Th e East-West Management Institute, Inc. (EWMI), a US not-for-profi t organization, promotes the rule of law, civil society and free market systems. EWMI provides training, technical expertise and grants to foster sustainable reforms in government, business and civil society. Working in partnership with grass roots groups, local governments and international organizations, EWMI combines legal, civic and economic initiatives to build just, prosperous and democratic societies.

OUR MISSION

EWMI OFFICERS

Adrian Hewryk

President

Rachel Tritt

Executive Vice President

Michelle Scott

Vice President - General Counsel and Secretary

Fron Nahzi

Vice President - Programs

SENIOR PROGRAM STAFF

Nicolas Mansfi eld

Director of Legal Programs

Mark Dietrich

Senior Legal Advisor

Catherine Sykes

Senior Program Manager, Asia Programs

Listings as of October 2006

EWMI INTERNATIONAL ADVISORY COMMITTEE

EWMI is pleased to announce the creation of its International Advisory Committee (IAC). Th e role of the IAC is to advise EWMI on new programs, and assist in developing new activities. Th e current members are:

David Scheff er, former US Ambassador at Large for War Crimes Issues, and Visiting Professor of Law at Northwestern University Law School

Laura Silber, Writer/Journalist, Balkan policy expert, coauthor, Yugoslavia: Death of a Nation

Fred Abrahams, Senior Emergencies Re-searcher, Human Rights Watch

Dr. Ram Manikkalingam, Visiting Professor, Department of Political Science, University of Amsterdam

Kirpatrick J. Day, Consultant specializing in confl ict mitigation and civil society development

Photography

Printed on 100% Recycled Paper

The EWMI 2005 Annual Report

Catherine SykesEditorial

Christopher BerzinsDesign

EWMI BOARD OF DIRECTORS

Douglas Rutzen

ChairmanPresident, International Center for Not-for-Profi t Law

Stewart Paperin

DirectorExecutive Vice President, Open Society Institute

Byron Wien

DirectorChief Investment Strategist, Pequot Capital Management, Inc.

Nicole Farnsworth, cover; JSI archives, p. 3; Maja Knezevic, p. 7; Catherine Sykes, p. 9; Nicole Farnsworth, p. 10; Kong Rethy, p. 11 (both photos); Kimberly Gildersleeve, p. 15; EWMI pp. 2, 6, 13

2005 YEAR IN REVIEW

For the East-West Management Institute, Inc. (EWMI), 2005 was a year notable for both continuity andtransition. EWMI maintained its commitment to rule of law, civil society and fi nancial reform. Transitionoccurred both within the organization and in its external programs, presenting EWMI with both opportunitiesand challenges.

EWMI continued to develop its legal programs in Cambodia, with the expansion of its Program on Rights and Justice (PRAJ) to include a much needed legal and judicial reform component and the launching of a new project on the legal framework for resettlement in Cambodia. EWMI’s efforts ranged from grass roots advocacy training to sophisticated seminars on legal ethics and confl icts of interest for law students andpractitioners. EWMI continued to work to increase transparency and accountability in justice systems inBulgaria, Bosnia-Herzegovina and Albania. EWMI’s multi-dimensional approach included the design andconstruction of open and accessible government facilities, the installation of high-tech case management systems and the creation of offi cial and professional organizations. These new organizations will help sustainand enhance reforms and will improve instruction and skills for offi cials ranging from national judges tolocal clerks in these justice systems.

The Partners for Financial Stability Program continued to promote competitive regional fi nancial markets inemerging European economies, shifting its focus from Central and Eastern Europe to South East Europe. At the same time, EWMI’s Private Farmers Assistance Program in Moldova and the Azerbaijan Rural EconomicDevelopment Project advised by EWMI focused on business creation and market development in pre-dominantly agricultural economies. EWMI brought its exceptional experience developing civil society in theBalkans to assist government and private groups in several important efforts to improve laws, governmentfunctions and reduce confl ict in Kosovo.

The achievements of the Private Framers Assistance Program in Moldova, the success of the Albania PilotCourt Administration Project, and the impact of the Kosovo NGO Advocacy Project on the developmentof an active civil society in Kosovo marked the completion of many years of EWMI’s leadership in reformefforts in these countries. The year was also marked by the development of fruitful alliances on short-term projects with new partners looking to establish more substantial relationships in the Caucasus and Asia.

As EWMI’s activities and the interest in its expertise and services continues to shift eastward into Eurasiaand Asia, EWMI expanded its contacts and counselors. A new International Advisory Committee composedof a diverse group of individuals experienced in international assistance was formed to provide EWMI arange of sophisticated, expert perspectives. Recognizing the evolution of its programs, geographic focus andfi nances, EWMI management developed and initiated an ambitious multi-year plan to promote rule of law, civil society and fi nancial reform in new regions.

2005 PROGRAM HIGHLIGHTS

CORE PROGRAMLEGAL REFORM

Projects in 2005

Bulgaria Judicial Strengthening Initiative (JSI)

Bosnia Justice Sector Development Project (JSDP)

Cambodia Land Legislation Implementation Project -Phase II (CLLIP II)

Albania Pilot Court Administration Reform Project (APCARP)

Cambodia Program on Rights and Justice (PRAJ)

Enhancing the Resettlement Legal Framework and Institutional Capacity

Albania Rule of Law Program (Subcontract under Casals & Associates)

SEGIR Commercial Legal and Institutional Reform IQC

Bulgaria Judicial Strengthening Initiative

Staff Highlight: Kenneth Stuart

Ken Stuart has been the Chief of Party for EWMI’s legal and judicial reform project in Bulgariasince 2002, spearheading efforts to enhance judicial transparency and effi ciency, strengthen judicialeducation, and improve the public perception of the court system. In this last capacity, Ken makesregular appearances on Bulgarian television and radio, speaking out for the need for a stronger andmore independent judiciary as Bulgaria moves towards EU accession. Prior to joining EWMI, Kenwas a judge in the 18th District of Colorado (Denver) for 21 years, including 10 as Chief Judge. He isa graduate of Princeton University and the University of Colorado School of Law.

court system. EWMI is assisting the SJC to adopt new standards for budgeting, manage-ment, and annual reporting requirements.

Improving the Capacity of MagistratesUnder the JDP and in close coordination with the EU, EWMI played a key role in estab-lishing the National Institute of Justice (NIJ), a government institution that trains newly appointed judges and prosecutors (magistrates). EWMI continues to work with the NIJto ensure its sustainability and strengthen its curriculum and management, while at thesame time extending its mandate to providing training to sitting judges, as well as to clerks.EWMI uses an Institutional Development Index to track the NIJ’s evolving needs and tomeasure its sustainability and capacity. In 2005, EWMI and the NIJ together provided over10,000 person days of training for judges and court clerks.

Draft ing and Implementation of Laws and Regulations in Support of Judicial ReformHere, EWMI is building support for legal reform through the leg-islative process and by educating the public on the need for an in-dependent and effi cient judiciary. As part of its activities, JSI is im-plementing an extensive targeted and competitive grants program that supports NGOs and professional associations in their effortsto advocate for a stronger judiciary. In addition, EWMI hosted leg-islative forums with representatives of the judiciary, political lead-ers, and NGOs; held a pre-election political party forum; hosteddiscussions and provided commentary on proposed constitutional amendments; and supported working groups tasked with draftinglegislation on areas such as Open Access to Court Records, the NIJ,and the Civil Procedure Code.

The JSI’s launch was marked by a news conferencein Sofi a on March 29, 2005.

EWMI ANNUAL REPORT 2005 LEGAL REFORM 3

Public Awareness CampaignEWMI continued to produce innovative public awareness materials to educate the Cam-bodian public about their land rights. Building upon the success of its two “soap opera” style videos and accompanying picture books produced and broadcast in 2003 and 2004, EWMI developed new approaches to land law public awareness in 2005. To achieve widerdistribution of its picture books that explain people’s rights to own land and on land dis-pute conciliation, EWMI converted them into a series of comic strips which, along witharticles explaining the story, were published in the Somney Thmey newspapers. This Khmerlanguage newspaper, fi rst published in four provinces — Kampong Som, Kampong Cham,Battambang and Siem Reap, later became a national newspaper. Approximately 5000 copiesof the paper are printed biweekly for sales as well as complimentary distribution to many government and parliamentary offi ces. This land law newspaper series was complementedby the development of a new series of radio programs. Four radio programs were developedas follows: “Our Land,” based on the fi rst television program, is presented in one radio pro-gram; and “Our Land, Making Peace with the Neighbors”, based on the second television program, is presented in three radio programs.

Project LaunchedEWMI launched its third Asian Development Bank (ADB) project in Cambodia in 2005,“Enhancing the Resettlement Legal Framework and Institutional Capacity”. The resettle-ment project will contribute to the development of statutory guidelines to ensure thatCambodian citizens who are displaced when the State takes land for development or otherpurposes will be adequately compensated and resettled. The specifi c objectives of this proj-ect are to help the Government (i) prepare a sub decree on compensation, resettlement, andrehabilitation for use when the state takes land owned or occupied by Cambodian nationalsor residents; (ii) formulate complementary implementing regulations and technical guide-lines; and (iii) develop resettlement planning, implementation, fi nancing, monitoring, andenforcement capacity.

Cambodia Resettlement Project

Cambodia Land Legislation Implementation Project- Phase 2

4

Land law posters developed by EWMI in 2005 for distribution in Somney Thmey, a nationally distributed Khmer newspaper. These posters were based upon EWMI’s Land Law Videos, Pictoral Books and Newspaper Series, “Our Land” and “Our Land-Making Peace with our Neighbors.”

Staff Highlight: Patricia Baars

Pat Baars has successfully led EWMI’s Asian Development Bank-funded Cambodia projectssince 2001. She has been instrumental in drafting key texts to implement land reforms and shep-herding them through a participatory government approval process that she helped develop inCambodia. Pat has also been developing alternative dispute resolution mechanisms, and con-ducting training and innovative outreach and awareness activities. Before relocating to Cam-bodia in the 1990s, she served as the General Counsel and Chief Legal Offi cer appointed by the elected D.C. legislature, where she provided legal advice on legislative, administrative, andparliamentary matters.

EWMI ANNUAL REPORT 2005 LEGAL REFORM 5

May 2005 saw the conclusion of EWMI’s judicial reform efforts in Albania, which began in1997. Under the USAID-funded Albanian Pilot Court Administration Reform Project (AP-CARP), EWMI provided equipment, technical assistance and training to four pilot courts(located in Tirana, Shkoder, Vlore and Kavaje), the Ministry of Justice (MOJ), the JudicialBudget Offi ce (JBO), and other counterparts in order to improve the effi ciency and trans-parency of the justice system. Key achievements included:

Reconstructing Courthouses: Physical improvements to the pilot courts were critical inimproving access, security and effi ciency of the courts. The most extensive renovation oc-curred in the Vlore District Court, involving major structural changes, wiring upgrades to accommodate new technology, the addition of heating, air conditioning and back-up water supply equipment, and substantial rearranging of existing public spaces. In the ShkoderCourt, new intake and archive facilities were constructed on the building’s ground fl oor,which improved effi ciency, public convenience, and transparency. EWMI also contributedto the establishment of an entirely new, automated courthouse in Kavaje.

Supporting Automation: APCARP worked with the courts, local vendors, and other do-nors to improve the Case Management Information System (CMIS) so that it could pro-vide meaningful statistical data, including periodic case-fl ow and pending caseload reports.APCARP provided the CMIS to the remaining pilot courts, all of which can now produceaccurate performance data.

Improving Transparency: Court intake offi ces were relocated to ground fl oor locationsfronted by large glass service windows, placing court employees within constant publicview. File maintenance and archiving functions were placed nearby to improve speed andeffi ciency. A “Customer Service Bill of Rights and Responsibilities” was developed and post-ed in each court’s intake offi ce to delineate the improved level of customer service citizens

can now expect. APCARP also substantially im-proved the speed and accuracy with which courtsecretaries record the minutes of hearings.

Construction and remodeling of Shkoder Court, through EWMI’s USAID-funded Albania Pilot Court Administration Reform Project (APCARP).

Albanian Pilot Court Administration Reform

6

Offi cials from EWMI’s model courts in Bosniaon a study visit to courts in Ljubljana, Slovenia

(November 2005)

Improving Court Administration in Bosnia: Th e Model Court Initiative Through its Model Court Initiative, EWMI’s Bosnia Justice Sector Development Project (JSDP) has made signifi cant progress in improving court administration. EWMI en-joys a strong professional relationship with each of its four model courts, located in Mostar, Zenica, Konjic and Banja Luka. In 2005, EWMI remodeled the four courts’ registries and public service areas. In addition, EWMI worked in-tensely with the model courts to develop backlog reduction plans and arranged for presentations of these plans by the model court presidents before the High Judicial and Pros-ecutorial Council. The JSDP’s strong institutional relation-ship with the Council facilitates the system-wide application of innovations successfully piloted in the model courts. For example, the Council adopted the common case numberingsystem developed by JSDP in the model courts and directed itsimplementation in all courts. The new numbering system is ef-fective January 1, 2006. EWMI’s technical assistance to the model courts includes a compre-hensive package of nine activity areas focused on such issues as records management, staff management, public information and access, case backlog reduction, and court fi nancing. In 2006, JSDP will incorporate the next wave of model courts into its program, while con-tinuing to service the original four courts and foster information sharing among them.Many courts in Bosnia have become aware of the Model Court Initiative and are eager tobe partners to this process.

Bosnia Justice Sector Development Project

Staff Highlight: Timothy Hughes

Tim Hughes has been EWMI’s Chief of Party since 2004. Tim oversees a complex project thatis helping to strengthen key justice sector institutions, improve court administration, and pro-mote improvements in the provision of indigent criminal defense. A fl uent Serbo-Croatianspeaker, Tim has played a pivotal role in legal and judicial reform in Bosnia for almost a decade.Prior to joining EWMI, Tim headed the Investigation and Verifi cation Unit of the Independent Judicial Commission in Bosnia, spearheading the landmark reappointment process of the entireBosnian judiciary.

EWMI ANNUAL REPORT 2005 LEGAL REFORM 7

Promoting the Rule of LawIn late 2005, EWMI launched a new rule of law initiative within its successful Programon Rights and Justice (PRAJ) in Cambodia. The Program has been expanded to includeactivities that improve the education of judges and lawyers, increase access to justice, andpromote transparency and effi ciency in the justice system. By the end of the year, EWMIhad already reached agreements with the leading Government institutions in these areas,including the Council for Legal and Judicial Reform, the Royal Academy for Judicial Pro-fessions, and the Royal University of Law and Economics. A major international workshopon judicial ethics was held in Phnom Penh in December, which included an engaging andpractical discussion on the Supreme Court’s draft code of ethics for judges.

PRAJ also launched its innovative Law Fellows Program in 2005. Selected from a large poolof young law graduates, the Fellows participated in rigorous, interactive workshops de-signed to provide them with basic skills required for the rigors of legal practice. They were then paired and placed with four of PRAJ’s key local NGO partners. By year’s end the Fel-lows were working full-time as NGO employees, contributing as staff members within theirrespective host organizations.

Cambodia Program on Rights and Justice

EWMI continued to work to reduce corruption in Albania by providing on-site technical as-sistance to the High Inspectorate for the Declaration and Audit of Assets (HIDAA). Startingin August 2004, a long-term advisor has worked side-by-side with offi cials at HIDAA, a new governmental agency in charge of implementing two important anti-corruption legal man-dates for the public sector – the Asset Declaration (Financial Disclosure) Law and the Con-fl ict-of-Interest Law. These two laws require politicians, senior government offi cials, and the judiciary, almost 4,000 individuals, to annually declare their assets and private interests.

EWMI’s technical assistance includes training the inspectors, upgrading the agency’s ITequipment and website, developing an electronic case-management system, arranging workshops with local governments and non-governmental organizations, assisting withrevisions to the declaration forms, and providing analyses of potential amendments to theAsset Declaration Law and Confl ict-of-Interest Law. As a result of EWMI’s work, HIDAAhas matured from a struggling start-up organization to a prominent agency in the govern-ment’s efforts to enhance transparency and reduce corruption.

Albania Rule of Law

8

CORE PROGRAMCIVIL SOCIETY

Projects in 2005

Cambodia Program on Rights and Justice (PRAJ)

Kosovo NGO Advocacy Project (KNAP)

Moldova Private Farmers Assistance Program (PFAP)

Kosovo MLGA Assessment

Kosovo NGO Advocacy Project

2005 PROGRAM HIGHLIGHTS

continued on following page

With support from the Rockefeller Brothers Fund (RBF), EWMI evaluated the organiza-tional capacity of the Kosovo Ministry of Local Government Administration (“MLGA”). EWMI identifi ed two key areas that the MLGA and the international community mustaddress in order to ensure the MLGA’s success: (i) improving the process for writing theLaw on Local Self-Government and other implementing regulations; and (ii) building thecapacity of the Ministry’s staff.

Kosovo MLGA Assessment

skills, and ATRC provided advanced training on policy analysis and other issues to Kosovar NGOs, together with EWMI and its partners in Europe and in the US. ATRC became a lead-ing center of information and outreach for NGOs, housing public debates, legislative brief-ings, workshops, conferences, e-newsletters, library and publications, and other services to the NGO community.

EWMI supported the efforts of inter-ethnic NGO advocacy networks to mitigate violencein fl ashpoints such as Mitrovica and to serve as an early warning system for communi-ties vulnerable to inter-ethnic strife. EWMI’s creative responses to addressing eruptions of violence in Kosovo led to grants to Kosovar NGOs to provide analyses of the role of thegoverning institutions before, during and after the riots. These analyses were publicized atpublic meetings and have led to the development of some of the most effective inter-ethnicprojects by government and non-governmental organizations in Kosovo today.

Kosovo NGO Advocacy Project continued from previous page

Aquila, an environmental organization in Peja, considered car graveyards and metal waste “cancers of the environment.” With a grant from the USAID/EWMI-supported Foundation for Democratic Initiatives through the Kosovo NGO Advocacy Project, in 2005 they successfully advocated for Klina local government toadopt a regulation on managing metal graveyards.

10

PRAJ subgrantee, Cambodian Health and Human Rights Alliance (CHHRA) conducts training of Village Representatives in Pursat Province- August 2005.

A woman reads a publication on land rights published by a PRAJ subgrantee.

Protecting Land and Property RightsThrough a combination of grants, technical assistance, and advocacy advice, PRAJ hasbecome an indispensable supporter of the human rights movement in Cambodia. Oneof the most important issues EWMI’s local partners confront is the need to protect theland use and property rights of poor and marginalized groups. Although the challeng-es are great, EWMI’s partners have realized some important successes. For example, theCommunity Legal Education Center (CLEC), through its Public Interest Legal Advocacy Project, represented many families on Koh Pich island in Phnom Penh who were facingeviction from their land with minimal restitution. CLEC’s tireless advocacy resulted in asettlement through which almost all families received signifi cantly higher payments thanwere initially proposed by the authorities.

Another EWMI partner, the NGO Forum, has been instrumental in protecting indigenousland rights in Mondulkiri province. In early 2005, a forestry company started planting pinetrees on the Phnong communities’ ancestral land. The Phnong subsequently learned that that the government had agreed in principle to provide the company a 99-year concession. Through the facilitation of NGO Forum, 15 NGOs working in the province started to buildan NGO working group to address this issue. The NGO Forum also helped increase the ca-pacity of indigenous peoples’ representatives at the grassroots level through training cours-es, exchange visits and district meetings. While a solution has not yet been found, the result of NGO Forum’s work has been a wider hearing of the Phnong communities’ views and greater understanding by stakeholders of the impact of the pine tree plantation program.

Cambodia Program on Rights and Justice

EWMI ANNUAL REPORT 2005 CIVIL SOCIETY 11

Partner Highlight: Yeng Virak

Yeng Virak is the Executive Director of the Community Legal Education Center (CLEC), one of EWMI’s key local partners in Cambodia. On the last day of 2005, Yeng Virak and several otheractivists were arrested and charged with defamation in relation to their roles in an Interna-tional Human Rights Day celebration earlier in the month. The courage and resolve Yeng Virak displayed during and after his imprisonment have been an inspiration to all those seeking topromote justice in Cambodia.

EWMI’s Program on Rights and Justice (PRAJ) inCambodia provides grants to local organizations all throughout Cambodia. While its geographicfocus increasingly supports human rights NGOs infour regions - the greater Phnom Penh area, westernCambodia near the Thai-Cambodian border, north-eastern Cambodia and Svay Rieng- PRAJ’s implementingpartners work in all of Cambodia’s provinces.

Staff Highlight: Peter Harris

Peter Harris has served as Chief of Party for the Program on Rights and Justice (PRAJ) in Cam-bodia since October 2005 and has overseen the project’s expansion into Rule of Law activities.An experienced practitioner in Asian civil society development, human rights, and legal andgovernance reform, Peter’s distinguished career includes service as the Ford Foundation repre-sentative in Beijing and as the Director of the Asian Studies Institute at Victoria University of Wellington. Peter is also a scholar of classical Chinese texts, with a forthcoming English transla-tion of the famous fi rst-hand account of Angkor civilization by the 13th century Chinese dip-lomat, Zhou Daguan.

12

2005 PROGRAM HIGHLIGHTS

CORE PROGRAMFINANCIAL REFORM

Projects in 2005

Partners for Financial Stability (PFS)

Moldova Private Farmers Assistance Program (PFAP)

Azerbaijan Agricultural Producer Group Strengthening (Subcontract under International Rescue Committee)

Ukraine Accounting Reform Project (Subcontract under Chemonics International)

SEGIR Financial Sector IQC

Moldova Private Farmers Assistance Program

Partners for Financial Stability

Program expansion to Southeast EuropeAfter fi ve years of developing and strengthening regional linkages between fi nancial sectorinstitutions within Central and Eastern Europe (CEE), EWMI offi cially expanded its Partnersfor Financial Stability Program (PFS) to Southeast Europe (SEE) in 2005. The regionalapproach to knowledge management in the CEE countries proved highly successful, and now SEE countries have begun to utilize the expertise of the fi nancial sector professionals from the CEE region. By providing opportunities for regional collaboration and knowledge sharing,regional activities can both accelerate reform within a specifi c country and promote greaterregional harmonization of standards and market integration. The PFS Program continuesto work towards promoting economic growth, improving transparency and accountability in the fi nancial sector, assisting in the acceleration of the integration of the fi nancial systemsinto the international community and reducing fi nancial crime and corruption.

PFS Program Hosts Regional Workshop:“Deepening Financial Markets: A Regional Vision for Southeast Europe”In February, the PFS Program hosted a two-day workshop in Sofi a, Bulgaria to discuss re-gional approaches to developing a more competitive, dynamic and sustainable fi nancial sec-tor in Southeast Europe (SEE). The goal of this workshop was to cast a regional vision for SEE fi nancial sector development by helping participants understand the catalytic role of regionalactivities in deepening fi nancial markets. Nine fi nancial sector assessments recently conduct-ed by EWMI in Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Kosovo, Macedonia, Ro-mania and Serbia and Montenegro were presented. Separate sessions included presentations on banking, capital markets, fi nancial sector research, insurance and pension reform.

14

Staff Highlight: Geoffrey Mazullo

Geoff Mazullo has led EWMI’s fi nancial sector reform efforts since 1999, spearheading EWMI’sregional Partners for Financial Stability (PFS) Program, which has provided crucial assistance tofi nancial sector leaders in Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic,Estonia, Hungary, Kosovo, Latvia, Lithuania, Montenegro, Poland, Romania, Serbia, Slovakia,Slovenia and Ukraine. Geoff is an accomplished public speaker and trainer, and is able to ad-dress audiences in French, German, Polish, Serbo-Croatian, and English. His research on cor-porate governance, corporate social responsibility and investor relations has been published inRussia Portfolio, Central Europe Portfolio, Turnarounds and Workouts Europe, Corporate Gov-ernance Advisor, The Wall Street Journal Europe as well as in online media outlets throughoutCentral and Eastern Europe.

Rural Economic Development in Azerbaijan

In 2005, EWMI continued to assist The International Rescue Com-mittee with its Rural Economic Development (RED) Project inAzerbaijan. The Project is establishing profi table and sustainable ag-ricultural production and processing systems in order to improvefood security, increase farmer income and assist in the building of integrated rural market chain systems in nine targeted regions of Azerbaijan. EWMI provided technical oversight and direction in thecreation of nine demonstration farms (one for each region) withgreenhouses that incorporate a unique blend of advanced and lo-cally sourced materials. The greenhouses feature hydroponic systemsand the capability for both vegetable and seedling cultivation withthe fl exibility to divide or change production to meet market condi-tions. The farms and greenhouses together have become models foragricultural producers throughout the region.

EWMI staff visit a seedling center in Azerbaijan. With IRC sup-port, EWMI developed a training material on modern farm-ing techniques for open fi eld production of vegetables for agricultural producer groups and rural entrepeneurs. A key aspect of the open fi eld production methods advocated for in the manual is the transplantation of seedlings into seed-beds rather than the direct sowing of seeds into seedbeds.

Ukraine Accounting Reform Project

In 2005, EWMI’s long-term advisor on the Ukraine Accounting Reform Project (UARP)made great strides in reforming education and certifi cation of Ukrainian accountants. Heoversaw the delivery of 6,250 CAP/CIPA courses, oversaw the adaptation of Certifi ed Gen-eral Accountant (CGA) training materials into a Russian language curriculum, and oversaw the development of the Ukraine tax and law exam.

EWMI ANNUAL REPORT 2005 FINANCIAL REFORM 15

Staff Highlight: Cesar Flores

Cesar Flores is an Agricultural Marketing Specialist who has been working with EWMI on itspartnership with the International Rescue Committee and its local partners in Azerbaijan on aHorticultural Marketing Strategy. In 2005 Cesar provided analysis on the market potential andspecifi c market channels for greenhouse grown vegetables and other fresh produce from farmsthroughout nine regions of Azerbaijan. He has given guidance to hundreds of Azeri producerson approaches to decision-making in their efforts to enter domestic and foreign markets. Cesaroffers simple and practical suggestions to individual and joint operations to optimize produc-tion and make choices that will maximize prices and sales, as well as return the highest profi t tothe small-holder family farm, a large and important part of Azerbaijan’s rural economy.

Program

Activities

48.35%Grants

35.10%

Administrative

16.56%

20

15

10

5

0

$ (millions)

2001 2002 2003 2004 2005

EWMI 2005 REVENUE

FinancialsFor the year ending December 31, 2005, EWMI’s revenue totaled over $15 million, almost evenly dividedbetween grants and contracts. Overall, in 2005 EWMI had 14 projects, working in over 22 countries of the world. EWMI’s primary funding sources include the U.S. Agency for International Development, theAsian Development Bank, the U.S. Department of State and private foundations. In 2005, 35% of all EWMIexpenditures were for sub grants, while an additional 48% of all expenditures were for program activities. Administrative costs totaled sixteen percent of expenditures. EWMI’s 2005 fi nancial statement were auditedby Eisner LLP, and EWMI’s audited fi nancial statements and IRS Form 990 are available upon request.

EWMI 2005 EXPENSESStatement of Activities for Year Ended December 31, 2005

Revenues:

Government grants $ 7,272,443Government contracts $ 6,099,378Contributed services and cost-share amounts $ 1,281,870Other grants $ 37,000Other contracts $ 449,140Other income $ 12,649 Total revenue $ 15,152,480

Expenses:

Program $ 12,853,715General and administrative $ 2,550,371 Total expenses $ 15,404,086

Changes in unrestricted net assets before otherincome (expense) ($ 251,606)

Other income (expense):

Interest income $ 4,257Interest expense ($ 34,538)Other $ 17,194 Other income (expense), net ($ 13,087)

Decrease in unrestricted net assets ($ 264,693)Unrestricted net assets at the begining of year $ 1,441,642

Unrestricted net assets at end of year $1,179,949

2005 HIGHLIGHTS

16

Donors and Partners in 2005

EWMI worked with many donors and partner organizations globally in 2005. Th ese included:

Donors:

• Asian Development Bank (ADB)

• International Rescue Committee (IRC)

• Rockefeller Brothers Fund

• US Agency for International Development (USAID)

• US Department of State

Partners:

• American Bar Association (ABA)

• Casals & Associates

• Checchi and Company Consulting, Inc.

• Chemonics International

• International Center for Not-for-Profi t Law (ICNL)

• International Research and Exchanges Board (IREX)

• IRIS Center at the University of Maryland

• Japan International Cooperation Agency (JICA)

• State University of New York - Center for International Development (CID)

• US Securities and Exchange Commission (US SEC)

• Youth Initiative for Human Rights (YIHR)

In addition, EWMI would like to express its gratitude and thanks to the following institutions for their assistance and support:

• Bucharest Stock Exchange

• Bulgarian Financial Supervision Commission (BFSC)

• Center of Excellence in Finance (CEF)

• Croatian Employers’ Association HUP

• Faculty of Law and Administration, University of Gdansk - Gdansk, Poland

• Financial Crimes Investigation Service of Lithuania

• Furnival Chambers- London, UK

• Ministry of Justice of Estonia

• Ministry of Justice of the Republic of Poland

• National Bank of Serbia, Insurance Supervision Division

• New Securities Exchange Montenegro

• Protiviti – London, UK

• Responsible Business Initiative Serbia

• Soros Foundation - Moldova

• State Committee for Financial Monitoring of Ukraine

Th e East-West Management Institute, Inc. qualifi es as a tax-exempt public charity under section 501(c)(3) of the US Internal Revenue Code, as amended. © East-West Management Institute, Inc. 2006