PRESIDENT ALIYEV OUTLINES PLNS FOR STATE FUNDING

C O N F I D E N T I A L BAKU 000006 SIPDIS SIPDIS E.O. 12958: DECL: 01/04/2018 TAGS: PGOV PREL PHU KDEM AJ SUBJECT: PRESIDENT ALIYEV OUTLINES PLNS FOR STATE FUNDING OF NGOS REF: BAKU 1084 Classified By: AMBASSADOR ANNE E. DERSE PER 1.4 (BD). ¶1. (C) SUMMARY: On December 13, President liyev issued a decree outlining a plan to provid state funding to NGOs and creating a Council fo State Support of NGOs. This decree was issued as a follow-up to the President's July 27 decree initially proposing the GOAJ's new NGO concept (reftel). The GOAJ incorporated many of the international community's recommendations in the new decree, along with some recommendations by local NGOs, including local NGO representation on the council's technical secretariat. Some of our joint recommendations, however, were not addressed, including an international presence on the council's technical secretariat. While some prominent NGO leaders remain doubtful that state support of NGOs will bolster civil society, other commentators are more hopeful, adopting a "wait and see" attitude. END SUMMARY. ¶2. (SBU) On December 13, President Aliyev issued a decree "endorsing the blueprint of state support for NGOs" and creating a new Council for State Support of NGOs. The decree's appendix outlines the structure of the Council, which will include 11 presidentially-appointed members, eight NGO-nominated members, and three governmental representatives. The President designated technical oversight authority to the Cabinet of Ministers, and budgetary oversight authority to the Finance Ministry. The President is given the authority to appoint the council members for four year terms from a list of 24 NGO nominees. The GOAJ adopted many of the international community's joint recommendations (including the Embassy's) in this decree, along with some recommendations from local NGOs. ¶3. (SBU) Among the included recommendations from the international community are mechanisms for impartiality and transparency, membership criteria, and prohibiting of limitations on international donor funding to domestic NGOs, which was among the international donors' key concerns. It also appears to mandate competitive procurement processes as the core mechanism for grant-letting purposes; contains explicit conflict of interest provisions; and calls for establishment of a website through which information on the activities of the council would be provided to the public. The GOAJ included the international community's recommendation to include local NGO representation on the council's technical secretariat; our joint recommendation to include an international presence on the council's technical secretariat was not addressed, however. The decree's SIPDIS appendix includes language prohibiting foreign national membership in the council, although the appendix also stipulates that the council can create and work with groups of technical experts, which may open the door for international NGOs to play an advisory role. ¶4. (C) Some prominent NGO leaders maintain reservations about the GOAJ's intentions with state funding of NGOs, which they first voiced after the initial July decree (reftel). Helsinki Citizens Assembly Chair Arzu Abdullayeva said that state financing will help only the government-affiliated "NGOs." Bureau for Human Rights and Respect of Law Chair Saida Gojamanly said that the fund will not help develop civil society; that any efforts to do so will be in vain because the government-affiliated "NGOs" will not carry out effective projects. Gojamanly believes that the fund is intended to decrease foreign assistance to Azerbaijan's NGOs. ¶5. (C) Other commentators are more hopeful that the council will be effective. Open Society Institute Director Farda Asadov said that the effectiveness of this new concept will depend on its implementation. While he noted some gaps in the decree -- particularly regarding NGO nomination of eight of the council members -- Asadov believes that the council has the potential to be effective. Association for Civil Society Development Deputy Chair Vali Alibayov told the press that the council's effectiveness will depend on its governance. He anticipates a focus on projects that promote Azerbaijan's image, and less funding for projects on other topics. Chair of Parliament's Social Policy Commission Hadi Rajabli publicly stated that the new council will help professionalize Azerbaijan's NGOs, and will improve relations between NGOs and the GOAJ. He doubted that the council would behave in a discriminatory manner, rather, he envisioned a systematic, well-organized body that will be able to prioritize projects that address significant social problems. ¶6. (C) COMMENT: Overall, the plans outlined in the decree move in the right direction, and could yield positive results. The Presidential Apparat's willingness to engage with the international community, and to include many of our recommendations in the decree, is a positive step. Political will, however, remains the heart of the issue, and only time will reveal the GOAJ's true intentions. We will monitor the GOAJ's implementation of this decree and report developments. END COMMENT. APPENDIX: UNOFFICIAL TRANSLATION OF DECREE (U) Unofficial Embassy translation of the decree below. Decree of the President of the Republic of Azerbaijan on Establishment of the Council for State Support of NGOs According to the decree of the President of the Republic of Azerbaijan "On confirmation of the concept of state support of Azerbaijan's non-governmental organizations" number 2288 from July 27, 2007, I decide: ¶1. To establish the Council for State Support of NGOs under the President of the Republic of Azerbaijan. ¶2. To confirm the regulations on the Council for State Support to NGOs under the President of the Republic of Azerbaijan (per the appendix). ¶3. To entrust the Cabinet of Ministers of the Republic of Azerbaijan: 3.1 To resolve matters related to the allotment of positions and the technical provision for organization of the Council for State Support of NGOs' activity under the President of the Republic of Azerbaijan and its secretariat. 3.2 To determine the estimation of expenses and the number of employees of the secretariat of the Council for State Support of NGOs under the President of the Republic of Azerbaijan. 3.3 To envisage the allocation of corresponding funds while drafting the annual state budget in order to involve the NGOs in the fulfillment of programs and projects of high importance to the state and the community. 3.4 To resolve the other matters proceeding from this decree. ¶4. To entrust the Ministry of Finance of the Republic of Azerbaijan: 4.1 To confirm the rules of use of these funds to be allotted for NGOs. ¶5. This decree is valid from the date of signing. Ilham ALIYEV President of the Republic of Azerbaijan Baku, December 13, 2007 (End text of decree.) LU