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Open Society to Replace Soros' Cultural Initiative

Philanthropist George Soros called a last-minute press conference in Moscow on Thursday to announce the replacement of his Cultural Initiative program with a representative office of his New York-based Open Society Institute.


Soros, the Hungarian-born U.S. billionaire who is perhaps the world's most visible private player in international public policy, flew into Moscow on Tuesday for private meetings regarding the transition, with no plans for meeting with the press. The reversal of plans apparently came about after Soros secured a commitment from an unidentified Russian candidate to become the director of the new Moscow office.


Soros played down the notion that the switch was anything more significant than a simple modification of format and said there would be no change in planned funding. The philanthropist has given more than $250 million to Russian projects but he said his contributions are scheduled to decrease.


OSI will continue the dispensation of funds to a variety of cultural and educational programs in Russia and the CIS, in much the way Cultural Initiative has since it was established in Moscow in 1987, Soros said.


New projects include the creation of a $10 million Internet network and a two-year financial support program for science-related education, toward which Soros has pledged $22 million a year for two years.


The Cultural Initiative was criticized after a drawn-out audit last year and was scheduled for a State Duma investigation after allegations of espionage were leveled at Soros projects in Moscow this January. It is being "phased out," Soros said, but the projects it initiated will be carried on by OSI.


"There was no firm evidence of any financial improprieties. There was evidence of mismanagement," he said. "In creating this prototype of the Open Society, we haven't hidden this. The radical remedy that we have chosen is perhaps out of proportion to the extent of the mismanagement."


The philanthropist also reiterated his interest in encouraging the Russian government and other organizations to pick up the slack as he gradually backs out of his high-figure "mega-projects." This country will not be seeing the likes of his 1994 $100 million donation to science programs again, he said.


"Generally you have to get used to the idea that the $100 million shot was a once-in-a-lifetime thing, given at a time of economic collapse to preserve the best of Russian culture and science," he said. "My future contributions will be on a smaller scale."

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