GOVERNMENT SET TO PASS CSO LAW

UNCLAS SECTION 01 OF 03 ADDIS ABABA 002482 SENSITIVE SIPDIS E.O. 12958: N/A TAGS: KDEM PGOV EAID PREL ET SUBJECT: GOVERNMENT SET TO PASS CSO LAW REF: ADDIS 2105 This is an Action Request. Please see paras 5, 6, and 7. SUMMARY -------------- ¶1. (SBU) The release of a minimally altered, near final version of Ethiopia's highly contentious Civil Society Organizations (CSO) law suggests that the Ethiopian Government (GoE) is preparing to rush the bill through Parliament this Fall. The impact of the law on U.S. foreign assistance programs remains unclear as the provision exempting foreign CSOs operating under an agreement with the GoE from the provisions of the law simply codifies the current procedure by which U.S. project assistance in Ethiopia is pre-vetted with the GoE, providing a potential exemption therefor. The larger impact, however, will be to eviscerate Ethiopian civil society engaged in building strong and transparent national institutions by prohibiting them from receiving significant foreign funding. The net effects, therefore, will likely be the restriction of foreign assistance aimed at democratic institution building, undercutting development of a civil society and the establishment of strong and transparent institutions of governance that represent, and respond to, the will of the people. Post will continue to press the GoE to avoid passage of such restrictive legislation, but we are increasingly pessimistic about the ability to stop this juggernaut. Post strongly recommends that Washington prepare to release a strong public message when this legislation does pass. End Summary. VERSION III... -------------- ¶2. (SBU) The Ethiopian Government (GoE) discretely released a minimally revised version of its highly contentious draft Civil Society Organizations (CSO) law on September 2. A copy has sent to AF/FO, AF/E, DRL/AE, and USAID/AFR on September ¶4. This third draft is substantively revised only by replacing specific references to criminal penalties with the more oblique provision that violations of the law will be punishable in accordance with provisions in the criminal code. The new draft leaves intact contentious provisions including the definition of "Ethiopian" CSOs based on foreign funding levels of no more than 10 percent; the prohibition on "foreign" CSOs from engaging in human and democratic rights, gender equity, children's and disabled rights, conflict resolution, and efficiency of the justice and law enforcement sectors; and the denial of the option for foreigners to appeal administrative decisions to the judiciary. As the most formal draft presented yet, with a pre-printed effective date of 2008, and only minimal cosmetic alterations, this latest version of the law reaffirms the Prime Minister's confirmation in reftel that the GoE will pass this law this year. Sources close to the GoE suggest that the government will present the draft to the Council of Ministers shortly following the September 15-19 ruling party congress; the Council will, in turn, refer it to Parliament upon convening on October 10. ...AND ITS EFFECTS -------------- ¶3. (SBU) The minimal alterations to this bill, after three rounds of senior diplomatic engagement (reftel and previous) highlighting the impacts of the law on donors' and NGOs' activities, leaves little question that the GoE is fully aware of, and intent on enforcing, the projected restrictions on Ethiopia's CSO operations. As virtually all Ethiopian CSOs with whom the U.S. Mission engages, or which have demonstrated any appreciable level of capacity, secure the majority of their support from foreign sources, the Article 2(2) definition of "Ethiopian Charities" as those which receive not more than 10 percent of their funds from foreign country sources renders all such CSOs as de facto "foreign." Articles 14(2) and (5) continue to prohibit these partners from engaging in the advancement of human and democratic rights, the promotion of gender and religious equality, the promotion of children's and disabled rights, conflict resolution and reconciliation, and the efficiency of the justice and law enforcement services. As current U.S. ADDIS ABAB 00002482 002 OF 003 foreign assistance programs are already pre-vetted with GoE partners, the Article 3(2)(b) provision exempting foreign NGOs operating under an agreement with the GoE from the law allows the U.S. potentially to continue supporting democracy, governance, and conflict resolution programs in Ethiopia. It does, however, prohibit significant support to Ethiopian CSOs to assist with the implementation of such programs, undercutting the potential to build local CSO capacity to sustain civil society's watchdog role over government. Whereas the standard Ethiopian legislative definition of the term "foreign" pertains exclusively to non-Ethiopian citizens or governments, the latest Article 2(15) specifically defines "income from foreign sources" to include "any person in an foreign country," including Ethiopian citizens resident abroad. HIGHLIGHTING THE ZIMBABWE EXAMPLE -------------- ¶4. (SBU) Over the past few months civil society, Ethiopian political opposition, and international contacts have frequently noted the striking similarities between the draft Ethiopian bill and the similar, but less egregious in its criminal penalties, CSO legislation passed in Zimbabwe in ¶2004. In its analysis of the Ethiopian law, Human Rights Watch (HRW) specifically highlighted the parallels between the laws and noted that upon Zimbabwe's passage of a similar law, the Department of State condemned it. Introduction and progress of this bill through the GoE and Parliament will almost certainly expose the USG to mounting international criticism if we remain publicly silent on the issue -- particularly if such progress coincides with current Ethiopian restrictions on CSOs and humanitarian relief operations. PROPOSED PUBLIC STATEMENT -------------- ¶5. (SBU) Passage of an Ethiopian CSO law similar to the existing draft will significantly undermine U.S. objectives of transparency, participation, and accountability in governance. Experience has already demonstrated the bill's potential to induce widespread public criticism of the USG for the perceived double standard in our policy toward Ethiopia. While the Ambassador and Post will continue to press the GoE against passage of such a restrictive law, all evidence suggests that the GoE will quickly introduce and pass this legislation this year. As such, Post strongly recommends that the Department prepare a public statement in response. ¶6. (SBU) PROPOSED TEXT OF STATEMENT The United States is gravely concerned by the Ethiopian Government's passage of the Charities and Societies Proclamation. The law will severely limit the operations and effectiveness of civil society to contribute to the establishment, and transparent functioning, of Ethiopian institutions of governance. We recognize the importance of effective oversight of civil society organizations to ensure that they abide by the rule of law and operate under a uniform set of regulations. Unfortunately, by stripping organizations that receive significant foreign funding from contributing to the advancement of human and democratic rights, promoting conflict resolution, or gender or religious equality, the law undermines the ability of the Ethiopian people to contribute to their own well-being, stability, and prosperity. Combined with the passage of a highly restrictive press law, incomplete implementation of the electoral law in the April 2008 elections, and the refusal to engage in dialogue among political parties, this law represents the latest step in a series of concerning actions restricting political space in Ethiopia since the tumultuous elections of 2005. We call on the Ethiopian Government to reverse this trend and recommit itself to a political process responsive to the will of the people and which welcomes, rather than restricts, their participation. END PROPOSED TEXT OF STATEMENT ADDIS ABAB 00002482 003 OF 003 COMMENT -------------- ¶7. (SBU) As the latest move to restrict democratic space in Ethiopia, the proposed CSO law will not only directly affect the USG's ability to promote positively democratization and good governance in Ethiopia, but it will further silence the already muzzled voice of the people. (Please note our democracy and governance funds account for less than one half of one percent of our total aid, but we see the CSO law affecting activities well beyond this funding). U.S. interests cannot afford to risk the threat to internal stability in Ethiopia that the growing public disenfranchisement since the 2005 elections may bring. The CSO law directly restricts U.S. foreign assistance programs and effectively undermines U.S. democracy and governance objectives. The Ambassador will continue to raise these concerns with GoE officials until the law passes. Post urges Washington principals to raise USG concerns about the CSO law and the broader political trend of which it is a part with Ethiopian Prime Minister Meles Zenawi when he is in New York and Washington during the UN General Assembly. End Comment. YAMAMOTO