CAMBODIA: NGOS CREATING NEW EXTRACTIVE INDUSTRIES

UNCLAS PHNOM PENH 000131 SIPDIS SENSITIVE SIPDIS DEPT FOR EAP/MLS, EEB/ESC/IEC--KOPP STATE PLEASE PASS TO USTR FOR BISBEE TREASURY FOR OFFICE OF EAST ASIA--CHUN USAID FOR ANE E.O. 12958: N/A TAGS: EPET EMIN PGOV CB SUBJECT: CAMBODIA: NGOS CREATING NEW EXTRACTIVE INDUSTRIES MONITORING GROUP ¶1. (U) Amid oft-repeated concerns about how Cambodia's future petroleum reserves will be used, a group of local and international NGOs are working together to create a coalition of local civil society organizations that will engage with the government on issues surrounding extractive industries. The locally based civil society group, Cambodians for Resource Revenue Transparency (CRRT),was formally launched January 25 with five members. The coalition aims to address concerns that only donors and international NGOs are engaged in preparing for the unintended potential consequences of petroleum (and other extractive industry) income, especially corruption. PM Hun Sen and other officials sometimes try to discredit concerns about the "resource curse" resulting from future oil income by characterizing them as coming from meddling outsiders rather than from within Cambodian society. At the same time, organizers (including the NGO Pact, which is helping to organize the effort as part its USAID-funded anti-corruption program) hope that the group will spread the word about the expected oil windfall and build a public expectation for improved government services and social spending once petroleum revenues begin to flow. ¶2. (SBU) Organizers say that they want to be part of a tripartite dialogue about oil and gas revenues, which they envision including government, civil society, and oil companies. At the same time, they hope that creating the group now will give them time to build its credibility and make the group the natural choice to be the civil society participant in the Extractive Industries Transparency Initiative (EITI). (Note: The EITI criteria require active civil society participation in the design, monitoring, and evaluation of EITI implementation, and in contributing to public debate. End Note.) One organizer, Warwick Browne of Oxfam America, privately expressed concern that without a strong and vibrant civil society organization already in place, the RGC might try to create a new quasi-civil society organization that was actually under their control, and then use that group as the EITI partner. ¶3. (U) While Oxfam America and Pact have been the main organizers, the coalition itself consists of only local organizations, with international groups (currently Norwegian People's Aid, World Vision, and Trocaire in addition to Oxfam America and Pact) serving as non-voting members of an international advisory committee. The coalition now includes five local organizations--umbrella group NGO Forum; the Economic Institute of Cambodia, a think tank; and NGOs Development and People Alliance, Youth Resource Development Program, and the Center for Social Development. (Note: Backers are particularly excited about the Youth Resource Development Program, which turned out a total audience of 500 students at two information sessions on the oil/gas industry in November and December. End Note.) Two other NGOs--human rights organization LICADHO and Womyn's Agenda for Change--are also considering joining. Organizers say that they hope to reach out beyond this largely NGO-focused group to also include media, academia, small businesses, etc. At the same time, they want to keep the organization small and nimble, with no more than 20 members, having heard stories of large coalitions in other countries that represent so many different interests that they can take little action. As part of USAID's Anti-Corruption Program, sub-grants will be provided to the coalition to assist their efforts to build the public demand for transparency in this critical sector. ¶4. (U) The new Extractive Industries coalition is modeed after similar organizations studied in Azerbaijan, Kazakhstan and elsewhere under an Oxfam America grant. While the petroleum sector is the most immediate priority for the coalition, organizers are quick to say that they expect the group will also watch the emerging mining sector as it develops. MUSSOMELI