Identifier
Created
Classification
Origin
06GUANGZHOU13381
2006-04-27 08:05:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Consulate Guangzhou
Cable title:  

Heart of Gold: The Chinese Government (GONGOs)

Tags:  PHUM ECON SOCI KPAO PINR CH 
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R 270805Z APR 06
FM AMCONSUL GUANGZHOU
TO RUEHC/SECSTATE WASHDC 6652
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUCPDOC/USDOC WASHDC
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RUEKJCS/DIA WASHDC
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RHHMUNA/HQ USPACOM HONOLULU HI
UNCLAS SECTION 01 OF 05 GUANGZHOU 013381 

SIPDIS

SENSITIVE
SIPDIS

STATE FOR EB, DRL, R, E, EAP/CM, EAP/PD, ECA
STATE PASS USTR FOR STRATFORD, CELICO
USDOC FOR 4420/ITA/MAC/MCQUEEN, DAS LEVINE
USPACOM FOR FPA

E.O. 12958: N/A
TAGS: PHUM ECON SOCI KPAO PINR CH
SUBJECT: Heart of Gold: The Chinese Government (GONGOs)
Crowd Out Real NGOs

Ref: a) Guangzhou 11657

b) Guangzhou 12155


(U) THIS DOCUMENT IS SENSITIVE BUT UNCLASSIFIED. PLEASE
PROTECT ACCORDINGLY. NOT FOR RELEASE OUTSIDE U.S.GOVERNMENT
CHANNELS. NOT FOR INTERNET PUBLICATION.


UNCLAS SECTION 01 OF 05 GUANGZHOU 013381

SIPDIS

SENSITIVE
SIPDIS

STATE FOR EB, DRL, R, E, EAP/CM, EAP/PD, ECA
STATE PASS USTR FOR STRATFORD, CELICO
USDOC FOR 4420/ITA/MAC/MCQUEEN, DAS LEVINE
USPACOM FOR FPA

E.O. 12958: N/A
TAGS: PHUM ECON SOCI KPAO PINR CH
SUBJECT: Heart of Gold: The Chinese Government (GONGOs)
Crowd Out Real NGOs

Ref: a) Guangzhou 11657

b) Guangzhou 12155


(U) THIS DOCUMENT IS SENSITIVE BUT UNCLASSIFIED. PLEASE
PROTECT ACCORDINGLY. NOT FOR RELEASE OUTSIDE U.S.GOVERNMENT
CHANNELS. NOT FOR INTERNET PUBLICATION.



1. (SBU) Summary: While government-affiliated non-
governmental organizations (GONGOs) provide needed social
services, they in many cases by nature preclude or impede
the development of a strong `western style' non-governmental
organization (NGO) sector. Being so tightly aligned with
the government does present its own unique challenges for
GONGO officials and they are not immune to some of the
difficulties their normal NGO brethren face. Since GONGOs
play a major role in the legal NGO sphere it appears that
they are co-opting the limited NGO space instead of widening
it for others to fully join. End Summary.

A Governmental Non-Government Organization???
--------------


2. (SBU) Government NGOs (GONGOs) might sound like an
oxymoron but are one of largest types of legally registered
NGOs in China. GONGOs are mainly offshoots of government
departments or of mass organizations. Mass organizations
include the All-China Women's Federation (ACWF),All-China
Federation of Trade Unions (ACFTU),China Disabled Person's
Federation, and Communist Youth League. Mass organizations
have been around since 1920's and were originally started to
protect their members' rights and support Communist
ideology. They operate in every province, city, and town;
the ACFTU itself claims 134 million members, the ACWF states
it has 60,000 federations nationwide that oversee 980,000
representative committees. They potentially are a powerful
representative force.

What is (and isn't) a GONGO?
--------------


3. (SBU) While mass organizations call themselves NGOs, they
technically are supra-legal organizations that exists above
NGO law. However, if a mass organization's leaders want to
start a new or separate office that deals with one specific

subject or area (and most do) they do have to register the
way a traditional NGO would. For example, the Women's
Federation is a mass organization that was founded in 1949
to protect women's' rights and to implement, "the basic
lines of the Communist Party of China." The Guangdong
Women's Federation Legal Aid Center is a separate
organization under the Guangdong Branch of the Women's
Federation that focuses on migrant labor rights and
education. The Guangdong Women's Federation Legal Aid
Center had to register, but it was likely a brief, expedited
process. This is because the most onerous part of
registering a NGO is finding a government department to
serve as a professional leading organization (sponsor) (ref
a). A sponsor is required to monitor a NGO's activities and
is held responsible if a NGO does something controversial.
Due to this requirement, there is little incentive for a
government department to sponsor a traditional NGO; it is
too risky of a proposition. However, mass organizations
themselves are also allowed to serve as professional leading
organizations making it very easy for them to "sponsor" an
offshoot of their own organization. While a GONGO is
technically an independent organization it is closely tied
to its parent organization. For example, the Guangzhou
Youth Volunteer League director stated that some of his
staff is `assigned' from his parent organization, the
Communist Youth League (CYL),and the administrative costs
of these assigned staff members, are paid directly by the
central government.

Raking in the Dough; G$NG$s
--------------


4. (SBU) GONGOs, particularly the Women's Federation and
Disabled Person's Federation, have been quite successful in

GUANGZHOU 00013381 002 OF 005


soliciting donor funds from overseas to operate projects in
South China. While one researcher argued that this kind of
support only subsidizes the Chinese government and does not
expand civil society, there is no denying that this funding
route is extremely popular. GONGOs provide stiff and often
unbeatable competition for traditional NGOs in the race for
donor dollars. GONGOs provide several advantages from a
donor's point view. First, they are a fully legal entity in
China, a factor which contrasts directly with the majority
of traditional NGOs that are unregistered in China due to
the difficulty of the registration process (ref a). While
figures vary, some researchers in South China estimate that
only 10% of all NGOs operating in China are actually legally
registered. Since GONGOs are legally registered, they have
non-profit status, can have organizational bank accounts,
and follow a relatively strict set of financial guidelines
that set many international donors, and their board of
directors, at ease. Secondly, their network of offices is
already established. Mass organizations such as the Women's
Federation and All-China Federation of Trade Unions have an
office in every province, city, county, and in many larger
factories. Third, if the goal of an international donor is
to advocate reform within the Chinese government it makes
sense to work with a GONGO that is already inside the
government network. In the sensitive NGO environment that
exists in China one would argue this approach is more
effective than advocating change through widespread public
pressure or negative media coverage from a traditional NGO.
Traditional (and unregistered) NGOs lamented that overall,
when faced with a choice between funding an unregistered NGO
with only a personal bank account and activities that
operate on the fringe of society or a GONGO with legal
registration, guaranteed (somewhat) access to target
populations, and the prospect of closer cooperation with the
Chinese government, many international donors reasonably
choose the latter.

Can a GONGO Really Act Like a NGO?
--------------


5. (SBU) There is no doubt that GONGOs do implement
effective activities with their donor's funds but the range
of their activism in South China varies. For example, the
Guangdong Women's Federation Legal Aid Center uses a grant
from the Asia Foundation to host four hotlines that handled
over 7000 calls in 2005 and to publish handbooks on AIDS and
legal rights that have a circulation of over 21,000. It
works with 35 factories in the area to give workshops on
legal rights, health, and labor issues. When the Women's
Federation first started its program in 1997 the director of
the center said she could set a quota of how many workers
were required to attend the briefings and a certain amount
of team leaders or `pioneers' were selected by the
factories. As time has gone on, the Federation has revised
its programs and attendance has become voluntary. In
addition to the education series, the Women's Federation
Legal Aid Center has two lawyers on staff who help migrant
laborers bring suits against their employers, mainly in the
area of (injured) worker's compensation. The number of
cases the lawyers handle has jumped from 50 in 2001 to over
100 in 2005 with a 90% success rate.

Some GONGOS Still a Blast from the Past
--------------


6. (SBU) Not all GONGOs are that proactive; some seem to be
stuck on a more traditional government-oriented track.
Guangdong Youth Volunteer League hosts charitable activities
but many of its activities seem to be more sports or
culturally-oriented. The All-China Federation Labor Union
(ACFLU) is a mass organization that some argue has been
losing influence as many private firms prevent it from
operating in their factories (the ACFLU must have the
owner's assent to open). Many of the ACFLU's educational
activities in Guangdong are a throwback to a different era
with cultural TV programs, programs to increase efficiency,
and programs to raise the `level of culture' of workers.
For example, one official at the Guangdong branch of the
ACFLU proudly told of distributing playing cards, describing
them as having information about worker's legal rights

GUANGZHOU 00013381 003 OF 005


printed on them. In actuality, instead of listing the
minimum wage or the basis of overtime law, the playing cards
exhort the workers to work efficiently and improve their
level of culture.

Operating Like a NGO But Thinking Like The Government
-------------- --------------


7. (SBU) All GONGOs contacted freely admitted that they have
to moderate their message to please both their parent
organization and the factories with whom they cooperate
while also trying to deliver useful information to the
migrant workers. The Guangdong Women's Federation Legal Aid
Center director stated that the Center had serious
difficulty in starting up its programs. Factory managers
were concerned that the Center would incite workers to start
demanding the minimum wage, overtime compensation, and other
rights guaranteed by law. These, of course, were the issues
the workers were most interested in. As the labor shortage
became more and more apparent (beginning in late 2003) the
director said factory managers became more open to the
Center's programs as they were looking for ways to decrease
turnover.

Sensitive Points
--------------


8. (SBU) GONGOs are also sensitive about the source of their
funding and the impression that there is secretly an
American (or western) donor pulling the strings behind the
screen. Since they exist within the Party structure GONGO
leaders are concerned about appearing too western or out of
line with Party doctrine. Either one could bring about a
swift end to a person's career with the government. In the
wake of the color revolutions in Europe NGOs in China that
had American backers came under increased scrutiny. Two
GONGO representatives separately both lowered their voices
to a whisper when they mentioned receiving funding from the
Asia Foundation. Even within the government some GONGOs try
to keep the source of their funding secret. One GONGO
administrator tells the story of traveling to Sanxiang, in
Guangdong province. Through a local GONGO Sanxiang set up a
migrant laborer's newsletter with a circulation of over
10,000 as well as other programs with international donor
funds. It was only after returning to Guangzhou that the
Guangzhou GONGO official learned of the program through a
friend because she was told Sanxiang project directors were
keeping a low profile about their projects. The GONGO
administrator thought a Consulate request for a meeting with
the Sanxiang GONGO would likely be denied for similar
reasons.

Still Party to the Party Apparatus
--------------


9. (U) Viewed from the outside, even the more liberal GONGOs
are viewed as too closely tied to the government by local
unregistered NGOs. GONGOs in Guangdong are arguably the
most active in migrant labor and women's issues but no
unregistered labor NGO officials saw them as potential
partners. They uniformly equated them to that of a
government department. Some researchers charge that GONGOs
are precisely there to exclude any other NGOs from operating
in the same area.

There Can Be Only One
--------------


10. (U) According to Chinese NGO registration law a
professional leading organization (sponsor) is only allowed
to sponsor one type of NGO at each level (municipal,
provincial, national). This is supposed to avoid conflict
of interests and foster the high "quality" NGOs the central
government seems to be constantly advocating. For example,
if a domestic environmental NGO wishes to operate nationally
it must have a ministerial level (national) sponsor from the
State Environmental Protection Agency (SEPA). However,
registration laws dictate that there must not be more than
one of any type of organization at each level (national,
provincial, municipal) so once a GONGO is set up their

GUANGZHOU 00013381 004 OF 005


government sponsors have often been unwilling to sponsor an
additional organization of the same type, though the
definition of "type" in the law is open to interpretation.
The Guangdong Association of Science and Technology's
director, whose organization is the government sponsor for
150 science and industrial academic associations, states
that his association has a separate panel that reviews each
request for sponsorship and evaluates whether the requesting
organization is operating in an unique field. At this
point, no foreign NGOS are allowed to register unless they
are a foundation/endowment (septel).

Doing It On Their Own
--------------


11. (U) In addition, GONGOs in South China seem to operate
in isolation and do not have activities that involve
cooperation either with registered or unregistered
traditional NGOs in the field. The Disabled Federation is
one exception to this as it have been very progressive in
working with international NGOs to provide services to
disabled people. All of the other GONGOs spoken with stated
that apart from receiving funding they do not cooperate with
other NGOs and have no plans to do so.

Crowding Out the Competition
--------------


12. (SBU) While no one can doubt that at least some GONGOs
are doing very good service work, they seem to play a
limited role in the development of a broader NGO community
or civic society. For the government they represent the
best of both worlds; in many cases they are able to attract
international donor funds (and media coverage),and add to
the number of `registered' NGOs all while strictly
maintaining the party line. In addition, GONGOs help to
ensure the survival of mass organizations by expanding them
from just a Party apparatus to politically correct service
providers. In the fields in which they operate in South
China, their activities are more moderate than that of the
general (unregistered) NGO community. Recently, it has been
widely reported in South China media that the central
government is working with the Asia Development Bank to
begin `outsourcing' charity and relief programs to NGOs.
Upon closer inspection, almost all of the NGOs that are
slated to receive funding are GONGOs. The prominence of
these programs under the guise of NGOs hides the fact that
even the most uncontroversial and well-established
traditional NGO has serious problems finding a government
sponsor with whom to formally register (ref a). Without
formal registration NGOs cannot apply for these new
`outsourcing' grants (foreign NGOs are completely excluded
unless they have a local partner) or many other types of
grants. While unregistered NGOs have been creative in
finding other modes of operation (ref b) the current
situation of no registration, no legality and restricted
access to funds is a serious hindrance to their activities.

Not Building A Civic Society
--------------


13. (SBU) In addition, while some GONGOs encourage a culture
of philanthropy, the majority have very few programs that
build a civilian base of volunteers, or encourage popular
participation in NGO efforts. Very few GONGOs solicit
volunteer assistance or launch programs that engage the
wider community; they mainly focus on providing government-
like assistance or education materials. However, there are
separate independent government departments whose
responsibility is to provide these type of services. This
lack of support for grassroots participation and lack of
cooperation with already existing NGOs squanders the chance
GONGOs have to build a civil society base.

Comment
--------------


14. (SBU) By occupying the "legal" NGO space GONGOs also
lessen the pressure for NGO legislative reform. The media
and government constantly point to GONGOs to show the

GUANGZHOU 00013381 005 OF 005


strength and progressiveness of the Chinese NGO sector.
Their successes often drown out (though not completely) the
problems that grassroots Chinese and foreign NGOs have in
trying to operate in a restrictive atmosphere. GONGOs seem
to provide a safe alternative that serves as a rebuff to
those that bemoan the lack of Chinese civil society as well
as a safe way for international donors to fund worthwhile
programming while developing close relations with the
central government. GONGOs seem poised to occupy the small
space allotted to the third sector, to the detriment of the
legions of NGOs waiting outside the door.

DONG