Press Release

President Clinton, in a White House ceremony with the Presidents of Estonia, Latvia and Lithuania, today announced the establishment of the Baltic American Partnership Fund (BAPF). The BAPF is an unprecedented publicly and privately funded endowment for the deepening of Baltic transition reforms in democracy and market economies. The endowment is funded jointly by the U.S. Agency for International Development (USAID) and international philanthropist George Soros.

This fund represents the next generation of foreign assistance. Traditional USAID bilateral assistance programs have been completed in Estonia and will be completed in Latvia and Lithuania in 1999 and 2000 respectively. The BAPF will allow continuous, long-term American assistance to these new democracies, working to strengthen the crucial non-governmental organization (NGO) sector in the Baltics. The BAPF will complement the ongoing regional programs such as the Baltic-American Enterprise Fund and the Baltic Regional Energy Program.

The BAPF will be launched in early 1998 with a $15 million endowment, $7.5 million each by USAID and the Soros Open Society Institute. The Fund will have an independent Board of Directors in the U.S. (to be named shortly) and manage its country-specific programs in concert with independent local Soros Open Society Institute foundations and their BAPF Program Councils in each Baltic country. The Fund is presently envisioned to be in operation for ten years.

Financed through a partnership between the U.S. Government and the Soros Open Society Institute, the BAPF will be an independent endowment providing training, technical assistance and program sub-grants designed to enhance the professional effectiveness and organizational and financial sustainability of Baltic NGOs.

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 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 an 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.