VZCZCXYZ0002
RR RUEHWEB

DE RUEHGZ #0017/01 0090949
ZNR UUUUU ZZH (CCY ADX0190244 MSI3751 611)
R 090949Z JAN 09
FM AMCONSUL GUANGZHOU
TO RUEHC/SECSTATE WASHDC 0104
INFO RUEHGZ/CHINA POSTS COLLECTIVE 0050
RHMFIUU/HQ EPA WASHINGTON DC 0010
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC 0039
RUEATRS/DEPT OF TREASURY WASHINGTON DC 0035
RHEHAAA/NSC WASHDC 0004
RUEAIIA/CIA WASHDC 0050
RUEKJCS/DIA WASHDC 0050
RHHMUNA/HQ USPACOM HONOLULU HI

UNCLAS GUANGZHOU 000017 
 
C O R R E C T E D  C O P Y - ADDED STATE PASS LINE 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/CM, OES/PCI, DRL, AND EAP/PD 
STATE ALSO PASS USTR FOR CHINA OFFICE 
STATE PASS TO ENVIRONMENTAL SCIENCE & TECHNOLGY COLLECTIVE 
EPA FOR OFFICE OF INTERNATIONAL AFFAIRS 
 
E.O. 12958: N/A 
TAGS: EFIN EAGR PGOV SOCI ECON CH
SUBJECT: The Plight of NGOs in Guangdong - Educating Government, 
Overcoming Internal Challenges 
 
REF: Guangzhou 0418 
 
¶1. (U) Summary. Political reform and a serious debate about civil 
society have not been at the forefront of 30 years of reform and 
opening in Guangdong province.  In fact, the development of 
non-government organizations (NGOs) has been held back by a 
combination of government suspicion, their own poor management and a 
lack of funding.  Although local NGO leaders and scholars, many of 
whom recognize that the scope of their activities is relatively 
circumscribed, in part by their lack of legal status, believe that 
education programs could help allay official concerns and lead to a 
more open environment for NGOs, they understand that the economic 
downturn could cause the government to tighten control of NGOs even 
further.  End Summary. 
 
--------------------------------------------- - 
Government Obstruction: Suspicion and Ambition 
--------------------------------------------- - 
 
¶2. (SBU) Guangdong Province has led China's economic development 
much of the past 30 years, but NGO activity here has barely gotten 
off the ground.  According to Professor Wang Yunxiang, Director of 
the NGO Research Institute, Guangdong University of Foreign Studies, 
local government has maintained an environment more hostile to NGOs 
than in other economically advanced parts of China.  He told us that 
this is due to Guangdong's historic suspicion of civil engagement 
and the ambition of Guangdong's leaders for professional 
advancement.  Wang said that officials see growth in the scale and 
reach of NGOs as posing a potential threat to social stability.  He 
commented that many officials continue to equate NGOs to the Color 
Revolution organizations of Eastern Europe and Central Asia, where 
non-violent demonstrations challenged and brought down governments 
by promoting democracy and civil engagement. 
 
¶3. (SBU) On top of the local dynamic is a central one: Wang argues 
that Guangdong officials do not believe the central government is 
supportive of NGOs.  Therefore local support will create obstacles 
for them as they pursue a career in Beijing.   Wang claimed that the 
"professional advancement" culture of Guangdong politics perpetuated 
an unhealthy environment for the proliferation of NGOs. 
 
--------------------------------------------- ------ 
Shifting Mindsets: Promoting NGOs through Education 
--------------------------------------------- ------ 
 
¶4. (SBU) Local academics and NGO-leaders hope that education 
programs - lectures and conferences in particular - will help reduce 
suspicions and lead to a more open environment for what some call 
the "third sector."  Some have expressed hope that recent publicity 
from NGO-led relief efforts in Sichuan will draw attention to the 
positive work they do and the challenges they face.  According to 
Wang, half of the battle for the hearts and minds of government 
bureaucrats is to reduce their fear of the unknown insofar as NGOs 
are concerned and explaining the positives that civil engagement can 
lead to.  (Note: Professor Wang is one of several academics who 
conduct lectures for local officials on NGO theory and practice.) 
 
¶5. (U) As one example of this type of effort, the Asia Foundation 
and Tsinghua University recently sponsored a conference held at 
Guangzhou's Sun Yat-sen University on "Civil Society Organizations 
and Harmonious Society."  The conference was open to participants 
across China, but the vast majority was from Guangdong.  While event 
organizers expected approximately 50 attendants, over 100 
participated.  They included not only NGO practitioners and 
academics, but also media and area students, a clear illustration of 
the growing interest in NGOs among various circles. 
 
¶6.  (SBU) At a separate event, the NGO Research Institute's Wang 
delivered a lecture to local officials titled "The Social Function 
of NGOs and the Color Revolution," to counter the notion that NGO's 
are revolutionary in nature.  Although some experts express hope for 
greater cooperation between the local government and the NGO sector, 
Wang predicted that local officials may once again crackdown on NGOs 
now that China's economic growth is slowing, and there is public 
growing discontent with rising inflation and government corruption. 
 
 
-------------------------------------------- 
 
 
A Fine Line: Limits of Local NGOs Activities 
-------------------------------------------- 
 
¶7. (SBU) Many experts emphasize that there are definite limits about 
what local government deems as "acceptable" NGO operations in 
Guangdong.  Local officials tolerate NGO activities as long as their 
work does not disturb social stability or call into question 
government policies.  According to Thomas Cai, founder of 
Guangzhou-NGO AIDSCare China, NGOs avoid attracting undue notice as 
long as they operate under the radar, and provide a public good that 
the government is unable to provide due to its own inherent limited 
capacity. 
 
¶8. (SBU) According to Zhu Jiangang, Professor of Anthropology and 
head of the Institute for Civil Society at Sun Yat-sen University, 
"NGOs must know what they can do and what they cannot do,"' and must 
work within the limits of government tolerance.  Within this 
environment of knowing what is possible, Zhu said NGOs don't 
necessarily have to alter their mission as an independent 
organization, but can, rather, focus on building the kind of 
cooperative relationship with local government that benefits both 
sides. 
 
¶9. (SBU) In addition, most local NGOs lack legal status.  Few are 
legally-registered in Guangdong.  Many of those that are registered 
receive substantial government support and arguably are not 
strictly-speaking NGOs.  Several are headquartered in Hong Kong, 
such as environmental groups Greenpeace and Friends of the Earth, 
and simply have satellite offices in Guangdong.  Others continue to 
operate under the radar, such as internationally-recognized AIDSCare 
China, an HIV/AIDS NGO headquartered in Guangdong.  According to the 
NGO Research Institute's Wang, NGOs can exist without legal status 
in Guangdong, as long as they do not outright violate any laws. 
However, he also pointed out those which do lack legal status and 
receive financial backing from foreign organizations do tend to 
arouse suspicion, even if their activities accord with those of the 
government. 
 
--------------------------------------------- ---------- 
Internal Challenges: Operations, Funds and Legal Status 
--------------------------------------------- ---------- 
 
¶10. (SBU) In Guangdong, NGOs not only face external obstacles 
created by government distrust, but also struggle with internal 
challenges like uneven management and lack of funding.  According to 
Dan Viederman, Director of Verite, a non-profit social auditing and 
research organization, many local NGOs self-destruct due to poor 
management.   Too often NGOs focus more on how to carry out the 
tenets of an organization's social mission rather than on 
implementing best-practices and long-term organizational 
development.  According to Liu Xiaogang, Research Fellow from the 
Institute for Civil Society of Sun Yat-sen University, this poor 
management style is exacerbated by the inability of NGOs to attract 
and retain qualified personnel, who often prefer more secure jobs in 
the private sector. 
 
¶11. (SBU) Liu Xiaogang said that while many local NGOs have 
commendable missions, the lack of money prevents them from achieving 
success.  Those local NGOs that have managed to stay afloat are 
assisted by funding from Hong Kong or foreign foundations and 
governments, but they may find themselves unable to deal with the 
twin challenges of cost-control and budgeting for the long-term. 
 
GOLDBERG