IMC Russian Federation – From Relief to Self-Reliance

IMC has been working in the Russian Federation since 1999, implementing programs that aim to improve the health and economic well-being of local populations to help them become self-reliant. True to our mission, our programs aim to build the capacity of existing health structures. As economic well-being goes hand-in-hand with health, since 2002, IMC Russia has augmented health care interventions in the region with small business development, primarily in agriculture, and training programs designed to give vulnerable youth the skills, tools, and opportunities to generate income. IMC Russia pays special attention to strengthening the linkages between existing businesses, investing into value chains, and constructing supply chains between agricultural businesses.

History of IMC in Russia

IMC Russia currently implements USAID, US DOS and EU funded programs in the North Caucasus in six autonomous republics: Chechnya, Dagestan, Ingushetia, Kabardino-Balkaria, Karachaevo-Cherkessia, North Ossetia, and Stavropol Krai with a combined population of over 5 million people. Our objectives are to foster economic growth through agriculture and other SME development programs and training, and increase access to health care. IMC Russia key program areas for the North Caucasus include:

Small and Medium Sized Agriculture Enterprises (MSE/ME) and Microfinancing: Mobilizing communities to manage and implement income-generating activities, helping individuals to start businesses, including greenhouses, bakeries, pastry shops, dairy farms, fisheries and other productive development projects

Photo by Georgy Molodtsov Photo by Sayd-Akhmed Israilov

Youth Initiatives: Empowering youth with professional skills training in areas like public health education, TB prevention, occupational skills training, and NGO and business management

Public Health and Health Improvement

Gender Based Violence prevention

IMC is the only US NGO implementing such programs in Chechnya, and has the largest program scope and scale with over 10 years of experience in the region. Strong relationship with the government Ministries of Agriculture and Economic Development, Ministry of External Relations and Information of the Chechen Republic, Dagestan and Ingushetia, Ministries of Health and Education of a number of republics, Chechen, Dagestani and North Ossetian Chambers of Commerce, and an operational network of community driven SME and ME provides IMC with unique opportunity and a critical edge for successful USAID programs implementation. Programmatic description:

Small and Medium Sized Enterprises and Microfinancing

IMC Russia seeks to foster sustainable economic growth and job creation in the North Caucasus through the development of a vibrant entrepreneurial sector. North Caucasus primary economic activity is agriculture. Majority of its population is concentrated in the countryside – urbanization of the region is 54% compared to 73% in Russia as a whole. Therefore, we have focused on building small businesses in rural areas, creating linkages between the existing actors of the agricultural

value chain and introducing modern technologies to make agricultural production more efficient. Small businesses located in rural areas in secondary and tertiary economic sector should become the focus points of the regional development. They require smaller capital investment,

which is especially important for the regions that receive majority of their funding from the federal budget (Chechnya – 84%, Ingushetia – 93%, Dagestan – 78%). They are capable of creating a competitive environment, increasing the number of workplaces, and introducing modern technologies into the traditional agricultural society making the production more efficient. Eventually this will contribute to the development of a vibrant civil society with operational interest groups guided by

Photo by Sayd-Akhmed Israilov

Photo by Sayd-Akhmed Israilov

their growing awareness of the need to represent their economic and property rights, creating a healthy interaction between different groups in the society and the government. IMC Russia employs an innovative approach to developing Small and Medium Sized Enterprises (SMEs) in war-affected communities in the region. For example, through comprehensive microfinancing programs, we improve the value chain marketing and sales component, as well as operations component and outbound logistics of agricultural SMEs such as greenhouses, cattle breeding and dairy mini-farms, sheep breeding mini-farms by linking grocery shop chains and other distributors. IMC Russia programs created 587 start-up businesses with EU and USAID funding, initiating a business association through the Chechen Chamber of Commerce to improve their value chains, creating over 3,600 people and helping them become more self-reliant. 70% are dairy farms and cattle breeding, 20% food-security and 10% self-sufficiency. Professional consultations and training in vital business skills (marketing, financial management and accounting, distribution) is provided to each of the business grant recipient to immediately improve the operations value chain component.

Training and Professional Development

With USAID funding IMC has provided 142 vocational courses and training programs to the vulnerable, war affected youth, in many professions including agronomy, SME accounting, IT, welding and professional driving.

2,514 people received professional skills training or went through business start-up trainings.

In addition, 24 internships were organized for the most successful USAID program graduates at SMEs in the region. Since 2003, International Medical Corps has also created nine Youth Action Organizations in Chechnya and 28 in Ingushetia to help young people build professional and leadership skills.

Value and Supply Chain Facilitation

IMC Russia uses value chain analysis in the agriculture sector, especially in Chechnya, and conducts continuous market assessments to evaluate private sector development and jumpstart growth and poverty reduction in the North Caucasus region. This can include a wide range of activities such as facilitating access to cheaper or better inputs and strengthening the delivery of business and financial services in order to help local businesses develop a

competitive advantage. The goal has been to create value that exceeds the cost of providing the product or service, thus generating a profit margin. As many newly created SMEs are located in small towns and villages and require assistance with supply chain management, IMC facilitates the creation of effective supply chains between different types of businesses. Linkages have been created between small agricultural and food processing businesses (greenhouses, pelmeni and dairy production), shops created with the support of IMC and wholesale suppliers. IMC has provided SMEs with a number of market-based opportunities by coordinating and linking with UNFAO, local businesses and the government in building economic agricultural development programs Competitive advantages of our business come from different sources: some are newcomers; others are able to identify a small market niche and enter it successfully. Still other businesses, such as greenhouses, constructed with IMC support, enter an already crowded market using advance technology, which allows them to be ahead of their competitors with their very seasonal product. IMC organizational capacity For over 25 years, IMC Worldwide, via two international headquarters – IMC US and IMC UK, has demonstrated the ability to deliver major development programs to improve lives and strengthen national capacity through social programming, economic development, health, and education. IMC Worldwide has responded to complex emergencies and implemented development programs in more than 50 countries. IMC has been implementing agricultural development programs in a number of countries including Iraq, Liberia, Sierra Leone, Ethiopia, Kenya, South Sudan, Somalia, and others. For example, IMC program in Iraq that has been operational since the early days of the international coalition operation in Iraq educating Iraqis in a particular trades and provides them with the tools they need to generate profit. IMC helps to create small and medium-sized enterprises. Majority of IMC beneficiaries are from the countryside lacking basic finance and management skills, and IMC educates the new businesspersons on basic management, bookkeeping, and market research. IMC HQ Development Units in Washington, DC, Santa Monica, CA, and London, UK have highly qualified specialists in economics, business development, agriculture and international development that conduct continuous evaluation of all ongoing programs and provide consultations both at program development stage and in the course of program implementation.