PRIVATE ENTERPRISE PARTNERSHIP 39523 Partnership P E R S P E C T I V E W I N T E R 2 0 0 2 New Russian Tax Code Promotes The International Finance Corporation Leasing To Support New Enterprises (IFC) is a member of the World Bank Group. IFC works to reduce poverty IFC's Private Enterprise Partnership plays a major role and improve people's lives in emerging in improving Tax Code provisions on leasing. economies by enabling and promoting sustainable private sector investment Leasing has provided opportunities for many at the frontiers of economic new enterprises in Russia that lacked the capital development. IFC itself is the world's or access to credit needed to make a start. largest multilateral investor in Through leasing, these enterprises can obtain emerging markets. essential equipment and facilities without large up-front costs they cannot afford. Who We Are The Private Enterprise Partnership's Leas- ing Development Group, currently IFC's Private Enterprise Partnership funded by Canada (CIDA), has played works to develop strong, self- a leading role in the development of sustaining economies in the former the leasing sector in Russia, most Soviet Union that serve all levels of society. Together with our donor continued on page 7 partners, we assist private companies and governments to: This mini-bakery in Moscow · Attract private direct investment was able to start production to all areas of the economies, because it could lease rather · Stimulate the growth of small and than buy equipment. IFC's Private medium-sized enterprises, and Enterprise Partnership is establishing and developing the leasing sector in Russia, · Improve the business enabling environment. Ukraine, and Central Asia to increase small businesses' access to financing. Countries we serve: Armenia, Azerbaijan, Belarus, Georgia, Kyrgyz Republic, Russia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan. IKEA-Domostroitel Collaboration We thank our donor partners for Helps Revitalize a Russian Town making these programs possible. IFC, through its Private Enterprise Part- The situation was not always so nership, expands the benefits of foreign bright. From the late 1980s to the direct investment by helping Russian mid-1990s Domostroitel was losing companies become dynamic, competi- money producing prefabricated In This Issue tive, and responsible business partners. wooden buildings that the company Today, Domostroitel is a growing, had been making since 1946, when pg. 2 Interview with Peter profitable Russian furniture producer. cheap housing was needed to rebuild Woicke, IFC Executive Vice Located 1000 km northeast of after World War II. With the col- President Moscow in the small town of Kras- lapse of the state-controlled economy, naya Polyana in Kirov Oblast, the demand for Domostroitel's prod- pg. 3 Legislation Update Domostroitel is the town's largest ucts plummeted, and the company pg. 4 New Programs Launched business, employing a quarter of the was forced to reduce its workforce town's 8,000 people, or about 50% of from 3,000 to 900 workers, a devas- pg. 5 Innovative Approaches to the workforce. tating blow to the local community. Business Development continued on page 5 2 Building I've consistently said that these What is IFC's role in addressing the kinds of services are enormously challenges facing the former Soviet Businesses, important. And no one can pro- countries? vide these services better than Creating IFC, with its private sector and We will continue to play our role as a cat- Opportunities development expertise in these alyst for increased investment by financing countries. I don't think it should private sector companies and projects in those sectors where private sector in- Interview with Peter be a surprise to others that IFC provides technical assistance. I vestors are still somewhat reluctant to go Woicke, IFC Executive actually think that this is one of in. In Russia we are focusing increasingly Vice President the most underrated services on developing the domestic financial sec- that we deliver. My personal objective has tor. We support newly established private been to raise the profile of technical assis- banks with advice. We have also recently tance within IFC and further integrate it made an investment in a bank. I am sure "My personal objective has with our investment work. more investments in the domestic finan- been to raise the profile of cial capital markets of the region will You have traveled extensively through- follow. technical assistance within out the former Soviet countries and just I think another important role for IFC to play in these markets is to expand the de- IFC and further integrate it recently visited Russia. What were your impressions of the progress the velopment benefits of its investments. with our investment work." This is particularly important with some private sector has made in the post-So- of our bigger projects. For example, in viet economies? What are the Peter Woicke, Russia we are currently looking at a coal challenges these markets face today? project. We can maximize the benefits of IFC Executive Vice President When you say the former Soviet Union, our projects by combining our invest- it depends on which country you are talk- ment expertise with what we talked about ing about. I think that the attitude of the earlier ­ through our advisory and con- government in Russia today towards the sulting services. Integrating our private sector is extremely positive. But it investment and advisory expertise will not is not just the government's attitude that only ensure that our projects are finan- IFC is an investment institution, and has changed, it is also how the private cially viable and meet strict environmental standards, but more importantly, that lo- many are surprised to learn that IFC sector itself sees its role in the develop- cal communities derive benefits from provides technical assistance. Could ment of Russia today. One of the most encouraging signs I saw during my recent these projects. you explain what type of technical as- trip is the growth of a new entrepreneur- And this is where I think the Partnership sistance programs IFC implements and ial class in Russia. can be of a tremendous value ­ leveraging their role within IFC's activities? Until recently the private sector was very our considerable expertise to develop new First of all, I would like to say that since I much dominated by those people who projects. A combination of financial sus- arrived in IFC, just over three years ago, came with the first wave of privatization, tainability, environmental soundness, and I have felt very strongly that IFC's role is those who, let me put it diplomatically, local community involvement make us not just about making investments. In- took advantage of the privatization. At unbeatable in providing the services to vesting is certainly central to what we do, the time many were questioning the is- our partners to build businesses and cre- but our role of giving advice, providing sues of corporate governance, ate opportunities. consulting services, and technical assis- transparency, the privatization process, tance is just as important in the countries and how these newly privatized compa- where we work. nies were run. What you see now is, I IFC's Private Enterprise Partnership is: I have always been thrilled by the fact think, a greater concern by some of these Technical assistance to the private sector in that we have what we call "project devel- so-called oligarchs for transparency and opment facilities" around the world and corporate governance. But more impor- the former Soviet Union the Private Enterprise Partnership in the tantly you see a new emerging class of 10 years of IFC's hands-on investment and former Soviet Union. They provide on- entrepreneurs, who did not participate in the-ground advice to our clients, in the first phase of privatization, but who technical assistance experience in the former particular to small and medium-size en- see the private sector and the changing Soviet Union trepreneurs, on how to build their environment as an opportunity to create businesses. They also provide advice to and manage new companies in a different Seven permanent country offices staffed with governments on creating better business way. more than 200 local professionals and a cen- environments. In the former Soviet Union I think the other countries in the former tral management team in Russia and Ukraine IFC began its work about 10 years ago by Soviet Union, Ukraine and Central Asia, advising the government on privatizing might be a little bit behind in this respect. Serving 10 countries: Armenia, Azerbaijan, Be- small businesses. Today, IFC's Partner- But as Russia sets an example in clearly larus, Georgia, the Kyrgyz Republic, Russia, ship is getting involved in training viewing the private sector as the engine Tajikistan, Turkmenistan, Ukraine, and Uzbek- companies on good corporate governance. of growth, hopefully it will reflect on the istan other newly established countries as well. Funded jointly by donor governments and IFC thePartnershipPerspective Winter 2002 LegislationUpdate 3 New Ukrainian Land Code Secures Private Ownership of Agricultural Land The Ukraine Agribusiness Development Program played a major role in drafting the Land Code and worked for its passage. The pro- gram is administered by IFC's Private Enterprise Partnership and has been funded by Canada (CIDA), Denmark, Japan, the Netherlands (Senter), "The Land Code is a victory for Ukraine, Norway, Sweden (Sida), which now has a proper legislative base and the United Kingdom to support the ownership of land. This (BKHF) since its inception will have positive effects on economic as the Land Privatization reforms in Ukraine." Project in 1995. The new Land Code was signed into President of Ukraine Leonid Kuchma law by Ukrainian President Kuchma on November 13, 2001. The law replaces the outdated Code of 1992, permits the sale of agricultural land, and expands farmers' rights by allowing greater freedom in operating private businesses. Russia Stabilizes Legal The Partnership's Russia Leasing Development Group, with fund- Base for Leasing by ing from Canada (CIDA), has worked intensively with the leasing sector and Russian government officials to draft amendments to the Passing Amendments to Law on Leasing and gain their passage. These amendments bring Leasing Law the existing Law on Leasing into line with the Civil Code and elim- inate ambiguities in current leasing regulations. The amendments were passed by the Parliament in January 2002 and signed by Presi- dent Putin on January 29, 2002 (also see the story on amending Russia's Tax Code provisions on leasing, pg. 7). For more information on Russia Leasing Development Group, visit our web site: www.ifc.org/russianleasing Kyrgyz Government Takes First Step to Develop Leasing, Submits Draft Legislation to Parliament The Partnership's newly established Central Asia Leasing Project ­ funded by Switzerland (seco) ­ worked closely with the Central Bank and the government of the Kyrgyz Republic to develop a draft Law on Leasing. The law will lay the foundation for the development of the leasing sector in the Kyrgyz Republic, which will increase the finance The development of leasing will options available to busi- increase finance options available nesses of all sizes. The Kyrgyz government has to Kyrgyz businesses, particularly approved the draft Law start-ups and small companies. on Leasing and presented it to Parliament for con- sideration in early 2002. ProgramLaunch 4 New Swiss-IFC Central At the workshop, Uzbek consultants developed Asia Partnership their skills in writing business plans, conducting In Central Asia, IFC's Private Enter- market research, and performing financial prise Partnership has begun a analysis. At the end of the training program, the program to promote foreign and do- consultants developed a business plan for their mestic investment, support the own company, UzInvestProject, to attract new growth of small and medium enter- clients. The consultants will implement this prises (SMEs), and improve the business plan over the next year. business enabling environment. Working closely with IFC's Southern of the United Kingdom (BKHF) and at both the company and country Europe and Central Asia Department the United States (USAID). The pro- level. The findings will be used to and the World Bank Group's SME gram will be repeated in 2002 and, if advise Uzbekistan officials on im- Department, the Partnership recently it continues to prove successful, may proving regulatory, administrative, established regional offices in the be expanded to other Central Asian and economic policies affecting the capitals of Uzbekistan and the Kyr- countries. growth and development of small and gyz Republic to launch and manage medium-sized enterprises. projects in these countries and in Other projects underway or planned Tajikistan and Turkmenistan. The include: The establishment of a pilot Government of Switzerland (seco) is farmer -owned company and advis- A project to develop leasing sec- providing funding for these projects. ing it on technical and environmental tors in the Kyrgyz Republic, aspects of production, on modern ir- A pilot project in Uzbekistan is im- Tajikistan, Turkmenistan, and rigation practices to improve the proving local business consulting Uzbekistan , launched in October yields and quality of cotton produced, services. Last September seven Uzbek 2001. Working with the Kyrgyz Re- and on establishing a marketing ca- consultants participated in a 16-day public officials, the project team has pability for the company's products. training program organized by the drafted a law on leasing, which has IFC will work to increase the farm- Ukraine Consulting Network ­ a been submitted to Kyrgyz Parliament ers' access to financing for new group of 11 self-sustaining consult- (see pg.3). technology and working capital, and ing companies established by IFC A survey of Uzbek SMEs to iden- ultimately may invest in the company with support from the Governments tify obstacles to business development itself. Russia Corporate include shareholder protections and "Krasny Oktyabr" (Red Governance Program incorporate corporate governance October), Russia's most best practices, will be adapted by the Launched famous chocolate factory, Project's consultants for adoption by is one of the companies IFC's Partnership launched the Rus- client companies at their annual gen- working with IFC's Part- sia Corporate Governance Program eral meetings of shareholders. nership to improve its in Spring 2001 with funding from the Advised Russia's Federal Securities corporate governance in Netherlands (Senter) and Switzerland Commission on developing a Code order to build investor (seco). The goal of the program is to of Corporate Conduct. The Code, confidence and gain ac- improve the investment climate in approved by the Russian Government cess to capital. Russia by strengthening corporate late last year, promotes corporate gov- governance practices at the company ernance best practices and aims to level, refining regulation at the na- increase the transparency of Russian tional level, and introducing corporate companies. governance coursework at universities Opened regional offices in St. Pe- and business schools in the Russian tersbur g and Samara and started regions. training and advising managers of In its first nine months, the program medium and large enterprises in these The program also seeks to raise pub- has: regions on internationally accepted lic awareness of the importance of good corporate governance and the Developed Model Company Char- corporate governance practices and protection of shareholders' rights by ters and By-laws and begun work compliance with local legislation. The conducting comprehensive public ed- on a Corporate Governance Man- project conducted its first seminar for ucation campaigns through specialized ual. These model documents, which regional companies in St. Petersburg in December 2001. publications and the media. thePartnershipPerspective Winter 2002 PrograminFocus 5 Building Supply and major investors. The Partnership Technical Assistance to Distribution Chains works with local companies to im- Forge Business Ties prove the quality of their products IFC's Partnership Spurs Local and services, to help them meet global To enable local companies to become Economic Development by Linking environmental and corporate stan- business partners with outside in- Companies to Major Investors dards of business practices, and to vestors, we: Direct investment ­ particularly for- assist them in obtaining financing. ·Identify existing or potential eign direct investment ­ has an A Win - Win Situation large investors and assess their enormous impact in emerging needs For multinationals, the benefits of economies. It is an important source forging business ties with local com- ·Survey local companies to of capital, and brings with it new panies are clear ­ reduced costs and a identify those best positioned to technologies, management tech- positive corporate image in the local become reliable business niques, and market access. community. For local businesses the partners to outside investors To help capture these benefits for the benefits of long-term partnerships ·Conduct thorough reviews of the post-Soviet markets, IFC's Private with major investors are equally im- business and management Enterprise Partnership is launching portant. Steady demand for local practices of selected local innovative technical assistance proj- companies' products stimulates their companies ects, designed to complement growth and helps them qualify for fi- ·Help these companies introduce investments by multinationals and nancing. Local business development modern technologies and enable local companies to become creates new jobs in the community management know-how that will suppliers and distributors for these and increases local incomes. meet investors' standards ·Broker long-term contracts between investors and local companies ·Establish mechanisms to finance local suppliers and distributors ·Address sector-wide policy issues in cooperation with national government, local administrations, and the private sector . Currently IFC's Partnership is work- ing with suppliers in the agribusiness, mining, forestry, and furniture manu- facturing sectors in Russia, Ukraine, and Central Asia. These programs are supported by Canada (CIDA), Finland, the Netherlands (Senter), Norway, Sweden (Sida), and Switzer- land (seco). IKEA-Domostroitel tion, Domostroitel increased produc- of the workers from Krasnaya tion nearly fifty times over, and in Polyana. Collaboration Helps Revitalize the next two years doubled produc- IFC Lends a Hand a Russian Town tion again. continued from page 1 Despite its great progress, Do- In 1999 IKEA helped Domostroitel mostroitel has not yet realized its full Domostroitel's dramatic turnaround develop a business plan, provided a potential. The company still suffers began in 1993, with its long-term loan for working capital, and leased from low energy efficiency, outdated partnership with IKEA, a Swedish modern equipment to the company. environmental practices, and ineffi- home furnishings retailer. IKEA Today, Domostroitel is one of the 20 cient use of waste wood. If these issues helped Domostroitel shift its produc- Russian suppliers of furniture to are not addressed soon, Domostroitel tion to furniture of IKEA's design. In IKEA, exporting 80% of its product will not be able meet IKEA's strin- the first five years of this collabora- to IKEA's global network. The com- pany has hired back more than 1,000 continued on page 6 ImpactOnTheGround 6 IKEA-Domostroitel · evaluating production processes Collaboration Helps Revitalize and developing plans to optimize a Russian Town production through energy-effi- cient and environmentally safe continued from page 5 technologies gent environmental criteria and will · discovering new products that can fail to qualify as a long-term global be made from waste wood, provid- IKEA supplier. Domostroitel also ing advice on marketing new faces the challenge of developing new products, and helping expand the Building Stores, product lines and diversifying its cus- client base. Building Communities tomer base. The Partnership is conducting these With IFC financing, IKEA opened its first IFC's Private Enterprise Partnership initiatives in association with local store in Russia in Spring 2000. This will work with Domostroitel to meet Russian consultants, thus ensuring 31,000-square-meter furniture store these challenges. The Partnership is that first-rate technical and market- north of Moscow in Khimki is one of the working to improve Domostroitel's ing expertise is developed and remains largest IKEA outlets in the world, em- environmental practices and to intro- in the country. ploying more than 500 workers. duce new market opportunities. The Partnership's broader objective IKEA opened its second store south- Leveraging the technical and envi- is to promote modern technology west of Moscow in December 2001. ronmental expertise of IFC, with and sound environmental practices support from Norway and the IFC throughout Russia's furniture manu- This store ­ a replica of the first ­ had Trust Fund, the Partnership is work- facturing sector. The goal of the 45,100 visitors on opening day. Adjacent ing with Domostroitel and other of current project with these IKEA sup- to this new store, IKEA is building a IKEA's Russian suppliers to help as- pliers is to demonstrate the 100,000-square-meter shopping center sure the companies' growth and the profitability of investing in energy- scheduled to open in December 2002. economic stability of their home- efficient technologies and efficient towns. These efforts include: waste wood use. If these efforts prove successful, IFC and IKEA may de- IKEA-IFC-Russia: Troika for Today velop a joint financial mechanism for IKEA has been investing in Russia since Russian furniture suppliers who want the early 1970s and currently exports to employ these technologies, thus about US$50 million in furniture and further stimulating sustainable and other goods from the country for its responsible growth in this sector. worldwide sales organization. In com- parison, IKEA's suppliers in Poland export more than US$250 million of mer- chandise annually, so there is room for growth for Russia's furniture business. Russian furniture producers have a competitive edge thanks to access to good-quality, low-cost raw materials and qualified labor. IKEA is helping man- ufacturers capitalize on this potential by providing financial support and technical assistance in production processes. In support of IKEA's efforts, IFC's Part- nership is helping Russian furniture manufacturers meet IKEA's environmen- tal standards, strengthen their Thanks to the success of Domostroitel, the Fifty-two percent of Domostroitel's managerial skills, meet financial chal- number of unemployed in Krasnaya Polyana, a employees are women. lenges, improve production practices, town of 8,000, is only 87. develop new products, and expand their revenue base. These improvements will help Russian companies become dy- namic, competitive, and responsible business partners. thePartnershipPerspective Winter 2002 ImpactOnTheGround 7 New Russian Tax Code Tachkin says the stability of the legal As leasing companies learned about the Promotes Leasing To Support base will eliminate uncertainties that draft Tax Code, they generally agreed New Enterprises scare off investors. "Now leasing com- that if it left unchanged it would stall further growth of the leasing industry, continued from page 1 panies can attract capital more easily and grow more quickly. For our clients which had finally begun to recover af- recently in the passage of Tax Code these provisions make leasing a truly ter the August 1998 financial crisis. provisions that assure that leasing re- viable and more accessible alternative "The draft Code would have made leas- mains a viable alternative for new to other types of financing." ing unaffordable to most of our clients - Russian enterprises. small and start-up companies -for whom IFC Plays Key Role bank financing is often out of reach. In August 2001, Russia passed a new The Partnership's Leasing Develop- And it would give an advantage to leas- Tax Code adopting provisions crucial ment Group (see box, pg. 8) played a ing companies serving large clients. to the growth of the country's financial major supporting role in developing Although we were aware of these prob- leasing sector. and advocating the new provisions. lems, what could my company do!?" The first leasing companies in Russia appeared in the early 1990s. Russia's leasing market today is about $1.2 billion, three times its size in 1999. One new job is created for each $10,000 in leased equipment, according to IFC estimates. "These provisions, for the first time, IFC's analysis of the initial draft Tax said Lubov Galahova, General Director establish a level playing field for all Code revealed that the bill elimi- of the Microleasing Company in leasing companies, set clear terms for nated many of the progressive steps Volkhov (Leningrad region). taxation of leasing deals, and remove the government already had taken to At this point IFC's Leasing Develop- contradictions between various laws stimulate the leasing industry. To ment Group organized a series of and regulations," says Vladimir spur discussion about the potential consultations, roundtables, and confer- Tachkin, Chairman of Budget Com- adverse impact of the new bill on the ences among leasing companies, small mittee of the Leasing Alliance of Perm leasing industry, IFC's team widely businesses, investors, government offi- (the Urals region). publicized its drawbacks through its cials, and lawmakers to develop draft bimonthly publication, Leasing- Courier, and the media. continued on page 8 Leasing Helps Knyazev Bakery Grow and Create Jobs As soon as entrepreneurship became legal in Russia, Oleg Shulga and Julia Chirkina began selling cookies and pastries in their native town of Voronezh. They started by selling goods produced by local Soviet-era bakeries, but quickly realized that the fu- ture was in starting their own production and introducing new recipes to the market. Lacking any credit history or collateral, Shulga and Chirkina could not get a bank loan to buy new confectionery equipment. So they began production with what they could afford - renting a small pastry kitchen furnished with an old, Soviet-era equipment. Nevertheless, within a few months the bakery, called Knyazev Bakery, began to turn a profit. Innovative recipes soon made the bakery so popular that it could not keep up with demand. To expand production, Shulga and Chirkina turned once again to local banks and private investors, but, despite their success, they were refused financing. ReLizKom, a Voronezh-based leasing company, came to their rescue. Through leasing, the Knyazev Bakery was able to set up a new $600,000 production line to meet rising demand. As a result of this expan- sion, the bakery increased its staff by nearly 80% (from 28 to 50). ImpactOnTheGround 8 New Russian Tax Code the leasing market, suggesting that IFC's Leasing Development Group Promotes Leasing To Support SMEs make up a major portion of leas- ing companies' client base. has been facilitating the growth of New Enterprises Development of the leasing sector in the leasing sector in Russia since continued from page 7 Russia also helps reduce the geographic 1997. Funded by Canada (CIDA) the Group: amendments to the Tax Code's provi- imbalance in the availability of financ- sions on leasing. IFC also conducted a ing. Up to 80% of Russia's financial · Provides advice on improving broad media campaign to support pro- capital is concentrated in Moscow and leasing legislation on national posed amendments, attracting coverage St. Petersburg, while 80% of the coun- and regional levels of the issue in leading business publica- try's industrial production is based in tions, including Expert and Kommersant . the regions. In response to demand for · Trains, consults, and provides new equipment, leasing companies specialized information on leas- "IFC provided extensive legislative ad- have been more active in the regions ing to local leasing companies, vice, while remaining impartial in the than other financial institutions have. commercial banks, SMEs, and eyes of the participants," says Grigory government officials across Vorobeichuk, General Director of the Anatoli Aksakov, a former Minister for KNK-Leasing Company, based in Economy in Chuvashia region and now Russia Moscow. "IFC's role as an honest bro- a legislator in the State Duma, is a · Identifies potential investment ker ensured that the amendments to strong advocate for leasing. "In Chu- opportunities for the private the Tax Code represented a broad range vashia one of the most effective means sector and IFC of views of different leasing compa- of solving the problem of financing the nies." manufacturing sector is leasing. That is · Conducts annual market surveys why I assisted in setting up a local leas- of the leasing sector. During the review of the amendments ing company. As the company began by Parliament, IFC's team continued its operations, it became clear that its In September 2001, with additional to organize additional consultations growth was hindered by an unstable funding from the United Kingdom between lawmakers and Russian leas- and inconsistent legal base. So when I (DFID), the Group opened a regional ing companies and provide legislative was elected to the State Duma [lower office in Ekaterinburg to focus on advice. house of Russian Parliament], one of developing the leasing sector in the Why Leasing? my top priorities was to remove the industrial and financial centers of barriers to the development of leasing, the Urals: Ekaterinburg and the Lack of capital is a major obstacle to starting with the Tax Code. Currently Sverdlovsk Oblast, Chelyabinsk, private sector development in emerg- I am working on amending the Law ing markets. IFC's worldwide and Perm. on Leasing," says Aksakov (see pg.3). experience in developing financial leas- www.ifc.org/russianleasing ing ­ an alternative to bank loans ­ has IFC's Leasing Devel- shown that leasing is an effective tool opment Group for providing needed capital and stim- continues to support IFC's Private Enterprise Partnership ulating economic growth. Leasing Aksakov and other law- is online at www.ifc.org/pep increases the financing options for makers working to companies of all sizes, but particularly improve the legal base for start-ups and small to medium- for leasing. IFC pro- sized enterprises (SMEs). vides legal analysis, along with expertise In Russia, where commercial banks re- in developing finan- main cautious about working with the cial leasing around the SME sector, a growing number of leas- globe and a thorough ing companies are serving SMEs. In understanding of leas- 2000-2001 the average size of a leasing ing challenges in deal was between $50,000 and Russia. $130,000, according to the IFC Leas- ing Development Group's survey of The Partnership Perspective is 2121 Pennsylvania Avenue, NW a publication of the IFC's Private Mail Stop F 10P-1005 Enterprise Partnership. Washington, DC 20433, USA Tel.: + 1 (202) 458-0917 Fax.: + 1 (202) 974-4312 e-mail at ifcpep@ifc.org www.ifc.org/pep Photo Credits: Mark Fallander, Richard Lord, IFC staff thePartnershipPerspective Winter 2002