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Developing Participatory Communities and Strengthening Economies 

Azerbaijan is currently undergoing rapid economic growth driven by oil revenue from its main pipeline. However,
political, social and economic reforms have not kept pace
with the unfolding growth opportunity. While strides in public endorsement of political and economic liberalization have been made, these endorsements have not been converted
into measurable social benefits for local citizens.

In response, CHF International, with support from the US Agency for International Development and building on our past experience in Azerbaijan, is implementing the Community Development Activity (CDA) program which is:

• increasing collaboration between citizens and local government;
• increasing participation in local decision-making; and
• increasing economic opportunities for citizens.

CHF accomplishes this work through direct community development, which includes training, practical implementation of projects, and formation of Community Development Councils (CDCs). CDCs, which are comprised of democratically elected members, serve as representatives of the community to CHF, as well as to the local government. CDCs help the communities prioritize, plan, budget and implement local projects. CHF, local municipalities and citizens share the costs and responsibility of implementation. 

Working with Successful, Motivated Communities

As communities pass through trainings and begin implementing projects, they are evaluated before progressing to the next level of the program.  At each stage, the projects they complete become more complex and require greater contributions from the community. This community-driven process will affect change in 90 communities across the program area and will enable them to gain the skills for planning, mobilizing and modeling democratic processes.

Democratic Principles and Economic Development

In a survey conducted in Azerbaijan by CHF International, 73% of respondents indicated that economic opportunities were their primary concern.  In addition to working with communities to improve economic infrastructure such as roads, irrigation and electrical supply, CHF works with communities of interest to support local economic development of specific industry sectors and with informal producer groups to improve production, lengthen the growing season, lower costs, and increase sales. Local economic development projects, such as training in vocational skills or the development of marketing materials, require groups of citizens to work together to balance their prioritized business interests with market needs. Additionally, these projects provide an opportunity to engage local and regional governments in the regional economic planning process.

Past Program: Social Investment Initiative

The violent conflict with Armenia that followed independence in 1991 resulted in 750,000 displaced persons and refugees throughout Azerbaijan. CHF International’s Social Investment Initiative (SII), which concluded in 2004, created economic opportunities for displaced families by providing critical business development services and implementing infrastructure projects, which helped to integrate the refugee population into their new surroundings while improving the quality of life for the entire community.

The SII program successfully created sustainable jobs and businesses and helped entrepreneurs improve their skills through basic and advanced business training. We worked with local organizations to create a sustainable system to deliver business advisory services to entrepreneurs, to produce and deliver market research and pricing publications, as well as a national transportation and trade report. Our efforts focused on five key components:

• Association Development
• Training and Technical Consultation 
• Credit Linkages 
• Information Dissemination 
• Partnership Development

In addition, CHF International assisted community groups in identifying small, labor-intensive community infrastructure projects that helped generate employment and contributed to the wellbeing and self-reliance of displaced residents. Participants received training in community micro-planning, resource mobilization, implementation and sustainable management. CHF International also assisted communities to develop action plans to better organize their human and financial resources, infrastructure and community projects.