The International Journal of Not-for-Profit
Law - Volume 2, Issue 1
A quarterly publication from The
International Center for Not-for-Profit Law
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Kyrgyzstan President Signs Long-Awaited NGO Law: “On
Non-Commercial Organizations” Richard Remias, Regional Director of ICNL in Central Asia Developing the non-commercial sector has become as growing
priority for countries of the Central Asian region. The non-commercial sector,
generally consisting of non-profits or “NGOs”, is vital to overall economic
and democratic development. Although international trends demonstrate that NGOs
play a key role in a developing a nation’s economy and democracy, NIS
countries are cautious with NGO law reform and lag in its development. Last
Thursday, Kyrgyzstan set itself apart by adopting a modern and comprehensive law
on NGOs – “On Non-Commercial Organizations”. The new law abandons the Soviet system of regulation of
non-commercial entities. The existing law “On
Public Associations”, with its out-of-date provisions related to compelled
registration and geographical limitations on activities, will no longer be
applied to NGOs. The new NGO law allows to significantly reduce the costs for
creation, registration and regulation of all NGOs (both locally and regionally
within Kyrgyzstan). This long awaited law has been more than two years in the
making and during that time, has continued to be a source of debate and
discussion among deputies, NGOs and the international community. The draft law
was finally passed by Parliament last Spring, only to be vetoed by the President
on technical grounds in July. On October 1st, deputies of Parliament
addressed the President’s objections and sent it back to his desk for
signature. Amid tense political developments and forthcoming elections, the
law’s passage was in question. The initial veto warranted speculation that the
law would be put off until after 2000. However,
on October 15th, President Akaev finally affirmed his
administration’s commitment to NGO law reform by signing this new piece of
legislation. Over the course of two years, the law gained considerable
attention. The initiative began in 1998 with an official working group of
deputies who combined competing NGO law initiatives into a single draft NGO law.
This was done with assistance from the International Center for Not-for-Profit
Law (ICNL) and local attorney, Mirgul Smanilieva (President of the Kyrgyzstan
Lawyers Association). The drafters also actively sought the input from local
NGOs and assistance from international organizations (such as USAID sponsored
NDI). Although the collective effort on this particular draft was unprecedented,
the history of the draft was not free of controversy. Many human rights
organizations criticized the draft for not providing distinct advantages to
NGOs. Meanwhile, the government was seemingly concerned with the potential for
political factions to use the new law to subvert the distinct laws governing
political movements -- a growing concern to Kyrgyz authorities.
Despite these adversities, the draft law was continually modified by its
drafters into an acceptable form and eventually passed by Parliament and
President. Of primary importance are the changes under the new law -- a
series of progressive provisions that alter the legal and regulatory environment
for NGOs and non-profit entities. Although the law's effectiveness really
depends on its implementation by government authorities, the law itself may be
the most progressive of its kind in the entire NIS. In general, the new law establishes a solid
organizational-legal basis for the creation of non-profits. In this respect,
this new law potentially strengthens the status of all non-commercial
organizations, and establishes their clear distinction from commercial
organizations. The new NGO law also clearly defines the legal status of the
organizational-legal forms of legal entities or NGOs (associations, foundations
and institutions). Certain organizational legal forms, such as property-based
foundations, were previously non-existent in the legislation. It will also be
possible to create these foundations by testamentary act. Also, the specifics of
governing structures and control issues within a foundation will be clarified
(i.e. creation and powers of Board of Directors and Advisory Councils). However, passage of the law does not make NGO law reform
complete. Much still depends on the government authorities (ministries) that
must implement the new NGO law. Narrow interpretations and potential tightening
of regulations may occur in the form of follow-up instructions – a move which
may threaten the law's utility. At least for now, the initial step by the
parliament to enact contemporary NGO legislation is time-tested and
Presidentially approved. It only remains to be seen whether the government can
follow-through with this initial progress. For more information on the new Law “On Non-Commercial Organizations” contact the International Center for Not-for-Profit Law – a USAID funded program -- Almaty, Kazakhstan (3272) 621-644 or [rremias@cpart.alma-ata.su]. |
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