VZCZCXYZ0013
PP RUEHWEB

DE RUEHCV #0404/01 0861844
ZNY CCCCC ZZH
P 271844Z MAR 09
FM AMEMBASSY CARACAS
TO RUEHC/SECSTATE WASHDC PRIORITY 2827
INFO RHEHNSC/NSC WASHDC PRIORITY

C O N F I D E N T I A L CARACAS 000404

SIPDIS

DEPT PASS USAID/OTI (RPORTER)

E.O. 12958: DECL: 03/13/2019
TAGS: PREL EAID VE
SUBJECT: REQUEST FOR ADDITIONAL FUNDS TO HELP STRENGTHEN
LOCAL GOVERNMENTS AND CIVIL SOCIETY GROUPS

REF: A. CARACAS 322
¶B. CARACAS 312
¶C. CARACAS 257

Classified By: CHARGE D'AFFAIRES JOHN CAULFIELD, REASON 1.4 (D)

¶1. (C) Summary: As President Chavez concentrates even more
power in his presidency, and closes off space for democratic
dialogue, Embassy's USAID/OTI programs in support of
democracy and civil society are vital to preserving and
strengthening remaining democratic institutions and practices
in Venezuela. FY 2009 total funding for these programs is
currently USD 7 million. Given that the November 2008
elections and February 2009 referendum created a new
political map for Venezuela, post requests an additional USD
3 million to increase outreach efforts to newly elected state
and municipal government, as well as to continue programs to
strengthen civil society and prepare for the next round of
elections in 2010. Our programs to date have been successful
in increasing political pluralism in Venezuela, and
redoubling our effort is necessary to counter the increasing
authoritarianism of the Chavez government.
End Summary.

Why We Need More Funding
------------------------

¶2. (C) The November 2008 state and local elections created a
new political map, which provides opportunities to increase
USG outreach on the local level. By continuing to work
through civil society, in support of local issues, USAID/OTI
can work with partners to increase democratic participation
and demand for good governance. The USG also has increased
opportunities to assist interested state and municipal
entities to provide better service and be more accountable to
the Venezuelan people.

¶3. (C) The February 2009 referendum in which Venezuelans
voted to eliminate term limits has prompted different and
equally important concerns. President Chavez has interpreted
the results as a green light to concentrate even more power
in his presidency at the expense of elected state and local
governments (Ref A). USAID/OTI has in the past supported
civil society in order to protect democratic space, and this
need is becoming even greater in light of recent events. The
gains that have been made in working to support local NGOs in
their functions as watchdogs must be expanded in order to
protect the political and civil rights of Venezuelans.

Our Request
-----------

¶4. (C) With an additional $3 million, USAID/OTI would have an
FY09 budget of $10 million. This would allow programming to
reach out to increased numbers of local governments,
including a concerted effort to work with municipalities
across the political spectrum, as well as to allow for
continued support to civil society to protect democratic
space. Funding would be broken down as follows:

$5 million - Democracy Delivers: Support for local
governments, either directly or through civil society actors,
in order to show delivery on promises made to the people
during the November 2008 political campaigns. Working
together in selected municipalities, with efforts to reach
out to key areas and including all political parties, to
support transparent and effective local governance through
providing training and technical assistance in areas like
budgeting, providing services with limited funds, and
reaching out to the community to increase participation and
local buy-in.

$4 million - Civil Society Support: Support for local NGOs in
order to work as watchdogs on issues key for democratic
development. As the Venezuelan government continues to
centralize government authority, it is imperative that
Venezuelan civil society be empowered to protect the rights
of Venezuelan citizens. Support will be given to NGOs in the
areas of human rights and promotion of democratic
participation, as well as to interested political parties, to
develop young leaders and increase outreach to both the
Venezuelan youth movement as well as underrepresented women.

$1 million - Election Support: Nationwide municipal council
elections are supposed to be held in August 2009, but the
National Assembly is actively considering a measure to
postpone these elections until 2010. Elections for the
unicameral National Assembly are supposed to take place by
late 2010. These significant electoral contests will require
continued work to support outreach to voters in order to
inform and get out the vote, which may include public service
announcements, voter registration campaigns, and vote
protection efforts.

Why Increase Funding?
---------------------

¶5. (C) Upon winning the February 2009 re-election referendum,
President Chavez announced that he would accelerate his
Bolivarian revolution. In the month following that victory,
it has become abundantly clear that this means an increasing
centralization of power and undermining duly elected
political alternatives working at the state and municipal
levels. Both these trends run counter to our primary
strategic goals of strengthening democracy in Venezuela. Our
previous assistance efforts have helped develop a strong and
vibrant civil society that promotes political pluralism,
consensus-building, and dialogue.

¶6. (C) We risk losing these efforts as Chavez radicalizes his
revolution. Without our continued assistance it is possible
that the organizations we helped create, which arguably
represent the best hope for a more open democratic system in
Venezuela, could be forced to close as local funding options
dry up for fear of possible government retaliation. As
reftels indicate, the Chavez government is constantly
attacking those who call for dialogue and consensus. Our
funding will provide those organizations a much-needed
lifeline.
CAULFIELD