A. Program Summary

Brain research repeatedly demonstrates that quality interventions early in life disproportionately improve outcomes for those children most at risk, offering an unparalleled opportunity to alleviate the effects of social disadvantage. Established in 1994, OSI's Step by Step Program, engages in reform of national early childhood education and development policies within a framework of social justice. The program seeks to play a significant role in improving chances for Roma and other minorities, children with disabilities and children living in poverty to participate actively and equally in democratic societies, through targeted interventions for young children aged birth through age ten and their families. Step by Step operates through three main structures: OSI's Network Program Office (London), the International Step by Step Association (ISSA), and non-governmental organizations located across 32 countries. Step by Step's five main activities are described below.

1. Design of Early Childhood Policies
Step by Step engages in development of national early childhood policies in line with its mission of extending quality services to children most at risk. This includes involvement in Education for All-Fast Track Initiative processes, preparation of policy recommendations and policy planning.

2. Implementation of Early Childhood Education and Development Programs
Step by Step programs function through education, health and social welfare systems. In addition to comprehensive transformation of early education in preschools and primary schools, Step by Step offers parent and community-based initiatives and early literacy projects, aimed at extending quality early childhood development opportunities to segments of the population, who would otherwise have limited or no access to preschools. Step by Step engages in cutting edge work in the area of diversity, through its education for social justice initiative, which provides anti-bias adult education, classroom activities focusing on diversity and support for second language learners, and through its inclusive education program, which promotes inclusion of children with disabilities in regular classrooms. To institutionalize pilot programs, Step by Step assists in reform of teacher education/re-training and in development of professional standards and child assessment instruments.

3. Development of Leadership and Capacity in the field of ECD
Step by Step develops leadership in the field, through individualized professional development and technical assistance to individuals and early childhood NGOs. Significantly, the program establishes effective, independent national and international professional networks.

4. Evaluation and Research
Targeted evaluation and research supports program development and effective advocacy.

5. Advocacy
OSI joins international networks of donors, practitioners and researchers to advocate for:
· increasing international investments in early childhood development
· extending the range of early childhood program options available in Central Eastern Europe
· improving access for Roma and minority children to quality ECD
· supporting rights of children with disabilities to inclusive education

B. Program Activities in 2007

The Network Step by Step Program moved from its previous bases in Budapest and New York to consolidate at the Open Society Foundation London in October 2006. This has included a process of hiring 3 additional staff. A Program Assistant was hired in March 2007 and 2 Senior Program Officers will start work in summer 2007. An Advisory Board will be established in summer 2007. Activities described here extend from October 2006 through 2007.

Ensuring sustainability and dynamic development of the existing Step by Step Network
The Step by Step Program has been an enormous investment of the Open Society Institute (over $120 million). Priorities for coming years include preserving and assuring the sustainability and dynamic development of programs in the 32 participating countries as well as extending the initiative in partnership with other organizations to new countries and regions in line with OSI's growing global mandate.

National Step by Step Programs
Innovative national early childhood programs operated by strong non-governmental organizations form the core of the Step by Step Program. OSI has a responsibility to continue to monitor strategic developments and sustainability issues of programs in its network. This involves providing targeted technical assistance and grant-making to countries in need of support. Special intensive engagement is organized each year for programs that are facing national crises.

The Network: International Step by Step Association
The International Step by Step Association (ISSA) was established in 1999, as a networking organization by national partner NGOs working on the program. In the interim period, much of the work of OSI and ISSA has been intertwined, with OSI actively managing ISSA's work. The years 2006-8 represent a transition in the OSI and ISSA relationship towards a partnership of two equal organizations that cooperate to develop the Step by Step Program in CEE/CIS. ISSA will continue to develop as a professional network, advocacy and membership organization and technical assistance provider. ISSA will inherit from OSI the program development and implementation in CEE, the CIS and Baltic States, through a responsible transfer that allows adequate capacity building. During 2006, ISSA hired an Executive Director and Program Director, becoming independent of OSI's daily oversight and management. New efforts are underway to seek funds from a wider range of donors to reduce dependence on OSI funds (currently 67% of ISSA's budget). Through this process ISSA is becoming self-reliant programmatically and administratively and sustained through a combination of OSI and international funding. OSI will use its resources to develop opportunities and raise funds for Step by Step and ISSA. During 2007, OSI will establish a partnership agreement with ISSA, further defining roles, and will communicate the new relationship within OSI and with partner organizations.

Key Program Areas:
While retaining its broad work on reform of early education systems, the Step by Step program engages in cutting edge work in the area of diversity and social inclusion. OSI and ISSA have redefined Step by Step program priorities to focus on needs of diverse learners, oppression in education systems and inequalities in access to quality education. Areas of intense focus in 2006-8 include: Quality Early Education, Disability Initiative, Education for Social Justice, Parent and Community-based Early Childhood Development, NGO Development and Reading Corner (early literacy).

In 2007, three of these program areas will be managed by ISSA alone (Quality Early Education, Education for Social Justice, NGO Development) and three will be co-managed by OSI and ISSA (Disability Initiative, Reading Corner, Parent and Community Early Childhood Development). Some key activities include:
· conducting needs assessments in each program area
· intensifying networking among program participants in each area
· grant-giving to support disability initiatives in the Step by Step Network
· development of new resources for parents and teachers working with children with special needs
· development of new training modules on early literacy and family literacy

Focused Advocacy:
The Step by Step Program works closely with partner organizations to move the advocacy issues outlined on page one forward. In 2007, this will include:
· provision of grant support and active engagement in the Consultative Group on Early Childhood Care and Development, an international network of donors, practitioners, researchers and regional associations devoted to early childhood development advocacy and practice;
· support (conceptual and financial) for a film being produced by Rockhopper films, on the critical importance of early childhood education, which will be aired on BBC world;
· participation in a joint UNICEF, ISSA, OSI initiative to bring Ministry and key stakeholders from four CEE/CIS countries to the UK for a study visit to explore programming and policies that can be used to extend early childhood options and coverage;
· preparation of a policy focusing on early childhood policies related to Roma early childhood issues (see below);
· finalization of a position statement on inclusive education in cooperation with ISSA to support national efforts to influence policies;
· targeted support to help countries facing urgent issues (for example, Azerbaijan's government is in the process of considering privatization of the entire preschool sector).

Evaluation, Research and Policy Studies:
Targeted evaluation and research of the Step by Step Program supports program development and effective advocacy. Several focused evaluation efforts are outlined for 2007-8. These evaluations respond to specific program needs and contribute to the priorities identified within the field internationally. These include:
· Evaluation of the Step by Step Program's Reach and Sustainability (RAND). OSI management has contracted with the RAND corporation to conclude by the end of 2007 an external evaluation of Step by Step's reach and sustainability. The evaluation will identify indicators that OSI, ISSA and the Step by Step NGOs can use to measure program reach and will establish costing formulas for several key program areas. The project will also develop a system of data collection, storage and analysis.
· Evaluating Step by Step's Parent and Community Education Programs. In cooperation with the World Bank, Step by Step is piloting a community-level school-readiness assessment instrument, the Early Development Index, in Moldova, and, potentially, through ISSA, in several other countries in the region. A small coalition of international organizations, including the Bernard van Leer Foundation, UNICEF, the World Bank, and the Aga Khan Foundation, are discussing evaluation strategies about parent and community based programs.
· Review and Analysis of Roma ECD Policies. Contrary to overwhelming evidence regarding effective programming for severely disadvantaged groups in developed and developing countries, governments in CEE are enacting ECD policies for Roma that focus exclusively on development of short duration, didactic preschool programs (6 weeks to 1 year). OSI will commission a review of evidence on effective programming for disadvantaged young children (ie, a greater variety of interventions that impact home learning environment/early literacy, that target younger children 0-5, and that are of greater duration) and to contrast this with the new policies that are emerging from the region.
· Case Study Project. Final editing will be done on country cases commissioned as part of the 10th Anniversary of the Step by Step Program. To round out the project, a case study on the Education for Social Justice project will be prepared. OSI will explore developing one or more cross-cutting case studies that draw from across the 28 original national studies on select themes.
· Summary of Step by Step National Outcome Data. Collection and dissemination of the most robust national child outcome data on the Step by Step program by an independent evaluator is planned. This study will summarize results of national studies.

Extending Step by Step to New Countries in line with OSI's Global Mission

In cooperation with OSI's Regional Directors, the Step by Step program is exploring opportunities to extend its programming, which has been primarily Central Eastern Europe, the former Soviet Union and Haiti, to new countries and new regions. Programs began in 2003 in Argentina, and in 2006 in Dominican Republic and Bangladesh. Strategic planning and assessments are being made of potential projects for Palestinian Citizens of Israel, Pakistan, Liberia, E. Timor, border areas of Burma in Thailand and, regionally, for the Middle East.

The new project in Bangladesh is particularly exciting and is worthy of additional description. BRAC University's new early childhood development unit is collaborating with OSF London to develop and implement a series of early childhood courses in 2007-9, leading up to a certificate or Master's Degree in Child Development. The project will build the capacity of BRAC to act as a regional training institution of early childhood experts and trainers. OSI is also exploring cooperation with BRAC to improve quality of ECD programs in 30 experimental sites.

Please note that OSF London programs form part of the wider program operated by OSI. For further details please use the following link: http://www.soros.org/initiatives/east