Cablegate: Meeting Summary for Staffdel Foldi in Poland

VZCZCXYZ0022
RR RUEHWEB

DE RUEHWR #2257/01 2971356
ZNR UUUUU ZZH
R 241356Z OCT 06
FM AMEMBASSY WARSAW
TO SECSTATE WASHDC 2269

UNCLAS WARSAW 002257

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: OREP PHUM PL
SUBJECT: MEETING SUMMARY FOR STAFFDEL FOLDI IN POLAND

REF: SECSTATE 170983

1. This cable has been cleared by Staffdel Foldi.

MINISTRY OF LABOR AND SOCIAL POLICY - THE RULES AND REGS

2. For the governmental perspective, Staffdel Foldi met with
Krzysztof Wieckiewicz, Director of the Department of the Public
Benefit at the MOL. The 2003 Law on the Organizations of Public
Benefit regulates the functioning of NGOs in Poland, setting out
mechanisms for financing and functioning of NGOs. The law
established the NGO Liaison Council, which includes the
representatives of the national government, local government and
NGOs, as a forum of discussion and dialogue on the major problems
faced by NGOs in Poland. The MOL created a special Citizens'
Initiative Fund of $10 million which supports over seven hundred
different NGOs. These funds are reserved every year in the national
budget.

3. The 2003 Law sets out the rules of cooperation between the
government and NGOs. There is a public announcement for grants in
national newspapers and on the Ministry's website, and a transparent
bidding and awards process. NGOs also have the right to prepare
proposals and present them directly to the ministry, which must
officially respond either positively or negatively.

4. A major problem is the late awarding of one-year money. NGOs
often receive funds during 3-4Q in the year and must spend it by
year's end. The law does not allow for no-year money. To get
around this the government and NGOs often work together to implement
multi-year projects on the basis of the draft budget. Then, in the
second or third year of the project, as soon as the budget is
approved, the money goes automatically to a given organization
without a new tender.

EDUCATION FOR DEMOCRACY FOUNDATION

5. Justyna Janiszewska, Program Coordinator for the Education for
Democracy Foundation (EDF) described the group's major project:
Regions in Transition (RITA), which is funded by the Polish-American
Freedom Foundation, National Endowment for Democracy (NED), and the
Stefan Batory Foundation. This supports democratic and free market
change in Central Asia and Eastern Europe (Belarus, Ukraine, and
Moldova) through partnerships with local NGOs in those countries.
EDF's success stories include ISO certification for firms and
good-governance programs in a local municipality in rural, eastern
Ukraine. It also trains trainers for local NGOs in its target
countries and sets up information exchanges between Russian,
Belarussian, and Ukrainian NGOs.

6. The above-mentioned funding for RITA, along with MFA funds will
total approximately $3 million this year. Since Poland is often
seen as a "success story" in its transition to a democratic society
by Eastern Europe and Central Asia, Polish NGOs bring credibility to
their projects, especially in Western Ukraine, Kaliningrad, Moldova,
and Central Asia. Belarus often sees Poland as a threat, however,
and EDF sees resistance to both Polish governmental and civil
society groups.

7. Despite little governmental interference regarding the execution
of its projects, Janiszewska acknowledged the inefficiencies in the
government's grants process and the short time period in which NGOs
must use GOP money.

PARTNERS POLAND

8. Director Maciej Tanski and International Project Manager Ilona
Ilowiecka-Tanska explained that Partners Poland is a participant in
the aforementioned RITA program, receiving funding through it for
self-governance projects in Georgia and the Balkans. In a project
funded by UNIFAM and the OSCE, they partner with local NGOs in
Kosovo to work on short-term rural women's initiatives and have
several partnerships with NGOs in Georgia, Azerbaijan, Jordan, and
Mongolia for work on clean governance and anti-corruption in those
countries. Partners Poland also serves as a court-appointed
mediator in both family and business cases, but this is secondary
work, as the maximum payment allowed for such services is $300.

9. Tanski acknowledged the open and free environment in which NGOs
work but echoed the public money grants problems described above.
As a 'subcontractor' for American grant money, he believes that NGOs
in developing nations look up to Poland as a model for transition to
a democratic society, whereas the American lesson is too foreign. As
one Mongolian group described, "the US is the money source and
Poland is the content source." However, he believes that American
groups provide rational organization and procedural skills and helps
develop interpersonal skills.

POLISH ACADEMY FOR THE DEVELOPMENT OF PHILANTHROPY IN POLAND

10. Tadeusz Schimanek is the Deputy Director of this major Polish
NGO that runs a wide variety of educational, promotional, and
financial activities to stimulate the development of local NGOs.
Funding sources include the national budget (Citizens' Initiative
Fund), Polish-American Enterprise Fund, and the Stefan Batory
Foundation. Its major programs include community foundations,
Benefactor of the Year Competition, Act Locally (program supporting
NGOs and civic initiatives benefiting specific local communities,
Integrating Generations, and Dialogue for the Future (focused on
Polish-Jewish dialogue and multiculturalism).

11. Schimanek adds to the chorus, calling the lack of coordination
between Ministries and the late-year money "a major headache." Each
Ministry has some funds/resources for NGOs, but they act
independently and there are no common rules that apply to all
Ministries. Under the EU, most of the funds from national budget
are earmarked for projects funded partially through EU structural
funds, which means that the state money mainly goes well developed
organizations, meaning that there are not sufficient funds for
smaller, local NGOs, which fulfill very specific (if narrow) roles
in their local environment.

PAUCI

12. The Polish-Ukrainian Cooperation Foundation (PAUCI) is a legacy
group from a USAID and GOP-funded organization with the goal of
transferring Polish know-how on democratic transformation to
Ukraine. Executive Director Jan Pieklo explained how from 1999-2005
PAUCI regranted approximately $6 million to various Polish and
Ukrainian NGOs for projects funded by PAUCI included mainly the
enhancement of local government and the decentralization of power.

13. When the tri-lateral program ended last year PAUCI became an
independent foundation. It receives funds from USAID ($200,000),
the Charles Stewart Mott Foundation ($200,000), the Global
Opportunities Fund (UK - $1 million for a two-year project
developing a professional civil service in Ukraine), and the Polish
MFA ($200,000 for youth exchange programs). PAUCI both regrants
funds to Polish and Ukrainian NGOs and implements their own
programs. These will include a pilot youth exchange program of
approximately 1000 students from Poland and Ukraine.

14. PAUCI is currently focusing on anti-corruption programs, the
development of small and medium enterprises, and the enhancement of
civil society in eastern and southern Ukraine. Future plans include
the youth exchange program, and working on changing the perception
of NATO in Ukraine.

15. In a recurring theme, the major problem facing PAUCI right now
is the short time for utilizing all of the one-year money. The MFA
granted $200,000 just last month and PAUCI must issue a public
grants announcement, award a group the money, and spend it all by
December 31 of this year. Finding financial sources for re-granting
is also a major issue, as most of the funds available right now are
for implementation only. The Polish MFA does not have the
experience in the re-granting and it is very difficult to convince
Polish bureaucrats that this is a normal and common way of financing
the activities of NGOs.

HILLAS

© Scoop Media