bpa

BUKOVYNA PARTNERSHIP AGENCY

Contents

1. Chernivtsi Region Description

2. Bukovina Partnership Agency: the First Step to Community Economic Development in Chernivtsi, Ukraine

3. Board of Directors

4. Contact address

5.Our friends

6. The report by BPA : January, 2000 (Ukrainian, win1251)

7. The report by BPA : October, 2000 (Ukrainian, win1251)

8. Interview to "RAZOM" newspaper : June, 2000 (Ukrainian, win1251)

9. Links of Bucovina from "AV Studio"

This web-page is created with the assistance "AV Studio".Thank for "AV Studio"!

1. Chernivtsi Region Description.

1) Chernivtsi as an old city with poly-ethnic population.

Chernivtsi - a historic capital of Northern Bukovyna.
The first trustworthy reference to Chernivtsi dates October 8, 1408. At first the settlement was joined to a Moldova state. The town belonged to Osman Empire since XVI century. It has become a part of Austro-Hungarian Empire in 1774, and was a part of Romania since 1918. In 1940, still, actually after the WWII Chernivtsi for the first time joined Ukraine (USSR).

Chernivtsi is located on the West of Ukraine bordering Romania and Moldova. For the six centuries of its real history Chernivtsi was cut out from Ukraine. The town's periodical entries to different states and Empires has led to its polyethnicity.

There also exist historical links with western countries due to migration processes. The very beginning of this century has brought a significant emigration: 1900-1920 - to Canada and the USA; 1940-1945 - the same due to WWII and bordering; 1970-1990 - to Israel, USA and Germany. Emigration of illegal employees is being observed in the 90s to West European countries.

Major ethnic groups here are Ukrainians (71%) and Moldovians-Romanians (18%), who are considered to be the native population. However, some level of tensity in ethnic relations exists here due to the activities of some nationalistic groups in both Ukraine and Romania that can lead to ethnic conflicts and be used by certain political leaders in case the living standards continue to fall down.

2) Chernivtsi - a region with population high professional and educational levels.

Traditionally, Bukovyna was neither industrial nor agricultural region because of.few natural resources, agricultural lands and undeveloped infrastructure. Therefore, since long ago the extra labor resources have been causing unemployment. People's incomes in this situation can not but be low and this can not but lead to tense relations in everyday life either between the people or between the people and the authorities, who were always regarding Bukovyna as their colony.
Intensive industrialization of Bukovyna after its entry to the USSR has become to gradually relieve the problem of unemployment. In 1970-1980 here was established the most powerful in Ukraine Military Industrial complexes, which was specializing in the production of high-tech electronic components and details, namely the plants:

· "Graviton" - transistors and chips;
· "Quartz" - sensitive in infra-diapason detectors, optical-electronic devices on silicon, germanium and other semiconductors;
· "Vymiriuvach" ("Measurer") - optical-electronic and photo-electronic devices;
· "Granit" ("Granite") - radio-technical devices for communication systems:
· "Electronmach" - powerful computers, communication modules with up to 6 000 channels at a time capacities;
· Chernivtsi radio-technical plant - super high frequency radio-stations, communication systems;
· Design Office "Phonon" - electrical-technical devices development and design;
· Kyiv branch of Research Institute of the Materials - applied and fundamental research semiconductor materials utilization;
· Kyiv branch of Research Institute for Thermal-electricity;
· Several faculties were established at Chernivtsi State University, which were preparing specialists for the plants, including those of physics, technical engineering, optics engineering, radio-technical and general engineering, where specialists in applied mathematics, computer design, etc. were being prepared. Several departments and laboratories were designing on the world level.

The Complex was employing over 40 thousand people who were working for the Ministry of Defense of the USSR.

Actually, Bukovyna was a diminutive analogue of the US Silicon Valley with the extremely high professional and educational level of the Complex workmen. In the 80s the highest Soviet leaders were even commissioning the project of making Chernivtsi an electronic technopolis.

Beside the above mentioned enterprises, to employ the extra labor resources, the enterprises of textile and consumer goods industries were built, namely:

· stockings factory "Malva";
· shoe-making factory;
· knitted-goods company "Nadiya";
· garment company "Trembita"
· rubber shoe-making plant "Rosma";
· textile company "Voskhod";
· 3 furniture and wooden products factories,

which were also employing up to 20 000 people. The specificity of all these enterprises consisted in their almost complete dependence upon the suppliers of raw materials throughout the USSR.

Beside this, Chernivtsi, with its almost 300 000 population, contains also a famous University, Bukovynska Medical Academy, Chernivtsi branch of Kyiv University for Trade and Economics, branch of Kharkiv Technological Institute, Bukovyna Financial Institute, over 10 colleges and specialized schools. This factor defines the high cultural and professional levels of population of the whole region.

Soviet Union disintegrated and the conversion failed, the whole industrial complex has collapsed and ceased. Today, the whole electronic complex employs no more than 3 000 workmen, whereas other industries lessened their gross production more than 70%.

Actually, over 60 000 people were left out of jobs. Unemployment grows among the graduates. Today, the level of unemployment in Chernivtsi is nearly 40%, including the hidden one.

3) Chernivtsi - a distressed area and non-prospective region from the point of view of Central Government.

In situation, when the military complex has become unnecessary for the country's economics, the region descended to the last place in gross production index. No better are the other indices.
Thus, the latest statistical data of State Committee for the Entrepreneurial Development testify that in 1999 the rating of Chernivtsi among other Ukrainian regions
(26 possible positions) is as follows:

Investment rating	26
Gross production	26
Population quantity	26
Territory	25
Agricultural land resources	24
Capital assets	26
Population incomes	26
Salary fund	26
Capital investment	26
Investments amount	26

The Central Government, at the same time, declares that it considers regions with high gross production contribution potential to be of prior significance in economic development and, correspondingly, the investments. It is understandable from the point of view of the country's sovereignty survival. But this means that Government plans Chernivtsi to be the last in the Ukrainian economic development.
In this situation Chernivtsi and Bukovyna are left tete-a-tete with their problems and the region is awaiting great social calamity if their own model of economic development are not found.

4) Population of Chernivtsi - entrepreneurial spirit and the ability for private business and self-employment. Attending problems.

Left unemployed, the workmen of the military complex and other industrial giants have to a full extent used their intellectual potential and their knowledge for survival.
Having neither experience nor analogues of how to start business, take credits, as well as being deprived of the information of how to do it legally and efficiently, the unemployed stepped to the least resistance way - that of spontaneous trade.
The abroad voyages procedure simplified, thousands of citizens at the beginning of 90s directed their ways to Poland, Turkey and China in the search of cheap consumer goods. Due to suitable geographical position, in the years of sovereignty, an unprecedently scaled consumer goods bazar has been formed here - the so called "Kalynivskiy rynok (market)", which is considered to be among the largest in Europe. Buyers from the whole Ukraine and post-communist countries visit it. Gradually, in itself, the whole infrastructure has formed, serving the market. Imagine that the only infrastructure involves about 60 000 people. Some of them have already collected significant capitals.
Still…
It is worth mentioning that at all stages of such trade business - beginning from the export of currency in great quantities up to the customs procedures and sales and, at last, taxation, it borders and interferes with shady sector of economics. The latter is an extremely undesired result of this kind of business, creating stable grounds for corruption and illegal activities. And, it does not also serve the Community Economic Development.

The last years begin marking the deadlock of this way. In conditions of paralyzed industrial production and services the inflation is being stimulated, buying capacity decreases and sales degrade. Unemployment and social tension loom up again. It has been already shown itself in the form of the individual traders' spontaneous protests against local authorities decisions, connected with the patents tariffs' increase, trading conditions, etc.

Many people have fallen to thinking - and what's next?..
What is one to do to start a legal business? How to manage it? In what ways one would better reorganize it? Where to invest money in? How to earn further living? Where one can take money to start his own business? What business is prospective and of priority?
What can local and central authorities offer in such a situation? How one must better relate with them?

The greater part of the questions is still left unanswered. Nevertheless, sharp problems of the community and the evident entrepreneurial potential of population urge solving them.

5) Local authorities and the concept of the Community Development.

Local authorities, in conditions of budget deficit and a relative and insecure stability, direct almost all their efforts for extortion, by way of taxation and aid, of as many means as possible to solve urgent problems and, practically, give no attention to strategic plans of the community and a community economic development.

In the depths of Chernivtsi community, the processes are now being started, those which may lead to great complications. It is already observed today that the business activity is slumping. Now in the city are registered 152 SC, 1045 Ltd., 1965 Small Enterprises and 18500 Self-employed. But according to our researches about 35 % are in fact terminated their activity. A clear trend of sales recession is observed at Kalynivskiy market. Outward investments decrease from year to year. The businesses get much less credits from the banks (the data are not available since no records are provided).

It is very probable that local officials may be aware of the illusoriness of relative stability; still, in conditions of extremely small budget and having significant debts before socially unprotected population strata, they "knit the holes", having been pressed for time, energy and experience to create a strategic plan of the development and coordinate it.

There has not been initiated and supported any strategic program of economic development of the local community.

There exist, however, some positive moments here: city government in the persons of its Mayor and the Department of Economics feel the global problems, demonstrate readiness for co-operation with NGO initiative groups representatives and business circles, though have no real possibilities and means, especially money, to support their activities.

Citizens, despite the crisis in economics, possess great entrepreneurial potential and spirit, which are limited by the absence of the required model of the development and practical knowledge.

Resume

If everything is left unchanged, if social-economic relations in Chernivtsi will further to be spontaneous, then...Chernivtsi region, as a distressed region with the potential for ethnic conflicts, with the lowest incomes of population in Ukraine, the least perspective region to be included into state big investment programs, will only await for social poverty and, as sequence, probable social eruption.
___________

What should we do?..

Conscious community members are aware that, for the sustainable development of their city and its infrastructure, urgent is the activity, directed on the efficient use of local resources, favoring the conditions to develop entrepreneurity, especially Smal Business, spread out the new philosophy of the Community-Based Development, attract the outward investments, provide more educational programs.

December, 1999

Bukovyna Partnership CDC,
Chernivtsy, Ukraine
E-mail: arseni@privat.cv.ua

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2. Bukovina Partnership Agency: the First Step to Community Economic Development in Chernivtsi, Ukraine

Hereby we notify that "Bukovina Partnership Agency" (BPA), a non-profit, non-government civic organization has been legalized on the 9th of August, 1999 in Chernivtsi, Ukraine.

The initiative of BPA foundation comes from a business, banking and media practitioners, who combined their efforts in aspiration to assist Community Economic Development.

A number of BPA incorporators were, in 1998, the participants of a "Community Connections" program, financed by the US government. It was that visit to Maine and Massachussets, USA and study the "Community-Based Economic Development" experience that inspired them to transfer the movement ideas to the good of our community.

BPA Mission Statement is:
to help people and community of Chernivtsi, especially with low incomes, reach an equitable standart of living, working and learning in harmony with the society and natural environment.

The BPA object and subject are introduced in Article 2 of its Statute:
"...assistance to:
- development of socially oriented small business;
- realization and solution of the problems of functioning and vital activity of the community in harmony with the environment;
- efficient and full utilization of natural and humane resources within the frame of Community Development;
- media structures, which come forward as an inevitable part of the commu-nity integrity, their goal consisting in objective and unbiased informing the people;
- free access to the information, including that concerning human rights, so-cial rights and liabilities, legal relations in enterpreunal acivities..."

In accordance with claimed goals, the Agency develops and realizes a number of the projects, namely:

Seminar "Community Economic Development" - a scientific and practical discussion club, uniting science, business, media and local authority practitio-ners. The seminar aims to influence private and public decisions-makers and mobilize resources for Community-Based Development Organizations.

Information Business Centre. Both Small Business Administrations Community Development Corporations in the US prove vital that a separate structure be established, which would let the full bulk of information and consulting services to assist businesses to Start, Grow and Operate. Microloans for Small Business program also seems to be prospective.

Media - regional community: mutual confidence and support. This pre-supposes the creation of a community media mode and help the developing of Community-Based Philosophy. Promising is the project of a community radio station with its community-meeting spectre of educational, juridical, ecological, etc. broadcasting.

Social advertising. It is a project of wide distribution, by means of media, of elucidation on clear ways of realization of personal rights, e.g., ecological. The most actual here is the explanation of the norms of the convention "On public access to environmental information, decision making and justice", basic principles of CED, etc.

Hot line "Business Emergency". In a union with right protectionists and practitioners, it is planned to establish a continually functioning centre, which would promptly react on the problems of entepreneurs, who are frequently left tete-a-tete with state bureaucracy.

Beside these, BPA intends to initiate a number of other CD business, educational, ecological, culturological projects.

Bukovina Partnership Agency would appreciate if you present information on your current or planned activities. BPA would consider co-operation pro-posals wherever our strategic concepts come close.

The format of this address gives, unfortunately, a little space for disclosure of the full size of BPA plans concerning CD, having in mind community approach in Economic Development itself is quite new for Ukraine.

BPA expresses its special attitude towards numbers of people and organizations, whose careful help and support considerably contributed to the formation of its strategic concept and assist its foundation:
- US Information Agency and US Ambassy in Ukraine
in the person of Mary Kruger;
- IREX Kyiv Office and "Community Connections" Program
in the persons of Lidia Matiyashek and Dianna Derhak;
- Project "Harmony", Maine, USA
in the persons of Debra Andrews and Lynne Lovett;
- Coastal Enterprises, Inc., Maine, USA
in the person of Ron Phillips, President,
CEI Board members Michael Finnegan, Vice-President of Key Bank and
Geoff Gattis, Senior Vice-President of Bath Saving Institution;
- Fund for the Development of the Carpathian Euroregion
in the person of Igor Ilko, Executive Director of Ukrainian Branch,

and personally to Honourable Mykola Fedoruk, Chernivtsi Mayor.

Contact address:
44, 28 Chervnya Str., Chernivtsi, Ukraine 58006
Phone: (+380) 372-585360, fax: (+380) 372-553200
E-mail: arseni@privat.cv.ua , dew@sacura.chernovtsy.ua

Respectfully, Arseni Antsyperov,

Chairman, Bukovina Partnership Agency

25.08.1999

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3. Board of Directors

Chair