NGOs Team Up with Azerbaijan Government

"For the most part, the Azerbaijani government has opened its doors to numerous INGOs that are providing millions of dollars worth of assistance to the most vulnerable populations in Azerbaijan." Photo: Mercy Corps.

BAKU, Azerbaijan - On June 25, 2002 Mercy Corps, a US-based International Non-Governmental Organization (INGO) jointly with the State Commission on Humanitarian Assistance organized a seminar on "Establishment of Standard Legal Framework for all INGOs Operating in Azerbaijan." The event brought together a wide range of government, donor and INGO representatives to discuss problems and improvements in the sphere of international relief and development activities in Azerbaijan.

The Azerbaijani government was represented by Ali Hasanov Ð Vice Prime Minister and Head of the State Commission on Humanitarian Assistance, Fazil Mammadov -Minister of Taxation, Fikret Mammadov - Minister of Justice, Alim Quliyev - Deputy Head of the Council of Directors of the National Bank and many other government officials. Bill McKinney, United States Agency for International Development (USAID) coordinator and representatives of all diplomatic missions and INGOs in Azerbaijan also took part at the seminar.

In his introductory address Ali Hasanov, the Vice Prime Minister stated that in the last 10 years INGOs have provided $520 million in support and assistance to IDPs and refugees within Azerbajan. In 2001 these agencies' assistance totaled $42 million. Azerbaijan has established the State Commission on Humanitarian Assistance in 1992 in order to create conditions for smooth implementation of relief and development programs. Since 1994 the government has begun to form the legal framework in this sphere. Haydar Aliyev, the President of the Republic of Azerbaijan has clearly stated in his speech at the conference "From Relief to Development" in 2000 that International Humanitarian Organizations shouldn't face any problem in the country. During the recent years the number of INGOs providing food aid to IDPs has sharply fallen. In order to fill the gap emerging as a result of ended humanitarian programs or departing organizations, the Azerbaijani Government allocates additional funds from the State Oil Fund or State Oil Company of the Republic of Azerbaijan, he added.

In his speech Bill McKinney, Country Coordinator of the United States Agency for International Development (USAID) office in Azerbaijan mentioned the positive steps taken since 1999 to create better conditions for the activities of international relief and development agencies in Azerbaijan.

"For the most part, the Azerbaijani government has opened its doors to numerous INGOs that are providing millions of dollars worth of assistance to the most vulnerable populations in Azerbaijan," said William Holbrook, chief of Party for Mercy Corps. "But we are here today to address the fact that there are still many obstacles that currently make it difficult for internationally recognized, respected, legitimate, and well established agencies to work effectively in this country. Establishing a standard, legal framework in the form of a Protocol, by which all international organizations may operate in Azerbaijan, will eradicate many obstacles and clear the path for smoother collaboration, coordination and communication between the Azerbaijani government and INGO community," he said.

Mr. Holbrook went on to say that, "In May 2000 the US and Azerbaijani governments signed a Bilateral Agreement that provided the legal framework for the relationship between the two countries. In January 2002, a regulation was formally agreed to by the two governments that now serve as the practical application of the bilateral agreement. The problem is that the Bilateral and the Regulation that goes with it, serves as a legal framework for programs that are funded only by the government of the United States, it does not protect the programs and activities that are funded by other countries or international organizations."

In concluding his remarks Mr. Holbrook said, "We hope that the international donor community and the international NGO community will be given an opportunity to work in Azerbaijan under the terms of a legal framework that represent the same standard that is provided for these programs and organizations all over the world."

Kishor Sharman, the representative of Save The Children, a US NGO, spoke about community development projects in Azerbaijan. Community Development programs enable communities to identify, prioritize and address their problems, he explained. The aim of these projects is not to provide only financial support to communities, but also to improve their leadership, participatory planning and organizational skills. Problems in the sphere of getting state registration for national NGOs, create difficulties in effective implementation of several humanitarian projects, he said.

Nazim Aliyev, a Deputy Director of FINCA in Azerbaijan, informed that there are 10 humanitarian organizations providing micro credit services to over 24430 clients in the country. These organizations have created 9163 jobs and currently they have $4 million outstanding loans to clients. Difficulties encountered in registration of non-bank credit organizations prevent them to create an association and to have a united voice, he added.

In their speeches other INGOs representatives also mentioned problems in the area of state registration of NGOs, the registration and licensing of micro finance institutions and the reimbursement of VAT.

To date, 51 international relief and development agencies have been registered with the Ministry of Tax, said Arif Musayev, the representative of the Taxation Ministry. Last year these agencies paid 1.3 billion Manats in tax. There are several exemptions for them in the Tax law and funds for the humanitarian purposes are free of any taxation. In addition international relief and development agencies are free of VAT. As to the reimbursement of VAT issue, it should take place in 45 days after the application of agencies. If the VAT reimbursement is delayed, the state should pay additional interest rate for each day, he added.

In their address, representatives of diplomatic missions of Turkey, Egypt, United Kingdom, France, Norway, Saudi Arabia, and Iran have committed their support and assistance to IDPs and refugees and activities of INGOs in Azerbaijan. All of them reiterated their willingness to see improvements in the legal framework regulating international relief and development activities in Azerbaijan.

Inspection of all INGOs should be done after informing the State Commission on Humanitarian Assistance and in line with the statute prepared by the latter, Ali Hasanov said. "The president said that INGOs operating in Azerbaijan shouldn't face any problem," he repeated and we should make the President's words real.

The seminar ended with the decision of organizers to hold special meetings of INGOs with relevant ministries in coming days to discuss problems and find proper solutions.