Azerbaijan – Central Area Economic Opportunities (CEO) Program

Empowering Conflict-affected Communities to Attain Economic Self-reliance

Fighting between Azerbaijan and Armenia ended with a cease-fire in May 1994, but approximately 575,000 people remained internally displaced in Azerbaijan. Following the immediate relief effort, ACDI/VOCA stepped in to help with the long-term economic development rehabilitation and began implementing the USAID-funded $1.2 million Central Area Economic Opportunities (CEO) program to help Azeri refugees rebuild their lives. Completed in 2002, the project met or surpassed all goals, including the notable success of increasing participants’ average incomes by 282 percent across 119 communities. The legacy of the project includes creating 599 sustainable businesses, establishing 8 community economic recovery groups, training 2,802 people in technical and managerial capacities, creating 1,029 jobs and forming 19 groups: 9 community economic recovery groups, 2 farmer associations and 8 farmer unions. To empower the conflict-affected communities to attain economic self-reliance, CEO worked to integrate the economic activities of internally displaced persons (IDPs) and the local population, in particular targeting rural women, through market-chain participation and enhanced technical and managerial capabilities.

By linking the activities of core enterprises to other related businesses, ACDI/VOCA helped to establish sustainable market networks, resulting in greater opportunities for employment and economic stability. All of CEO’s core enterprises fully met their obligation to contribute to their core enterprise construction, paying back over $15,698 in aggregate, without a single payment past due. The CEO project also undertook two environmental initiatives: a well-water testing project and a tree-planting initiative in conjunction with Adventist Development and Relief Agency (ADRA).

The market-chain concept has proven to be a groundbreaking tool in the economic development of central Azerbaijan, providing much-needed locally produced agricultural goods and helping to create a tangible difference in the lives of thousands of participants. Market chains have been developed and expanded around the economic sectors of poultry, vegetable and fruit preservation, wool processing, sunflower oil, dairy, and grain and feed production. Throughout this process farmers have been linked with processors, distributors and retailers. A multiplier effect became apparent as established core enterprises formed into associations. Revenues flowed through the market chains and created a direct economic benefit to thousands of IDPs, particularly. The CEO project accomplished the following:

• over 550 tons of feed produced by Qizil Yem Chicken Feed during the life of the project
• over 61,000 jars of preserves produced
• over 350 tons of wool processed
• over 25,000 chicks raised through the breeder pilot project
• over 2,000 metric tons of sunflowers for oil produced
• over 250,000 trees planted to maximize energy conservation, protect the soil from erosion, provide a renewable resource and bring communities together
• over 1,000 strawberry seedlings distributed across five communities
• hosted two agricultural fairs attended by over 14,000 people