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UKRAINE Information brief Background In 1995, UNDP initiated the Crimean Integration and Development Programme (CIDP) on conflict prevention at the request of the Government of Ukraine. This programme aims at maintaining peace and security on the Crimean peninsula by fostering peaceful re-settlement and re-integration of formerly deported minorities (FDPs) in Crimea. The programme is implemented by UNOPS and receives technical assistance from the ILO for its economic development component. Objectives The general objectives of the programme are: · Assist in strengthening local capacities for participation in decision making, planning and resource mobilisation; · Provide support for the improvement of basic living conditions in the areas of health, education, water and sanitation, communal services and economic activities; · Assist in enhancing the role of women and youth; · Provide assistance in facilitating partnerships and power-sharing; · Assist the Governments of Ukraine and Crimea in mobilising additional resources for the financing of activities to achieve the above stated objectives and more. Approach These objectives are achieved via a comprehensive multi-sectoral, multi-ethnic and participatory approach: Participatory: The programme has adopted a bottom-up approach: the identification of needs and priorities is done by community members themselves. This process is coordinate by CIDP, through a "pyramid structure", ranging from Local Participatory Planning Committees and Technical Working Committees, to the Crimean Consultative Forum. Multi-ethnic: The target beneficiaries of the programme are not only FDPs but also member of non-FDP communities. Access to the facilities and services should be available to all, regardless of ethnic origin or nationality. Multi-sectoral: CIDP provides assistance in the development of all sectors, while at the same time paying special attention to more vulnerable groups of the population (women, youth and children) and also strengthening the capacity of the communities to effectively participate in the planning and decision-making process. The programme consists of economic, social, infrastructure and capacity building components. Economic Development Business Development Services Under the economic component, ILOadvised on the development of small enterprises and self-employment programmes as a key strategy towards self-sustaining local communities. Against this background, the programme has established four Business Development Centers, which provide consulting, business information and business training services to existing and potential small entrepreneurs. Financial assistance The financial sector in Crimea is characterised by a gap in the array of lending funds available to small entrepreneurs. The banking system operates with stringent collateral requirements and high interest rates, and is geared towards making loans in the range of US$ 50,000 to 100,000. In the first half of 2000, ILO assisted the creation of a micro-finance institution named Credo, to fill this credit gap. Its mission is to contribute to the improvement of the social and economic situation in Crimea in terms of income generation and job creation for vulnerable groups by providing financial services to individual entrepreneurs and small businesses. The beneficiaries of this programme are new micro entrepreneurs and small businesses as well as existing ones, with a special focus on marginalized population groups in the geographical areas of the Simferopol, Bakhchisaray, Belogorsk and Sudak regions. Changes in the legal environment called for a refinement of institutional arrangements: CREDO negotiated with local banks towards an arrangement through which the banks agreed to disburse loans for which CREDO would provide guarantees. CREDO started issuing loans upon signing the agreement with a local bank. To date, CREDO has issues 20 loans for the amount of some 32,000 USD. CREDO foresees an average disbursement of some 20 loans per month. New clients will receive support from the Business Development Centers in the development of a business plan and loan application, whereas repeat clients can directly access Credo for a loan. Training services are also available through the Business Development Centers on a voluntary basis. Women in Business Project This project aims to promote a higher involvement of women in all aspects of life, and in particular in the economic sphere. One consultant within each of the Business Development Centers is implementing this project. For further information on ILO's work on social finance see: http://www.ilo.org/public/english/employment/finance/
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