Ethiopia Aid effectiveness in the health sector - Action for Global ...

Ethiopia – Aid Effectiveness in the health sector
In January 2009, the House of People’s Representatives passed a new law
regulating charities in Ethiopia. 46 The law contains advanced regulation on
charities’ structure, functioning, administration, accounting, etc. However, the
law also grants broad powers for the Government to regulate CSOs. It can be
argued that the NGO sector was in need of regulation but in the words of one
of the interviewees: “they [the Government] have designed a sword, when
they just need a scalpel”. 47
The law differentiates between “Ethiopian charities and societies” and
“Ethiopian resident charities and societies” on the basis of foreign generated
income. Any organisation generating more than 10% of its income from foreign
sources is immediately classified as “Ethiopian resident”. In combination with
another of its articles, the law prevents “Ethiopian resident” organisations, as
well as “foreign” CSOs, and “religious organisations” from conducting rights-
based and conflict resolution advocacy and development work, and denies
them the right to appeal to an independent court. iii The implication of this is
that foreign-funded CSOs will only be able to work in service delivery activities,
and the law will severely constrain fundraising opportunities for those
organisations wishing to work in these areas.
The Government claims that the NGO sector is deregulated and that there are
many organisations created just to make money or with specific political
objectives. 48 In addition, the Government argues that foreign-funded CSOs
should not challenge Ethiopian policies. Trying to avoid foreign ideas overly
influencing CSOs’ work and demands would not be such a bad idea if it were
not for the lack of space and funding opportunities in Ethiopia, which stifle any
serious initiative.
DPs are divided about how to proceed now that the law has been passed.
One group, which includes the Netherlands and Sweden, strongly opposes the
law and would like the Government to review it. This was made apparent when
they refused to join the MDG Fund. Another group (including the World Bank,
DFID and WHO) recognises that the law has been passed by a legitimate
government and would like to focus on next steps: the regulation governing the
implementation of the law and the Charities and Societies Agency (CSA),
which will be the body regulating CSOs. This group believes that the law’s
impact will be softened if the CSA is established according to good regulations.
If the Government decides to apply the new law with an iron fist, most CSOs
working on human rights issues will disappear due to lack of funds. Though CSA
regulations still have to be developed, the powers granted to the Government
iii A comprehensive analysis of the law can be obtained from the DAG in Ethiopia. DAG-
GTWG (2009) Technical Analysis of the “proclamation to provide for the registration and
regulation of charities & societies (PCS) No. 621/2009”
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