PRT BAMYAN: CHAMBER OF COMMERCE BABY STEPS

UNCLAS SECTION 01 OF 03 KABUL 003271 SIPDIS DEPARTMENT FOR SCA/FO, SCA/A, S/CR, EUR/ERA, EUR/RPM STATE PASS USAID FOR AID/ANE, AID/DCHA/DG NSC FOR HARRIMAN OSD FOR BREZEZINSKI REL NATO/AUST/NZ/ISAF CENTCOM FOR CG CFC-A, CG CJTF-76 SENSITIVE SIPDIS E.O. 12958 N/A TAGS: PREL PGOV ECON ETRD EFIN EINV SOCI AF SUBJECT: PRT BAMYAN: CHAMBER OF COMMERCE BABY STEPS Summary -------------- ¶1. Bamyans Chamber of Commerce is making strides, but still needs assistance and guidance to develop into a private sector advocate. The Chamber does not yet appreciate the distinction between its role and the governments, for instance, by continuing to o pressure donors rather than government ministries for results. Expert assistance from the Afghanistan International Chamber of Commerce (AICC) and the Center for Private Enterprise (CIPE) has convinced the local Chamber that it has a better future following the AICC/US Chamber model. AICC, recognizing the Chambers potential even with its current weaknesses, intends to open a local AICC office in the near future. The Chamber has pointed to improving roads and infrastructure as priority needs, and sees tourism and womens entrepreneurship as growth areas, but is unclear how to move these from idea to action. End Summary. Private or Public Sector? -------------- ¶2. The Chamber of Commerce and Industry was re- introduced to Bamyan in 2003, according to Haji Chaman Ali, as an arm of the Ministry of Trade and Commerce. The previous director disappeared after about six months, and the organization languished until early this year, when Provincial Governor Sarabi called d together local business leaders and previous chamber members. The Chamber began working again, with 40 members, of which 12 serve on a board of directors. ¶3. Close association with the Ministry initially confused Chamber members about their responsibilities and objectives. Chaman Ali initially explained to us how the Chamber would help the government by collecting taxes from private contractors, especially those getting donor contracts. The Chamber has a letter from President Karzai, he claimed, which authorized the Chamber to get into tax collection (he was unable to show us the letter). It took several months of explanation from PRToff, AICC representatives, and CIPE Chief of Party Mark McCord before the Chamber agreed to forego this role. ¶4. The Chamber still sees itself as less an advocate for business and more an advocate for villages, stepping into the purview of government agencies in this respect. Chaman Ali and his board of directors s continue to press donors to provide additional development assistance for several villages, rather than working to promote existing businesses. The Chamber has requested the PRT fund beehives, carpet weaving, cutting and washing facilities and equipment, birdhouse construction, and even an entire plastics factory (ostensibly to produce plastic watering cans). Pointing Bamyan Chamber in the Right Direction -------------- - ¶5. The Bamyan Chamber is slowly evolving towards the US model of a Chamber of Commerce, thanks to patient intervention from AICC and CIPE. In March 2006, CIPEs McCord explained to the Bamyan Chamber how it KABUL 00003271 002 OF 003 could help the Chamber develop expertise in strategic planning; business association development; and womens enterprise development. Anything to do with the private sector, we can help you do, McCord explained. ¶6. The Bamyan Chambers first taste of what a Chamber can do came when AICC organized its National Business ness Agenda meeting in Bamyan in April 2006. The meeting brought together almost 200 civic and business leaders from Bamyan Province to gauge what matters most to them, with the idea that this input would go into a national document for the Central Governments consumption. Private and public sector leaders alike universally pointed to improving roads as the primary need for Bamyans continued economic development. (Note: There are no paved roads in Bamyan Province. The 120 km trip to Kabul from Bamyan through Shibar Pass currently takes between 8-11 hours, weather permitting.) ¶7. AICC thereafter held a three-day workshop with the Bamyan Chamber at the end of May 2006 to provide technical assistance to the Bamyan Chamber. In the program, AICC gave the Bamyan Chamber information and advice on advocacy, strategic planning, membership development, marketing, and advocacy. With that training under its belt, the Chamber decided to cast its lot with AICC, with the idea of creating a local l chapter of AICC in Bamyan. CIPE and AICC representatives pledged to make follow up trips to Bamyan to begin offering the technical assistance necessary to set up the new chamber. Vision for the Future: Tourism and Womens Business -------------- -------------- ¶8. The Bamyan Chamber, along with government officials, believe tourism can be the engine for future economic growth. Chaman Ali explained that the Chamber hopes to capitalize on Bamyans unique cultural heritage to provide jobs and income for people. Hotels, restaurants, tours, outdoor sports; we could have all of that here, he said. ¶9. Equally important for the economy will be women in business, Ali explained in introducing PRToff to Bamyans first women shopkeepers. To attract tourists, Bamyan needs to promote itself as a progressive area, especially relative to other parts of the country. One way to do this is by allowing women to run their own businesses. Women making aking money, selling their own goods -- this is good for their families, good for Bamyans people, good for tourists to see. We should encourage it, he explained. Comment -------------- ¶10. The Chamber has embraced Governor Sarabis Ten Year Strategic Plan for Bamyan Province, including its focus on the need for infrastructure and the potential for tourism. Like the provincial government, however, the Chamber has little to no idea how to translate that vision into an action plan to reach its goals of improving the business environment for the province. KABUL 00003271 003 OF 003 Continued guidance from AICC and CIPE will be crucial in boosting the Chambers advancement of Bamyans nascent private sector while simultaneously reining in unrealistic expectations of what the Chamber, and the Province, can achieve in the short term. NEUMANN ANN