Press news (7.6.2007): INDIVIDUAL DEVELOPMENT ACCOUNT PROGRAM
The Open Society Institute has entered into partnership with ETP Slovakia – Centre for Sustainable Development, to implement three-year Individual Development Account program targeting communities in Estern Slovakia which have a high concentration of low-incomeRoma.
An idea of the Individual Development Account program has a ten-year history in the United States. The similar program has also been successfully established in a number of different countries. Those programmes proved that the even the poorest people can save on a regular basis. The funds matching these savings under the program enable participants to have higher aspirations, including asset goals that would otherwise be beyond their means.
Participants are expected to demonstrate that they can both generate income and save some of this. Matching funds then act as a reward for behavior which steers people out of poverty. It provides a step up towards otherwise unattainable assets such as home ownership, home repair, vocational certification, education or enterprise start-up.
Participants also receive financial education that can reduce their economic disenfranchisement and dependency, and increase their knowledge of money management and legal issues.
The greatest benefit of the program is that the participants take an active part in it and achieve their asset goals through their own efforts. Its long-term purpose is to demonstrate the superiority of conditional cash transfers over the existing Slovakian welfare system; to encourage welfare policy away from meeting the short-term subsistence of beneficiaries and toward helping beneficiaries reach financial independence.
The program offers, therefore, an opportunity for low-income participants to play an active part in improving of their own financial situation, and therefore indirectly allows them to achieve goals such as increasing the market value of the property in which they live, increasing their social mobility and improve their chances for employment, increase and make their income more predictable. It also reflects the beginning of a trend from simply giving benefits to poor people to benefits which require a commitment from the recipient.
After conducting focus group discussions with Roma communities, the villages of Holumnica, Nalepkovo, Rudnany, Spisske Podhradie, Spissky Stvrtok and the town of Stara Lubovna where ETP Slovakia operates Community Centres have been selected as the Program’s sites.
Typical assets saved for could be a Driver’s Permit, purchasing a home computer, home purchase, repair or extension, e.g. building bathroom/kitchen, or starting a small business.
All participants will receive personal money management counselling, and if applicable, assistance in purchasing a home or starting a small business. ETP Slovakia’s Personal Advisors will receive the applications, verify candidates’ eligibility, and help participants develop a personal finance budget, provide basic financial education, track the participants’ saving activity, provide advice during financial emergencies, and ultimately issue matching funds. Participants will be requested to enter into an agreement (a Contract of Personal Responsibility) whereby they promise to listen to advice given by ETP Slovakia staff relating to the welfare of their families generally.
ETP Slovakia also administers home improvement loans, in conjunction with the US social homes provider Habitat for Humanity, and IDA clients may have the opportunity to obtain such a loan. Where families have established a track record of savings and/or loan repayment then it may be possible for bank loans to be arranged.
In addition to any other benefits, the Program is expected to notice changes in self-esteem, changes in the welfare of children and improvements in the stability of households.
Slávka Mačáková, ETP Slovensko
David Meier, Open Society Institute, Budapešť
On March 22, 2006 Don Haszczyn and Paul Eckelschot from Habitat for Humanity visited Roma settlement in Svinia:
The contrast is stark. On the fringe of the village of Svinia, set in the picturesque Slovak countryside, but a different world away, lies an illegal Roma settlement, home for 137 families. Seeing the living conditions, visitors receive a jolt to the system and are incredulous that this is within European Union boundaries.
But it used to be very much worse. A recently completed Habitat for Humanity project, delivered with partner ETP Slovakia, has mobilized the Roma community and, as a result, the rats have fled, hepatitis and parotitis is no longer common, the constant knee deep mud has gone, water in the new water reservoir is now drinkable and constantly flowing from the natural reserves of the nearby forest, and homes are brighter and cleaner. Many families now sleep on proper beds – some the first they have ever had - with PVC flooring and wood burning stoves to mitigate the harsh Central European winter.
All 137 families have actively participated in the home renovation project and through training and under supervision; new skills have been acquired together with a sense of responsibility and motivation to further improve homes. The change in habits has been marked as, in return for material help, families have been required to work in clearing and cleaning the settlement.
Just as important has been the shift in attitude of the Local Council and the perception of non-Roma people in the village who observe not simply the improved living conditions but the basis upon which it has been earned.
Perhaps most important of all some dignity has appeared in the lives of Roma families.

ETP SHOP
The not for profit organisation ETP Slovakia – Center for Sustainable Development in partnership with Strba Local Council and a local entrepreneur – the owner of Motorest Sosna - opened the small shop in the premises of the Motorest Sosna on November 24th, 2005. The shop - ETP Shop of Folk Arts and Handicrafts sells pieces of work made by artisans and craftsmen from disadvantaged regions of Eastern Slovakia. Cooperation has been established with almost one hundred small producers with the support of the Royal Embassy of the Netherlands in Slovakia as a part of a project – Internet Shop for Roma Handicraftsmen. The ETP Shop of Folk Arts and Handicrafts arises out of ETP Slovakia’s developmental programmes YOUR SPIS I and YOUR SPIS II - Inclusion of NGOs into Social Economy that support long-term unemployed citizens of Spis by encouraging integration into the labour market as well as creating job opportunities for disadvantaged people in newly established social enterprises. ETP Slovakia will create three job positions in ETP Shop of Folk Arts and Handicrafts for unemployed people from the Poprad region. Two shops, a concrete one and a virtual one will contribute to the promotion of of the skills of craftsmen as well as preserving traditional folk handicrafts in Eastern Slovakia.
Study trip opens the door for cooperation between the City of Kosice and ETP Slovakia.
In recent years the City of Kosice has been intesifying its efforts to solve social problems faced by its citizens. Some of the most visible measures include the new social housing on Herlianska Street, the addressing of the needs at Vodarenska Street and various churches bringing about change in the lives of Roma people through their missionary work on Lunik IX. Some of the most intractable problems, however, still remain.
The City representatives have now appraoched ETP Slovakia with a view to cooperation in solving
problems together, in particular those that relate to the Roma minority and the Slovak majority.
The first practical step towards future cooperation was a visit of City representatives to the Spis Region on November 14th, 2005. The delegation visited towns and villages where ETP Slovakia has been implementing its projects focused on the integration of socially disadvantaged citizens for more than 5 years. The Importance of the visit was underlined by the attendance of two Deputy Mayors JUDr. Eugen Cuno and Ing. František Knapik. Also present were the Head of the Department of Social Issues and Culture Mgr. Matus Haber, the Director of Social Issues Referáte Mgr. Emila Bujnakova and some social field workers.
During the visits to Spišské Podhradie, Spissky Hrhov and Spissky Stvrtok the delegation were bale to become familiar with the every-day field work of of ETP Slovakia’s team of community activists, see the results of community development projects realized within the YOUR SPIS Programme, as well as becoming acquinted with implementation of YOUR SPIS II. – Inclusion of NGOs into Social Economy.
The Mayor of Spissky Hrhov emphasised the way the Local Councils cooperate very closely with NGOs, and he gave examples of the mutually beneficial collaboration which had taken place with ETP Slovakia.
At ETP Slovakia’s regional office in Levoca, the delegation learned more about the long-term results achieved within Roma communities and the principles of ETP Slovakia's holistic approach to development within disadvantaged communites.
ETP Slovakia shared with the members of Kosice team how they feel social issues could also be approached in the City of Kosice.
The study trip has opened the door for real cooperation between the City of Kosice and ETP Slovakia
YOUR SPIS II – Inclusion of NGOs into Social Economy
The YOUR SPIS II – Inclusion of NGOs into Social Economy is funded by the European Social Fund through the EQUAL Initiative, the objective of which is to promote a more inclusive work life through fighting discrimination and exclusion. The Project will be delivered by a Development Partnership, led by ETP Slovakia, and be part of two Transnational Partnerships addressing similar employment challenges in Belgium, the Czech Republic and the United Kingdom.
The main objective of the Project is to equip non - government organisations in various settlements in the Spis Region so that they can assist socially disadvantaged people and increase their chances of securing employment.
With an original commencement date of 1st June 2005, the aim is that by the end of 2006 at least 15 NGOs from the selected towns and villages will be in a position to help long term unemployed people to return to work and thus be gradually integrated into society, including through the use of social enterprises.
Working with local authorities, businesses, local organizations, and individuals, the NGOs will encourage unemployed people to use their talents and skills, to sell their merchandise or establish a small business. The NGOs will, in fact, aim to establish themselves as social enterprises.
The emphasis will be on increasing the number of job opportunities, not merely at decreasing the number of unemployed or securing qualifications and re-training for jobs which simply do not exist.
The approach of the Project will, therefore, be to offer clients a tailored, individual service, address any required lifestyle changes and seek to increase the supply of job opportunities within the social economy.
Operating within ETP’s existing network of Community Centres and drawing on the experiences of foreign partners, Personal Advisors will, in close collaboration with Labour Offices, provide assistance and counselling to clients searching for a job as well as helping to overcome the barriers that prevent them from succeeding. The Personal Advisors will apply an holistic approach to identify a client’s needs, skills and potential and systematically address other factors which are hindering the securing of employment.
A network of Job Clubs will be established where clients may, in an informal setting, have the opportunity to obtain information about work, training opportunities and have access to databases and internet searching. Child care facilities and coffee will be on hand. Clients will be met regularly with a view to gaining their trust and providing individual consultation on employment opportunities, on vacancies and on access to education.
Also available will be a specialist Small Enterprise Adviser for those who show interest in establishing their own trade or small business of the kind encouraged by the relevant local Community Development Plan, in cooperation with the local authority. At the same venue, clients will be able to meet representatives of other support organisations to obtain advice relating to such things as social care, health, education and housing, etc.
Designated Job Brokers will work to bring the needs of both employers seeking workers together with people seeking work, assembling details of vacancies and matching these with those available for work. Databases of clients and potential employers will be established. The Brokers will bring job seekers together with potential employers, will encourage both parties to reach agreement and provide guarantees to protect employers. The Brokers will then provide follow- up support after employment has started.
In all aspects of the Project there will be extensive use of information technology - by the clients, the Project staff, the NGOs, within the context of education and professional training as well as in all processes, and in communications generally. A web portal will be created, together with a bank of ideas, experiences and information about organisations within the social economy.

