BISNIS

Sources of Finance for Trade and Investment in the NIS


SECTION IV: U.S. Department of Commerce Funding to Assist Both U.S. Companies and NIS Companies


SPECIAL AMERICAN BUSINESS INTERNSHIP TRAINING PROGRAM (SABIT)

The U.S. Department of Commerce's International Trade Administration (ITA), with funding from the Freedom Support Act, established the Special American Business Internship Training Program (SABIT). SABIT gives senior managers and scientists from the Newly Independent States (NIS) of the former Soviet Union firsthand experience working in a market economy by placing them in three to six month internships in U.S. companies. In so doing, SABIT encourages development of a market economy in the NIS and promotes future U.S. business there.

To date, over 240 U.S. companies have been awarded SABIT grants to participate in the program. Currently, over 430 interns are either in the U.S. or have already completed their internship. SABIT periodically announces open funding in the Federal Registrar, at which time U.S. companies may apply.

Under SABIT, Commerce provides funding through a competitive grants process to U.S. firms to defray the cost of the internships. Awards will cover reimbursement for round-trip airfare from Moscow to the internship site and provide a per diem of $30 per day to cover meals and incidentals for up to six months (approximately $900 per month). Host companies provide housing and medical insurance, and sponsor the interns for a U.S. visa. SABIT companies may designate the interns they wish to train, or ask Commerce to match them with appropriate English-speaking managers or scientists.

SABIT provides former Soviet managers with experience working in the U.S. economy, enabling them to become leaders in establishing and operating a market economy in the NIS. At the same time, SABIT creates a unique opportunity for U.S. firms to familiarize managers from the NIS with American products, services, and management practices. U.S. companies will also gain insight into the present business climate in the NIS through in-depth and extensive contact with their interns.

By training scientists in U.S. companies, SABIT will allow gifted scientists to apply their skills to peaceful research and development, and expose them to the role of scientific research in a market economy. Sponsoring U.S. scientific firms will benefit from the exchange of information and ideas, and different approaches to new technologies.

SABIT accepts applications from all U.S. companies interested in sponsoring former Soviet managers or scientists. Even though SABIT considers all applications, it focuses on ten priority sectors: agribusiness; defense conversion; product standards and quality controls; energy; financial services; telecommunications; transportation; housing; environment; and, medical equipment/pharmaceuticals/health care management.

New Standards Program

The Commerce Department's National Institute for Standards and Technology (NIST), assisted by the American National Standards Institute (ANSI), is cooperating with SABIT to develop and implement a $1.3 million comprehensive standards training program for 100 qualified engineers, administrators, and technical and regulatory experts from the NIS.

The training will assist NIS experts in utilizing international standards and conformity assessment processes, which will enable them to improve the standards process and quality control in their respective nations. These improvements will lead to the NIS countries' ability to develop high quality goods for both domestic and worldwide sale. Moreover, the understanding and cooperation developed through this program will facilitate the development and use of harmonized international standards, which also will enhance the competitiveness of U.S. products in the NIS.

For more information on the SABIT standards program, contact Jane W. Schweiker, Director, Government and Organization Relations, ANSI, 655 15th St., N.W., Suite 300, Washington, D.C. 20005, tel. (202) 636-4090.

New Defense Conversion Program

SABIT has also initiated a $1.2 million program designed to facilitate the conversion of NIS defense enterprises. SABIT is collaborating with the Commerce Department's Bureau of Export Administration (BXA) to provide specialized business training for approximately 100 defense experts from Belarus, Kazakhstan, Russia, and Ukraine. Teams of up to ten NIS executives will undergo a comprehensive two-month training program, consisting of an intensive business management training session, followed by hands-on training with American companies currently diversifying their product mix toward commercial markets.

The defense conversion program will focus on eight target industry sectors: electronics, avionics and aerospace, telecommunications, chemicals/pharmaceuticals, oil and gas, medical devices and equipment, infrastructure equipment manufacturing, and environmental technologies. Applicants will be judged based upon their work plan for the intern, the company's financial capability, and whether the company promotes SABIT's intent of supporting these countries' transition to market economies.

Companies interested in participating in SABIT programs are invited to contact Monika Wasiewicz (Tel: 202-482-3984, Fax: 202-482-5650).

CONSORTIA OF AMERICAN BUSINESSES IN THE NEWLY INDEPENDENT STATES (CABNIS)

The Consortia of American Businesses in the Newly Independent States (CABNIS) is a low-cost, high-benefit initiative that helps to create an export-friendly environment for U.S. firms interested in doing business in the former Soviet Union. Through CABNIS, the Department of Commerce has issued matching-grant awards of approximately $500,000 each to twelve U.S. nonprofit organizations. The CABNIS award recipients are using the federal seed money over a three year period to form and nurture U.S. business consortia of small- and mid-sized for-profit firms interested in doing business in the NIS, and to establish and operate consortia offices in the NIS region. On-site, consortia staff provide a wide range of export facilitation services tailored to meet the needs of U.S. exporters. In addition, the consortia staff work with NIS government decision makers, entrepreneurs, trade and professional associations, and academia to develop meaningful business relationships, develop early commercial intelligence on new trade opportunities, participate in the development of local industry and product standards, and promote state of the art U.S. technology. Such activities serve to establish a strong and lasting business rapport between the participants resulting in long-term benefits.

The CABNIS consortia managed by the nonprofit organizations represent the commercial interests of hundreds of U.S. firms in a variety of industry sectors which include building products, agribusiness, environmental, information systems, food processing, semiconductor, telecommunications and biotechnology. CABNIS commercial offices can be found in Russia, Ukraine, and Kazakhstan. Several grantees plan to establish satellite offices in other regions of the NIS.

Although still relatively new, the CABNIS consortia already have facilitated more than $20 million in U.S. business with more than $200 million currently in the development stage. Through the CABNIS initiative, U.S. firms are positioned to pool their commercial expertise and other resources to gain a competitive edge in the NIS. CABNIS serves as a venue for U.S. companies who otherwise would be unable to enter this market alone.

For more information on the CABNIS initiative, contact the CABNIS staff at (202) 482-5004.


Go to Section V

Return to the Table of Contents