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2006 Annual Report

Making a Difference Through Law


2006 Annual Report / Who We Are

WHO WE ARE IDLO is an international intergovernmental organization dedicated to promoting the rule of law and good governance in developing countries, countries in economic transition and in those emerging from armed conflict. By the ‘rule of law’ IDLO means: ■ There is a set of legally binding rules which are known in advance. ■ Such rules are enforced in practice. ■ Mechanisms exist to ensure the proper application of the rules by well functioning institutions and those mechanisms allow for departure from the rules as needed according to established procedures. ■ Conflicts in the application of the rules can be resolved through binding decisions of an independent judicial or arbitral body. ■ There are known procedures for amending the rules when they no longer serve their purpose. We believe that the establishment of the rule of law is a prerequisite for economic and social development and helps achieve human security. It defines the role of the state and the relationship between the state and its citizens. It provides the rules for economic activity and the framework for guaranteeing human rights. Without the rule of law, violent conflict can become the norm and poverty cannot be overcome. IDLO works directly with legal professionals, institutions and governments all over the world, providing the resources, tools and skills needed for establishing or improving the rule and good governance practices. IDLO has worked in over 176 countries and has 41 independently established Alumni Associations, which contribute to the overall impact and long-term sustainability of it’s work. IDLO was established in 1983 in Rome and has been a Permanent Observer at the United Nations since 2001.

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IDLO International Development Law Organization

VISION We believe in a world free of poverty, in which justice and respect for each human being is ensured, and which is built on the rule of law. MISSION IDLO seeks to strengthen the rule of law and good governance in developing countries, in countries in economic transition and in those emerging from armed conflict, in order to provide security for the individual and to reduce poverty by protecting individual rights and economic activity and by strengthening judicial and local institutions to promote a viable legal framework for commerce, trade and investment. VALUES ■ ■ ■ ■ ■ ■

We work towards achieving the UN Millennium Development Goals We are committed to improving the lives of the peoples of the developing world We encourage multi-cultural understanding and harmony We perform our work with political neutrality and independence We operate transparently and are accountable to our donors We are cooperative partners in all tasks undertaken

IDLO MEMBER STATES The Assembly of Member States, IDLO’s highest decisionmaking body, convenes in Rome every year. The role of the Member States is to provide overall guidance and direction to the Organization. Its duties include the ratification of Board appointments and the Organization’s work plan and budget. A Steering Committee consisting of a Chairman, Vice-Chairman and Rapporteur is elected every three years. IDLO’s Member States are currently: Australia, Austria, Bulgaria, Burkina Faso, Colombia, Ecuador, Egypt, France, Italy, Norway, the Philippines, the People’s Republic of China, Romania, Senegal, Sudan, the Netherlands, Tunisia and the United States. Afghanistan, Georgia, Jordan, Madagascar, Mauritania, Mozambique, Poland and Turkey are currently in the process of becoming new Member States.


2006 Annual Report / Table of Contents

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IDLO International Development Law Organization

OPERATIONS ECONOMIC GROWTH AND TRADE IDLO Regular Courses Burkina Faso Pakistan Mozambique Tanzania Egypt South Africa Worldwide - Intellectual Property

4 5 5 6 6 7 7 8 8 9

PEACE-BUILDING ASSISTANCE Afghanistan Ethiopia, Liberia, Sudan Post-Conflict Preparedness and Assistance Initiative

10 10 11 12

INSTITUTIONAL CAPACITY BUILDING Kyrgyz Republic Mauritania Kuwait Senegal Kenya, Tanzania & Uganda Sri Lanka, Nepal Serbia & Montenegro, Macedonia and Croatia Afghanistan, Jordan and Yemen Timor-Leste Indonesia Worldwide - Global Network of Alumni and Partners

13 13 14 14 15 16 16 17 17 17 18 18

POVERTY REDUCTION STRATEGY ASSISTANCE MDG-Oriented Seminars Guinea Microfinance Initiative

19 19 19 20

RESEARCH AND POLICY Research and Publications Benchbooks

21 21 22

POST-DISASTER LEGAL SUPPORT Indonesia Sri Lanka FACTS AND FIGURES

23 23 25 26


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2006 Annual Report / Operations

IDLO International Development Law Organization

OPERATIONS

Program Streams IDLO sets its agenda for operations based on the mandates established in the IDLO Charter, the Millennium Development Goals, and the UN 2005 World Summit Outcome. Using these authoritative texts as guidelines, IDLO organizes its work into six key program streams, which directly address the multifaceted problem of weak or nonexistent rule of law. ■ ■ ■

Economic Growth and Trade Peace-Building Assistance Institutional Capacity Building

■ ■

Poverty Reduction Strategy Assistance Research and Policy Post-Disaster Legal Support

Within these program streams, IDLO designs specific activities, which respond to the key development challenges identified in leading regional normative documents and which are consistent with the program of aid harmonization which arose from the Paris Declaration on Aid Effectiveness. IDLO tailors its activities according to the country, subject matter, target populations and potential effectiveness. Methodologies include: ■ ■ ■ ■ ■ ■ ■ ■

Training Technical Assistance Facilitation of Policy-Making Process Policy Dialogues Problem-Solving Seminars Support to Policy and Drafting Process Analyses Assessments

Poverty reduction imperatives... U

■ ■ ■ ■ ■

IDLO's response to poverty reduction...

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Research and Publication Mentoring Facilitation of Partnering Arrangements with relevant Institutions Abroad Public Awareness Building Study Tours Internships in relevant Institutions

Program filter: coordination with donors...

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IDLO's Global and Regional Programs

1 IDLO Charter

Millennium Development Goals

UN 2005 World Summit Outcome

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Economic Growth and Trade

Rule of Law & Governance 5 Research and Policy

2 Peace Building Assistance

Post-Disaster Legal Support

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Poverty Reduction Strategy Assistance

3 Institutional Capacity Building

Paris Declaration on Aid Effectiveness

GLOBAL PROGRAMS REGIONAL INITIATIVES


2006 Annual Report / Economic Growth and Trade

Economic Growth and Trade These programs assist in improving legal frameworks and building capacity in commercial law and transactions, investment, development assistance and international trade. Practitioner skills matter greatly to the functioning of market economies and IDLO believes that individual capacity building has a significant role to play in creating conditions conducive to market activity. IDLO REGULAR COURSES BACKGROUND For more than twenty years IDLO has been conducting practical, interactive training courses for current and future leaders of the legal communities in developing and transition economy countries at its headquarters in Rome, in its Regional Offices in Cairo and Sydney, and in other world locations. These courses are designed to provide participants with the skills required to become a driving force of change within their countries. Course materials are regularly revised to keep up to date with the latest international law developments. Development Lawyers Course (10 weeks): Provides training on legal skills and the key substantive legal issues related to the development of a country. The long-term aim of the program is to improve the position of developing countries in international negotiations and enhance the role of law and lawyers in the development process. The course is designed for young and mid-career legal professionals working in policy-making bodies, regulatory institutions and the private sector. ■ In English: Rome, April 3 - June 2 Participants: 26, Countries Represented: 21 Gender Distribution: 65% women; 35% men Sector Distribution: 57% public sector; 35% private sector; 4% semi-public; 4% academic ■ In French: Rome, October 2 - December 8 Participants: 25, Countries Represented: 17 Gender Distribution: 48% women; 52% men Sector Distribution: 65% public sector; 35% private sector;

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Enterprise and Investment Lawyers Course (5 weeks): Designed to assist lawyers and legal advisors to governments and the business community in meeting the challenges that arise from the legal and policy issues associated with economic development of the private sector and the need to attract investment. The course addresses mid-career and senior legal professionals working in private practice, regulatory institutions and policy-making bodies. ■ In English: Rome, January 9 - February 10 Participants: 30, Countries Represented: 23 Gender Distribution: 57% women; 43% men Sector Distribution: 73% public sector; 17% private sector; 7% semi-public; 3% academic ■ In French: Rome, February 20 - March 24 Participants: 26, Countries Represented: 18 Gender Distribution: 48% women; 52% men Sector Distribution: 85% public sector; 15% private sector ■ In Arabic: Cairo, November 19 - December 21 Participants: 22, Countries Represented: 9 Gender Distribution: 41% women; 59% men Sector Distribution: 68% public sector; 32% private sector Public International Trade Law Course (3 weeks): Designed to assist developing countries in benefiting from global trade liberalization and regional economic integration. The course also provides participants with a greater understanding of the rules, operations and impact of the World Trade Organization’s multilateral trading system. The PITLC is intended for government officials from a range of ministries, as well as private practitioners and representatives from standards bodies, trade and export promotion councils, and industrial property offices. ■ In Spanish for Latin America and the Caribbean: Quito, January 30 - February 17 Participants: 28, Countries Represented: 16 Gender Distribution: 43% women; 57% men Sector Distribution: 96% public sector; 4% private sector ■ In English for the Asia-Pacific Region: Sydney, November 6 - 24 Participants: 26, Countries Represented: 12 Gender Distribution: 50% women; 50% men Sector Distribution: 100% public sector ■ In Arabic for North Africa and the Middle East: Cairo, November 20 - December 7 Participants: 17, Countries Represented: 6 Gender Distribution: 42% women; 58% men Sector Distribution: 100% public sector.


2006 Annual Report / Economic Growth and Trade

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BURKINA FASO Supporting the Promotion of Economic Growth

PAKISTAN Raising the Profile of Issues Facing the Rural Poor

BACKGROUND In order to achieve sustainable economic development, it is essential for developing countries to collaborate with their neighboring states in addressing common issues. The Organization for the Harmonization of Business Law in Africa (OHADA Organization pour l’Harmonisation du Droit des Affairs) works towards improving unstable legal and judicial environments in the continent. OHADA has developed a set of highly technical laws and regulations which are adapted to both the national and regional legal frameworks of each of its member states. IDLO held two policy dialogues in 2006 with OHADA, focusing on Burkina Faso in West Africa.

BACKGROUND Pakistan and its people are facing face significant economic and social challenges, especially the rural poor. Land is an important economic asset in Pakistan which is closely linked to social standing within communities. The problem of rural landlessness and the lack of sufficient rights to land are key factors contributing to the entrenched poverty in Pakistan’s countryside.

Policy Dialogue - May 2006 “The OHADA System: 13 Years of Implementation Achievements and Future Perspectives” ■ Target audience: Judges who deal with trade and business related issues, legal trainers, lawyers and professionals from the Ministry of Justice. ■ Overall objectives: To promote the use of the OHADA system as a source of law and as a means to achieve judicial integration, in order to increase the efficiency of judges dealing with trade related cases. Donor: World Bank Institute Counterpart: IDLO Alumni Association in Burkina Faso Policy Dialogue - May 2006 “Judicial Efficiency in Commercial Law: Promotion of Economic Growth” ■ Target audience: Judges that deal with trade and business related issues, legal trainers, lawyers and professionals from the Ministry of Justice. ■ Overall objectives: To contribute to the specialization of judges who deal with trade related cases, with the aim of promoting judicial security, improving the business environment and favoring economic growth. Donor: World Bank Institute Counterpart: IDLO Alumni Association in Burkina Faso

PROGRAM IDLO is currently collaborating with the Seattle-based Rural Development Institute (RDI) on a project designed to reduce rural poverty in Pakistan. One of the initial activities in the project was a policy dialogue conducted by IDLO and the RDI in July 2006. Policy Dialogue - July 2006 “Small Plots for the Rural Poor in Pakistan: A Strategy for Promoting Economic Growth and Improving Social Stability” ■ Target audience: Policy makers, provincial leaders, stakeholders and senior Punjab government officials with a responsibility for rural, economic and social development. ■ Overall objectives: To provide significant benefits to the poorest rural families; to raise awareness of conditions in rural communities and the applicable rules for holding house and garden plots. The dialogue also discussed the prospect of conducting immediate in-country research in order to identify a suitable action plan and study its probable effects. Further activities will be implemented by IDLO and the RDI in 2007 and field visits have already been scheduled for the beginning of the year. Donor: IDLO Counterpart: Rural Development Institute (RDI)


2006 Annual Report / Economic Growth and Trade

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MOZAMBIQUE Support to Mozambique Government for Management of Oil and Mineral Resources

TANZANIA International Procurement and Contract Negotiations Training Workshop

BACKGROUND Many developing countries are very rich in natural resources, but they are frequently unable to effectively exploit and manage these resources in terms of boosting economic development and reducing poverty.

BACKGROUND In recent years, the Government of Tanzania has embarked on major policy reforms to address the country’s economic and social problems. The recent revision of the national procurement law highlighted the importance of public procurement practices in supporting the Government’s efforts to meet developmental goals and contribute to economic growth. It was acknowledged that an effective, accountable and transparent procurement system is vital in order to ensure public interests are protected by the appropriate use of international public resources.

Mozambique has recently been investigating its potential to produce oil. In June 2006, the President of the Republic of Mozambique requested IDLO’s assistance in strengthening the knowledge and skills of Government officials working in this field. IDLO’s programs helped ensure that the Government was better prepared to deal with an influx in foreign investment and to manage the challenges associated with the discovery of oil resources. PROGRAM IDLO designed a specific program which was divided into two training workshops. ■ “Building Competences in Managing Oil and Gas Concessions” (Maputo, July 26 - 28), benefiting 20 officials from various Ministries involved in the negotiation and in the implementation of the Concession Contract. ■ “Development of Legal Framework for Mineral and Mining Concessions” (Maputo, December 11 - 15), addressing 18 officials from various Ministries involved in the harmonization process of the Concession Contract. Donor: Italian Ministry of Foreign Affairs Counterpart: Ministry of Mineral Resources

WORKSHOP Within this context and in response to the request from the Arab Bank for Economic Development in Africa (BADEA), IDLO designed a specific and focused training workshop: ■ “International Procurement and Contract Negotiations” (Morogoro, November 8 - 24), benefiting 28 public officers and Ministry officials. Donor: Arab Bank for Economic Development in Africa Counterparts: The National Development Corporation (NDC) (within the Ministry of Finance in Tanzania).


2006 Annual Report / Economic Growth and Trade

EGYPT Competition Law and Policy in Arab Countries BACKGROUND While adopting policies of privatization, trade liberalization and direct investment in order to improve their competitive capabilities, most Arab countries have consequently created a suitable legal environment to favor such policies. However, the issue of competition, despite its importance to a modern market economy, has not yet received the necessary attention. Unlike most industrialized nations, Arab countries only have competition laws of the first generation, which are limited to addressing cases of unfair competition. Although important, these laws are not sufficient to regulate free markets and commercial transactions, and protect the interests of both producers and consumers. WORKSHOP IDLO designed a specific training workshop on competition law: ■ “Competition Law and Policy” (IDLO Arab Regional Center in Cairo, July 1 - 12), benefiting 25 policy-makers and legal advisors from ministries, public and private companies, NGOs, chambers of commerce, industries and the agricultural sector, as well as magistrates, lawyers and university researchers from 12 countries of North Africa and the Middle East. Donor: Italian Ministry of Foreign Affairs Counterpart: Italian Ministry of Foreign Affairs, Competition Council of the Republic of Tunisia, Faculty of Law, Politics and Society of Tunisia, UNCTAD.

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SOUTH AFRICA Support to Strengthen the Capacity of African Universities in the Field of International Trade and Investment Law BACKGROUND It has been recognized that the lack of indigenous trade-related expertise and skills is a significant factor impairing economic development throughout much of Africa. As a result, traderelated capacity building has become an integral part of South Africa's overall sustainable economic development and poverty reduction strategies. In an effort to address these issues, the law faculties of the University of the Western Cape and the University of Pretoria have collaborated to jointly offer what is widely considered to be the pre-eminent business-oriented Master of Law degree in Africa. Targeted at top young professionals from across Southern Africa, the program seeks to enhance the traderelated skills of the next generation of African leaders. PROGRAM IDLO provided technical assistance to the 2006 LLM program by designing, organizing and staffing a number of academic modules. IDLO also organized training workshops for four of the LLM's core units. 17 postgraduate students (nine women, eight men) in the 2006/2007 class of the LLM Degree Program, from eight African countries, benefited from the following IDLO activities: ■ Distance Learning Seminar: “Dispute Settlement Mechanisms in Free Trade Agreements”, connecting Rome to South Africa (October 3 - 4). ■ Training Workshop: “Trade Negotiation Skills” (October 10 - 1 3) - Cape Town, South Africa. ■ Training Workshop: “Strengthening Legal Research and Writing Skills in the Area of International Trade Law” (November 14 - 17) - Cape Town, South Africa. ■ Training for Trainers: (December 4 - 7) - Cape Town, South Africa.


2006 Annual Report / Economic Growth and Trade

WORLDWIDE Intellectual Property Development Program BACKGROUND Since the introduction of the Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPs), conformity on Intellectual Property (IP) rights is no longer optional and developing countries need to comply with all requirements of the Agreement. Since 2001, IDLO has been running the “Intellectual Property Development Program”, which provides training and technical assistance to both government officials and private sector advisors on compliance with TRIPs obligations. The program also covers how to use the global IP protection system effectively and obtain better deals in future negotiations. PROGRAM The Program consists of four main components: ■ Insertion of modules on Intellectual Property (IP) in most IDLO international programs. ■ Dissemination of IP reference materials for distribution to IDLO course participants. ■ Organization of one-week country specific training workshops on Intellectual Property and the Enforcement of IP Rights. ■ Implementation of Impact Projects designed to disseminate international and country-specific knowledge on IP issues.

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IDLO International Development Law Organization

2006 Training Workshops on Intellectual Property and the Enforcement of IP Rights conducted by IDLO in collaboration with the Alumni Association in each country: ■ ■ ■

2006 Training Workshops conducted under the Impact Project implemented by the in-country IP Resource Person and coordinated by the respective Alumni Association: ■

Following the one-week training workshop, the IDLO Alumni Association recruits an IP Resource Person who initially spends one month at IDLO Headquarters in Rome for orientation, training, research and preparation of materials. The IP Resource Person, under the guidance of the local IDLO Alumni Association, commits to organizing two training workshops per year over a three-year period on IP issues, relevant to the project country.

Katmandu (Nepal): March 8 - 10 Beijing (China): August 28 - September 1 Nairobi (Kenya): October 2 - 6

Jakarta (Indonesia): January 15 - 20: First workshop, attended by 30 legal professionals, mainly from the private sector. September 20 - 22: Second workshop, attended by 20 participants drawn from judiciaries and related bodies (Indonesian National Arbitration Board and Indonesian Mediation Centre) and the private sector. Tunis (Tunisia): April 17 - 21: First workshop, attended by 20 professionals from various areas of the Tunisian legal and business sectors. December 14 - 16: Second workshop (in both French and Arabic), benefiting 22 participants. Bucharest (Romania): March 20 - 24: First workshop, benefiting mainly private sector lawyers. Sofia (Bulgaria): April 3 - 5 and November 21 - 22: beneficiaries were lawyers, consultants and attorneys from the public and private sectors.

Donor: Microsoft Corporation Corporation Counterparts: IDLO Alumni Associations


2006 Annual Report / Peace-Building Assistance

Peace-Building Assistance IDLO operates in countries that are emerging from armed conflict to restore the rule of law and rebuild the legal infrastructure, which are key conditions for a return to security and peaceful development. To date, IDLO has worked in Albania, Afghanistan, Bosnia Herzegovina, Cambodia, the Democratic Republic of Congo, Kosovo, Macedonia, Rwanda and Timor-Leste. In 2006, IDLO concentrated its peace-building assistance efforts in Afghanistan, where the Organization has been operating its two Project Offices in Kabul since 2002. AFGHANISTAN IDLO continued the two major legal and judicial reform projects launched in 2005. Both projects are conducted in cooperation with the Afghanistan Government and IDLO has signed Memoranda of Understanding (MOU) with all Afghan counterparts involved in the project activities. These include: the Supreme Court of Afghanistan; the Office of the Attorney General; the Ministry of Justice; the Secretariat for the National Assembly of Afghanistan; the Ministry of Women's Affairs; and the Faculties of Law and of Sharia at the University of Kabul. In addition, IDLO has signed MOUs with USAID and UNDP in an effort to coordinate international assistance and avoid an overlap of activities. In order to provide continuity and ensure the long-term sustainability and impact of its work in Afghanistan, IDLO is currently preparing a new project, “Increasing Afghanistan's Capacity for Sustainable Legal Reform” in partnership with the Italian Government. A key element of this program is the creation of an Afghan-led National Legal Training Centre, which is scheduled to open in May 2007.

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Enhancing the Capacity of Legal Professionals in Afghanistan Project The Project provides training and technical assistance for judges, prosecutors, Ministry of Justice officials, Parliamentarians, the Faculty of Law and Political Science and Faculty of Sharia at the University of Kabul. In 2006, more than 1,000 legal professionals and students were trained in courses ranging from four weeks to nine months in duration. In keeping with IDLO's capacity building philosophy, Afghan instructors were involved in the training whenever possible, after receiving instruction in IDLO training methodology through Training of Trainers courses. By the end of 2006, Afghan instructors were responsible for up to 40 percent of class time. In addition, IDLO made a law book donation to the Faculty of Sharia and hosted regular working groups for Legal Higher Education and the National Legal Training Centre. Key figures for 2006: Training for a total of 350 judges of all levels, including 173 applicant judges. ■ Training for a total of 300 prosecutors of all levels. ■ Training and technical assistance to the Faculty of Law and Political Science and the Faculty of Sharia at the University of Kabul. ■ Development of resource centers for the Ministry of Justice, the Office of the Attorney General and a library for the University of the Kabul Faculty of Sharia. ■ Training in legislative drafting for 240 government officials at the National Assembly of Afghanistan and the Ministry of Justice. ■ Organization of the side-event to the London Conference on Afghanistan “Asserting the Rule of Law in Afghanistan” hosted by the Italian Government at the Foreign and Commonwealth Office in London. ■

Donor: Italian Ministry of Foreign Affairs Counterparts: Supreme Court of Afghanistan, Ministry of Justice, Office of the Attorney General, National Assembly, Kabul University Faculty of Law and Political Science and Faculty of Sharia.


2006 Annual Report / Peace-Building Assistance

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IDLO International Development Law Organization

Strengthening the Rule of Law in Afghanistan Project

ETHIOPIA, LIBERIA AND SUDAN

The project involves providing technical assistance and training to judges, prosecutors, public defenders and the Parliament in the area of gender and criminal justice.

BACKGROUND Civil war is occurring in many African countries. The situation in these countries is aggravated by poverty, epidemics and underdevelopment. Members of Parliament have a key role as promoters of peace; fostering democracy and promoting economic development. IDLO, in collaboration with the World Bank, designed a seminar on this topic, specifically addressed to Parliamentarians of three African countries, Ethiopia, Liberia and Sudan.

Key figures for 2006: ■ Legal Aid training for 50 law graduates from the University of Kabul and 20 women from the Ministry of Women's Affairs. ■ The establishment of a nongovernmental organization, the Legal Aid Organization of Afghanistan (LAOA). This organization was founded by two participants from IDLO’s Legal Aid training, and its mission is to increase access to justice through legal aid, with a particular focus on women and children. LAOA receives on-going technical support from IDLO. ■ Specialized training in civil, criminal and commercial law and procedure for 245 judges. ■ A Training of Trainers program for 18 judges from the Afghan Supreme Court (in partnership with USAID). ■ A two-day workshop on “Gender and Criminal Justice” attended by over 200 participants. It involved follow-up technical assistance activities with Parliament and other international institutions to implement the workshop recommendations. ■ Development of a benchbook on civil, commercial and criminal procedures and general approaches to case management for the Afghan judiciary. ■ Specialized training for 75 prosecutors in financial crime, juvenile crime and gender justice. Donor: Canadian International Development Agency Counterparts: Supreme Court, Office of the Attorney General, Kabul University Faculty of Law, Kabul University Faculty of Sharia, Ministry of Women's Affairs, the Legal Aid Organization of Afghanistan, UNAMA, USAID, & Norwegian Refugee Counsel.

Regional Policy Seminar - December 18 - 20 “The Role of Parliament in Peace-Building” ■ Target audience: Representatives from the Ethiopian Parliament of the House of Federation and House of Representatives, Parliamentarians from the National Assembly of Sudan and Southern Sudan Parliament, Parliamentarians from North Sudan and from Liberia. ■ Overall objective: The seminar provided participants with a thorough understanding of the role of Parliament in peacebuilding. Donor: World Bank Institute Counterparts: UNDP, Legislative Assembly of South Sudan.


2006 Annual Report / Peace-Building Assistance

POST-CONFLICT PREPAREDNESS AND ASSISTANCE INITIATIVE The main purpose of this initiative is to increase IDLO's impact in providing technical assistance on legal and judicial matters in countries that seek to avoid or recover from violent conflict. A dedicated Peace-Building Unit (PBU) that concentrates on post conflict recovery issues was set up to carry out this mandate. In February 2006, the Canadian International Development Agency (CIDA) provided a two-year grant for this initiative. ACTIVITIES â–  In May, the PBU carried out its first missions in South Sudan and Somalia. Concept papers for both countries contained suggestions on how to respond to the needs identified during the missions. Both concept papers were sent to local authorities and selected representatives from the donor community. In the first quarter of 2007, the PBU will carry out similar assessment missions to Nepal and Haiti. â–  The PBU has collected over 300 background legal documents (including laws, assessment reports, legal and non-legal documentation on post-conflict and peace-building in general) on selected countries. This database also includes a list of experts and organizations that have an in-depth knowledge of these countries. Management of the database is an on-going process. In 2007, the PBU will continue identifying legal experts and maintaining and monitoring its database. Furthermore, the PBU will expand and intensify its activities in the following seven countries: Sudan, Somalia, Nepal, Haiti, Burundi, Sierra Leone and Lebanon.

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2006 Annual Report / Institutional Capacity Building

Institutional Capacity Building

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By December 2006, the following activities had been completed: Four international consultancies aimed at strengthening the following skills: – general public sector management – financial management and fundraising – proposal writing and budgeting – personnel management – development of the curriculum for judicial training on commercial law ■ 15 Training of Trainers (TOTs) courses for 15 senior judges and facilitator-training for 30 junior judges. ■ Training of approximately 100 judges in bankruptcy law. Participants were instructed on applying Kyrgyz legislation, as well as international principles of insolvency law. The course was prepared by IDLO and conducted by two senior judges of the Kyrgyz Supreme Court. ■ Training of approximately 180 judges in secured transactions law. ■ Training of 28 bailiffs from various regions of the country, on such topics as court enforcement actions, documentation and execution. ■ On November 30, a Memorandum of Understanding (MOU) was signed between the Supreme Court of Kyrgyzstan and IDLO, in which the Supreme Court commited to supporting IDLO's Project by providing necessary documentation; enabling the attendance of judges; collaborating with the Project personnel; selecting the participants and coordinating the schedule. The Supreme Court will also appoint a working group, to be headed by the Chairman of the Supreme Court, to engage in drafting a Commercial Law Benchbook. ■

Institutional capacity building seeks to address the development needs of institutions by providing direct assistance at a local level. IDLO provides training and technical assistance to state institutions, NGOs, and IDLO Alumni Associations, with the aim of improving their ability to effectively fulfill their intended functions. KYRGYZ REPUBLIC Commercial Law Judicial Capacity Building Project BACKGROUND Following Kyrgyzstan's proclamation of independence from the Soviet Union, the country has been rapidly developing into a regional center for commerce and investment. However, the business climate of the Kyrgyz Republic is restrained by the inadequacy of its commercial law and the subsequent challenges for judges in resolving commercial law cases. Furthermore, Kyrgyzstan needs to strengthen its mechanism for preparing new judges for their duties and providing continued professional training to sitting judges. PROGRAM The Kyrgyz Government requested the assistance of the European Bank for Reconstruction and Development (EBRD), which in turn appointed IDLO to design a project for the Kyrgyz Judiciary. IDLO developed a two-year program which was launched in April 2006. The program aims to improve the competence of judges in areas of commercial law. This activity will contribute to creating a business-enabling environment in the country and will favor conditions for building long-lasting and efficient institutions which serve their population in a more effective manner.

Donor: European Bank for Reconstruction and Development (EBRD) Counterparts: Supreme Court of Kyrgyzstan, Kyrgyz Judicial Training Center, Supreme Court of the Republic of Kazakhstan.


2006 Annual Report / Institutional Capacity Building

MAURITANIA Capacity Building Program for Mauritanian Judges BACKGROUND In collaboration with the Mauritanian Ministry of Justice, IDLO trained over 80 French-speaking Mauritanian magistrates and judges at the Organization's headquarters in Rome between 20022005. The program was designed to assist these professionals in dealing with the period of structural reform and economic stabilization that the country is currently undergoing. The positive results of the project led the Ministry to request a further, more specialized training program, this time carried out directly in Mauritania. PROGRAM Together with the Ministry of Justice, IDLO identified specific technical legal issues and designed a highly focused capacity building program, consisting of two one-week training workshops. ■ “Summary Judgments” (Nouakchott, May 15 - 19), addressing 30 judges and magistrates. ■ “Summary Judgment and Means of Execution” (Nouakchott, June 5 - 9), benefiting the same participants as the previous course. Donor: Italian Ministry of Foreign Affairs Counterpart: Ministry of Justice of Mauritania

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Support to the Mauritanian Judicial Sector BACKGROUND Based on IDLO's successful collaboration with the Mauritanian Ministry of Justice for the training of French-speaking judges and legal professionals, the Ministry asked IDLO to implement a new project designed to: 1) further improve the professional skills of the Frenchspeaking judicial sector, and 2) provide the Arabic-speaking judicial sector with similar comprehensive training and technical assistance. PROGRAM Phase I of this new three-year program was aimed at improving the basic knowledge and skills of Arabic-speaking magistrates on civil law, criminal law and specific clerk management. The program also worked towards enhancing the capacity of Frenchspeaking magistrates on specific clerk management issues. ■ Training Workshops in Arabic “Management and Administration of Court Registries” (Nouakchott, September 11 - 15) “Civil Law” (Nouakchott, September 18 - 22) “Criminal Law” (Nouakchott, October 30 - November 3) The workshops benefited a total of 90 clerks, magistrates and lawyers. ■ Training Workshop in French “Management and Administration of Court Registries” (Nouakchott, December 18 - 20), addressing 30 magistrates and clerks. Phase II of the Project will commence in the second half of 2007. Donor: UNDP Counterpart: Mauritanian Ministry of Justice KUWAIT Training of Trainers Program for the Arab School of Magistrates This Training of Trainers program took place at the Kuwait Institute for Judicial and Legal Studies (KIJLS) in Safat, Kuwait, between February 20 and 22, 2006. ■

40 participants from Kuwait, Libya, Morocco, Yemen, Oman, Palestine, Jordan, the United Arab Emirates and Algeria attended the course and worked with a variety of interactive tools which helped them learn how to design and deliver an individual-focused, interactive legal training program.

Donor: Kuwait Institute for Judicial and Legal Studies (KIJLS) Counterpart: Kuwait Institute for Judicial and Legal Studies (KIJLS).


2006 Annual Report / Institutional Capacity Building

SENEGAL “Local Governance and Fight against Poverty” Program BACKGROUND Since its independence, Senegal has been carrying out a series of reforms aimed at decentralizing power and enhancing the role of local authorities, in order to respond more effectively to the needs of the population, guarantee adequate basic social services and fight poverty in rural areas. However, these reforms, along with other social factors which have changed since the country's independence, have inevitably brought about management and governance problems, internal tensions and social conflict. PROGRAM At the request of the Decentralization Unit of the Senegalese Ministry for Local Authorities, IDLO designed a program to assist the country in managing its current transition period; in meeting the social needs of the population and in fighting poverty in rural areas. The program consisted of two training workshops intended to strengthen: a) management and budget-controlling abilities; b) conflict prevention among the principal stakeholders involved in the decentralisation process; and c) stakeholders’ competence in the field of local governance. ■ “Budget Management and Control for Local Authorities” (Dakar, July 17 - 21) benefiting 35 officials of the Decentralization Unit, secretaries of local organizations, NGO managers and members, associated leaders and municipal representatives. ■ “The Legal Aspects of the Prevention and Resolution of Local Conflicts” (Dakar, August 21 - 25), addressing 35 representatives of the Decentralization Unit, as well as legal professionals from local government and the Ministry of Internal Affairs. Donor: Italian Ministry of Foreign Affairs Counterpart: Senegalese Ministry of Local Entities

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Technical Assistance to the Senegalese Judicial System BACKGROUND The Ministry of Justice’s reforms and structural changes have also intensified and extended its role, responsibilities, and administrative organization. These changes were carried out with inadequate preliminary needs assessment studies and with no serious plan of action for simultaneously strengthening and modernizing the capacities and resources of the Ministry. During the 2005, Ministerial Coordination Meeting, the Minister of Justice of Senegal stressed the need to urgently develop a strategy to reorganize the Ministry, in order to enable it to function efficiently and guarantee adequate services to the public. The Ministry of Justice requested IDLO's assistance in implementing this strategy. PROGRAM In order to strengthen the capacity of staff and improve the effectiveness and efficiency of the work and services of the Ministry, IDLO believed it was essential not only to intervene within the Ministry, but also in some of the institutions and administrative bodies that work with, depend on and collaborate with the Ministry, such as the Court of Appeal, the Maisons de Justice (Family Courts), and various information and orientation offices for the public. IDLO designed two one-week training workshops: ■ “The Reorganization of the Services of the Ministry of Justice” (Dakar, November 13 - 17) ■ “Capacity Building for the Chancellery Management” (Dakar, December 11 - 15). The training benefited 140 staff and officials of the Ministry and related institutional bodies. Donor: French Ministry of Foreign Affairs Counterpart: Ministry of Justice of Senegal


2006 Annual Report / Institutional Capacity Building

KENYA, TANZANIA & UGANDA Capacity Building for Lawyers Program BACKGROUND A large part of IDLO's programs in Africa focuses on building the capacity of African legal professionals. Many beneficiaries of IDLO's training and other activities currently hold senior posts in their governments. In 2006, after examining each country's current situation, IDLO identified three common topics of concern for Kenya, Tanzania and Uganda, and delivered the following programs in cooperation with its respective Alumni Associations. Policy Dialogue - June 2006 “Investigating and Recovering Assets in Corruption Cases” ■ Target audience: Policy-makers; lawyers and senior government officials responsible for developing ethics programs for the public sector and overseeing systems for the control of corruption in public administration; and officials in charge of enforcing anti-corruption laws and regulations. ■ Overall objectives: To identify legal and procedural methods for creating evidence-based rules and procedures for the investigation and prosecution of corrupt practices and to define recovery procedures for public assets. Distance Learning Seminar - September 2006 “How a Regulatory System Enhances Effective Governance” ■ Target audience: Senior public service regulators; officials from the Ministries of Public Health, Works, Environment, Telecommunications, Energy, Planning and Commerce, from the Securities Exchange Commission, Central Banks and other officials or practitioners whose work is related to the subject matter. ■ Overall objective: To summarize the principal governance issues facing regulators; to analyze models of regulating the public sector and consider the effectiveness of such models in achieving regulatory objectives; to describe key elements of sound regulatory reform; to evaluate market, financial, and infrastructure sector regulations; to advise on improvement of systems of governance through an understanding of key concepts and relevant regulatory structures.

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Distance Learning Seminar - December 2006 “Procurement Contracting & Regulating Public Infrastructure Development Projects” ■ Target audience: Lawyers and legal advisors who assist in the area of procurement, Ministry and local government-level Public Procurement Officers, Ministry of Finance and central purchasing department officials. ■ Overall objective: To enhance the capacity of legal experts, public sector procurement officers and purchasing agency managers to implement the speedy, transparent and fair acquisition of goods and services through competitive means, and to recommend actions on how to strengthen the public procurement system (regulations, management and procedures). Donors: Ministry of Justice & Constitutional Affairs, Kenya; Department for International Development (DFID) & Uganda Law Society; and the Distance Learning Center in Tanzania. Counterparts: Uganda Law Society and IDLO Alumni Associations in Kenya and Uganda SRI LANKA & NEPAL Countering Terrorism BACKGROUND In collaboration with the United Nations Office for Drugs and Crime (UNODC), IDLO developed a series of Advisory/Policy Dialogues on 'Countering Terrorism' aimed at identifying the areas of incompatibility between international conventions on terrorism and local legislation in Nepal and Sri Lanka. Policy Dialogues - Sri Lanka - March 2006; Nepal - October 2006 “Conventions on Countering Terrorism” ■ Target audience: Policy-makers; senior government officials with responsibility for counter terrorism, trans-national organized crime, corruption, money laundering and extradition; senior officials from the Ministry of Justice, Foreign Affairs, Finance, Policy Development & Implementation, Nation Building & Development, Defence, the Police Department and Attorney General's Chambers; and legal drafting experts and officers responsible for interpretation of international laws on counter terrorism. ■ Objectives: To assist Government officials in identifying areas of weakness and define action plans for future attention; to further the participants' understanding of the international conventions of the U.N. and more effectively interpret the conventions and declarations within their local legislation and context. Donor: UNODC Counterparts: UNODC, IDLO Alumni Associations in Sri Lanka & Nepal


2006 Annual Report / Institutional Capacity Building

SERBIA & MONTENEGRO, MACEDONIA AND CROATIA BACKGROUND The changing global economy and the expansion of the EU are two factors contributing to the growing importance of European Community Law in relation to the emerging economies of Eastern Europe.Activities taking place outside of the Single Market can still be caught by the long reach of EU competition laws. EU membership criteria requires that Community legislation is implemented effectively through appropriate administrative and judicial structures. Distance Learning Seminar - February 2006 “Effective Implementation of the EU Law on Competition” ■ Target audience: Officials from the Ministry of Justice, Ministry of Economy, Ministry of Finance, Members of Parliament, legal practitioners and officials. ■ Overall objective: To enhance good governance through sound regulation on competition and to establish a common understanding concerning the competition rules in the Balkan Region. Donor: Italian Ministry of Foreign Affairs Counterpart: The World Bank Institute AFGHANISTAN, JORDAN AND YEMEN BACKGROUND IDLO conducted research on these three countries, focusing on national budget and related laws and procedures. This research identified the need to develop the skills of officials in charge of drafting the national budget and to improve related procedures and regulations. IDLO designed the following Distance Learning Seminar for this purpose. Distance Learning Seminar - March 2006 “Regulatory Framework for the National Budget Cycle to Improve Good Governance” ■ Target audience: Policy level officials concerned with preparing and executing the national budget, senior officials of government procurement agencies, legal advisors, experts from the Ministry of Finance and Auditor General, Ministry level procurement officers, lawyers from the Attorney's General Offices and Members of Parliament. ■ Overall objective: To enhance good governance by improving the capacity of Government officials in designing and preparing the national budget and in defining sound and transparent procurement procedures for use of the budget. Donor: Italian Ministry of Foreign Affairs Counterpart: The World Bank Institute

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TIMOR-LESTE Strengthening International Trade Capacity in Timor-Leste BACKGROUND Timor-Leste is not only the world’s newest nation, it is also one of the world’s least developed. IDLO worked closely with the Ministry of Development and the Ministry of Foreign Affairs and Co-operation to design and implement the International Trade and Trade Law Capacity Building Program. The program was linked to Timor-Leste's National Development Plan for 20022007 and its overall goals of equitable and sustainable economic growth and poverty reduction. PROGRAM The Program seeks to improve understanding of the international trading system, the regimes of Timor-Leste's key trading partners and in particular the complex array of rules governing the way in which the country participates in trade. The program also aimed to strengthen Timor-Leste's ability to translate the benefits from trade into achieving the goals of the National Development Plan. The Program was suspended in June 2006 due to civil unrest in the country. Prior to this, IDLO delivered two training workshops. ■ “Introduction to International Trade and Public International Trade Law” (Dili, February 20 - 24) benefiting 25 participants, including government trade and investment officials, academics and private sector professionals. ■ “The Cotonou Agreement and International Trade” (Dili, April 24 - 28), aimed at the same participants as the previous course. Donor: USAID Counterparts: Ministry of Development and the Ministry of Foreign Affairs


2006 Annual Report / Institutional Capacity Building

INDONESIA Environmental Law Enforcement - In Indonesia Training BACKGROUND “Environmental Law Enforcement - In Indonesia Training” was part of the “Indonesia-Australia Specialized Training Project, Phase III” (IASTP III), a four-year project supported by the Australian and Indonesian governments and managed by Hassall and Associates International. Training was given to a range of agencies involved in the application of environmental laws and regulations in Indonesia, and was managed in 2006 by PT SUCOFINDO, an Indonesian environmental management company. PROGRAM As part of this training program, IDLO delivered seven one-week courses between August 28 and September 23 in Mataram, Surabaya, Ternate and Jayapura, and between November 1 3 and December 2 in Makassar, Kendari and Kupang. IDLO's training focused on international and regional environmental law; transparency and public participation in environmental decisionmaking in Australia; administrative, civil and criminal enforcement of environmental law in Australia and alternatives to policing strategies in Australia. Over 90 participants, comprising judges, prosecutors, police officers, government officials, academics and lawyers from non-government organizations, benefited from the training. Donor: Governments of Australia and Indonesia Counterparts: Supreme Court of Indonesia, PT SUCOFINDO WORLDWIDE Global Network of Alumni and Partners BACKGROUND The IDLO Global Network of Alumni Associations has become an important resource for IDLO and for the communities that it serves. There are currently 41 IDLO Alumni Associations, many of which are based in the least developed countries of the world. The empowerment of these Associations has become a key strategy for IDLO, as their activities contribute to the overall impact and long-term sustainability of the Organization's work. Based on lessons learned and sharing common experience, these Associations are increasing their capacity to manage their own training and technical assistance programs as selfsustaining organizations. During 2006, they organized activities on diverse topics such as labor law, family law, customs law, and intellectual property.

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PROGRAMS ■ Three-Year Action Plan The Three-Year Action Plan is an agreement between IDLO and the Alumni Association. The Association commits to specific activities and, on the basis of that commitment, receives regular financial support from IDLO. The Associations in Ecuador, Guinea, and Madagascar joined the Program in 2006, bringing the total number of Associations currently involved in the action plan initiative to 13. ■

Training of Trainers Courses Each Association involved in the Three-Year Action Plan participates in a specially designed Training of Trainers (TOT) course conducted by an IDLO Program Legal Counsel. Participants of a TOT course learn how to design, manage, facilitate and evaluate a training activity in line with IDLO's values and participatory methodology. This assistance enables Alumni to provide technical assistance, coordinate distance learning activities with IDLO's Distance Learning Center in Rome, and conduct in-country needs assessments. In 2006, IDLO provided TOT courses to the Associations of Nepal and Tunisia.

Knowledge Sharing “Restitution” Program Operating as a pilot scheme since 2005, the Restitution Program has become a successful element of the overall strategy for strengthening IDLO Alumni Associations. A “restitution” is a way for IDLO Alumni to give something back to their community by sharing their knowledge and experience. A restitution event can take the form of a roundtable discussion, a training event or a seminar involving members of the Association, colleagues, and representatives from the legal community. Restitutions cover a wide range of topics. In 2006, subjects included alternative dispute resolution, contracts for goods and services, investment law, and legal rights to water. During 2006, over 50 percent of participants to IDLO Romebased or Regional Courses committed to organizing a knowledge-sharing restitution event in collaboration with their Alumni Association.


2006 Annual Report / Poverty Reduction Strategy Assistance

Poverty Reduction Strategy Assistance Poverty Reduction Assistance Programs are targeted at helping individual countries identify and implement the legal and regulatory reforms necessary to reach the objectives set forth in their Poverty Reduction Strategy Papers (PRSP), and assisting them to overcome the difficulties which prevent them from implementing their PRSPs. In 2006, IDLO began undertaking exploratory work to develop this program and plans to implement activities in 2007. MILLENNIUM DEVELOPMENT GOAL (MDGs) -ORIENTED SEMINARS For years IDLO has delivered capacity building and MDG-oriented seminars (historically called IDLO International Business Transactions - IBT seminars), designed to address legal aspects of the UN Millennium Development Goals or specific development priorities, such as gender equality, microfinance, good corporate governance, and environmental issues. In 2006, the topic was water resource management. “Legal Framework for Water Resource Management” Seminars: These two-week seminars were conducted in Rome, both in English and in French. With the support of the UN Food and Agriculture Organization (FAO) and the “Académie de l'Eau”. ■ In English: Rome, September 11 - 22 Participants: 24, Countries Represented: 23 Gender Distribution: 50% women; 50% men Sector Distribution: 81% public sector; 5% private sector; 9% NGOs; 5% academics ■ In French: Rome, June 19 - 30 Participants: 25, Countries Represented: 16 Gender Distribution: 46% women; 54% men Sector Distribution: 92% public sector; 8% private sector. As an off-shoot of this program, in 2007 IDLO is holding follow-up training courses in other jurisdictions, beginning with a FAO-financed one-week regional training program in Pretoria, South Africa “Improving Legal and Regulatory Efficiency for Water Resource Management in Southern Africa” (benefiting 24 participants from four African countries: Malawi, Swaziland, South Africa & Zambia). Likewise, three francophone regional programs will be implemented in Africa with the collaboration of the Académie de l'Eau.

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IDLO International Development Law Organization

GUINEA Gender and Law BACKGROUND Women constitute half of the world's population, they cover twothirds of the total worldwide hours of work, but they barely earn one-third of the world's income. They represent two-thirds of the total number of illiterate people and two-thirds of the 1.2 million people that live with less than one dollar a day. Especially in developing countries, they are excluded from public life and from access to economic resources and from social and health services. Recognition of the rights of women is a crucial step in the institutional life of Guinea. The sustainable economic and social development of the country largely depends on the implementation of these rights. The work of women's NGOs, as well as community awareness raising activities and training activities, can contribute to effectively instilling this concept in society. PROGRAM The Program aims to raise awareness of the importance of women's access to economic and social resources as a means of achieving emancipation and promoting their empowerment. The program is divided in two training workshops. ■ “Women's Access to Legal, Economic and Social Resources” (Conakry, December 11 - 15), addressing 30 women jurists and NGO professionals actively working in the fight against poverty, as well as magistrates, officials from the ministries of Justice, Health, Economy and Finance, and representatives of civil society. ■ “Managing an NGO: Juridical and Organizational Aspects” To be delivered in 2007. Donor: Italian Ministry of Foreign Affairs Counterpart: Women's Jurist Association of Guinea.


2006 Annual Report / Poverty Reduction Strategy Assistance

MICROFINANCE INITIATIVE BACKGROUND Lawyers play a key role in the microfinance process. They provide advice to banks, microfinance entities, governments and donors to help overcome related legal and policy obstacles. They also influence the development of new policies and legal frameworks that support the growth of microfinance, while protecting the poor from predatory financial practices and over indebtedness. The microfinance industry is developing rapidly, yet legal knowhow associated with microfinance has not kept pace. Law schools do not yet offer courses on microfinance. Few lawyers in any jurisdiction have practical experience with microfinance. A microfinance industry without a strong legal foundation is likely to present significant risks, especially for the poor. PROGRAM In 2005, IDLO launched a three-year worldwide program to further sustainable development of microfinance in developing countries as a means of poverty reduction. The program, financed primarily by the Omidyar Network, is designed to build the capacity of legal professionals from developing countries and provide them with the tools to begin taking an active role in the microfinance industry, providing relevant advice and assistance on the legal, regulatory and practical aspects. The program includes various in-country activities, a series of seminars to be held in various parts of the world, video conference follow ups and a program of research and publications. IDLO has also created a specialized Microfinance website, accessible through the Organization's website (www.idlo.int). Beneficiaries include local microfinance entities, NGOs, central banks, downscaling commercial banks, bank regulators, development banks, credit unions, government law and policy makers and public and private lawyers who advise the microfinance industry.

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IDLO International Development Law Organization

COURSES “Building Inclusive Financial Sectors & Supportive Legal and Regulatory Frameworks” - IDLO Asia-Pacific Regional Center in Sydney, September 11 and 22 The two-week course benefited 29 lawyers, central bankers, commercial bankers, lawyers from NGOs, judges and microfinance practitioners from 13 different countries of the Asia-Pacific Region. The course examined the major legal, regulatory and transactional aspects of small and micro-credit and particular focus was given to: ■ Micro-credit, poverty reduction and the empowerment of the poor. ■ Best practices with respect to legal, regulatory and transactional aspects of microfinance. ■ How countries are balancing the sometimes conflicting goals of facilitating access to credit and ensuring adequate regulation. ■ Issues specific to agricultural and rural microfinance and post-disaster / post-conflict microfinance. ■ Lessons learnt from the region and internationally. Similar courses will be held throughout 2007 in: ■ In Spanish for South America: Quito, February 2007 ■ In French for West Africa: Dakar, April 2007 ■ In French for the Middle-East and North Africa: Rabat, May 2007 ■ In Arabic for the Middle-East and North Africa: Cairo, July 2007 ■ In English for Asia: Beijing, September 2007 ■ In Spanish for the Caribbean and Central America: Mexico City, October 2007 Courses are also being scheduled for Cameroon, Tanzania, Poland and Jordan. Donor: Omidyar Network Counterpart: IDLO Alumni Association of Ecuador


2006 Annual Report / Research and Policy

Research and Policy IDLO's Research and Policy initiatives involve the generation and dissemination of knowledge, engagement in international conferences, working groups and policy-making forums, and the development of normative guidance within the scope of IDLO's mandate. These activities aim at developing resources that can be widely used by the public. RESEARCH AND PUBLICATIONS Annual Series: Lessons Learned IDLO launched the first book in an annual series called Lessons Learned. Entitled Searching for Success: Narrative Accounts of Legal Reform in Developing and Transition Countries, it focuses on contemporary experience in successful legal reform in various parts of the world. To address this key issue in today's international legal and policy debates, IDLO gathered and analyzed field work accounts of a number of experts and academics. Development Law Updates Regular reports based on lessons learned from IDLO's training, technical assistance, and distance learning activities. ■ “Strengthening Environmental Law Compliance and Enforcement in Indonesia: Towards Improved Environmental Stringency and Environmental Performance” ■ “Anti - Corruption: a Capacity Building Approach. Lessons Learned from IDLO Anti - Corruption Activities” ■ “Le cadre juridique de la gestion des ressources hydriques. Leçons apprises du séminaire sur le cadre juridique de la gestion des ressources hydriques qui s'est tenu du 19 au 30 juin 2006 à Rome” ■ “Lessons Learned from the Legal Framework of Water Resource Management Course-in Rome- Sept 11 - 22, 2006”

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IDLO International Development Law Organization

Voices of Development Jurists A series of scholarly articles addressing development law issues. The 2006 edition was entitled “Water Tenure Reform and Public Access to Water as a Basic Need” and was written by Sumudu Atapattu, Lead Counsel at the Center for International Sustainable Development Law in Montreal, Canada. Manual on Sustainable Development in Project Finance of Public Projects In partnership with the Center for International Sustainable Development Law (CISDL), which is affiliated with McGill University in Montreal (Canada), IDLO is to develop a manual on the application of sustainable development principles in project finance transactions. The objective of the manual is to reinforce the capacity of borrowing country transactional lawyers and state representatives and to promote more sustainable development-oriented alternatives in project finance. IDLO Rule of Law Assistance Directory A high level expert panel on rule of law, which convened by the Hague Institute for the Internationalization of the Law (HIIL) in April 2006, found that an inventory of rule of law activities around the world was needed. In response, IDLO undertook significant research to develop a comprehensive directory of practical interventions, projects and activities conducted by international organizations, donors, NGOs and other actors. The work was carried out in partnership with the HIIL, which is also conducting parallel research to develop a compendium of theoretical and academic analyses of rule of law. In 2007, IDLO will publish its Rule of Law Assistance Directory on a dedicated website. Once finalized, the Directory will become the first comprehensive, publicly available inventory, grouping actors and activities carried out in the rule of law field. Microfinance Initiative Website In connection with IDLO's Microfinance Initiative (see page 20), IDLO has created a specific website to facilitate research and knowledge exchange among all project participants and stakeholders. It will host all the participants' publications as well as reading materials, articles and useful links. It is accessible through the Organization's website (www.idlo.int).


2006 Annual Report / Research and Policy

Benchbooks In the past decade, IDLO has assisted the judiciaries of Laos, Liberia, Mongolia and the Philippines to develop and draft Judicial Benchbooks. Benchbooks are manuals which assist judges to more effectively and efficiently undertake their daily judicial responsibilities. ■

Benchbook for the Vietnamese Judiciary On request by the Vietnamese Judiciary, between 2005 and 2006, IDLO and the Supreme People's Court (SPC) of Vietnam developed, drafted and published a Benchbook for the judges of Vietnam, with support of the Hon. Justice Michael Moore of the Federal Court of Australia. The scope and achievements of the Benchbook project included: – Vietnam's first official Benchbook for judges. – Distributed to 5,100 judges in Vietnam with a further 300 copies distributed to the Bar Associations of Vietnam who are responsible for providing legal aid in certain cases. – An internet version was also produced, both in Vietnamese and English, which a) has an updating facility to allow the regular updated version of the Benchbook to be accessible; b) includes hypertext links to a wide range of legal sources in Vietnam which are not readily available to judges in hard copy; c) is available to all court users and to whomever is interested in the Vietnamese legal and judicial system. – The Benchbook can be updated easily and at low cost. – Twenty training workshops on the use of the Benchbook are being conducted in Vietnam so that a judge from each of the 64 City and Provincial Courts and 657 District Courts will have attended a training workshop on how to use the Benchbook. IDLO delivered three Training of Trainers workshops in Hanoi and No Chi Minh City in the first half of 2006, addressing a group of professionals who would deliver the aforementioned provincial level training. The benchbook is available at: http://www.sotaythamphan.gov.vn/

Donor: Australian Overseas Aid Agency (AusAid) Counterpart: People's Court of Vietnam

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IDLO International Development Law Organization


2006 Annual Report / Post-Disaster Legal Support

Post-Disaster Legal Support These programs are designed to help countries achieve a speedier and more sustainable recovery from natural disasters. IDLO's work in this area has ranged from capacity building for affected institutions to the development of guidance and procedural manuals for use in the assessment of legal issues arising out of natural disasters. IDLO also collaborates with local and community-based organizations which work at a grassroots level, particularly in the areas of women's rights, child protection and microfinance. Post-Tsunami Legal Assistance Initiative for Indonesia and Sri Lanka In response to the wide-scale devastation caused by the Tsunami of 26 December 2004, IDLO launched a project in early 2005 to assist the survivors in two of the worst affected areas: Aceh in Indonesia and Sri Lanka.

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INDONESIA Research and Advisory Based upon field research conducted in 12 tsunami-affected villages in Banda Aceh and Aceh Besar, IDLO has published the following information resources: ■

■ ■ ■ ■ ■

The Formal and Informal Resolution of Land, Inheritance and Guardianship Matters in Post-Tsunami Banda Aceh and Aceh Besar. Women and Law in Aceh: Post-Conflict, Post-Tsunami and Beyond. Guidebook on Land Inheritance and Guardianship in Post-Tsunami Aceh. 10 Frequently Asked Questions on Land Law in Post-Tsunami Aceh. 10 Frequently Asked Questions on Inheritance Law in Post-Tsunami Aceh. 10 Frequently Asked Questions on Guardianship Law in Post-Tsunami Aceh.

These publications detail the legal principles, processes and institutions relevant to the resolution of tsunami-related disputes. They were designed to promote awareness and understanding regarding the applicable law, how to access the legal system, and the rights of women and children in judicial processes. By December 2006, approximately 1,500 copies of the Guidebook and 4,500 copies of the 10 Frequently Asked Questions had been distributed to organizations involved in post-tsunami reconstruction and rehabilitation, legal professionals, courts, government officials, and in villages in Banda Aceh, Aceh Besar, Aceh Jaya and Aceh Barat. All of this was possible thanks to the collaboration and full endorsement of the Sharia Court (Mahkamah Syar'iyah).


2006 Annual Report / Post-Disaster Legal Support

Gender Advocacy Through Legal Representation, Counseling and Support for Women in Nanggroe Aceh Darussalam In partnership with a local NGO, KKTgA, IDLO has worked to increase the availability of legal representation and counseling services for women in Banda Aceh and Aceh Besar. With IDLO's support, since April 2006 KKTGA has accomplished the following: ■ Opened the Women's Crisis Centre (WCC). Between May and December 2006, the WCC offered services to 1 17 clients. It should be noted that the WCC represents the only legal aid service of its kind in Banda Aceh/Aceh Besar; ■ Provided on-site information dissemination and legal counseling in temporary shelters for tsunami survivors, tsunami-affected villages and to government departments in Banda Aceh and Aceh Besar; ■ Re-opened the Banda Aceh Women's Shelter which offers shelter and protection to female victims of violence; ■ Broadcasted daily radio advertisements on the WCC's services; ■ Broadcasted radio talk-shows on topical legal issues; ■ Implemented an extensive community legal awareness campaign throughout Aceh.

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Raising Community Legal Awareness Through Print Media In July 2006, in cooperation with the Sharia and State Courts, IDLO launched a weekly column in the Serambi newspaper entitled 'Anda dan Hukum dalam Keseharian’ (The Law and You in Practice). Through such articles, IDLO profiles different justice sector institutions and examines topical legal issues. In November 2006, IDLO expanded the project by publishing these articles in the local English language newspaper, Aceh World, to facilitate increased readership. To date, this project continues to represent the only organized system for transmitting legal information to the public on a regular basis. All articles can be found on the IDLO website at www.idlo.int/bandaacehawareness.htm Restoration of Court Libraries The tsunami significantly damaged the libraries of both the Banda Aceh State Court and Aceh High Court. The absence of primary sources of legislation and substantive legal texts had an impact upon the ability of both courts to provide legal services to tsunami survivors.

Promoting the Awareness of Women's Legal Rights Through Film In October 2006, IDLO produced a 30 minute educational film which tracks the lives of three women, each of whom are struggling to overcome some of the most common legal issues affecting communities in the aftermath of the tsunami.

In response to this need, IDLO purchased 1,712 books, including copies of updated Indonesian laws, court procedure manuals and legal reference books. IDLO also developed a computerized cataloguing system for managing the courts' new information resources and trained court staff in how to use and maintain this system.

Through these narratives, the film examines the law relevant to each of the main topic areas of land, inheritance and guardianship, and the possible solutions which might be found. Between February and November 2007, a team comprising Acehnese experts in Islamic Law and Islamic philosophy (Aqidah) will screen the film in 75 tsunami-affected villages in Banda Aceh and Aceh Besar (reaching an audience of approximately 1,875 women) followed by a half-day information training session.

Community Mediation and Legal Skills Training In order to improve local decision-makers' mediation skills and understanding of land, guardianship and inheritance law, IDLO has held four-day training workshops in 75 tsunami-affected villages in Banda Aceh, Aceh Besar, Aceh Jaya and Aceh Barat, which will continue until mid-2007. By the end of the program, over 400 community leaders and a range of women, youth and religious leaders will have benefited from the training. Donors: Finnish Ministry of Foreign Affairs and Irish Aid (formerly Development Cooperation Ireland) Counterparts: Rehabilitation and Reconstruction Agency for Aceh and Nias (Badan Rehabilitasi dan Rekonstruks), Sharia Court (Mahkamah Syar'iyah), Aceh Legal Aid Foundation (Lembaga Bantuan Hukum), Aceh Adat Council (Majelis Adat Aceh), UN Development Program, the World Bank, Aceh High Court, Banda Aceh State Court, KKTGA (Kelompok Kerja Transformasi Gender Aceh), and AIPRD-LOGICA (AustralianIndonesia Partnership for Reconstruction and Development)


2006 Annual Report / Post-Disaster Legal Support

SRI LANKA Support to “ICLA� Mobile Legal Clinics Due to the tsunami of December 2004 and years of conflict between the Liberation Tigers of Tamil Eelam and the Government, there are over 800,000 internally displaced persons ('IDPs') in Sri Lanka. The Norwegian Refugee Council ('NRC') provides legal information, counseling, assistance and advocacy ('ICLA') services to tsunami and conflict-affected IDPs in the north and east of Sri Lanka, focusing primarily on child protection and gender violence. IDLO has been assisting the NRC with its ICLA program by providing training, technical assistance and funding since 2006 and will continue to support the ICLA program throughout 2007. Tsunami Children Project The tsunami left approximately 5,500 Sri Lankan children orphaned or without one parent, many of whom are encountering a range of difficulties. In collaboration with the Legal Aid Commission (LAC) of Sri Lanka and in consultation with local and international children's organizations, in 2006 IDLO began a study of legal needs and issues relevant to tsunami-affected children, especially orphans. Based on the study, IDLO and the LAC will produce a userfriendly manual, which will explain relevant Sri Lankan and international laws and agreements, legal remedies and available services in the field of child protection, including their relation to tsunami-affected children. The manual will be completed in 2007 and made available to those working in the field of child protection and the general public. Training and public awareness on the contents of the manual and associated children's issues will also be undertaken in 2007.

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Support to Livelihoods Projects IDLO is collaborating with two leading Sri Lankan NGOs; SEEDS and Sewa Lanka Foundation, that assist rural, poor grassroots communities, many of which were affected by the tsunami. SEEDS and Sewa Lanka provide these communities with microfinance loans and associated business development assistance in order to achieve sustainable income generation activities. In 2006, IDLO began developing training modules for SEEDS and Sewa Lanka staff and clients on laws which affect the provision of microfinance and impact livelihoods, such as the rights and obligations of providers and recipients of microfinance loans, consumer rights, business and commercial laws, environmental laws, employment laws, taxation laws, contract laws, and insurance laws. By the end of the program in 2007, IDLO will have trained over 400 staff members and clients of SEEDS and Sewa Lanka. IDLO will also produce and disseminate a manual on these laws to assist grassroots communities to better identify and respond to legal issues when pursuing income generating activities. Support to the Establishment of a New Legal Framework Regulating NGOs in Sri Lanka Following the tsunami, a significant amount of foreign donor funding to assist in the recovery process has been channeled through NGOs. Many NGOs have encountered difficulties in managing these funds and the Government of Sri Lanka decided in January 2006 to review the framework regulating NGOs in the country. The Committee established by the Government to undertake this task considered that the assistance of international expertise would add value to its work. At the request of the Committee, IDLO provided support in 2006 by giving technical assistance to the Committee and contributing to the writing of its report, which will be presented to the Minister of Social Services and Social Welfare in February 2007. Donor: Finnish Ministry of Foreign Affairs and Irish Aid (formerly Development Cooperation Ireland) Counterparts: Legal Aid Commission of Sri Lanka (LAC), Norwegian Refugee Council (NRC), Sarvodaya Economic Enterprises Development Services Gte Ltd (SEEDS), Sewa Lanka Foundation.


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2006 Annual Report / Facts and Figures

IDLO International Development Law Organization

FACTS AND FIGURES BALANCE SHEET (US$ Dollars) As at December 31, 2006

Assets Current assets – Cash (Note 3) – Accounts receivable – Prepaid expenses Total current assets

2006

2005

4,729,940 996,094 244,878 5,970,911

6,799,350 1,620,704 85,722 8,505,776

210,307

166,841

981,681

937,755

1,024,073 15,703,809 16,727,882 50,310 17,970,180 23,941,091

1,024,073 14,437,682 15,461,755 50,310 16,616,660 25,122,436

376,228 1,277,384 3,739,535 5,393,147 5,393,147

908,022 – 5,952,083 6,860,105 6,860,105

17,537,458

17,251,845

1,010,486 18,547,944 23,941,091

1,010,486 18,262,331 25,122,436

Non current assets – Fixed assets, net of depreciation of US$ 1,301,770 (2005 US$ 1,224,405) (Note 4) – Leasehold improvements, net of depreciation of US$ 3,017,548 (2005 US$ 2,871,555) (Note 4) – Investments: Donor endowment funds (Notes 5, 7, 8) General endowment fund (Notes 6, 7, 8) Deposits Total non current assets Total assets Liabilities and fund balances ■ Current liabilities – Accounts payable and accrued expenses – Short Term Financial Debts (Note 3) – Deferred revenue and grants received in advance (Note 9) Total current liabilities Total liabilities ■

Fund balances – Unrestricted (Note 7) – Restricted (Notes 5, 7) Total fund balances Total liabilities and fund balances


2006 Annual Report / Facts and Figures

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IDLO International Development Law Organization

STATEMENT OF SUPPORT REVENUE & EXPENSES (US$ Dollars) As at December 31, 2006

Unrestricted

Restricted

2006 Total

2005 Total

4,229,911 132,563 – 12,110 300,862 4,675,446

468,873 172,010 9,741,723 – – 10,382,605

4,698,783 304,573 9,741,723 12,110 300,862 15,058,051

3,853,165 241,728 6,463,733 28,984 262,691 10,850,300

Program services Project activities Travel & per diem - participants

4,870,861 – – 4,870,861

1,566,904 7,016,707 468,873 9,052,484

6,437,765 7,016,707 468,873 13,923,345

5,628,746 4,238,337 415,593 10,282,675

General administration and fundraising Depreciation Total expenses

598,974 223,358 822,332 5,693,193

1,330,122 – 1,330,122 10,382,605

1,929,096 223,358 2,152,454 16,075,798

1,431,663 216,185 1,647,847 11,930,523

Excess of support & revenue over expenses on regular operations before the effect of foreign exchange rate movements & investment income

(1,017,747)

(1,017,747)

(1,080,223)

1,332,562

1,332,562

933,165

(38,001) 8,798 285,612

– – –

(38,001) 8,798 285,612

– 3,986 143,072

Support and Revenue Grants Tuition Project activities Donor endowment funds income Other income Total support and revenue

General endowment fund gain / (loss) Less: Interest Expense & Accrued Interest on Short Term Debt Effect of foreign exchange rate movements Net excess of support and revenue over expenses


28

2006 Annual Report / Facts and Figures

IDLO International Development Law Organization

STATEMENT OF CONTRIBUTION AND SPONSORSHIP INCOME For the Year Ended December 31, 2006 (US$ Dollars) Total grants Unrestricted Grant Donors Arab Fund for Economic and Social Development (AFESD) Australian Agency for International Development (AUSAID) Canadian International Development Agency (CIDA) Government of China Government of Finland Government of France Government of Ireland Government of Italy Government of the Netherlands Government of the Philippines Government of Senegal Kuwait Fund for Arab and Economic Development Microsoft Corporation Norwegian Agency for Development Cooperation (Norad) OPEC Fund for International Development (OFID) Swedish International Development Cooperation Agency (Sida) US Agency for International Development (USAID)

Projects activities

Fellow-ships & other

Total restricted

Total unrestricted

Deferred to 2007

utilized in 2006

Total grants utilized in 2005

Total grants utilized in 2004

US$

US$

US$

US$

US$

euro

US$

US$

18,329

18,329

18,329

52,393

16,750

33,625

33,625

8,852

42,477

315,491

266,656

1,905,609 – 840,490 – 219,113 5,244,454 – – –

– – – – – – – – –

1,905,609 – 840,490 – 219,113 5,244,454 – – –

173,508 10,000 320,000 108,800 186,200 1,280,367 957,500 31,690 150,000

150,796 – 372,721 – 131,396 1,649,811 – – –

2,079,117 10,000 1,160,490 108,800 405,313 6,524,821 957,500 31,690 150,000

1,378,756 19,339 112,427 219,300 178,835 5,329,374 500,000 25,132 137,205

77,850 9,000 202,727 204,000 170,535 3,967,904 530,450 5,625 –

– 90,000

231,526 50,000

231,526 140,000

70,309 60,000

13,044 –

301,836 200,000

138,760 225,143

90,937 180,852

541,044

541,044

573,525

550,958

100,000

100,000

100,000

5,226

343,750

343,750

312,991

269,258

92,546

92,546

92,546

77,205

741,497

8,425,837

399,855

8,825,693

4,242,020

2,317,768

13,067,713

9,601,102

7,284,999

– 80,869

– –

– 80,869

– –

– –

– 80,869

18,000 –

– –

90,000 – – – 82,172 –

– – 55,000 – – 9,121

90,000 – 55,000 – 82,172 9,121

– – – – – –

– – – 27,580 21,269 50,000

90,000 – 55,000 – 82,172 9,121

75,000 – – – – 23,876

90,000 26,310 – – – 17,003

576,810

576,810

576,810

233,190

10,040

10,040

10,040

24,460

108,830

148,000

35,083

35,083

35,083 190,740 – 26,975

– – – –

35,083 190,740 – 26,975

– – – –

– 1,318,621 4,298 –

– 190,740 – 26,975

– – 228,315 70,091

– – – 752,014

129,101 – – – 59,012

– 10,000 165,255 132,563 1,651

129,101 10,000 165,255 132,563 60,663

– – – – –

– – – – –

129,101 10,000 165,255 132,563 60,663

– 1 1,213 93,01 1 72,700 27,822

27,813 17,287 80,000 177,300 64,320

Total income from project sponsors

1,315,885

373,590

1,689,476

1,421,768

1,619,310

986,508

1,400,047

Total income from grant donors & project sponsors

9,741,723

773,446

10,515,168

4,242,020

3,739,535

14,687,023

10,587,610

8,685,046

Total income from grant donors

Project Sponsors ABA CEELI Government of France Arab Bank for Economic Development in Africa (BADEA) Asian Development Bank (ADB) Astaldi Baker & McKenzie - Chicago Carnegie Corporation The Coca-Cola Company European Bank for Reconstruction and Development Tanzania Global Development Learning Center (TGDLC) International Development Association (World Bank) Institut National de Formation Juridique Mali KPMG GJLOS - Reform Programme - Kenya Ministry of Justice & Constitutional Affairs - Uganda Omydiar Network Sagric International The World Bank Institute (World Bank) United Nations Development Program (UNDP) White & Case - New York World Trade Organization Independently funded Others


2006 Annual Report / Facts and Figures

29

IDLO International Development Law Organization

STATEMENT OF CASH FLOWS For the Year Ended December 31, 2006 (US$ Dollars) Cash flows from operating activities

2006

2005

285,612

(143,072)

Net excess of support and revenue over expenses ■ Adjustments to reconcile to net cash provided by operating activities: – Depreciation – (Increase)/decrease market value of general endowment fund – (Gain)/Loss on disposal of fixed assets – (Increase)/decrease in other debtors and prepayments – (Increase)/decrease in deposits – (Increase)/decrease in accounts receivable - operations – Increase/(decrease) in accounts payables

223,358

216,185

(1,332,562) – (159,156) – 624,610 (531,794)

(933,165) – (20,393) 7,740 (595,427) 175,417

– Increase/(decrease) in Short Term Debts Payable – Increase/(decrease) in deferred revenues and grants received in advance Net cash provided by operating activities

1,277,384 (2,212,548) (1,825,094)

– 4,299,297 3,006,583

(310,750) – 63,760

(60,508) – 1,000,000

Cash flows from investing activities – Purchase of fixed assets – Proceeds from the sale of fixed assets – Investment of amounts transferred (to) / from general endowment fund Net cash used in investing activities – Increase/(decrease) in cash Cash at beginning of year Cash at end of year (Note 3) Less: Short Term Debts Payable (UBS Creditline) Cash at end of year net of liabilities

(246,990)

939,492

(2,072,085)

3,946,075

6,799,350 4,729,940 (1,277,384) 3,452,556

2,853,682 6,799,350 – 6,799,350


30

2006 Annual Report / Facts and Figures

IDLO International Development Law Organization

STATEMENT OF CHANGES IN FUND BALANCES FOR THE YEAR ENDED December 31, 2006 General endowment fund 9,995,318

Operational reserve 200,000

Total unrestricted 13,634,220

Donor endowment funds 1,010,486

Total all fund 14,644,706

– – –

– – –

1,420,448 – 123,974

– – –

1,420,448 – 123,974

1,544,422 4,983,324 (1,320,353)

– 9,995,318 1,320,353

– 200,000 –

1,544,422 15,178,642 –

– 1,010,486 –

1,544,422 16,189,128 –

Fund balances at 31 December 2003 3,662,971 Fund balances at January 1st 2004 3,662,971 Excess of support & revenue over expenses before the effect of foreign exchange rate movements 257,091 Additional capital grant – Effect of foreign exchange rate movements (40,816)

11,315,671 1 1,315,671

200,000 200,000

15,178,642 15,178,642

1,010,486 1,010,486

16,189,128 16,189,128

– 2,000,000 –

– – –

257,091 – (40,816)

– – –

257,091 – (40,816)

Net change in fund balances Total fund balances before transfer to endowments Transferred to general endowment fund

216,274 3,879,246 (161,787)

2,000,000 11,315,671 2,161,788

– 200,000 –

2,216,275 15,394,917 2,000,000

– 2,216,275 1,010,486 16,405,403 – 2,000,000

Fund balances as at December 31, 2004 3,717,458 Fund balances at January 1st 2005 3,717,458 Excess of support & revenue over expenses before the effect of foreign exchange rate movements (147,058) Additional capital grant – Effect of foreign exchange rate movements 3,986

13,477,459 13,477,459

200,000 200,000

17,394,917 17,394,917

1,010,486 18,405,403 1,010,486 18,405,403

– – –

– – –

(147,058) – 3,986

Unrestricted 3,438,902

Fund balances at 1 January 2003 Excess of support & revenue over expenses before the effect of foreign exchange rate movements 1,420,448 Additional capital grant – Effect of foreign exchange rate movements 123,974 Net change in fund balances Total fund balances before transfer to endowments Transferred to general endowment fund

– – –

(147,058) – 3,986

Net change in fund balances

(143,072)

(143,072)

(143,072)

Total fund balances before transfer to endowments Transferred to general endowment fund

3,574,386 203,580

13,477,459 -203,580

200,000 –

17,251,845 –

1,010,486 –

18,262,331 –

Fund balances as at December 31, 2005 Fund balances at January 1st 2006 Excess of support & revenue over expenses before the effect of foreign exchange rate movements Additional capital grant Effect of foreign exchange rate movements Net change in fund balances Total fund balances before transfer to endowments Transferred to general endowment fund Fund balances as at December 31, 2006

3,777,966 3,777,966

13,273,879 13,273,879

200,000 200,000

17,251,845 17,251,845

1,010,486 18,262,331 1,010,486 18,262,331

276,814 – 8,798 285,612 4,063,578 (164,781) 3,898,797

– – – – 13,273,879 164,781 13,438,660

– – – – 200,000 – 200,000

276,814 – 8,798 285,612 17,537,457 – 17,537,457

– 276,814 – – – 8,798 – 285,612 1,010,486 18,547,943 – – 1,010,486 18,547,943


2006 Annual Report / Facts and Figures

Notes to the financial statements

31

IDLO International Development Law Organization

Foreign exchange IDLO conducts its operations in several currencies and maintains its accounting records in United States dollars. The financial statements are expressed in United States dollars solely for the purpose of summarizing the financial position and the results of operations. All items in the balance sheet have been translated at market rates of exchange at year-end. Revenue and expense items in currencies other than United States dollars have been recorded at appropriate rates of exchange during the period. The exchange adjustments arising from the translation of assets and liabilities in other than United States dollars are credited or charged to the Statement of Support, Revenue and Expenses.

Functional allocation of expenses The costs of providing the various programs and other activities have been summarized on a functional basis in the Statement of Support, Revenue and Expenses. Accordingly, certain costs have been allocated between program services and general administration and fundraising.

Investments Investments, referred to as marketable securities, are carried at market value. Both realized exchange and security gains and losses and unrealized security gains and losses are reflected in income from investments.

Project revenue and grant revenue In the Statement of Contribution and Sponsorship Income, revenue received for a specific project is included under Project Sponsors, all other grant revenue is included under Grantors.

Receivables Amounts due are recorded at their presumed net realizable value.

Cash flows The investments held by IDLO are designated for long-term investment purposes. The resources may not be effectively utilized without prior authorization from the Board of Directors. These balances have been treated as long term in nature.

Fixed assets and depreciation Office equipment and furniture are recorded at cost and are depreciated over the estimated useful lives of the respective assets (five years) on a straight-line basis. Leasehold improvements are depreciated on a straight-line basis over the expected life of the leases (twelve years). Ordinary maintenance expenses on property are charged directly to operating expenses in the period in which they are incurred.

For the year ended December 31, 2006 and 2005 (amounts in United States dollars) NOTE 1: THE ORGANIZATION The International Development Law Organization (IDLO), Headquarters in Rome, Italy, Via di San Sebastianello 16, is an international intergovernmental organization. The member states are Australia, Austria, Bulgaria, Burkina Faso, the People's Republic of China, Colombia, Ecuador, Egypt, France, Italy, the Netherlands, Norway, the Philippines, Romania, Senegal, Sudan, Tunisia and the United States. A Headquarters Agreement signed on March 20, 1992, amended July 19, 1993, ratified by the Italian Parliament on October 28, 1994 and effective as of December 1, 1994, regulates IDLO's relations with the host government, Italy. IDLO promotes the use of legal resources in the development process in developing and transition economy countries through training, technical assistance, research and publication. IDLO receives voluntary contributions for institutional and/or program support from government agencies, multilateral organizations and private foundations including private sector corporations and law firms. In 2006, IDLO received support from 17 governmental donors (2005: 14). Any significant reduction in the level of this support, if this were to occur, would have a material effect on IDLO's programs and activities. The number of personnel employed by the Organisation was 90 as at December 31, 2006 (2005:70). NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of IDLO are prepared in accordance with the following accounting policies described below: ■

Grant revenue recognition IDLO records revenue from unrestricted grants when they are received, except that amounts received from donors with respect to future years are deferred to the year in which they relate. Operating funds restricted by the donor for particular operating purposes are deemed to be earned and are reported as revenues when expenditures are incurred in accordance with the specific restrictions of such donor. Such amounts received, but not yet earned, are reported as deferred revenue. Tuition revenue Tuition revenue relating to course participation is recognized over the term of the applicable course.


32

2006 Annual Report / Facts and Figures

NOTE 3: CASH Cash balance is determined by cash held in IDLO bank accounts and petty cash. An amount equivalent to US$ 4,139,214 (2005: US$ 6,137,016) deposited in separate accounts with Banca Antoniana Popolare Veneta and in the respective field project banking institutions is restricted by the project sponsor for specific projects. As at December 31, 2006 IDLO has deposited US$ 2,000,000 in short term investments for specific related projects.

IDLO International Development Law Organization

With the approval of the Board of Directors, IDLO has established a revolving line of credit financed by at UBS SA. This line of credit is fully secured by using the IDLO Endowment Fund as collateral. The Board of Directors approved to utilize this credit line in the establishment and start up phase of the Dr. Ibrahim Shihata Cairo Regional Center. As at December 31, 2006, IDLO has a current liability of US$ 1,277,384.00 which includes principal value of US$ 1,256,450 and accrued interest of US$ 20,934.

NOTE 4: FIXED ASSETS Leasehold Improvements

Furniture Equipment & Vehicles

TOTAL

$3.809.310

$1.391.246

$5.200.556

$189.919 – $3.999.229

$120.831 – $1.512.077

$310.750 – $5.511.306

$2.871.555

$1.224.405

$4.095.960

Balance as at December 31 2006

$145.993 – – $3.017.548

$77.365 – – $1.301.770

$223.358 – – $4.319.318

Net Book Value Balance as at December 31 2006 Balance as at December 31 2005

$981.681 $937.755

$210.307 $166.841

$1.191.988 $1.104.596

Cost ■

Balance as at January 01 2006 – Additions – Disposals Balance as at December 31 2005 Accumulated Amortization ■ Balance as at January 01 2006 – Amortization Charges – Disposal of Assets – Other Moviments


2006 Annual Report / Facts and Figures

NOTE 5: DONOR ENDOWMENT FUNDS The donor endowment funds represent restricted endowment contributions by donors, which presently comprise the Kuwait Fund for Arab and Economic Development and the Arab Fund for Economic and Social Development. Income of the Arab Fund for Economic and Social Development is determined at year-end. It is subsequently recognized when utilized for fellowships. Income from the Kuwait Fund for Arab and Economic Development, which is not deemed to be restricted in any way, is used for the operation and administration of IDLO. Both amounts may be transferred, subject to the approval of the Board of Directors, from the investment accounts of the donor endowment funds to that of IDLO's bank accounts. As at December 31, 2006, the net investment income of the Arab Fund for Economic and Social Development, US$ 18,329 (2005: US$ 43,813) was transferred from the investment account to IDLO's bank accounts and earmarked for fellowships in accordance with IDLO's Agreement with the above mentioned

33

IDLO International Development Law Organization

fund. This principal amount of this fund remains at the original market value of US$ 616,630. As at December 31, 2006, the net investment income of the Kuwait Fund for Arab and Economic Development of US$ 12,110 (2005: US$ 28,984) was transferred to IDLO's bank accounts. The principal amount of the fund remains at its original market value of US$ 407,444. The principal of US$ 1,024,074 represents funds subject to restrictions requiring that, unless otherwise agreed with the donors, the principal be retained and invested for the long term. The balance as at December 31, 2006 represents the total market value of both investments. The market value of both donor endowment funds remains at $ 1,024,074 as at December 31, 2006 and as at December 31, 2005. Movements on these investment accounts in 2006 and 2005 are as follows: Arab Fund

Kuwait Fund

Total

Balance as at January 01 2005 Realized / Unrealized Gain or Loss Transfers to Bank Accounts Balance as at December 31 2005

$616.630,00 $43.813,00 ($43.813,00) $616.630,00

$407.444,00 $28.984,00 ($28.984,00) $407.444,00

$1.024.074,00 $72.797,00 ($72.797,00) $1.024.074,00

Balance as at January 01 2006 Realized / Unrealized Gain or Loss Transfers to Accounts Receivables Balance as at December 31 2006 Amount of Original Contribution

$616.630,00 $18.329,00 ($18.329,00) $616.630,00 $341.690,00

$407.444,00 $12.110,00 ($12.110,00) $407.444,00 $407.444,00

$1.024.074,00 $30.439,00 ($30.439,00) $1.024.074,00 $749.133,00


2006 Annual Report / Facts and Figures

NOTE 6: GENERAL ENDOWMENT FUND In 1986, at the Fourth Annual Meeting of IDLO's predecessor organization, the Board of Directors authorized the creation of a general endowment fund, to set aside funds which would be available for future years' operations and to maximize investment returns.

34

IDLO International Development Law Organization

NOTE 7: FUND BALANCES The following table shows the fund balances as at December 31, 2006 and December 31, 2005:

â– 

The general endowment fund investments as at year end December 31, 2006 is US$ 15,703,809 (2005: US$ 14,437,682) represents the principal together with changes in market value and the loss incurred during the year, less management fees and amounts utilized in the year. Changes in the market value of the funds and interest earned are reported in the Statement of Support, Revenue and Expenses in the year in which the change occurs. As at December 31, 2006 an amount of US$ 164,781 (2005: US$ -203,580) was transferred. This amount represents the net excess/deficit of support and revenue over expenses for the year of US $ 285,612 (2005: US$ -143,072) less capital expenditures for the year of US$ 120,83 1 (2005: US$ 60,508) exclusive of leasehold improvements, in accordance with an Executive Committee decision of October 20, 1997. The amount transferred but not yet invested as at December 3 1, 2006 was US$ 2,251,739 (2005: US$ 2,086,958). This amount represents the net excess of support and revenue over expenses (minus capital expenditures) for the following years: 2006 US$ 164,781, 2005 US$-203,580, 2004 US$ 161,787, 2003 US$ 1,320,353, 2002 US$ 16,000, 2001 US$ 60,478.

Unrestricted: Unrestricted operating fund Operational reserve General endowment fund

â– 

Restricted: Donor endowment funds Total fund balances

2006

2005

3.898.797

3.777.966

200.000 13.438.660 17.537.457

200.000 13.273.879 17.251.845

1.010.486 18.547.943

1.010.486 18.262.331

Additional information on the donor endowment funds and the general endowment fund is set out in Notes 5, 6, and 8 respectively. The fund balance of US$ 13,438,660 (2005: US$ 13,273,879) is regarded as being unrestricted, and the income derived from investment of these funds can be used for the operations and administration of IDLO, if approved by the Board of Directors. The expressed intention of the Board of Directors is to preserve intact the general endowment fund and the derived income until a designated sustainability target is reached. Early withdrawals from the general endowment funds are subject to approval of the Board of Directors.


35

2006 Annual Report / Facts and Figures

NOTE 8: INVESTMENTS A third party investment advisor, under investment guidelines provided by IDLO, manages IDLO's general endowment fund and donor endowment funds. The portfolio mix of these funds is invested in the following marketable securities: cash, high yield bonds and equities. The following schedule represents the composition of the general endowment fund and the donor endowment fund investments at their market value as of December 31, 2006 and 2005:

Cash Bond Fund Equity Fund Other Investments

2006

2005

$1.748.666 $4.859.171 $5.185.945 $4.934.101 $16.727.883

$500.759 $5.329.149 $8.501.847 $1.130.000 $15.461.755

NOTE 9: DEFERRED REVENUE AND GRANTS RECEIVED IN ADVANCE The balance of US$ 3,739,535 (2005: US$ 5,952,083) includes grants received and not utilized as at December 31, 2006, and grants received in advance.

IDLO International Development Law Organization

NOTE 11: TAXATION The position of IDLO with respect to Italian taxation is established in the Headquarters Agreement. Article IX, Section 12 of the Headquarters Agreement exempts “the Organisation, its properties, incomes and assets” from “all direct taxation and duties levied by the State, Regions and Municipalities”. Article IX, Section 13 establishes additional tax exemptions for the Organisation, including an exemption from the payment of Value Added Tax on “substantial purchases”. Article XV, Section 21 exempts “members of the staff who are not Italian nationals and who are not permanent residents” from “any form of direct taxation on salaries, emoluments, indemnities, pensions, and other benefits paid to them by or on behalf of the Organisation”. NOTE 12: LEASE COMMITMENTS IDLO has non-cancelable leases for buildings used for office space, residential and teaching facilities. These leases are accounted for as operating leases with rental payments being expensed directly to the Statement of Support, Revenue and Expenses. As of December 31, 2006 the future rental minimum payments for the next three years are as follows: ■

NOTE 10: PROVIDENT FUND All eligible staff participate in the IDLO provident fund, which is similar to a defined contribution plan. The benefits are paid at retirement or termination of employment. This plan is funded by a mandatory seven percent contribution of employees' salaries, an additional fourteen percent matching contribution by IDLO and further voluntary contributions by each participant. The provident fund investments are managed by a third party advisor. IDLO's contribution to this fund was for the year ended December 3 1, 2006 US$ 354,73 1 (2005:US$ 299,032). These amounts are included in the Statement of Support, Revenue and Expenses for both 2006 and 2005 as they represent employment expenses for the organization.

■ ■

Year 2007: US$ 980,717 Year 2008: US$ 799,064 Year 2009: US$ 838,982


37

2006 Annual Report / IDLO Governance

IDLO International Development Law Organization

IDLO INTERNATIONAL ADVISORY COUNCIL IDLO has established an International Advisory Council to bring new and wise voices into IDLO's future planning and to help emphasize the importance of IDLO's role to the global audience. The profile for membership on the Council includes people with an international reputation for extraordinary leadership in addressing development and humanitarian issues. ■

Mr. Abdel-Latif Al-Hamad Chairman and CEO, Arab Fund for Economic and Social Development President Abdou Diouf Secretary General, International Francophony Organization, Former President of the Republic of Senegal

Mr. William H. Gates Sr. Co-Chair, Bill and Melinda Gates Foundation President Mary Robinson Chair, Ethical Globalization Initiative, Former President of the Republic of Ireland, Former UN High Commissioner for Human Rights

Justice Albie Sachs Justice, Constitutional Court of South Africa Mr. Thomas Pickering Former US Assistant Secretary of State of Political Affairs

IDLO BOARD OF DIRECTORS The Board of Directors provides detailed governance and oversight and approves the Organization's policies, annual work programs, budgets and audited financial statements. It also appoints the Director-General and the external auditor of the Organization. Its membership comprises the Director-General, who is an ex-officio member, a permanent representative of the host country, Italy, and others selected on the basis of their professional accomplishments in the fields of law and development. Board members, other than the representative of the host country, serve in their personal capacities and not as representatives of governments or organizations. Board Members meet once a year and they serve for a three year term subject to renewal. CURRENT BOARD MEMBERS ARE: ■

Mr. Luigi Biamonti (Chairman) Senior Partner Studio Legale Biamonti Rome, Italy (Re-elected in 2007) Ambassador Jan Cedergren Ministry of Foreign Affairs Stockholm, Sweden Ambassador Hussein A. Hassouna Ambassador to the United States League of Arab States Washington D.C., USA Professor Jacqueline Lohoues-Oble Professor of Law University of Abidjan-Cocody, Abidjan, Côte D'Ivoire Professor Heinrich Neisser Professor of Political Science University of Innsbruck Innsbruck, Austria Mrs. May B. Y. Oh Partner MAY OH & WEE Singapore Mr. Nawaf A. Al-Mahamel Legal Advisor Kuwait Fund for Arab Economic Development Kuwait City, Kuwait (Elected in 2007) Professor Jan Michiel Otto Director Van Vollenhoven Institute for Law, Governance and Development Leiden University Leiden, The Netherlands (Elected in 2007)

Ms. Ana Palacio Senior Vice President and General Counsel The World Bank Washington D.C., USA (Elected in 2007) Mr. Pascal Roux Partner Taylor Wessing Paris, France (Elected in 2007) Mrs. Tove Strand Executive Chief Officer Ullevaal University Hospital Oslo, Norway (Elected in 2007) Minister Eugenio Campo (Permanent Representative for Italy) Alternate Director-General Central European Initiative Trieste, Italy (Retires in 2007) Minister Renzo M. Rosso (Permanent Representative for Italy) Multilateral Coordinator General Directorate for Development Cooperation Ministry of Foreign Affairs Rome, Italy (Enter in Duty in 2007) Justice Catherine Branson Federal Court of Australia Sydney, Australia (Term expires in 2007) Mr. Ko-Yung Tung Senior Counselor Morrison & Foerster LLP New York, USA (Term expires in 2007)

TERM EXPIRED IN 2006: ■

Mr. Mohamed Y. Abdel-Aal Senior Legal Advisor Kuwait Fund for Arab Economic Development Kuwait City, Kuwait ■ Professor Rudolf Dolzer Director Institute for International Law University of Bonn Bonn, Germany ■ Ms. Grete Faremo Director of Law and Corporate Affairs, Western Europe Microsoft Norge AS Oslo, Norway ■ Gordon L. Jaynes, Esq. Attorney at Law Virginia Waters, Surrey, United Kingdom ■ Professor Patrick Juillard Professor (retired) University of Paris I Paris, France


Contacts HEADQUARTERS Via di S. Sebastianello, 16 00187 Rome Italy Tel. +39 06 69 79 261 Fax +39 06 67 81 946 E-mail: idlo@idlo.int www.idlo.int REGIONAL CENTERS Arab Regional Office: “Ibrahim Shihata” Center 47/C Abou El-Feda Street, 11211 Zamalek, Cairo Egypt Tel. + 202 73.50.1 16 Fax + 202 73.50.069 E-mail: cairo@idlo.int Asia Pacific Regional Center Old Glebe Court House - 2 Talfourd Street 2037 Glebe NSW Australia Tel. +61 2 85 85 67 00 Fax +61 2 85 85 67 67 E-mail: aprc@idlo.int PROJECT OFFICES Banda Aceh (Indonesia), Bishkek (Kyrgyzstan), Colombo (Sri Lanka) and Kabul (Afghanistan).

www.idlo.int

graphic layout: tr e associati - rome


Annual Report 2006