16 January 1998
(BAPF is a publicly and privately funded 10-year endowment) (560) (The following fact sheet was issued for release Friday, January 16, by the U.S. Agency for International Development in conjunction with the signing of the Charter of Partnership among the United States of America and the Republics of Estonia, Latvia, and Lithuania by President Clinton and the presidents of the Baltic states.) BALTIC AMERICAN PARTNERSHIP FUND (BAPF) Fact Sheet Purpose The BAPF will allow continuous, long-term American assistance to the new Baltic democracies, working to develop and strengthen civic organizations, advocacy groups and philanthropic organizations. The Fund represents the next generation of foreign assistance, helping sustain the Baltic's non-governmental sector and deepen the democratic and economic reforms begun under more traditional American bilateral assistance. Finances The Fund will be established with an initial endowment of $15 million provided through a $7.5 million USAID grant and $7.5 million in matching funds from the Soros Foundation Open Society Institute. The BAPF is a publicly and privately funded ten-year endowment jointly created by the U.S. Agency for International Development and the Soros Open Society Institute. Description The endowment's funds will be maintained, invested and controlled in the United States, while programmatic decisions, to the greatest extent possible, will be placed with local organizations in the host countries. The BAPF will be a New York ~501(c)(3) public charity, directed by an independent Board of Directors. A U.S. based Advisory Committee will be established to advise the USG on matters related to the BAPF program. The implementing organizations for BAPF local programming will be: the Open Society Fund-Lithuania, the Soros Foundation-Latvia and the Open Estonia Foundation. In consultation with the U.S. Government, each Open Society Fund will establish an independent, BAPF-dedicated office plus a Local Program Council largely made up of local citizens to design, manage and implement country programs. Background Since the restoration of their independence in 1990-91, Estonia, Latvia and Lithuania have made dramatic progress in their transition to democratic institutions and market economies. However, the rebuilding of non-governmental and philanthropic organizations is not complete. Some key structural weaknesses confronting civic participation and NGOs include: -- Weak legal frameworks regarding NGO status and tax incentives -- Low civic participation rates -- Undeveloped management and technical skills on the part of NGOs -- Poor NGO financial sustainability, limited diversity of funding and a weak tradition of organized philanthropy The type of local non-governmental organizations that will be assisted may include; -- associations of small- and medium-sized businesses -- chambers of commerce -- bar associations -- professional groups (e.g., medical associations, accountants, legal) -- judicial and legal training organizations -- social service providers -- anti-crime and anti-corruption advocacy groups -- ethnic and human rights organizations -- independent economic think tanks Program The Fund will work to promote economic and democratic reforms and rebuild citizen participation in social, political and economic decision making. The BAPF will focus on eliminating barriers to NGO development and will directly strengthen a limited number of NGOs. The BAPF will provide funds for technical assistance and consultation, training, program grants, advocacy and program dissemination, and partnerships with other NGOs in the region. It will serve as a vehicle for voluntary cooperation with organizations and experts in the United States.