Russia – North Caucasus Rural Credit Cooperatives & Agribusiness Development Program (NC-RCC&AD)
Promoting Economic Development for Rural Businesses in the North Caucasus Region
Since 2005, ACDI/VOCA’s USAID-funded $5 million North Caucasus Rural Credit Cooperatives & Agribusiness Development (NC-RCC&AD) program has supported credit cooperatives in the North Caucasus region. The three-year project, which will end in September 2008, takes a multifaceted approach with training programs, hands-on, short-term technical assistance, and enhanced access to credit.
Most of the assistance and trainings address the needs of the nascent rural credit cooperatives (RCCs) of North Caucasus and Kalmykia, largely focusing on fundamental skill training and knowledge in savings and credit. ACDI/VOCA has developed a variety of courses in collaboration with the Rural Credit Cooperatives Development Foundation (RCCDF) and the Consulting and Training Center. The RCC courses include how to start up an RCC; fundamentals of credit; loan portfolio and savings management; accounting and taxation; business planning; and automation of accounting and reporting. Two more courses are currently being developed to complement additional training needs—how to start up a noncredit rural consumer cooperative and CAMEL (capital, assets, management, efficiency, and liquidity)-based monitoring of RCCs for special audit unions.
Through the program, ACDI/VOCA has developed a pool of well-qualified Russian trainers who have become effective conduits of knowledge for young RCCs. Over the course of 2 ½ years, ACDI/VOCA has conducted 44 workshops and trained 918 participants from North Caucasus and Kalmykia. Most of the trainers were chosen from practitioners operating in current RCCs throughout Russia, as well as from within the North Caucasus region. To improve the quality of training, ACDI/VOCA has conducted three training-of-trainers (TOT) workshops and has offered internship experiences for the trainers. TOT activities are highly effective, interactive training courses, typically lasting two to three days. Subjects included basic concepts like cooperative principles, credit fundamentals, leadership and business planning. Additionally, the training process built synergy and encouraged participants to develop collegial and cordial relations with other RCCs, which contributes to building a vibrant regional rural credit cooperative system.
ACDI/VOCA started NC-RCC&AD activities in October 2005 when only one two-tier cooperative existed in the region. By February 2008, the number of two-tier cooperatives doubled, with one RCC in the Republic of Adygeya, two in Krasnodar Krai and one in the Republic of Kabardino-Balkaria.
To meet the diverse learning needs of the new cooperatives, courses were followed by hands-on consultations delivered by trained trainers in their new, evolved capacity as RCC specialists. A total of 17 Russian consultants have traveled to the region to provide additional practical training support. In many cases, cooperatives from nearby regions also traveled to the sites of these practical consultations, spreading the effect of the technical assistance.
To complement classroom training, the NC-RCC&AD program funded travel of selected RCC leaders from the North Caucasus to study other RCCs in Russia. RCC leaders also participated in a study tour to the United States to meet with cooperative bank and other farm credit representatives to learn about the U.S. system.
As the cooperative system develops, it will need more qualified specialists and employees to lead these institutions. To address this need, a subagreement was signed between ACDI/VOCA and the Stavropol Agrarian University to teach students about credit cooperation. Four university professors participated in credit cooperative training seminars. A training module was developed for university students and courses are starting in the spring of 2008. After completing a set number of courses, some of the best students will be offered a chance to work as interns at RCCs in the North Caucasus region.
ACDI/VOCA and the NC-RCC&AD program have strengthened the training component by donating equipment and software to 29 emerging RCCs that were selected based on transparent performance criteria. The equipment and software have helped newly founded RCCs start developing management information systems in their cooperatives to monitor and control financial lending.
In cooperation with the RCCDF, ACDI/VOCA and the NC-RCC&AD program have helped RCCs in the NC region and Kalmykia increase their loan capital and integrate them into the federal system. A $400,000 grant to the federal apex lender for rural credit cooperatives subsequently led to over $900,000 in loan capital to the North Caucasus RCCs. With the assistance from the NC-RCC&AD program, credit cooperatives from seven regional areas have been accredited with RCCDF and received funding. That was an important step in the direction of integrating the North Caucasus RCCs into the Russian national RCC system.
Since its start, the NC-RCC&AD program has provided 39 technical consultations to agribusinesses and agricultural cooperatives. Technical assistance has been provided by short-term U.S. volunteers and consultants, a few of whom worked together with Russian experts. These assignments resulted in enhanced operational performance and improved production, management and marketing efficiency of local agricultural producers, cooperatives and agricultural support organizations, including educational institutions that support agribusiness development. Directly and indirectly, the agribusiness development component helped sustain 10,000 jobs in the region and expand new business possibilities.
For more information, contact Bermet Imankulova at bimankulova@acdivoca.org.
Updated: 4/08