VZCZCXRO8400
RR RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHVN #0465/01 2390330
ZNR UUUUU ZZH
R 260330Z AUG 08
FM AMEMBASSY VIENTIANE
TO RUEHC/SECSTATE WASHDC 2170
INFO RUCNASE/ASEAN MEMBER COLLECTIVE

UNCLAS SECTION 01 OF 02 VIENTIANE 000465 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PHUM PREL LA SOCI SCUL
SUBJECT: LAO OFFICIALS PREPARE TO ISSUE DECREE ON 
ASSOCIATIONS 
 
 ¶1.  (SBU) SUMMARY: The Lao Public Administration and Civil 
Service Authority (PACSA) is currently drafting a new decree 
on non-profit association (NPA) registration.  The decree is 
expected to be submitted to the Prime Minister,s Office by 
the end of August.  The creation of a standardized legal 
basis for non-profit associations is virtually unprecedented 
in Laos, and this decree has implications for the longer term 
development of Lao civil society.  Civil society in Laos may 
be described as nascent at best, at least by Western 
standards; even quasi-independent associations have strong 
government linkages, and the requisites of civil society, 
namely guaranteed freedom of association, expression, and 
media, are not present.  While the current draft of the NPA 
decree includes codification of a high degree of governmental 
control of NPAs, creating a legal basis for associations of 
this type will have the potential to create a more open Lao 
civil society in the future.  End Summary. 
 
¶2.  (SBU) GOL and local organization leaders prefer the term 
&non-profit association8 (NPA) to describe homegrown groups 
as opposed to &non-governmental organization,8 which is the 
term applied to foreign organizations working in Laos. 
Indeed, the former term is more accurate, for the 30 
existing Lao NPAs are small, local, and voluntary in nature, 
and often are supervised and sponsored by a GOL or party 
organ.  They primarily focus on development issues, such as 
sustainable agriculture and anti-poverty platforms.  Support 
and permission of the village and district authorities is 
necessary in order for an NPA to form and operate.  Though 
the involvement of the state in the day-to-day affairs of an 
association is in practice often minimal, the power of the 
state to intervene or to dissolve an association looms large 
in the minds of NPA leaders.  Their notions of advocacy 
stress information dissemination rather than lobbying for 
change, and their projects tend to emphasize service delivery 
and capacity development rather than overt mobilization for 
social or political change, though there are a few 
exceptions.  Moreover, NPAs in Laos face challenges of low 
capacity and the lack of funding opportunities. 
 
¶3.  (U) While it is possible for NPAs to register in Laos, 
there is currently no clear and standardized procedure for 
doing so.  For more than a decade, some NPAs have been able 
to register with a mass party organization, most frequently 
the Lao Front for National Construction (LFNC), and some 
others with a related ministry, such as the Ministry of 
Education.  In March 2005 the GOL issued the Decree on the 
Establishment and Operation of the Lao Union of Science and 
Engineering Association, known as the LUSEA decree, which 
also permitted the official formation and registration of 
science and environment-related NPAs.  This led to a spurt of 
registration, resulting in twenty-two organizations 
registering under the umbrella of the LUSEA decree.  Even 
more were attempting to do so when the GOL suspended LUSEA in 
late 2006.  Citing the need for a standardized NPA 
registration procedure, the Public Administration and Civil 
Service Authority (PACSA) department of the Prime Minister's 
Office began drafting a decree for this purpose in 2007 with 
the help of UNDP. 
 
¶4.  (SBU) PACSA is the implementing partner of a joint 
GOL-UNDP two-year civil society project funded by UNDP.  The 
project aims to &enhance government partnership with social 
organizations to deliver services in the public interest 
towards poverty reduction.8  UNDP identified a lack of 
awareness among legislators and government officials as to 
the relevance, importance, and contribution of non-profit 
association to the development of the nation as well as an 
absence of a legal and regulatory framework for such 
organizations.  The joint project includes national 
sensitization workshops on engaging with NPAs as partners in 
development and the development, support, and finalization of 
the decree on NPA registration, as well as implementing 
guidelines.  NPAs have been included in sensitization 
workshops and appear to have been able to give limited input 
on the draft decree.  The drafting process has received some 
media attention. 
 
¶5.  (SBU) The decree drafting process appears to be picking 
up momentum and embassy sources say it will be submitted to 
the Prime Minister by the end of August.  As conceived, the 
decree shifts the power and control of NPA registration to 
PACSA and away from mass organizations such as the LFNC, 
which has had experience working with associations since the 
late 1990s; there are already questions about the capacity of 
PACSA to take on this new task in the face of probable 
pent-up demand since LUSEA was suspended.  In addition to 
concerns about administrative capacity, the length of the 
registration process is daunting.  The current version of the 
decree codifies a high level of government control over 
association by requiring multiple rounds of approval before 
 
VIENTIANE 00000465  002 OF 002 
 
 
registration is finalized.  Moreover, the government must 
approve bylaws, mergers, separations, and annual reports, and 
maintains the power of dissolution. 
 
¶6.  (SBU) Comment:   The GOL is becoming more and more 
comfortable with the existence of local non-profit 
associations and is increasingly viewing these associations 
as stakeholders in development.  Thus, the codification of 
the registration process and the accompanying implicit 
legitimization of NPAs appears to be a step forward.  The GOL 
is not unaware that progress in this area also makes Laos 
more attractive to donors looking to fund civil society and 
capacity development projects.  The NPA decree will not 
transform associational life in Laos overnight (rather, the 
new procedure will take some time to implement).  However, 
there is potential for this to be a significant step towards 
a more open and active society in the future, as associations 
gain traction and branch into a range of possibly more 
contentious issues.  End comment. 
 
¶7.  (U) For reference, these NPAs were registered under LUSEA 
in 2005 and 2006, according to embassy NGO contacts: 
 
a.    Association for Research and Development 
b.    Association of Lao Architects and Civil Engineers 
c.    Community and Environmental Development Association 
d.    Community Development Association 
e.    Community Environmental Promotion and Cultural 
Association 
f.    Lao Biodiversity Preservation and Development 
Association 
g.    Lao Community Sustainable Development Promotion 
Association 
h.    Lao Developmental Cooperation Association 
i.    Lao Network of People Living with HIV/AIDS 
j.    Lao Power Engineering Association 
k.    Lao Promotion Biological Products Association 
l.    Lao Youth and Children Development Association 
m.    Non-profit Association of Lao Development 
n.    NPO Lao ABC 
o.    Promotion for Education on Development Association 
(formerly Youth Fighting AIDS) 
p.    Rural Research and Development Training Centre 
q.    Technology Promotion for Sustainable Development 
Information Environment Management 
r.    The Association of Language Development and Enhancement 
s.    The Renewable Energy for Sustainable Development 
Association 
t.    The Social Science Research and Speaking Promotion 
Association 
u.    Tree Planting and Livestock Promotion Association 
v.    Vulnerable Lao Youth Development Association 
MCGEEHAN