he Municipal, Social and Economic Reform Initiative of Tacis (MERIT 1) was designed to introduce innovative approaches to policy development and local regeneration actions.
MERIT is about developing effective strategies and actions to help mining towns in Russia create new employment and to solve social problems relating to restructuring. Merit set out with four objectives (see across) and in the process of achieving these sought to provide innovative, best practice support to the towns and to demonstrate replication capability in other places and situations.
MERIT has focused on priority activities in the following areas:
Creating linkages between policy and strategic development planning;
Developing priority economic and social programmes, with a particular emphasis on SME development;
Financing development. Assistance with budget efficiency, identifying financial tools for economic development and SMEs, and investment promotion;
Municipal Management of development, with training related to the development issues contained in these priorities.
The project worked intensively with five mining towns:
These towns were a kind of laboratory and the strategies and methods developed in the towns will be available for dissemination to all mining towns. The lessons from MERIT are also helping to shape policies and new initiatives by government and other agencies. Essentially MERIT is a strategic tool for introducing new ideas, methods and resources for local regeneration and development. A great deal has been learned in the process of implementing MERIT and many things have been achieved. This newsletter summarises the Merit approach to economic regeneration and development - an approach which we believe is innovative, relevant and of benefit to other municipalities and regions.
The scale of the challenge
The scale of the challenge was daunting - but Merit 1 made a difference:
During the 1990s the Russian coal industry witnessed dramatic change as a high number of coal companies were closed, with the number of miners in employment falling dramatically. Many of these redundant workers have still to find new jobs. And mine closures continue.
Despite improving economic prospects for the Russian economy in general it is clear that the coal industry will never again employ as many workers as in the past.
"Industrial restructuring is a inherent part of economic development", says Joe Miller, Director of the Tacis MERIT-1 Project, adding "but while it causes many problems for the areas affected, it also provides a chance for new beginnings. The key is to provide new opportunities for jobs to be created."
Merit 1 - PURPOSE & OBJECTIVES
Purpose
The purpose of the Tacis Project Merit 1 was to help tackle the economic, social and associated human problems caused by the restructuring of the coal industry in the participating mining towns.
Merit 1 had 4 specific objectives.
To develop an integrated strategy which will improve the self governance of municipalities and encourage appropriate local institution building.
To implement in 5 coal mining towns locally developed plans for the restructuring of their municipality focussing primarily on their economic development.
To devise specific human resource development programmes to improve
performance and employment in mining towns.
To assist with the development of a coherent action programme which will lead to economic diversification, a stronger private sector and enhanced business development in the towns.
MERIT 1 - Organisation and Approach
Merit 1 worked closely with SotsUgol, the state enterprise established by the Russian Government under the control of the Ministry of Energy with responsibility to help the social mitigation process in coal-mining regions.
The municipal strategic planning process was designed to be participative soliciting and incorporating the support of wider town communities. Structures were put in place such as Municipal Steering groups and Municipal Work groups
To allow a wide range of inputs and influence on plans thus ensuring the full support and commitment of town Mayors plus other key contributors to the planning process. This also supported successful the completion of Strategic Plans, their implementation and sustainability for future municipal strategic planning. A formal and informal consultation process ensured public involvement in the process with feedback and public discussion on final plans being crucial to public support. The establishment of Business Centre "flagship initiatives" provided the infrastructure for the implementation of concrete local projects, both economic and social and crucial support to the implementation of Municipal strategic plans.
These "Flagship" initiatives provided a physical presence in each of the pilot towns and a delivery mechanism for local training , consultancy and delivery of micro-credit funding.
The real significance of these "Flagship" initiatives however was their demonstration to the administration and the community that the project was "real" and would deliver tangible results. These projects were considered as very important and high profile "early victories" which was crucial to town commitment to the project.
Merit 1 activities focused on the Key result areas of:
Municipal development and strategic planning;
Business support and development initiatives;
Attracting inward investments;
Training delivery and training materials development.
Achievements and Impacts
"The Merit 1 legacy":
Municipal Plans have been developed.
Each town completed a municipal strategic development plan on schedule- June 2001.
Municipal Implementation plans were completed successfully with projects prioritised and implementation commenced.
A basis for sustainability has been created.
Each town has established a strategic planning unit reporting to a Deputy Mayor. In addition a Municipal Steering Group representing municipal, business and social interests has been formed in each town.
Planning skills have been transferred.
The planning skills required for the development of a strategic plan were successfully transferred to selected staff in each of the 5 Merit towns. Trained municipal teams and managers equipped to drive forward the implementation process are now in place.
Community consultation and participation in the planning process has been achieved.
Merit 1 supported the establishment of formal consultation processes in each of the 5 towns. This included for example the placing of " Public opinion boxes" in prominent public locations i.e. libraries and offices inviting public comment and opinion on the planning issues.
The process has improved relations and understanding between local Public, Business and Social Communities.
A business development fund was established in each town with operators trained and credits awarded.
Merit 1 proved the feasibility and operational value of micro -credit funds as a effective support mechanism to business and enterprise development in the Russian context.
Whilst the fund in total was only 100,000 Euro this money has been disbursed across 65 loans and in the process has supported the creation of 88 new jobs across the 5 towns. This represents less that 1200 Euro per job created and is a measure of high efficiency by both Western and Eastern standards.
Comprehensive training was provided
Merit recognised the need to increase the capability and capacity of municipal authorities to manage and implement strategic development processes and plans. Intensive training at all levels of municipal management was successfully implemented. Quality training was delivered directly supporting project objectives.
The Russian expert who led the development of the training materials believes that a coordinated approach was crucial.
"An awful lot of materials have been developed in Russian over recent years to help new entrepreneurs. Our job was to collect and collate this material, making adjustments only where necessary. For example to reflect the economic opportunities in mining towns which are not necessarily the same as in the larger cities of Moscow and St. Petersburg. We now have a vast library of training materials available to all via web and CD ROM. In this way the investment made by earlier Tacis projects is consolidated and even greater added value achieved"
The scale of the training carried out was enormous and the achievement is reflected in the final figures released : 3776 people trained in 10 separate municipal/business management subject areas across the 5 participating towns.
Flagship initiatives
Each of the five pilot towns have established Flagship Initiatives to provide a focus for MERIT-1 activities in the towns and to contribute to the economic development infrastructure generally. Generally the Flagship Initiatives took the form of Business Centres (including incubators in some towns) to provide training and advisory facilities to existing or aspiring entrepreneurs.
All Flagships are fully operational. They are successfully used as delivery mechanisms for training, consultancy, development funds and/or incubator activities and in particular as the main vehicle for implementation of Municipal Plans.
The Flagships however have also been further developed and encompass not only business infrastructure support but also social infrastructure support.
This has been achieved in different ways depending on local priorities, for example, in Kisel, Kiselevsk and Kopeisk computer training for local teachers and unemployed, is housed within the Business Centres. These centres are also hosting local employment centres and social adaptation centres where labour office advisors counsel the unemployed with particular emphasis on self-employment.
Some examples of the services provided by the business are: Computer literacy training, business planning, training , Internet access and training. Finance and book-keeping,, Innovative approaches to training and distance learning. Photocopying facilities (Xerox, printer, scanner, Rrsograf, etc.) General consultancy advice for small and medium sized businesses and business libraries.
Some examples of new businesses started via Merit 1:
Millinery enterprise
Sewing enterprise (various)
Knitting enterprise (various)
Electrical appliance repairs workshop
Consulting firm
Beauty salon
Footwear workshop and retail outlet
Timber windows and doors workshop
Manufacturer of coffins and accessories
Dental surgery
Sausage plant
Grain and mixed fodder production
"New jobs are the key to solving social and budgetary problems. Without new sources of employment, former coal towns will begin to die. New jobs will also improve the social situation and help families. In this regard Merit has developed a new approach to meet the regeneration needs of mining towns" ( Joe Miller, Project Director.)
Question - Why was Merit 1 so successful? Answer - Because Merit 1 got the critical success factors right.
Merit promoted a structured, integrated and coordinated approach to the planning process.
Merit emphasised participation and stakeholder partnerships in the planning process.
Merit advocated two way process approach to regeneration.
Merit made effective use of Russian experience and expertise.
Merit focused on realism in its planning.
Merit demonstrated the need for local actions to go hand in hand with federal policy and resources.
Merit focused on sustainability via capacity building and institutional development.
Merit moved the planning paradigm
Merit 1 introduced a new approach to economic regeneration thinking. Merit proposed a structured, coordinated and integrated process as the way to successful economic regeneration and social mitigation.
The municipalities were central to the success of this approach. Merit 1 was an exercise in partnership.
MERIT-1 worked closely with the municipalities in the five towns to help them develop such a partnership approach and to integrate this into the process of strategic planning. Further, Merit recognized that development is the result of a two way process. - top down and bottom up Merit was unique in the way that it created both the process and the support structures to enable this two way flow of policy, ideas and resources.
Russian experience and talent was used effectively
The MERIT-1 project team working on the strategic plans used the Russian experience of developing such plans in other cities across the country . This experience proved invaluable as the process of plan development and implementation got underway.
In addition much use was made of Russian expertise in the areas of training delivery, financial support mechanism development and project management /control .
Realistic objectives were set.
Only that which could be achieved were set out as objectives. Through the rigour of the structured planning process, resources were measured and capabilities judged. What resulted was a set of realistic plans and projects linked to available resources and delivery capability.
Merit focussed on sustainability
Merit proved that local ad - hoc initiatives which remain disconnected from federal policy and resource support will never bring about the core objective of long term sustainable development.
The success of Merit in this regard was achieved via
Focus on strengthening of institutions and staff
The reorganisation of municipal administrations with a dedicated strategic planning department and trained staff.
Providing the tools necessary to support regeneration initiatives.
Processes for identifying resources.
"Plans were realistic and attainable"
The Future
It is clear form the above that much has been achieved through Merit 1. A new approach has been piloted, tested and proven to work. This process is applicable not just to regeneration problems for mining towns but to the problem of regional, local and urban renewal generally.
The progress made and momentum achieved via Merit 1 should be built upon. The success of Merit 1 should provide encouragement to planners, policy and key decision makers to include the experience and approach adopted by Merit 1 into future economic regeneration plans and activities.
The MERIT -1 project worked closely with the Association of Mining T owns, which represents the municipalities of many of the coal-mining towns and provides a lobbying vehicle for the towns at the Federal level.
In this respect it is extremely encouraging to note that an E.U. Bistro project has already been approved aimed at strengthening the results achieved by Merit 1.
This Bistro will support the work of the Association of Mining Towns and the 5 Merit pilot towns to continue their work via the National Mining Towns Resource Centre being set up under the Bistro project.
Based in the AMT headquarters in Moscow the Resource centre will provide meeting facilities, a library and computer access. There will be information about investment opportunities in the towns and an exhibition about the coal mining regions.
Merit 1 has been very successful. It has had a significant impact not only in terms of changes on the ground within the 5 mining communities in which it operated, but perhaps more importantly, in demonstrating and proving that the only way to sustainable economic regeneration is through a structured, participative, planning process.
The Merit experience can be replicated to extend this successful approach to strategic planning in Russia. It can be applied at both municipal and regional levels. It has application not just in mining municipalities or the mining sector. The Merit approach has broad application and relevance.
It can be used to assist all municipalities to prepare strategic plans which reflect both local and regional priorities and can assist Russian regional authorities to develop and implement regional strategic plans which truly reflect the needs of the Municipalities.
he Municipal, Social and Economic Reform Initiative of Tacis (MERIT 1) was designed to introduce innovative approaches to policy development and local regeneration actions.