POWER OF THE PURSE: UZBEK GOVERNMENT UNVEILS PLAN

C O N F I D E N T I A L TASHKENT 001416 SIPDIS SIPDIS E.O. 12958: DECL: 08/03/2017 TAGS: PGOV PHUM UZ SUBJECT: POWER OF THE PURSE: UZBEK GOVERNMENT UNVEILS PLAN TO PROVIDE STATE SUPPORT TO NGOS Classified By: CDA Brad Hanson for reasons 1.4 (b) and (d). ¶1. (U) Post received a circular diplomatic note, sent to all diplomatic missions and international organizations in Tashkent, announcing a plan to make Government of Uzbekistan (GOU) funds available to Nongovernmental Organizations (NGO). According to the note, the Cabinet of Ministers adopted the decree "On Approval of the Statute on State Support of the Non-State Non-Profit Organizations in Uzbekistan" on April 28 in recognition of the important role NGOs serve as "instigators and barometers of the democratic process." ¶2. (U) Under the new law, officially registered NGOs engaged in "socially significant activity" for at least one year are eligible to receive state funding in the form of subsidies, grants, and "State Social Orders". Subsidies are intended to defray an NGO's basic operating expenses and will be administered directly by the Ministries of Finance and Justice. Grants and State Social Orders essentially are government contracts awarded competitively to NGOs for the fulfillment of social projects. The major difference between the two types of funding is that grants are awarded to NGOs for projects proposed by the organizations themselves and are administered by coordination committees made up of representatives of the National NGO Association and government agencies. State Social Orders are awarded to NGOs for the completion of projects previously identified by the Cabinet of Ministers and are administered by the contracting government agency under the general supervision of the Ministries of Finance and Justice. ¶3. (C) Comment: At first glance, the Uzbek Government's new financing scheme is not dissimilar to the partnerships democratic states, including the United States, often establish with NGOs. Administered correctly, the program could provide additional funding to NGOs working here. Unfortunately, the decree follows over two years of a concerted and on-going campaign to reduce the number of existing NGOs and to choke off outside financial support for those permitted to remain. Now that the GOU has reduced the overall NGO community to what it apparently thinks is an acceptable number, the logical next step is to monopolize funding, thereby utilizing the power of the purse to restrict the activities of entities whose missions sometimes bring them into conflict with the state. HANSON