[Congressional Record Volume 151, Number 168 (Thursday, December 22, 2005)]
[Extensions of Remarks]
[Page E2651]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




    NESsT SOCIAL ENTERPRISE COMPETITION FOR CENTRAL & EASTERN EUROPE

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                               TOM LANTOS

                             of california

                    in the house of representatives

                      Thursday, December 22, 2005

  Mr. LANTOS. Mr. Speaker, I invite my colleagues to join me in 
recognizing an important competition that will take place in early 2006 
in Croatia, the Czech Republic, Hungary and Slovakia.
  The regional Social Enterprise Competition for Central & Eastern 
Europe is sponsored by the Nonprofit Enterprise and Self-sustainability 
Team (NESsT). The competition will bring together social entrepreneurs 
and local civil society organizations to submit proposals for achieving 
greater financial sustainability through social enterprise. The mission 
of this competition merits the attention of my colleagues in the House 
because it is inextricably linked to the role of civil society 
organizations as advocates for freedom, human rights and public welfare 
in emerging democracies.
  Mr. Speaker, I am certain that all of us remember the euphoria that 
accompanied the collapse of the Berlin Wall and the demise of communism 
just a decade and a half ago. With Members of this House and people 
around the world, I recall the joy of seeing democracy and human rights 
restored to long-suffering peoples of Central Europe and the former 
Soviet Union. I remember watching in amazement as Berliners from both 
halves of the divided city danced on the Berlin Wall. I joined people 
from around the world as we chipped a piece from that disappearing 
Wall. I was with the Czech students celebrating in the streets of 
Prague.
  The struggle for democracy and human rights is far from over in this 
region and elsewhere in the world. As the United States strives to help 
emerging democracies such as Ukraine, Georgia, and Afghanistan, efforts 
by NESsT and other non-governmental organizations (NGOs) through 
activities such as the social enterprise competition are critical in 
helping to promote the rights and interests of the public in emerging 
democracies.
  Mr. Speaker, Central and Eastern Europe received an enormous amount 
of foreign assistance throughout the 1990s, which assisted former 
communist countries to transition to more open and democratic 
societies. However, in recent years, this region has seen significant 
cuts in U.S. foreign assistance. Despite these cuts in funding, the 
needs of civil society organizations in this region continue to grow.
  The limits on democratic development assistance in Central and 
Eastern Europe resulted in some serious questions about the viability 
of civil society organizations to assist in democratic development. 
What role should social enterprise play in encouraging growth, 
upholding worker rights, and protecting natural resources? What role 
can civil society organizations play in democratic development if they 
are beholden to the whims of foreign donors? NGOs, such as NESsT, have 
found innovative and cost-efficient ways to strengthen the financial 
sustainability of civil society organizations working for social change 
and development in emerging market countries.
  The NESsT-sponsored competition seeks to expand the network of 
financially sustainable civil society organizations throughout the 
region. Through the competition, NESsT will apply a venture capital 
approach, also known as venture philanthropy, to providing the 
financial and technical support to the region's civil society 
organizations.
  Mr. Speaker, venture philanthropy involves applying the tools of the 
for-profit sector to expand the reach of the community organizations. 
Venture philanthropists often offer loans and equity equivalents rather 
than traditional donations; engage nonprofit managers with an array of 
technical and strategic advisory service; build organizational capacity 
through the development of skills and networks; and, most important of 
all, set clear performance goals and expect ``portfolio members'' to 
achieve concrete social and/or financial returns on investment.
  I would like to pay tribute to the principal sponsor of the 
competition, the Nonprofit Enterprise and Self-Sustainability Team 
(NESsT). From its offices in Budapest and Santiago, this organization 
has emerged as an international leader in the effort to foster social 
entrepreneurship and venture philanthropy in developing nations. 
NESsT's co-founders, Nicole Etchart and Lee Davis, direct initiatives 
that clearly address the challenges and needs of NGOs in Central Europe 
and Latin America.
  Mr. Speaker, for all these reasons and many more, I urge my 
colleagues to join me in recognizing the important mission of the 
Social Enterprise Competition for Central and Eastern Europe and the 
outstanding contributions of its principal sponsor, the Nonprofit 
Enterprise and Self-Sustainability Team.

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