Central Area Economic Opportunities Development Project (CAEODP) has been funded by MCI/USAID and total amount of fund is US$1,171,007 and duration of program is 29 months – June 1,2000 to October 31, 2002.

This project directly contributes to the creation of jobs, and business opportunities for the suffers of the Nagorno-Karabakh conflict currently living in Berde, Yevlakh, Terter, Agjabedi, Agdam,  Goronboy, Mingachevir and Ganja districts. The goal of CAEODP is to improve income, jobs and employment for the internally displaced and war affected micro-entrepreneurs, mainly women, by increasing their access to financial and business services.

This goal will be achieved by:

• Providing financial services to 2,000 IDP and conflict affected micro-entrepreneurs through solidarity group loans and individual loans.
• Transferring a highly innovative business training approach – Facts for Economic Life – to a local NGO, Kosia-Smeda that will initially provide training to 2,500 existing and potential micro-entrepreneurs in Central Area, and rest of the country later.
• Introducing the best practice micro-finance culture and practices at the level of most disadvantaged entrepreneurs in Azerbaijan.
• Laying the foundation for a sustainable micro-finance institution that will provide long term access to credit and other financial services for poor micro-entrepreneurs in Azerbaijan

The CAEODP program will target IDP and conflict affected, primary women (60%) micro-entrepreneurs engaged in production, trading and service activities. It will also target potential entrepreneurs and community members, especially with Facts for Economic Life (FFEL) program. A SC field study showed that the proposed clients have very limited access to credit, and there are a number of business, illiteracy inherent in the local business culture, which significantly obstruct their profitability and enterprise growth.

SC involved two partners NGOs in the implementation of FFEL program. Lassen Associates, a US PVO will provide technical assistance to Kosia-Smeda, a local NGO who will disseminate the services to clients. This program provides ten-step business training that deals with common business illiteracy, including clarifying the role of business and commerce in society and developing core business skills.

As a direct result of this project, income, employment and business practices of clients will improve; entrepreneurs and community leaders in the Central Area will have a better understanding of the role of business and the market economy in civil societies, the capacity of Kosi-Smeda will be established to deliver FFEL – business services and the foundation will be laid for the establishment of a local best practice micro-finance institution (MFI).

September 2000