The Economic Development strategy is concurrently directed to meet the short-term and long-term subsistence needs of Chukotka's population, and to create and sustain private and non-profit businesses and jobs. All activities are based on program implementation through and in collaboration with non-profit organizations and local and Okrug institutions. Projects in this category are interconnected and mutually supportive.

Eastern Subsistence Project
This project continues the collaborative effort between the indigenous peoples of northern Alaska (Inupiat) and the indigenous peoples of Chukotka's coastal villages (Chukchi and Eskimo) in the Bering Sea.

ACDP supports cooperation between Alaska's North Slope Borough, Alaska Eskimo Whaling Commission, Eskimo Walrus Commission, Alaska Nanuuq (polar bear) Commission, and three Chukotka NGOs toward their transition to self-sufficiency. Within the project, ACDP lays the basis for and expand the sustained availability of sea mammal and other animal resource, thus helping to provide a continuing food supply for the local population; strengthen the ability of the local population to maintain a subsistence lifestyle; support the establishment of private and community businesses involved in using and processing local resources, including plants; provide training in entrepreneurial skills and assist in establishing new businesses; develop and expand the skills and management capability of Chukotka's existing NGOs; train new NGOs to administer programs; design proposals, account for funds, inventory equipment, carry out projects, and otherwise manage their own affairs; continue and extend the participation of Chukotkans in wildlife resource management; and facilitate transportation and communication in support of the project.

Western Reindeer Herding Project
To date, Alaska's contacts with the Native communities in Western Chukotka have been limited. The groups living in this area are predominantly reindeer-herders. The herds provide food, clothing, transportation, and other benefits to the herders, their families and communities. Over the last decade, the number of reindeer in Chukotka has fallen from about 500,000 to under 100,000, while at the same time the number of caribou or wild reindeer, in the Okrug has risen dramatically. Migrating caribou pose a direct threat to reindeer herds, which often join and later migrate with the wild herd. Chukotka has no system for the management and utilization of the growing caribou herds.

ACDP will provide technical assistance and training to protect and enhance the principal local food resource of the people-reindeer. ACDP will also develop a system for managing reindeer herding of Chukotka for the benefit of local populations, establish a system for monitoring caribou to avoid loss of reindeer, support the establishment of private and community businesses involved in using and processing caribou and other local resources, including plants, and develop and expand the skills and management capability of Chukotka's existing NGOs. ACDP will provide training for new NGOs, to administer programs, design proposals, account for funds, inventory equipment, carry out projects, and otherwise manage their own affairs, as well as coordinate the activities of people working in reindeer herding and with caribou in the Anadyr, Bilibino and Chaunski raions of the Chukotka Okrug.

Chukotka Support Center
The Chukotka Support Center and the related Rural Development Programs were implemented in year one on the initiative of the Chukotka Red Cross, the Pole of Hope, and the Chukotka Administration.

The Chukotka Red Cross (CRC) maintains the Administrative Support Center (ASC) in its office in Anadyr. The ASC serves as a liaison and point of contact for all ACDP projects in Chukotka, including not only those related to economic development, but also humanitarian aid, women's center, sobriety, tourism, etc. The office is staffed with an accountant, attorney, and personnel that provide administrative and organizational support and works closely with the Chukotka Administration. The center provides a focal point for managing a variety of other social programs and maintains contacts with organizations and specialists in Moscow. It has computers, copy machines, a fax machine, scanners, Internet access, and international telephone access. In addition to supporting ACDP, the center assists foreign scholars and aid personnel working on similar projects.

Rural Development Program
In November 2001, the Chukotka side proposed setting up a network of rural extension agents that would act as trainers in villages in Chukotka. Training-the-trainers component maximizes the impact of the courses, which are taught by American instructors. At the same time, have a cadre of local trainers enables recipients to collect information on the needs of each community and therefore to tailor the training and other programs to local needs. Finally, have coordinators located throughout the Okrug provides the program with a network that covers a wide ground. These coordinators work part-time on rural development and sobriety issues and part-time for local schools and other government organizations.

The Chukotka Administration has included funds in the pending budget to hire and support additional coordinators who will work as part of ACDP/CRC rural development program.

Small Business Planning
This component is aimed at the development of small business entrepreneurship in Chukotka, a high priority issue of the Chukotka Okrug Administration. Economic development specialists from the University of Alaska, Alaska Pacific University, and private non-profit development organizations will facilitate skills of CRC coordinators, government officials, entrepreneurs and NGOs in the area of business plans preparation and evaluation. The component will use the resources available at the American Russian Center and its centers in the Russian Far East.

Micro-Credit Program
The need for micro-credit program in Chukotka is anticipated. ACDP/CRC, Chukotka Branch of MDM Bank, and Chukotka Administration are working cooperatively to establish a micro-credit loan program in the region.

It is planned that the projects will be carried out on a cooperative basis, using specialists from the University of Alaska, Alaska Pacific University, and organizations in the United States and Russia with micro-credit management experience. The specialists will advise on organization of micro-credits and train staff and coordinators in risk assessment and loan management. This project will be coordinated by ARC personnel and coordinators in Chukotka and with the local private bank.

Tourism Development
Chukotka tourism is a high priority of the Chukotka Okrug, communities and NGOs, and prospective business and individual participants in this industry. A high degree of interest exists concurrently on the Alaska side. Tourism has the greatest potential to provide market-oriented solutions to the small communities' economic development. Its benefits can be realized immediately. Alaska can serve as a model for Chukotka and can assist with technical assisstance.

Chukotka lacks a tourism infrastructure and a suitably trained workforce, its proximity to Alaska makes tourism development very feasible. The region's attractions include vast arctic wilderness, extensive reindeer herds, and small communities existing in traditional lifestyles.

The project is carred out by Circumpolar Expeditions in cooperation with the National Park Service, Chukotka NGOs and the Chukotka Administration.

Support Infrastructure
A key element underlying the viability of private and community enterprises is the availability of adequate energy, communications, and transportation. Without these, the needs of the population will not be met and business development will be stymied. The Okrug is aware of the inadequacy of such facilities in Chukotka. While it is not within the scope of this project to tackle the construction of needed support infrastructure, opportunity exists to help with lessons from Alaska, assist in meeting needs in Chukotka, and create business linkages between the two. Accordingly, this project focuses on introducing the organizations and individuals in Chukotka who work in these fields to the experience and practices used in Alaska.

This component helps these individuals and organizations assess Chukotka's existing infrastructure, infrastructure needs, and methods for assessing and meeting future needs. It will also provide these individuals and organizations an opportunity to see how Alaska meets its telecommunications, transportation, and energy needs in similar conditions, and assist them in developing appropriate strategies.