JDC Supporters Join Together To Create Impact Network

Several years ago, Jon Deaner traveled to Argentina on a UJA-Federation of New York-led mission with other young professionals to learn about Jewish life and tradition. Among the most moving experiences he had was his visit to a JDC day care program called Baby Help where he met young children living in poverty.

Jon Deaner poses for a photo with children in Argentina.

A photographer, Jon captured his visit in beautiful pictures. But as his initial connections to the children faded with the passage of time, it was that tangible feeling of being involved and making a difference Jon sought to replicate in a brand-new initiative at JDC. 

At about the same time, Doron Goldstein -- the son of JDC Board Member Yoine Goldstein and one of the founders of Entwine, JDC’s young Jewish leadership platform -- was looking to transition from Entwine but remain actively involved with JDC.

Doron grew up traveling all over the world, meeting Jewish leaders from different communities and witnessing firsthand the lifesaving work of JDC.  He understood the only way to be an instrumental player in JDC’s work was to engage head-on with program directors and content. 

Together, Jon and Doron founded the first donor group under JDC Ambassadors. At a membership level of $2,500, the Impact Network model provides access to JDC Ambassadors events and engagement. Group members focus on a particular issue under JDC’s purview and then commit to raising funds for a project they believe in.

All of this comes as no surprise in 2013. Jewish philanthropy research shows new donors are excited to be involved in charitable causes. Many serve on non-profit boards, encourage friends to give and donate online; and once they are hooked, they want to go “all in.” 

“They want to develop close relationships with the organizations or causes they support; they want to listen and offer their own professional or personal talents, all in order to solve problems together with those whom they support,” the research sats. Jon and Doron’s desire to “be information-driven, impact-focused, proactive, and peer-oriented” spoke to all members of the Child Intervention Impact Network.

Under Jon and Doron’s leadership, the group chose to learn about JDC’s involvement in early childhood programming and voted to support JDC’s Baby Help in Argentina. They met over Argentine wine and discussed Argentine history and politics; they learned about Baby Help from the director, Viviana Bendersky; they asked early childhood experts based in New York about the most up-to-date practices. They plan to support Baby Help concretely by purchasing vaccines and meals, raising awareness and communicating new trends in care. The bottom line: They are strategic philanthropists.

Following this idea, other groups have formed using the Impact Network model focusing in an issue of their choice. JDC is looking forward to engaging individuals more directly and giving donors the opportunity to be hands-on involved. To learn more about or join JDC Impact Networks, visit: http://www.jdc.org/impact. 

This blog post features information from pages 11-16 from the report Next Gen Donors: The Future of Jewish Giving.

JDC Ambassadors New York Program, October 22

Can we turn the tables on poverty? Real lessons from the field in Israel, Russia, Haiti and beyond

JDC Ambassadors Meeting

Monday, October 22, 5 pm doors open, 5:30-7 pm program
New York

An article about this event is now available on the JDC Field Blog.

JDC's experience in combating poverty around the world contains not only a treasure trove of stories of individual dedication and initiative in the face of adversity, but also a myriad of valuable lessons learned about how best to address and ultimately end poverty.

The largest Jewish humanitarian organization, JDC leverages nearly a century’s experience to create effective programs that benefit some of the world’s neediest populations faced with disaster, extreme poverty, political instability, and genocide. JDC’s lifesaving interventions in the World War I and World War II eras are legendary; its work today helps hundreds of thousands of people in crisis and focuses on sustainable solutions to Jewish poverty and beyond.

Featuring from the field:

• Galit Sagie on the keys to social mobility in Israel
• Rina Edelstein on addressing overwhelming need among elderly Jews in the former Soviet Union
• Mandie Winston on the importance of empowering people to help themselves
• Moderated by Gideon Herscher, program development expert

For more information, contact Rebecca Neuwirth, rebeccan@jdcny.org
___

JDC Ambassadors programs provide insight into the state of Jewish communities around the world – and what we can do about it. Programs are open to JDC Ambassadors, members of our Ambassador Circle and Society, and select guests.

Answering The Challenge of Employment in Israel

From Steve Schwager, CEO

If you have ever wondered about the impact that your dollars to JDC are having on global Jewry or life in Israel, look no farther than The Financial Times over the past few days. In the article entitled, “A not very secular shift” by Tobias Buck (excerpts below with permission from The FT) and a letter by me sharing JDC’s response, hundreds of thousands of high profile global leaders, from business to politics, were able to see our work—as the analysts of a critical problem and then, as the partner in bringing solutions to the table.

The article extensively cites Professor Dan Ben-David, Executive Director of the Taub Center for Social Policy Studies in Israel (an independent research institute that receives support from JDC). Dan shares and analyzes recent Taub findings on unemployment trends among Haredi men and Israeli Arab women, and their economic and political implications on the State of Israel.

As Isaac “Buji” Herzog, Israel’s Minister of Welfare and Social Services remarked at our May Board meeting, “The contribution of JDC to the resilience of the community in Israel—the resilience of the society in Israel in all of its ethnicity, multiculturalism, and mosaic-type structure—is enormous. It’s almost unimaginable… I’m saying this as one of your most serious partners who works with JDC, with Joint Israel, on a daily basis, and believes that you are an incredible partner and you exemplify what partnership is all about.”

As many of you know, JDC and the Government of Israel launched the TEVET initiative in 2005 to help break the cycle of poverty among population groups with high levels of chronic unemployment—Haredim, Israeli Arabs, immigrants, young adults, and individuals with disabilities. TEVET takes into account the cultural and other barriers that keep these citizens from finding and keeping jobs and develops programs to integrate them into Israel’s workforce in a way that is culturally sensitive.

I share with you my letter to the editor, which was published in The Financial Times, highlighting TEVET’s success in bolstering employment among Haredim and Israeli Arabs—meaningful economic boosts to them and to Israel as a whole.

Sir,

Tobias Buck (“A not very secular shift”, Analysis, August 5) uncovers a challenge for the State of Israel that requires both grassroots and governmental efforts to ensure that the Haredi and Israeli-Arab populations can become viably employable.

To that end, the American Jewish Joint Distribution Committee (JDC) and the State of Israel are already working together on 60 employment programmes, more than 15 of which have been strategically tailored to put the Haredi and Israeli-Arab populations to work.

In the last five years, we’ve placed more than 5,000 Haredi men and several thousand Israeli-Arab women into Israel’s workforce. Such jobs include positions in Israel’s high-technology industry as computer programmers, as well as jobs as bus drivers, photographers, cashiers and hairdressers.

And while the problem presented in your analysis seems staggering, our efforts to employ these groups – as well as the other 800,000 chronically unemployed adults in Israel – are producing encouraging results.

Steven Schwager, Chief Executive, American Jewish Joint Distribution Committee (JDC), New York, NY, US

I also share with you excerpts from the original Financial Times article.

…[An increasingly vocal group of economists and policymakers] point out that Israel is facing a dramatic demographic shift that will have a deep impact on its ability to sustain economic growth and keep public finances in balance, weakening its ability to deal with security threats in the region.

The problem, in short, is that the two fastest growing groups – the Haredim and Israel’s Arab minority – are also the poorest, least productive and least educated. Both include a disproportionately large number who do not work and depend on welfare. The problem is particularly acute among ultra-orthodox men, 65 per cent of whom do not participate in the labour force, and Israeli-Palestinian women, 76 per cent of whom are outside the workforce.

…The Arab minority already accounts for 21 per cent of the population, with Haredim estimated to make up 8-10 per cent. Yet their combined share is certain to rise dramatically. Analysts say the best way of illustrating their demographic potential is to look at education. According to a recent study by the Jerusalem-based Taub Center for Social Policy Studies, almost one in two elementary pupils is being taught in an Israeli-Arab or ultra-orthodox school. Prof Dan Ben-David, director of the Taub Center, argues that simply extrapolating this trend into the future is fraught with problems but yields remarkable results nonetheless. The Taub Center report finds: “If the changes of the past decade continue, then in 2040 the share of ultra-orthodox and Israeli-Arab pupils will be 78 per cent of all pupils in Israel’s primary schools.”

…Policymakers have only recently started grappling with the question of how to integrate the Haredim and the Israeli-Palestinians into the workforce. Mr Braverman’s ministry, for example, vowed this year to invest Shk800m ($213m, €161m, £134m) in projects designed to boost employment and education among the Arab population.

…Analysts agree that the shifting demographics require a bold policy response, and most argue that change is needed sooner rather than later. As Prof Ben-David says: “There is a point of no return, and when we cross it we will not be able to change things democratically – and maybe not at all.”

Irv and I hope that JDC’s research and programmatic response, highlighted in this media coverage, reaffirm that your support helps create solutions to systemic issues in Israel and to challenges facing Jewish communities worldwide.

To learn more about TEVET, please visit the JDC website.

SPECIAL REPORT: THE CRISIS IN THE BALTICS

A Community on the Brink and JDC’s Role; The Case of Latvia and the Baltics

Their grandparents survived the holocaust. Their parents survived 50 years of communist dictatorship. While their memories of the collapse of communism are vague (they were around 10 years old), they grew up being taught that the rise of democracy and capitalism would usher in an unprecedented level of opportunity for the well educated and hard working citizens of this brave new world. As they reached their 30’s and started to get married and have families, they knew that their children would enjoy, now more than ever, the freedom of being Jews- and in a climate of rapid economic growth. It is in this very context, on the very brink of an historic shift towards freedom and prosperity, that this young middle generation- the future of their respective communities- has found itself today in a terrible state of fear and disillusionment.

Nowhere has this tragic situation been worse than in Latvia, which has experienced a startling freefall of their economy. For years, a community of 12,000 Jews benefited from a revival through institutions that were built on the JCC’s and camps that JDC helped develop. The advantages that these institutions gave the Jewish community, combined with their own hard work, lead to more opportunities than ever to enjoy the cushy and stable middle class lifestyle that western democracies were providing. Now, everything has changed. Just when their greatest hopes were on the horizon, Latvia has been hit by the steepest decline in the 27 member European Union, and one of the most dramatic meltdowns in the world. So far, their economy has shrunk by a startling 18%. What is even worse news is that experts are unable to see any end in sight. The physical and psychological effects of such a radical change are devastating, and have lead to dozens of suicides since the economic crisis began.

When Latvia jointed the EU in 2004, they not only full heartedly welcomed the psychological exuberance of new democratic hopes; they also literally bought into such hopes by going on a giant lending binge to buy the minimum essentials for a middle class life, such as a car and a small apartment. All of their loans, including small consumer loans to buy essential items such as a refrigerator, were pegged to the Euro. When the global financial crisis began, the bubble burst. Latvia has now seen unemployment skyrocket to 16%, and business and banks closing at an unprecedented rate. IMF and EU assistance has thus far failed to implement any concrete changes on the ground.

The brunt of the burden has fallen on one strata of society in particular- the young middle class. Highly skilled professionals are packing their desks as their companies (many of which are foreign), are closing down. At home, the cost of living has skyrocketed as the government cuts subsidies. Cuts in subsidies for electricity alone have lead to an increase in cost of between 19%-50%. With schools, mortgages, and electricity bills for an entire family to pay, these young families are now in serious distress. Furthermore, while governments around the world are investing millions, if not billions, of dollars into the market in order to stimulate the economy, Latvia is raising taxes in order to balance its deficit. The result is an entire middle class that are now finding themselves in a matter of months with a new identity. They are now called “The New Poor”.

One of JDC’s clients, Elena is a divorced mother of 2 teenagers. Eight months ago, she had a stable position as a manager. She enjoyed an above average salary and a solid middle class lifestyle. However, when the crisis caused her company to downsize, she was let go. While she was able to hold out for a few months, eventually she found herself unable to afford the most basic necessities for herself and her family. She is now a client of JDC’s “supermarket service.” Walking around the supermarket with her two boys, Elena now chooses her food carefully before a trained social worker helps with the payment and moral support. Through shopping “on her own,” Elena feels that she has maintained a part of the routine she had before she became part of the “new poor”- thus maintaining her dignity. As Elena gazed towards the ground though in a failed effort to look the social worker of the program in the eyes when saying goodbye, it’s clear that it’s not always easy. Elena is only one of thousands across Latvia, and the Baltics in general, that have now joined the ranks of the “new poor.” Furthermore, the actual numbers of new poor are difficult to estimate, since many are living off the remainder of their savings and have not come forward yet.

As the economy falters from outside, the Jewish community on the inside is teetering on the brink of a financial meltdown as well. The emerging middle class, which accounted for around 20% of membership fees within the community, are now struggling to cover their most basic needs. Furthermore, while Latvia once lead the way in Eastern Europe in terms of private donations, today we expect a loss of approximately 50% of pledges.

While the “providers” within the community go under, the most vulnerable populations face the greatest danger- children and elderly. In the past the “children in need” programs served only dysfunctional families or the “structural poor.” Today, we are seeing dozens of middle class families asking for support. Many, facing foreclosures and evictions, are requesting housing help. Others need psychological counselling. Bred on the dream that playing by the “new rules” after the collapse of communism would enable them to thrive, and having now tasted the “western lifestyle” only to have the rug pulled from under the feet, they have been driven to high levels of anxiety and depression.

As pensions are cut and their children and grandchildren can no longer help them, the elderly in Latvia and other Baltic countries are the other vulnerable population in danger. “Classic” welfare programs, which provide food and medicine, are now back and in increased demand.
Ida L. (85), for example, was born in the city of Gomel (Belorussia) to a large Jewish family. After a graduation party, she went to Kharkov to visit her aunt. She returned to her home on June 22, 1941 – exactly in a day when the War started. She never met her family again; all of them were killed by the Nazis. She was evacuated to a collective farm, until the liberation of Gomel. When her husband died, she was left as a single mother with one son.

In 1989, when the rebirth of Jewish life in Lithuania started, Ida came to the Jewish community & became the member of Rahamim-Lithuania. As an accountant, she helped the Community as a volunteer. She was very active till 2002, when her son suddenly died. Ida became very sick.
However, the Community did not forget Ida, and immediately came to help her with welfare programs, which today are providing her with home care, meals on wheels, medicines, and winter relief. For Ida, the fact that she has not been forgotten is just as important as the actual food and medicine that she receives.

While this crisis deepens, so must our efforts to aid people like Ida and Elena. The four major categories of need in Latvia are Welfare (food, medicine, housing), Job training and placement, scholarships instead of fee based community participation, and filling in the 10% cuts from the state pension welfare system for the elderly and new poor. Now is the time when we will be tested- when elderly like Ida and the “new poor” like Elena depend on us most. To children in need and the elderly poor like Ida, it is now or never. For the “new poor” like Elena, our efforts towards them now could be the difference between making or breaking the dreams of many in their community, whose future they are an integral part of. They are a temporary caseload, as demonstrated in the Argentinean crisis. When the economy recuperates, so will they; and is so doing, they will regain the hopes and dreams that they believed in and have worked so hard for.

Additional Articles about the Economic Situation in the Baltics and Elsewhere:
"Latvia’s currency crisis is a rerun of Argentina’s" from th Financial Times

"The World's Hardest-Hit Economies" from Forbes Magazine

When the Dancing Slows and the Music Stops...

In this briefing from Steve Schwager, CEO, he shares a letter from a JDC Board Member that speaks to one of the great challenges JDC faces and the tough choices that must be made in light of the current economic climate.

As it is almost the end of July, we are busy producing a draft 2010 budget for the Board to consider at its October meeting. In the absence of new funds, there unfortunately will be significant reductions in our Jewish Renewal activities. There will also be significant changes in our welfare activities. It will be necessary to shift emphasis in most of our welfare programs to simply providing the basics, such as food, clothing, and homecare. The socialization component of the program regrettably will continue to shrink as we close buildings in smaller communities and save funds by reducing or eliminating soup kitchens and Warm Homes. While each of us on staff is acutely aware of what these programs mean to elderly Jews, we see no alternative without additional funding.

I received a very poignant letter from JDC Board member Etta Zimmerman, which she titles “When the Dancing Slows and the Music Stops”. I share it with you here:

I have enjoyed many trips throughout Central and Eastern Europe and the FSU; usually the highlight for me is joining a senior social event. Somehow the bittersweet home visits and all of the budget challenges seem to slip away. The joy I have experienced with the elderly through music and tasty cookies illuminates the unique essence of what JDC provides. When the communist block crumbled, the circumstances in which the Jews lived were often dire. JDC’s mission, especially in the FSU, evolved into nourishing more than just the bodies of the elderly, but also to mending the souls. Warm Homes were established, Yiddish clubs were started, and people would enjoy the company of fellow clients over a warm meal in a kosher soup kitchen. The consistent effort to provide essential services with ultimate attention to the recipient’s dignity captures the very essence of JDC.

I have held hands and embraced seniors from St. Petersburg, Russia to Zaporozhye, Ukraine and many locations in between. Often times I enter a room at the Hesed or JCC filled with seniors and I sing or dance with them. I have seen sad faces transformed by a familiar tune on a tired piano. I have watched slumped over spines somehow straighten and push themselves up with canes to sway to a familiar childhood song. I have seen tears of joy and sorrow flow from cloudy eyes. How rewarding it is to see these otherwise lonely people have each other, combined with a bit of joy. At Yesod in St. Petersburg, I sang and held hands with an 80-plus-year-old woman who smiled at meeting an American; Sofia told me she was sad because her friend died and she almost did not come to the Senior Club, but she was glad she had because now she was no longer so blue. Earlier that day, my husband, Raymond, and I came upon an organized senior “match making” service. They wanted to enter Raymond in the pool of candidates since there are fewer men than women! We nicely explained Raymond was not available for a “match”. So they continued with their activities, knitting blankets and clothing for young children, and were completely invigorated by each other’s company.

In Zaporozhe I danced with Yankie, who is in his 90s and visually impaired, but he has enough sight to brag to his friends that he got to dance with a young blonde girl! I have sung with Valentina, a woman whose only socialization occurs once a month when the HesedMobile drives her from her shtetl to Zhitomir. I have hugged Rosa in Kiev who was happy to meet a “young” lady and she sang beautiful Yiddish melodies for me. I have been told special and very personal stories by Holocaust survivors in Dneprozherzhinsk, because I tell them I am the child of a survivor and so we share a commonality. Many of the seniors share their lives, stories, smiles, and meager snacks. The dignity afforded these frail seniors through these social activities is nothing short of life-sustaining. As always, JDC goes beyond meeting rudimentary needs—a quality that distinguishes this organization from so very many others. These profound and simple acts of loving kindness (G’milut Chasadim) have been part of modern Jewish history. If you ever met anyone who was in a Displaced Person’s camp, they always will remember a liberation dress, a seder, the extra care given by the “great organization” that served warmly, selflessly, and consistently—the Joint.

So I must ask, when we gently say we are shifting services in these challenged times, do we chronicle the short-term or long-term effect of reduced visits to JCCs and Warm Homes or closed soup kitchens on the frail and socially isolated Jewish elderly? Somehow the budget comparisons do not illuminate this issue, because it is so very difficult to chronicle. We know that the population is aging, often requiring a “shift” in services from hot meals to home health care. But what can we say about the widower who will not see friends because the soup kitchen has shut down? Will this lead to social isolation and ultimately bring about depression and poor health? What about the 90-year-old woman who will not get to visit the Warm Home because her residence is in the periphery and the transportation costs are no longer in the budget? How will she celebrate her life—alone with the occasional food or health products delivered at less frequent intervals? Will the seniors who gather in Kharkov on Sunday afternoon be alright when the music stops and when the cookie plate is empty?

JDC has been proactive in working within these very challenging budgetary times. The professionals in the field often must feel as though the weight of the world is upon them. None of these decisions are easy and these challenges are often difficult to quantify. But the essence of what distinguishes JDC is the dignity factor, and hopefully we can stay the course in spite of our current challenges. We can and must keep the socialization of the seniors as part of the very sustenance that is JDC.

Irv and I believe that with your help, we will find the money needed to nourish the body and the soul as JDC has always done. There simply is no other way. We owe it to these elderly Jews who have so little and have suffered so much.

Interview with Dr. Dan Ben-David

In this article from the Jerusalem Post, Ruth Eglash interviews Dr. Dan Ben-David, Executive Director of JDC's Taub Center for Social Policy Studies in Israel. Dr. Ben-David is a featured speaker at the upcoming JDC Ambassadors Circle Global Symposium on May 19 in New York City.

Recession could have an upside, Ben-David says
By Ruth Eglash
Jerusalem Post – March 17, 2009
Jpost.com

There could be a 'silver lining' to the dark cloud of the current economic recession, according to Dr. Dan Ben-David, executive director of the Taub Center for Social Policy Research and an economics professor at Tel Aviv University's Department of Public Policy.

Ben-David, who published the Taub Center's annual Social Services Report on Tuesday, told The Jerusalem Post that despite the fact that the economy is likely to "worsen before it gets better, there is also a silver lining to the dark cloud, because we now have the opportunity make major reforms in government policy" that will put Israel in a much better position in the future.

"Israel's socioeconomic landscape was following long-term trends that were not sustainable," said Ben-David, who took over as executive director of the center five months ago.

"The country's standard of living per capita was growing at a slow rate and we were beginning to fall far behind other countries; the levels of poverty were deepening and the income inequality between certain populations has been getting wider and wider since the 1970s," he said.

"When there is macro-economic growth, as in Israel over the past few years, it is impossible to muster the "political power and public support to make sweeping reforms to the socioeconomic path," he said.

"When we are cruising on a certain path and things are not so bad, then no one wants to make changes," he said. "Now, because of the recession, there are no misconceptions, we can see clearly that things are not good. In that sense, it's a very good time to get people's attention and show them the things that need fixing."

Raising attention to the deepening economic crisis and its social affects is one of the main goals of the Taub Center's annual report, which is to be distributed to policy-makers, including Prime Minister-designate Binyamin Netanyahu, in the coming weeks.

Examining economics, employment, education, health and social welfare, the report highlighted that despite the economic growth in 2007/8 - before the recession began in the fourth quarter of last year - unemployment continued to expand steadily and the socioeconomic gaps between the haves and have-nots increased.

Although the unemployment rate was relatively low, the number of chronically unemployed people - unable to break back into the workforce for many months or even years - was steadily worsening. Among those being left behind by the job market were the highly educated and Arab-Israelis, who could not find employment due to the increasing influx of foreign workers, the report found.

The Taub Center document urges the government to focus on the implementation of a constructive policy that will help needy families, reduce the socioeconomic gaps and better develop social welfare services.

On Monday, Netanyahu met with representatives of 30 NGOs to hear about their challenges in aiding the country's weakest populations. While he did not make any concrete promises, he did say the recession was a good time to make structural changes and that he would explore ways to further incorporate NGOs into the public social welfare sector.

"It was definitely a good sign," Ben-David said. "A lot more needs to be spent by the government on the social safety net, but it needs to be distributed wisely, not only focusing on the physical infrastructure but also on the people. We live in an amazing country and if certain key changes are made it can only get better here."

Source:
http://www.jpost.com/servlet/Satellite?pagename=JPost%2FJPArticle%2FShowFull&cid=1237114854040

Briefing from Asher Ostrin - October 24, 2008

Below is a briefing from Asher Ostrin, Executive Director of JDC Programs in the Former Soviet Union. In this briefing, Asher looks at how the current global economic situation has affected Jewish communities of Former Soviet Union countries.

Dear all,

We all know the stories about the Jewish grandmother combing the obituary section of the newspaper each day to see whom among those mentioned was a Jew. Each loss was taken personally- a nodding of the head and a clucking of the tongue as the Jewish People lost another soul.

The next step was to turn back to the news section and filter all news, local or national, critical or comical, through a Jewish lens: "is it good or bad for the Jews?" More often than not, the initial interpretation was the latter, not necessarily based on any objective criteria. (Latent anti Semitism could even be found in decisions of municipalities to require walking dogs on a leash- but that will be the subject of another briefing).

And so we come to the current financial crisis- and the question for this briefing: "How will it impact the Jews of the former Soviet Union?" I'll try and tackle this region by region, because although there are some things that impact all of the communities, there are also subtle differences. While in some instances I will refer to macro economic trends, I do not pretend to be an expert on these and only give them where they are relevant to the situation of the Jews and Jewish communities.


1. Russia
Here, there are three macro factors at play that brought about the current situation. In Russia, the vulnerability of the economy predated the September events. Already in August, as a direct result of the incursion into Georgia, the Russian economy suffered a blow. International investors froze a number of key projects because of their assessment that the Russian actions bode ill for a stable and liberalizing economy, which caused a dramatic downturn in the local stock market (which had enjoyed incredible gains over the last three years).

The second important factor is the global crisis, which has hurt local oligarchs. Commodities in which they specialize are losing value, and the general world economic downturn, depressing demand and therefore prices, has hit them hard. Finally, and most critically, the Russian economy has been hard hit by the erosion of the price of oil. Depending on who you believe, the economic forecasts and 2008/2009 budgets were predicated on a minimum price of oil anywhere between 60 and 70 dollars per barrel. The current price is scraping this level.

Now, for the Jews.

a. There are few oligarchs supporting JDC programs directly, and where they are, the impact is not significant. However, we need to remember that JDC is not involved in every aspect of community life. The two key areas in which we are not directly involved are religious life (synagogues), and formal education (schools).

Support for local Jewish schools comes primarily from sources abroad. There are three main streams- Habad is the largest, followed by non Habad religious schools, and a secular school system. There is some local support for the schools, but in most instances they receive the lion's share of funding from sources outside of the FSU. This funding has constricted to a considerable degree due to the general crisis. Or Avner, funded by Lev Leviev, has informed its network that for now funding is frozen, which has caused an enormous cash flow problem. While Leviev is not the only funder for this system, his is the largest single gift. Teachers are paid very late, if at all. The other two systems are also experiencing difficulties, which are expected to grow as the full, impact of the crisis hits.

The schools in the periphery are the ones that suffer the most, as they are generally the ones most reliant on foreign sources. During the first few months of the school year most will survive. However, reserves will be eaten away by January, and barring a dramatic improvement of the situation, I expect that schools will close in the spring. At the very least, this will be the last school year for some institutions.

The situation with Jewish schools applies across the FSU in equal measure.

The same is true for synagogues. In the large cities these will do fine. However, in the periphery they will suffer. This is a very big blow for communities. Synagogues in smaller communities serve several functions. They are generally the only communal property in a community. Thus, community events- holiday celebrations, community meetings, etc. often take place there. They often have small budgets to provide welfare services to Jews ineligible for Hesed support- e.g. a 45 year old who is unemployed. In locales in which the rabbi is community minded, the synagogue plays an important role in community life.

b. It is likely that a protracted crisis in the Russian economy will cause cutbacks in the state budget. If past experience is any indication, this means that social services will be reduced. This will affect both our elderly clients and children at risk.

c. A growth in unemployment is to be expected. The big question is how this will affect the middle class who are the backbone of the fee for service programs we have instituted in JCCs. In discussions with some of the people in this category in St Petersburg- people who are paying considerable sums to send their children to the Yesod pre school program- they said that for now they are confident that things will continue. They do not see cutbacks in the private sector for now, at least in the major centers. All will have to wait and see.

In sum, the Russia piece is problematic, but more in terms of what is expected than actual changes to date. This is not the case in Ukraine.


2. Ukraine
Here, the impact of the crisis is already being felt. Perhaps this is because the crisis in the Ukrainian economy began more than 6 months ago, for a host of reasons, not relevant to this discussion. The banking system is not regulated in the way that banks in the west are, and several intermediate size banks failed in the last 6 months.

(At this point a note of interest regarding JDC's activities. When the ruble collapsed in 1998 a series of banks throughout the FSU folded in its wake. We learned several lessons from those events. We spread out our holdings in local banks, and do not keep large amounts of cash in our accounts, to minimize our exposure. This is true in all of the major centers in which we work. Recently we began even limiting the exposure further by transferring smaller amounts of cash more frequently).

In addition to the material presented above, the Ukraine situation has further complications. Credit has completely dried up. The situation is exacerbated by a prolonged (going on 4 years) political crisis that has paralyzed the decision making apparatus at all levels.

a. The Hesed system is a major consumer of commodities. It buys large amounts of food and medicines. The supply of these items has continued uninterrupted. A number of suppliers have requested payment in cash so as not to be involved with the banking system and its attendant risks, but they have produced the ordered goods. This could change, especially with respect to imported medicines if the credit crunch and unstable currency continues.

b. Much of our Jewish renewal programming contains an element of fees for services. This is especially true in JCCs, family camps, preschools, and more. If discretionary funds of middle class families become limited due to the failure of small and intermediate size businesses, there will be fallout in this system.

c. Local donations are not a major part of Hesed budgets, but in some instances there is money available from local donors. In one community in eastern Ukraine a Hesed built a 2007 budget predicated on 15,000 USD of local donations. When that goal was met, they increased their 08 target by 15%. They will be fortunate to bring in half of that this year. This is money for non Nazi victims. While the overall percentage of the budget lost will not cause real hardship, there is a psychological blow.

d. Ukraine has an interesting phenomenon of local oligarchs who create Jewish organizations to serve as a platform to advance their own, often political, agendas. These organizations do not do very much. They generally sponsor a newspaper (often complementing the NY Times, in that the Times offers "all the news that's fit to print", and these papers everything else). In addition, they run annual congresses in which Jewish delegates from around Ukraine get to spend a few days in a nice setting in return for their support of the oligarch's concerns of the day. The disappearance of these organizations (at least 7 in number at last count) will be lamented by few, but they often do serve a purpose: there is positive, high profile publicity for the Jewish community during these events. Again, the damage by their disappearance is more perceived than real.

e. Ukraine has an inordinate number of small organizations in local Jewish communities. Almost every medium sized community has a Holocaust museum, and there are other small organizations- Maccabi, and others. These will inevitably by effected, and many will be victims of the crisis.


3. Other FSU Countries
As for other FSU areas, they are generally "blessed" with strong government involvement in the economy that cushions locals from the impact, and/or have underdeveloped private sectors that mean there is little discretionary money or private investment to be lost, with a minimal concomitant impact on communal life.

There is one country that is the exception to the descriptions above. Its political system is not autocratic, so one would expect manifestations of the problems as we see in Russia and Ukraine. But they do not exist. It does have other problems- a serious issue with internal refugees and contested borders, but it is awash with cash. Credit is not a problem- there is cash and lots of it as a result of events there this summer. American money, European money, IMF, World Bank – and many others have contributed billions to this small country to ensure its rehabilitation after a nasty encounter with its neighbor to the north. The mouse that roared! That's all I'll say- I leave the guessing as to identity up to each of the readers.

Of course it is too early to predict the total effect of what is happening around the world. However, it is clear that we will shortly be facing a new reality in the FSU. JDC's role will grow- while we may have to make budget adjustments, there will be fewer players in the FSU, and the responsibility will be greater. We will have to see if any of our current programs will need to offset closures in other fields. For example- we will not move into formal Jewish education- but what impact will the closing of schools have on our informal education program (JCCs?). Will the goals of the fee for service program have to be adjusted, and if so, at the expense of what other programs?

To be determined.

Asher