring Guidelines.

September 1996 9/96 - Milestones evaluation drafted. 10/96 - ongoing - Survey chambers.

April 1997 On schedule. CIPE Evaluation Officer Erik Johnson in Moscow February 5 to mid-April

Annex G

g/evaluate/95-7prtn/Jachieve.doc 6

Expected Outputs Media event in St. Petersburg to launch training and small grants program.

September 1995 September 1995 News conference held in St. Petersburg during week of the seminar, 9/95.

17 to 25 Small Grants for pilot projects to be awarded ranging from $1,000 to $10,000 totaling up to $170,000. Grants over $5,000 will be distributed incrementally.

October 1995 10/95: Chambers invited to submit Small Grants 12/95: RCCI Advisory Committee recommends Small Grants 2/96: CIPE Board approves Round One 4/96: RCCI Committee reviews 2nd Round submissions 5/96: CIPE Board approves 2nd Round

June 1997 Completed. A total of $175,625 awarded to 19 chambers, leveraging $328,000 in matching contributions.

Publication of information in Russian trade newspapers, magazines and computer networks, articles discussing funded projects and the “lessons learned.”

January 1996 Ongoing throughout the project - quarterly reports on progress of grants.

Ongoing.

CIPE and the RCCI will publish a short model programs booklet in English and Russian outlining the projects and the "lessons learned."

January 1997 2/97 -- Site visits to Small Grants projects.

June 1997 Small Grants book published 6/97. Distribution continuing by hard copy and Web page.

Submission of quarterly financial & narrative report to In-country coordinator by Grantees. (Structured as deliverable of the Grant)

June 1996 Tied to grant period. June 1997 Completed.

Submission of final financial & narrative report by Grantees. (structured as deliverable of the Grant)

Tied to Grant period - due one month after grant period ends.

June 1997 Completed.

Submission of site visit Evaluation Reports by CIPE staff

7/96 -- start. Ongoing site visits. 3/97 - 4/97. Site visits by Project Manager and Evaluations Officer.

Completed.

Annex G

g/evaluate/95-7prtn/Jachieve.doc 7

Use of Outputs Between 17 - 25 grants provided to programs that 1) generate income , 2) enhance and diversify membership services. and 3) promote community economic development.

3/96. Ongoing. March 1997 19 Small Grants awarded. Projects completed.

Model programs booklet distributed to all RCCI members and US Metro Chambers (45 chambers in largest metro areas), members of media, World Bank, USAID, OECD staff, and other development experts.

March 97. Writing and publishing the booklet.

March 1997 CIPE will continue promotion after end of IREX project.

Milestones completed. Distribution continues after end of project.

Information to be distributed on CIPE’s on-line information service “Economic Freedom Network.”

7/96: Partnership information placed on-line.

10/96: 1996 Worldwide Update featuring partnership project printed and distributed.

6/97: Small Grants book available on-line.

Completed.

Outcome Achievements Improved entrepreneurial education & communication, increased democratic participation through advocacy projects, and improved industrial and community development through disbursement of Small Grants. Grants total $170,000 in seed money to support project proposed by local and regional chambers.

January 1996 Ongoing throughout the project.

June 1997 Completed.

Outcome Chart #3

Annex G

g/evaluate/95-7prtn/Jachieve.doc 8

Objective: Implementation by the Russian Chamber of Commerce and Industry (RCCI) of an Accreditation Program which sets standards of excellence for regional and local chambers. Category Start Date Interim Progress Target Completion Date Current Status

Resources Baseline of current practices, organizational structure, and plans for change is established, based on focus group.

April 1995 In place throughout the project.

May 1995 Completed on schedule. Additional baseline information gathered at each seminar.

In-Country project staff established in the U.S.

May 1995 6/95 - Moscow office established. 8/95 - Russian national Associate Director hired.

June 1997 On schedule.

CIPE project training materials developed.

June 1995 5/95 - Materials written 8/95 - Translations Used throughout project.

August 1995 On schedule.

Instructor/ consultant pool established, consisting of 16 - 20 Americans.

March 1995 Initial pool March 1995, augmented throughout the project.

October 1996 (last training event).

Completed.

US Chamber's Accreditation survey passed to RCCI.

June 1995 September 1995 Completed on schedule.

Annex G

g/evaluate/95-7prtn/Jachieve.doc 9

Expected Outputs One 10-day visit by accreditation expert to RCCI national headquarters in Moscow and second city to assist RCCI in development of accreditation standards and program.

September 1995 October 1995 Trip to Moscow (for both national RCCI and Moscow Chamber) and Krasnodar completed on schedule (9/24/95 - 10/4/96).

5 accreditation courses taught at one-week training seminar in various cities by one or two US instructors for approximately 25 Russians.

9/95. 9/95 - St. Petersburg 10/95 - Irkutsk 2/96 - Kazan 4/96 - Krasnodar 5/96 - Moscow

5/96 Completed.

Follow-up visit to Russia by US accreditation expert on progress in developing RCCI Accreditation Program.

April 1996 Trips to Russia 2/96 and 5/97.

April 1996 Trip taken to Kazan 2/96. Final trip to Moscow and Vyatka. May12-16, 1997.

MOU between CIPE and RCCI governing cooperation on accreditation.

9/96: MOU signed.

Final agreement on joint CIPE-RCCI accreditation activities reached 3/97 when CIPE Project Manager visited RCCI.

Completed.

Use of Outputs Selective application of US Accreditation model to the RCCI Accreditation Program

Sept. 95 June 1997 4 chambers accreditied as of September 1997.

Introduction to Accreditation Process to prepare local and regional Russian Chambers for forthcoming RCCI Accreditation Program

Sept. 95 May 1996 Completed.

Further implementation by RCCI of nationwide accreditation program.

September 1996 Ongoing throughout project.

Will continue after project ends.

Continuing.

Annex G

g/evaluate/95-7prtn/Jachieve.doc 10

Outcome Achievements Standards of Russian Chamber organization and practices established through RCCI Accreditation program.

RCCI Accreditation Committee (representing national and regional chambers) established by 2/96.

March 1997 RCCI to continue this after project ends.

Accreditation of regional and local chambers in 1997.

March 1997 December 1997 Ongoing. 4 accreditied. 4 have applied or are preparing to do so.

Annex H

g/evaluate/95-7prtn/Ksurvqus.doc 11/14/2002, 2:23 PM 1

Evaluation Survey Questions 1. Are you currently seeking accreditation with the Russian Chamber of Commerce and Industry? If so, when do you expect to apply? [Yes/No] 2. If you have applied, or plan to apply for accreditation, how do you expect to benefit? If you do not plan to apply, why not? 3. In the last year, have you attempted to recruit new members? [Yes/No] If yes, how many new members joined? 4. To what extent did the ideas you learned in the CIPE program help you to recruit new members? [Did not help, Helped somewhat, Helped a great deal] 5. Do you have a written plan to recruit new members? [Yes/No] If not, do you plan to develop one within the next 6 months? [Yes/No] 6. What problems do/will you face when expanding your membership? 7. Does your organization currently have the following? [Yes/No]

A. Written Mission Statement B. Written Annual Strategic Plan /Program of Work C. Written Long-range plan D. Annual Report E. Organizational Chart F. Set of bylaws G. Computerized Accounting System H. Computerized Membership Database

8. To what extent did your participation in the CIPE program contribute to your decision to add or change the following? [Did not change, Did not contribute, Contributed somewhat, Contributed greatly] (see A-H above) 9. Have any new services been developed as a result of your participation in the CIPE program? If yes, briefly describe the service(s). [Yes/No] 10. Has the organization succeeded in changing government policies or programs since the CIPE program? If yes, please explain. [Yes/No] 11. Have you developed any new publications since your participation in the CIPE program? If yes, please explain. [Yes/No] 12. What methods have been used to disseminate information about your CIPE-related activities?

(i.e. training seminars, or small grant projects) If used, indicate how many times. A. Newsletters; B. Newspapers; C. Radio; D. Television; E. Conferences and workshops; F.

Annex H

g/evaluate/95-7prtn/Ksurvqus.doc 11/14/2002, 2:23 PM 2

Books and pamphlets; G. Informal discussions with groups; H. Electronic communications (Internet)]

13. Since participating in CIPE’s program, has your organization generated any new sources of non-dues income? [Yes/No] If yes, how much and from where. 14. Have any changes been made to your organization’s financial and budgetary planning/operations since your participation in the CIPE program? [Yes/No] If yes, please describe. 15. Which techniques learned during the seminar have you been able to implement in your organization? 16. Has your career advanced or changed as a result of the training? 17. Have you kept in touch with other organizations that were represented at the Russian seminars or in the United States? If so, please name them. 18. Have you used the instructional materials at the CIPE training since your participation? [Yes/No] If yes, how did you use them? 19. Please check the appropriate box if there has been an increase or a decrease in the following expense categories since your participation in the CIPE program. Also, indicate the percentage of the increase or decrease. [Salaries; Spaces, utilities and equipment; Contractual Services; Publications; Training; Research; Conferences; Other] 20. Please check if there has been an increase or a decrease in the following revenue categories since your participation in the CIPE program. Also, indicate the percentage of the increase or decrease. [Membership Dues and Fees, Publications, Conferences, National and local government, Foreign assistance, Private individual donations, Corporate donations, Other] 21. Have you shared this information with colleagues? [Yes/No] If yes, approximately how many? 22. Are there areas in which your staff or Board members could benefit from additional training? [Yes/No] If so, in what areas? Please add any additional comments you may have concerning the impact which CIPE’s program may have had on the work of your organization, yourself, and/or other employees.

Annex I

G/evaluate/95-7prtn/levalres.doc 11/14/2002, 2:23 PM

Evaluation Survey Results for Russian Chambers of Commerce and Industry

1997

Smolensk Togliatti East Siberia

South Ural Serpukhov Kostroma Urals Vyatka Vologda Novgorod yes no

1. yes yes yes no no no yes yes yes yes 7 3 march 97 2quarter 97 in 3 years beg.1998 march 1997 apr 1997 sept 1997 2. increase trust

in CCI activity by confirming its competence, increasing the role of chamber in entrepreneurship development and creating effective infra structure

growth of the CCI authority and its legality

helps to increase prestige of the chamber

There are no advantages, but only expenses for accredi tation

We do not possess enough quantity and quality of services to ask for accreditation

we do not satisfy accreditation requirements

systematize chamber activity according to the world standards. Help to increase business connection of chamber as well as region

Confirm achieved success of the chamber

confirmation of chamber competence in accordance with Russia CCI Charter and laws of Russia

3. yes yes yes yes yes yes yes yes yes yes 10 0 26 59 6 72 11 4 42 40 35 or 25 12 4. to some

extent very helpful very helpful to some

extent didn’t help very helpful to some

extent very helpful to some

extent to some extent

5. no yes no yes no yes yes yes yes no 6 4 yes yes no 2 1 6. because of

difficult finance conditions of enterprises and due to the

because of unstable finance conditions of the

insolvency of enterprises

poor printing facilities

Chamber offers not enough services for member

lack of understanding of the role of chamber by

Additional finance expenses due to increase in

difficulties with payments of member fees because of

unstable economic situation provoke uncertainty

They don’t see any obstacles

Annex I

Smolensk Togliatti East Siberia

South Ural Serpukhov Kostroma Urals Vyatka Vologda Novgorod yes no

G/evaluate/95-7prtn/levalres.doc 11/14/2002, 2:23 PM

2

fact that fees are paid from profit, there are some difficulties to transfer the payments, creating some problems to increase number of members

enterprises fees enterprises leaders

volume of chamber activities with members

difficult financial conditions of enterprises

in chamber advantages

7. A yes yes yes yes yes yes yes yes yes yes 10 0 B yes yes yes yes yes no yes yes yes yes 9 1 C yes yes no yes no yes no yes no yes 6 4 D yes yes yes yes yes yes yes yes yes yes 10 0 E yes yes yes yes yes yes yes yes yes yes 10 0 F yes yes yes yes yes yes yes yes yes yes 10 0 G no yes no yes no yes yes yes yes yes 7 3 H yes yes yes yes no yes in process yes yes yes 8 2 8. A contributed

somewhat contributed somewhat

contributed somewhat

contributed somewhat

contributed greatly

contributed somewhat

contributed somewhat

contributed greatly

contributed somewhat

contributed greatly

B contributed somewhat

contributed somewhat

contributed contributed somewhat

contributed greatly

didn’t change contributed somewhat

contributed greatly

contributed somewhat

contributed greatly

C contributed somewhat

contributed greatly

contributed somewhat

didn’t change didn’t change contributed somewhat

didn’t contribute

contributed greatly

contributed somewhat

contributed greatly

D contributed somewhat

contributed somewhat

contributed somewhat

didn’t change didn’t change didn’t change contributed somewhat

contributed greatly

contributed somewhat

didn’t change

E didn’t contribute

contributed somewhat

- didn’t change contributed somewhat

contributed greatly

contributed somewhat

contributed greatly

contributed greatly

didn’t change

F didn’t contribute

contributed somewhat

didn’t contribute

didn’t change didn’t change didn’t change didn’t contribute

didn’t contribute

didn’t change didn’t change

G didn’t contribute

contributed greatly

doesn’t exist didn’t change didn’t change contributed greatly

didn’t contribute

didn’t contribute

didn’t change didn’t change

H didn’t contribute

contributed greatly

contributed somewhat

didn’t change didn’t change contributed somewhat

contributed somewhat

contributed greatly

didn’t change contributed somewhat

9. no yes yes no yes no yes yes yes no certification

of foreign grants attraction for

service center for small

certification of food-

email marketing

expansion of publishing

Annex I

Smolensk Togliatti East Siberia

South Ural Serpukhov Kostroma Urals Vyatka Vologda Novgorod yes no

G/evaluate/95-7prtn/levalres.doc 11/14/2002, 2:23 PM

3

documents, real estate evaluation, lobbyism

CCI members business, legal advice office, consultations in the realm of investments

stuffs, legal examination of property, studying center, arbitration tribunal

service business tourism, support with visa registration

activities, help chamber members to take in small grants competition

10. yes yes yes no no yes yes yes yes yes 8 2 We

concluded n agreement with the city council regarding examination of projects

We established tighter contacts with oblast administration, concluded agreement of cooperation, we issue joint journal, “Vestnik”, as well as organize joint training seminars

Oblast administration accepted resolution about chamber support

Chief of oblast administration passed the resolution regarding chamber , under the governor of oblast foreign economic activity council was organized with the chairman of the chamber as a member

Organization of meetings wit the oblast administration, representation of chamber interests in Duma

With cooperation with governor administration region program of enrepreneurship support was adopted.

Agreement of cooperation was signed with the city of Novgorod administration.

11. yes yes yes no no no yes yes yes no 6 4 32 Main topics

include: Interrelation with government and authorities ,Arbitration tribunal of city of Togliatti, Advertisement, Foreign

A few articles were published in “Vestnik” of chamber about education programs; In newspaper was published information on education programs,

Business catalog; Leaflet about Arbitration tribunal of the Urals Chamber; some articles in journals and newspapers such as

We established cooperation with mass media . A few programs were organised on TV and radio.

Annex I

Smolensk Togliatti East Siberia

South Ural Serpukhov Kostroma Urals Vyatka Vologda Novgorod yes no

G/evaluate/95-7prtn/levalres.doc 11/14/2002, 2:23 PM

4

economic activity, Exhibitions, Business education, Current activities announcements

exhibitions, foreign missions

“Ekonomika I zhizn”, “Torgovo-promishlennie vedomosti”, “Kompanion”, “Handshake”.

12. A yes 1 / 150 no no no 6 / 500 1 / 500 3 / 750 B yes no yes no no 20 5 C yes 2 no no no 8 2 D no no no no no 2 2 E yes 5 / 150-200 no 1 / 100 yes 15 / 5000 2 / 70 F no no no no no no no G yes 7 yes lots of times yes 3 / 30 20 / 100 H yes - no no no 10 no 13. no yes no yes yes yes yes yes 6 2 CIPE grant ,

10000$ property

assessment informational and analytical services

a few 10,000000 rub for examinations

due to services expansion

translation service; foreign economical activities consultations; business tourism

CIPE grant , 10000$

14. no no no yes no yes yes no absent 3 5 introduction

of budgeting and financial planning

Using of financial planning during realization of chamber projects

Annex I

Smolensk Togliatti East Siberia

South Ural Serpukhov Kostroma Urals Vyatka Vologda Novgorod yes no

G/evaluate/95-7prtn/levalres.doc 11/14/2002, 2:23 PM

5

15. none systematic analysis; differential approach to members fees; members survey; organization of investment support and insolvency commissions

methods of attracting of new chamber members

evaluation of current situation in chamber; strategic planning; program development

methods of attracting of new chamber members; how to cooperate with oblast authorities

methods of attracting of new chamber members; system of members cooperation within chamber; organization of work of chamber governing body

active lobbying of chamber interests in federal and local authority; activization of attraction of new members into the chamber as well as holding them in; attraction of volunteers for implementation of chamber programs

usage of mass media

16. no no no no no no training in

US helped to broader the understanding of role of chambers in the entrepreneurship development

some offeres

17. no yes yes yes yes yes yes yes with all

members of CIPE training seminar

with all members of CIPE training seminar

Moscow CCI, Tatarstan CCI, Tula CCI

Moscow CCI, Yaroslavl CCI, Tula CCI, Kursk CCI

US Chamber in Russia, TACIS

CIPE Moscow office, St. Petersburg CCI, Moscow CCI,

Our contacts established during seminars are very helpful to us

Annex I

Smolensk Togliatti East Siberia

South Ural Serpukhov Kostroma Urals Vyatka Vologda Novgorod yes no

G/evaluate/95-7prtn/levalres.doc 11/14/2002, 2:23 PM

6

Murmansk CCI, Novgorod CCI, Ekaterinburg CCI, Kazan CCI

18. no yes yes yes yes yes yes yes 7 1 Instructional

materials were used for chamber accredita-tion; for seminars and conferences; for department activities planning; for student teaching (Russia -Asia University, Irkutsk Academy of Sciences)

Instructional materials on incubators creation were given to the city administration

as criteria and pattern

introduction of instructional materials to chamber members; materials are used for the work with members

for development of strategic plans, for training of chamber staff

They are constantly using materials as methodical directions

19. expen admin: + salar +25% + 155% + 10% util&eq -15% + 238% + 1% conser + -30% publ + -3% trai +10% + 1606% + 1%

Annex I

Smolensk Togliatti East Siberia

South Ural Serpukhov Kostroma Urals Vyatka Vologda Novgorod yes no

G/evaluate/95-7prtn/levalres.doc 11/14/2002, 2:23 PM

7

resear +12% - -1% conf + -1% other 132% 20. incourc prematurely

to infer something

memfee +30% + 232% + +5% nomem + publ +2.5% conf + +1% gover assis + donat +2% cordon +3% other +40% 150% 151% + 21. no yes yes yes yes yes yes with every

coworker in Chamber

>25 10 report to directors

4

22. yes yes yes yes yes yes yes yes yes organization

of work with chamber members; investment policy; organization of support to small business; consulting

marketing; publishing; advertising

staff management; corporate management; corporate culture; system analysis; financial management

government regulation of foreign economic activities in USA with CIS countries

support of small business; lobbying; marketing; investments; anticrisis management

work with chamber members; cooperation with authorities

entrepreneurship; management

additional services for chamber members, based on foreign experience; forms of business communication; development of international connections

investments; unemployment programs ; information activities

23. I consider

training Vyatka CCI is

deeply

Annex I

Smolensk Togliatti East Siberia

South Ural Serpukhov Kostroma Urals Vyatka Vologda Novgorod yes no

G/evaluate/95-7prtn/levalres.doc 11/14/2002, 2:23 PM

8

seminar very helpful

grateful to CIPE for the chance to get information about the work of US Chambers. That information was used to get Vyatka Chamber accredited in Russia CCI

Annex J

11/14/2002, 2:23 PM g/evaluate/95-7prtn/mevalsu.doc

1

Results of Pre and Post Testing of Participants at Training Seminars

Percentage change in pre- and post-test score for individual participants.

Moscow Training Seminar

-20

0

20

40

60

1 6 11 16 21 26 31 36

Score for each participant

% c

hang

e

Krasnodar Training Seminar

-20

0

20

40

60

1 4 7 10 13 16 19 22

Score for each participant

% c

hang

e

Kazan Training Seminar

-2002040

1 4 7 10 13 16 19 22

Score for each participant

% c

hang

e

Annex J

11/14/2002, 2:23 PM g/evaluate/95-7prtn/mevalsu.doc

2

Irkutsk Training Seminar

-20

0

20

40

1 3 5 7 9 11 13 15 17 19

Score for each participant

% c

hang

e

St. Petersburg Training Seminar

050100

1 4 7 10 13 16 19 22

Score for each participant

% c

hang

e

Comparison Of Test Scores From All Seminars

1 4 7 10 13 16 19 22 25 28 31 34 37

S1

S3

S5

-20

-10

0

10

20

30

40

50

60

70

80

% change

Number of Participants

Summary of % Changes

Annex K

g/evaluate/95-7prtn/ntimelin.doc 11/14/2002, 2:23 PM

1

Timeline of Major IPP Project Events

I. Administration

Activity Completion Date Identify training needs of up to 10 regional Russian chambers as

well as the national Russian Chamber of Commerce and Industry (RCCI).

May 1995

Establish a baseline of current practices, organizational structure and plans for change.

May 1995

In-Country Coordinator arrives in Russia May 1995 In-Country Coordinator, CIPE Project Director and CIPE Executive

Director meet in Moscow with RCCI officials. May 1995

Office opened in Moscow at 5/2 Ilyinka in space provided by the Russian Chamber.

May 1995

CIPE Moscow Office fully staffed, renovated, and equipment installed

September 1995

Memorandum of Understanding between CIPE and the Russian Chamber of Commerce and Industry (RCCI) signed in English and Russian

September 1995

Patrick Leahy, a former marketing representative and account executive, joined the CIPE Moscow staff as a summer volunteer.

June 15- August 15, 1996.

In-country Coordinator and Office Manager leave Moscow December 15, 1996 Evaluation Officer worked out of Moscow office February 5 - April 30,

1997

II. Training in Russia

Activity Completion Date Course curriculum designed, complete with participant manual,

glossary of key terms, overheads, lesson plans, and background reading.

June 1995

First training seminar held in St. Petersburg September 1995 Second training seminar held in Irkutsk October 27 - November 2

1995 Third training seminar held in Kazan. February 26 -March 1,

1996. Fourth training seminar held in Krasnodar April 15-19, 1996 Fifth training seminar held in Moscow. May 15-19, 1996 Management Training Seminar with RCCI in Moscow October 28-29, 1996 Certificates (signed by U.S. Chamber of Commerce President

Richard Lesher) were awarded to 29 Russian Chamber executives and key staff who participated in past one-week training seminars that were conducted as part of this project.

June 1997

Annex K

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2

III. Follow up Visits for Technical Assistance

Activity Completion Date Follow-up visit to Pskov Chamber of Commerce Feb. 19-20, 1996 Follow-up visit to Murmansk Chamber of Commerce March 18, 1996 Follow-up visits to Altai Chamber in Barnaul, the Novosibirsk

Chamber, and the Kuzbass Chamber in Kemerovo. September 1996

Visit to St. Petersburg Chamber by Lance Shaeffer, Executive

Director of the Greater Pittsburgh Chamber September 24-28, 1996

Follow-up visit to Volgograd and Astrakhan Chambers September 30-October 4, 1996

Site visit to RCCI by US Chamber Vice President, CIPE Executive Director, and IPP Project Manager

October 6-7, 1996

Site visit to Novgorod and St. Petersburg Chambers by US Chamber Vice President and CIPE Executive Director

October 8-12, 1996

Follow-up visit to Sochi and Tuapse Chambers October 21-23, 1996 Follow-up visit to Vladimir Chamber of Commerce November 19-20, 1996 IV. Training and Visits to the United States

Activity Completion Date RCCI identifies and recommends 11 national, regional and staff

members of chambers to attend the U.S. Chamber Institute for Organization Management in U.S. August 6-11, 1995.

June 1995

Six Russian Chamber executives selected and tested for participation in US training program

July 1995

Six Russian Chamber executives participate in US training program in Washington and at US Chamber Institute for Organization Management at the University of Delaware

August 1995

USIA agrees to send 10-12 Russian Chamber executives to the US in June 1996 to study Chamber of Commerce operations in several cities; RCCI begins selection process.

February 1996

RCCI staff begins process of selecting a list of candidates to attend Institute for Organization Management at the University of Delaware on August 5-9, 1996.

March 1996

USIA-sponsored working visit of Russian Chamber of Commerce Executives to US

June 10 - 28, 1996

Six candidates selected to attend Institute for Organization Management at the University of Delaware on August 5-9, 1996.

June 1996

Six Russian Chamber executives selected and tested for participation in US training program

July 1996

Six Russian Chamber executives participate in the US Chamber Institute for Organization Management at the University of Delaware

August 4-9 1996

US training program in Washington August 9-16, 1996 Visit to CIPE and U.S. Chamber by Alexander Chesnokov, Vice September 8-13, 1996

Annex K

g/evaluate/95-7prtn/ntimelin.doc 11/14/2002, 2:23 PM

3

President of the Russian Federation Chamber of Commerce and Industry

St. Petersburg Chamber visit to Pittsburgh October 20-26, 1996 V. Small Grants

Activity Completion Date Small grants guidelines approved by CIPE and RCCI and mailed to

all Russian regional and local chambers August - September 1995

In-country coordinator follows up with trainees via e-mail regarding the potential for proposals from Small Grants Program

October - November 1995

Sixteen proposals submitted to Russian Chamber Advisory Committee and to CIPE In-Country Coordinator

December 1995

RCCI Advisory Committee recommends 12 proposals for CIPE Board approval.

December 21, 1995.

CIPE Board approves 9 first-round grant proposals February 1996 CIPE receives 25 second-round grant proposals Feb.- March 1996 Grant contracts distributed to nine grantees March 1996 Nine Chambers launch small grants projects selected in Round One. March 1, 1996 RCCI Committee to review second-round grant proposals. April 2, 1996. CIPE Board approves 10 second-round grant proposals. May 1996 VI. Accreditation

Activity Completion Date Materials on US Chamber accreditation program translated and

given to RCCI and regional chambers attending St. Petersburg training

August and September 1995

First visit from US expert, explaining US Chamber accreditation program to leaders of RCCI, Moscow Chamber, and 20 chambers in Krasnodar region

September - October, 1995

RCCI Accreditation documents obtained and translated into English.

November 1995

Follow-up visit planned by US Accreditation Specialist Larry Milner. Russian Chamber proposes holding a major accreditation meeting in Kazan to be timed during Mr. Milner’s visit there.

December 1995

US Chamber Accreditation expert gives explanation to Chamber leaders in Kazan.

February 29, 1996.

Topic covered in seminars in Russia and in working visit to US

April - June 1996.

Memorandum of Understanding Signed between CIPE and RCCI September 12, 1996 US accreditation expert Larry Milner met with RCCI to advise on

the development of its accreditation program. A site visit was also made to the Kirov Chamber to observe the work of the RCCI accreditation committee in assessing the Chamber's application.

May 12-16, 1997

Annex K

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4

VII. Evaluation

Activity Completion Date Interim Training Evaluation Completed by Patrick Leahy August 16, 1996 IPP Technical Evaluation Completed by Gina Volynsky December 6, 1996 Site Visit by Evaluation Officer to Penza March 3-4, 1997 Site Visit by Evaluation Officer to Serpukhov CCI March 6, 1997 Site Visit by Evaluation Officer to Kaliningrad CCI March 12-13, 1997 Site visits by Program Manager and Evaluation Officer to:

Novgorod CCI; St. Petersburg CCI; Volgograd CCI; East Siberian CCI; and Buryat CCI

March 20-April 2, 1997

Site Visit by Evaluation Officer to Belgorod CCI April 27-28, 1997 Survey distributed to Russian Chambers Responses received

April 1997. May 1997

Annex L

G/evaluate/95-7prtn/ostory.doc 11/14/2002, 2:23 PM, page 1

Success Stories Success Stories are described in words and photographs in the publication Strengthening Russian Chambers of Commerce and Industry: Case Studies. That publication, written in English and Russian, is one of the products of this partnership. Following are further examples of success stories. Serpukhov/Protvino Chamber of Commerce and Industry The local economy of Protvino, a town located a few hours’ drive from Moscow, was built around the presence of a major nuclear accelerator. This operation has been scaled back over the past few years, and nuclear scientists have become unemployed. Unfortunately, there have been almost no small businesses to absorb the highly trained unemployed, who want to work. Many of them have attempted to start their own businesses, but they suffer from lack of business and management skills. Hence the need to develop a training program on basic business skills for new entrepreneurs. Mr. Franz Yoch is a case in point. An out-of-work nuclear physicist, he was asked to join the Protvino government as Vice Mayor with the special task of small business assistance. Today Mr. Yoch is Chairman of the Chamber and Deputy Mayor of Protvino. He originally envisioned a business school within the local Lyceum. This basic idea was put forth more than two years ago, and it represented the first attempt to organize a business institution in Protvino. The project has come to fruition thanks to a Small Grant under the CIPE-RCCI Institutional Partnership Program. A partnership between the local Administration, Lyceum, and the Chamber has provided significant matching contributions to this training program. The Training Program is divided into three sections, each one corresponding to a separate target audience: students, unemployed people, and small businessmen. The student groups have been, perhaps, the most successful. Thus far, seven groups of students have graduated from the program. One of the main benefits has been the basic introduction to the realities of business--something none of them had experienced previously. Also of great importance has been the guidance students have been receiving regarding “how” and “why” to avoid criminal business activity. As a part of the course, the youths developed many interesting projects including a number of initiatives to clean up the town. There is a small fee for this program, simply to indicate that the service is worth paying for. Free activities are often dismissed as low quality. Currently, a new project is beginning to take shape as an offshoot of the youth courses. The students are founding their own “school company.” Children would be the leaders of this company and they would even have their own bank account.

As for the unemployed group, 13 out of the original 15 people will be graduating from the course. At this point, 11 out of these 13 have prepared their own business plans.

Annex L

G/evaluate/95-7prtn/ostory.doc 11/14/2002, 2:23 PM, page 2

These plans include the sale of products such as seeds, wood, and fish. This group has been very enthusiastic and has requested another course.

The Sochi Chamber The Chairman of this Chamber, Vadim P. Levchenko, has written to CIPE listing concrete results of two sets of training: a week-long seminar held in Krasnodar, and a three-week visit to Chambers in the U.S. Since that visit Mr. Levchenko created job descriptions for all positions in the Chamber. In addition, he now has a government advocacy position in the Sochi City Hall and an agreement with the Sochi City Council that they will pass no laws regarding tourism development without prior Chamber input. He created subcommittees in the Chamber on which volunteers serve. His major strategic goals are the creation of a Sochi Exhibition/Convention Center and the completion of the airport terminal building. After the training in the U.S. and at the Krasnodar Seminar, Mr. Levchenko met with the Mayor of Sochi, who agreed to work with the Chamber on development issues. After his experience in the U.S. visiting the San Marcos, Texas, Chamber of Commerce, he initiated a Committee of Entrepreneurs charged with development of an advertising and promotion program for Sochi to attract association and business meetings. Since last July, they have attracted 30 new members. Like Astrakhan and the Caspian Sea, Sochi has taken the initiative to create a Council of Chambers of Commerce for all the countries surrounding the Black Sea to promote tourism. Mr. Levchenko was impressed with Chicago’s “Member to Member” program and would like to duplicate that in Sochi. A copy of Mr. Levchenko’s letter to CIPE is attached at the end of this annex. The Vladimir Chamber The Vladimir Chamber has benefited in a number of ways from its participation in at the Moscow seminar. The Chamber has made changes concerning formulation of a strategic plan, Board restructuring, a Chamber representative at the regional Duma for government advocacy, and new membership recruitment strategies.

The new strategic plan calls for restructuring the 9-person Board to better represent the entire Region. One Board member will be assigned the responsibility of getting all the Board members to participate in new membership recruitment, thus increasing the sustainability of the Chamber. The Chamber plans to focus on a limited government advocacy effort by assigning a full-time representative at the regional Duma to concentrate on the Chamber’s priorities, especially rebuilding the tourism industry. They plan to hire a professional journalist to develop and write a bi-monthly newsletter.

Annex L

G/evaluate/95-7prtn/ostory.doc 11/14/2002, 2:23 PM, page 3

Regarding membership recruitment, they plan to recruit membership sales people and pay them 10% of the first year’s dues as a commission. They will change the current dues schedule to a new one based on the enterprise’s number of employees. The Altai Chamber The Altai Chamber in Barnaul benefited in concrete ways from the training in Irkutsk and in America. It has implemented changes concerning networking, public relations, and attraction of new members. U.S. Chambers understand the importance of networking to learn and share new approaches and techniques. Networking, however, remains a new concept for Russian Chambers, and the Altai Chamber is a pioneer in this field. It had recently organized a two-day seminar on information processing for eight other chambers. The Altai Chamber shared software it had developed. This was one example of the Altai Chamber’s continual efforts to maintain contacts with other chambers in Siberia. The Altai Chamber demonstrated its public relations capabilities by arranging for a media blitz in connection with the joint visit of CIPE and RCCI staff members. A local TV station interviewed the visitors and broadcast the interview on that evening’s news. The next day the visitors were interviewed by the other local TV station, a local radio station, and two newspaper reporters. In addition, the Altai Chamber has improved its publications thanks to lessons learned on the importance of public relations. The new publications have attractive, uncluttered layouts and text that is tailored to the audience. The Altai Chamber also has adopted a number of membership recruitment techniques learned from the Irkutsk seminar. For example, the Altai Chamber now distributes a list of membership benefits, which clearly lay out the value of membership to businesses. The Volgograd Chamber This Chamber benefited from the seminar and CIPE grant by making the following concrete changes: payment of 10% of first year’s dues to membership salespersons, reorganization of the Chamber structure into Marketing, Consulting, and Tutorial centers, each headed by a Deputy Director (equivalent to a U.S. Vice President). The development of a real quality assurance program, better use of publications to carry the membership benefit story, preparation for the accreditation process, and strategic vision are issues that President Alexander Belitsky learned about from the seminar. All of these factors increase the sustainability of this Chamber. The new Tutorial Center will offer computer science training and other specialized courses for not only enterprise managers, but also for the unemployed in the Region. Thanks to a Small Grant from the Partnership program, the Volgograd Chamber has launched a pioneering and successful Quality Assurance Program. In this program, the chamber is training local businesses to meet ISO 9000 standards, which improve the

Annex L

G/evaluate/95-7prtn/ostory.doc 11/14/2002, 2:23 PM, page 4

efficiency of the enterprise and are increasingly becoming a pre-requisite for trade with companies in Western Europe. Details follow.

The essence of the program is to develop an institutional training capability to work with regional enterprises in developing quality assurance programs and in meeting ISO 9000 and similar internationally recognized quality assurance programs. Quality assurance certification is necessary for companies wishing to penetrate the European market, because European companies routinely require all potential suppliers to meet ISO 9000 certification as a pre-requisite for trade. Beyond developing an institutional capability within the Chamber, its Quality Assurance team must persuade local enterprise directors of the value and need to obtain such certification. Enterprise directors frequently ask, “We’ve existed for years without this. Why do we need it?” To answer this question—to demonstrate the need and advantages of undergoing a quality assurance training program—the Chamber has selected three enterprises in different economic sectors (food processing, chemicals, and tractor parts) to launch model quality assurance training programs. In some cases, the enterprises need certification to penetrate foreign markets. In one case, at the local Milk Factory, the forward-thinking director does not want to export, but does want to improve the internal organization and quality processes within the plant itself. CIPE staff visited the Chamber quality assurance team on a training session at the Milk Plant and the results were impressive. The three enterprises receiving this training have agreed to market the training program in a number of ways, including hosting interested directors from other enterprises in the region to demonstrate the results first-hand. This in effect amounts to a barter deal—training in return for marketing. In the future, the Chamber team explained, they will charge fees to make the program self-sustaining. The Chamber has positioned itself as an indispensable aid to local businesses, as an intermediate between local firms and international certifying bodies. This position has been crucial to the success of the project. As Chamber leaders explained, local enterprises always have the option of hiring internationally recognized quality assurance certifying agencies from Western Europe. If they do, however, they will pay thousands of dollars only to have experts from, say, London, breeze into town for one week, lecturing in a manner that will be all but lost on the local businesses. Thus the Chamber’s quality assurance team – a Russian team – fills a key need: this team will prove far less costly, while its assistance will be medium- to long-term and its explanations will make sense to the Russian clients. The enterprise and the Chamber’s quality assurance team may later make a joint decision to invite in such an international body – but only when the time is right. The purpose would then be to gain the prestige of earning certification from the internationally recognized organization. The Quality Assurance Program is not only strategic to the Volgograd Region, but also shows promise as a model that can be replicated at the national level. The

Annex L

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national RCCI has an agreement with the Volgograd Chamber to develop such a model for other Russian Chambers. The Astrakhan Chamber This Chamber benefited from the Kazan training in many concrete ways. The President, Alexei D. Kantimirov, returned from Kazan to develop a volunteer recruitment and training program, utilizing the community in the planning and activities. Many membership recruitment ideas and tools were utilized. The Chamber took the initiative to create the Union of Chambers Around the Caspian Sea, involving Chambers from all the countries bordering the Caspian Sea. Mr. Kantimirov of Astrakhan serves as the Union’s first Chairman. They also began to remove members more than 30 days in arrears on their dues (previous practice was more than six months). The President remembered a specific quotation he heard during the Kazan seminar: “The business community can’t be healthy unless the community is healthy.” He keeps the Kazan training manual on his desk and refers to it often, including the plan to develop a small business support center. Kaliningrad Chamber of Commerce and Industry The Kaliningrad Chamber of Commerce and Industry used its small grant to establish a Technical Assistance Center. Among the business clients receiving consultations was a small manufacturing company in Chinokovsk that produces trays. It filled an order from a Belgian company, which took the goods but refused to pay for them. Working in cooperation with the Belgian Chamber of Commerce, the TAC’s Legal Advisor managed to bring the company to justice. It is now required under Belgian law to pay an outstanding balance of 250,000 Belgian Francs.