Economic Development

WSI helps people at the grassroots level revitalize the local economy and create a sense of community in the face of serious economic threats. The key to WSI's results in economic development is citizen participation in the design of local projects that create jobs, develop small and medium enterprises and lower unemployment levels.

Local Economic Development (LED)

WSI's LED program brings together community partners through a four-step process for designing a common development strategy. The process creates a cross-sector network of trained local experts able to mobilize local resources, develop partnerships, and build community trust in local government through democratic and transparent decision making.

Small and Medium Enterprise (SME) Development

WSI uses a grassroots approach that trains and assists local service providers to establish and operate small business incubators and an array of services that enable potential entrepreneurs to access training, capital and advice needed to start a small business.

Micro-finance

WSI responds to community needs for improved access to credit for vulnerable populations, particularly dislocated and disadvantaged workers. WSI provides operational information and risk analysis techniques to direct a successful revolving loan or collateral fund. Rigorous contracting, risk management, financial control and evaluation mechanisms ensure that start-up funds are effectively used and that fund managers assure independent sustainability of finance programs.

Cluster Development

Clusters are a geographically bound concentration of compatible companies that network to generate innovations, inventions, investment, new markets and new businesses. Clusters provide a framework for making small businesses more competitive and successful. WSI assists stakeholders in assessing and planning strategies for business retention and expansion, establishing rural and urban linkages for marketing and distribution points, targeting inward investment, providing input to policy reform, and analyzing business gaps and needs for growth and investment. WSI's cluster initiatives have targeted the tourism, technology, construction, textile, and manufacturing sectors.

Integrated Community Development Program (ICDP)

Designed to assist the economic transition that followed the collapse of the soviet system, WSI's Integrated Community Development Program (ICDP) is a unique approach to workforce and private sector development. Developed by Gary B. Hansen, Ph.D. of Utah State University, the ICDP links prelayoff assistance programs and the local economic development process, enabling workers at risk of lay off to access new jobs. The ICDP also identifies critical workforce skills available locally.

WSI achieved impressive results demonstrating the ICDP in almost 200 communities across Central and Eastern Europe, specializing in areas experiencing enterprise restructuring, downsizing, or closure. Illustrative data from Bulgaria, Macedonia, Romania and Ukraine include 25,308 jobs created, 2,611 jobs retained, and 4,201 businesses started. Specific economic development projects can be viewed in more detail at www.w-s-i.net/cee.

PROJECTS:

Belarus: Combating Trafficking in Humans (2006)

Donor: USAID
As a subcontractor to the International Organization for Migration (IOM), WSI adapted its Ukraine program for IOM to enhance NGO capacity to develop micro-enterprise opportunities for returned trafficking victims. WSI customized a train the trainer course to include an Introduction to Entrepreneurship and Best Practices in Micro-Enterprise Training and Counseling.

Bulgaria: Partners in Local Economic Development and Governmental Effectiveness (PLEDGE) Project - (1998-2004)

Donor: USAID, USDOL
WSI prepared 54 communities to deal with large-scale economic restructuring, empowering over 3,300 citizens and attracting $1,167,710 in other donor resources for local economic development projects in the agricultural, business support services, infrastructure, manufacturing, financial services, and tourism sectors. These projects resulted in 5,251 new jobs, 941 jobs retained, 188 businesses started and 283 expanded, 130,744 decares of fallow land reclaimed, 361 spin-off projects, 634 local business climate improvements, 1,052 local partnerships created, and 998 inter-industry partnerships created.

Hungary: Rapid Response Project (1997-1999)

Donor: USAID, USDOL
WSI worked with 36 local areas through County Labor Offices. The program's success reduced the average period of unemployment by half, from 265 to 130 days, leading to the institutionalization of project programs through national legislation and administrative reorganization. New jobs were found for 3,551 dislocated workers, representing 49% of active job seekers. Thirty-one LED projects projects lead to the creation of 92 new businesses and 867 jobs, retained 156 jobs, and trained 781 workers. Communities attracted additional investment worth 12 times the initial US funding support.

Macedonia: Partners for Economic Development in Macedonia (PRiSMa) Project - (1999-2004)

Donor: USAID, USDOL
To address the refugee crisis from the war in Kosovo and pending closure of large state-owned enterprises, WSI built the capacity of national ministries to address worker, enterprise and community issues. As a result of the ICDP 46 community teams mobilized 3,495 citizens attracting $2,656,600 in other resources to develop and implement projects in the agricultural, business support services, infrastructure, manufacturing, and tourism sectors. These projects resulted in 3,092 new jobs, 2,798 jobs retained, 13 businesses started and 79 expanded, 3,495 workers retrained, 139 local business climate improvements, and 7 new policies/regulations enacted to sustain project programs. In addition, four regional economic clusters were developed in the textiles, footwear, construction, and building materials industries.

Poland: Dislocated Worker Project (1998-1999)

Donor: USAID, USDOL
WSI demonstrated the potential of the ICDP in the Silesia Region and select communities in the Malopolska region. LED projects mobilized 1,914 citizens and created 4,337 jobs in 13 communities affected by restructuring in the coal mining, energy and steel industries. Projects included business support services, a recycling center and a foundation called the World Center for Human Rights Protection in Oswiecim (Auschwitz).

Poland: Local Partnership Model Project (2002-2004)

USDOL
WSI sustained nationwide capacity to implement programs for local economic development through 17 regional laws and the national Promotion of Employment and Labor Market Institutions Act. Project demonstrations created 276 jobs and retained 948 jobs. Master trainers in all programs were established involving 157 regional and 449 county level partners in all 16 regions of Poland, encompassing 232 communities.

Romania: Labor Redeployment Project (1997-2002)

World Bank, USAID, USDOL
WSI provided technical assistance to the Romanian Ministry of Labor and Social Solidarity to manage its $8.5 million World Bank labor redeployment loan which was supported by USDOL and USAID funds. Local economic development represented one of four technical components. A total of 18,635 jobs were created, 4,105 businesses started, and 216 firms implemented new production or management processes. LED projects were initiated in 35 communities that attracted an 80% ($839,864) match from local financing and funding for five additional LED projects. Business support centers assisted 760 firms and resulted in 18 local business climate improvements. Revolving loans were disbursed to 23 small businesses with a 100% repayment rate.

Serbia Employment Promotion Project (2004-2006)

Donor: World Bank
WSI provided technical assistance to the Serbia Ministry of Labor, Employment, and Social Policy to implement its $4.5 million World Bank labor redeployment loan. WSI established stakeholder committees in six pilot municipalities and four cluster groups to address economic development. Local economic development training included workshops on small business advisory services, cluster development, incubators, and LED grant making.

Ukraine: Worker and Regional Economic Adjustment Project (PARTNER) (2000-2003)

Donor: USDOL
Following Ukraine’s agreement to close the Chernobyl Nuclear Power Plant by December 2000, the U.S. Department of Labor contracted with WSI to develop a project that would address the needs of workers displaced by the closure, particularly in the neighboring town of Slavutych. WSI demonstrated the ICDP as one of several project components, not only for CNPP workers but also for Donetsk coal miners in Gorlivka following a major mining disaster.

Ukraine: Combating Trafficking in Humans (2003-2005)

Donor: Swedish Agency for International Development Cooperation
As a subcontractor to the International Organization for Migration (IOM), WSI built the capacity of four social-service NGOs unfamiliar with business support services, through a comprehensive train the trainer program to develop micro-enterprise opportunities for returned trafficking victims in Kiev and Donetsk. The program included a Strategic and Business Plan Workbook as a step-by-step guide to business planning, as well as spreadsheet models for income statements, cash flow projections and balance sheets. The unique curriculum features games as learning tools to meet the specialized needs of trafficking victims and encourages individuals to identify and use personal strengths to identify a business opportunity.