1. The Civilian Research and Development Foundation for the Independent States of the Former Soviet Union “New Markets, New Opportunities: Strategic Capacity Building for Economic Development in the Caspian Region” Gerson Sher, President

2. Who Are We? Created in 1995 by U.S. Government Created in 1995 by U.S. Government Private, nonprofit charitable organization Private, nonprofit charitable organization Offices in Arlington VA, Moscow, St. Petersburg, Kyiv Offices in Arlington VA, Moscow, St. Petersburg, Kyiv Board of Directors Board of Directors Advisory Council Advisory Council

3. Our Mission To engage the scientific and technical communities of the former Soviet Union in activities of mutual benefit that promote international security.

4. What Do We Do? Support exceptional, merit-reviewed research projects that offer FSU scientists alternative to emigration Support exceptional, merit-reviewed research projects that offer FSU scientists alternative to emigration Redirect weapons scientists Redirect weapons scientists Develop industry-oriented collaborations Develop industry-oriented collaborations Strengthen research and education in universities Strengthen research and education in universities

5. CRDF’s Major Programs Cooperative Grants ProgramCooperative Grants Program Industry ProgramsIndustry Programs Nonproliferation ProgramsNonproliferation Programs Centers and Institution Building ProgramsCenters and Institution Building Programs Grant Assistance ProgramGrant Assistance Program

6. What does CRDF mean by Capacity Building? Strengthen research management practices, including merit-based science funding Strengthen research management practices, including merit-based science funding Integrate research and education Integrate research and education Integrate research and market Integrate research and market Improve capital equipment base Improve capital equipment base

7. Why Capacity Building in the Caspian Region? Science is key to economic development Science is key to economic development Stability in the region is in everyone’s interest Stability in the region is in everyone’s interest Potential in the region is great Potential in the region is great Known gas and oil reserves are great, potential even greater Known gas and oil reserves are great, potential even greater BUT…. BUT….

8. The Problem -- Education Education and research communities not in line with Western standards Education and research communities not in line with Western standards –Economic development is lagging –Western companies cannot find qualified employees or research facilities –Development is occurring at the cost of the environment

9. CRDF Proposal: Education and Research Centers Competitively selected Competitively selected Devoted to areas critical to environmentally- sound advances in the oil and gas industry Devoted to areas critical to environmentally- sound advances in the oil and gas industry Support research and attract promising young scientists Support research and attract promising young scientists Serve as local source for analytic and research capabilities for western companies Serve as local source for analytic and research capabilities for western companies

10. Why Education and Research Centers? We’ve done it and it works We’ve done it and it works –Centers at 16 universities in Russia –Equipment centers throughout former Soviet Union –Buy-in from Governments and others