Annual Report 2007 by International Development Law Organization

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2007 Annual Report

Making a Difference Through Law

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2007 Annual Report / Table of Contents

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IDLO International Development Law Organization

INTRODUCTION Who We Are What We Do PROGRAMS ECONOMIC GROWTH AND TRADE IDLO Regular Courses Burkina Faso South Africa Mozambique Ethiopia Afghanistan Worldwide - Public Procurement Worldwide - Intellectual Property

2 4

6 7 7 8 8 9 9 9

PEACE-BUILDING ASSISTANCE Afghanistan Sudan Post-Conflict Initiative

10 12 12

INSTITUTIONAL CAPACITY-BUILDING Kyrgyz Republic Egypt Mauritania Kenya Senegal Chad Worldwide - Conventions on Countering Terrorism Worldwide - Global Network of Alumni Associations

13 14 14 15 15 15 16 16

POVERTY REDUCTION STRATEGY ASSISTANCE Gender Worldwide Ecuador Pacific Islands Environment South-East Asia Indonesia Water Resource Management South Africa Cameroon Asia Pacific Senegal, Burkina, Faso, Benin, Madagascar Global Health China Microfinance

18 18 18 18 19 19 19 19 19 20 20 20 21 21 21

POST-DISASTER LEGAL SUPPORT Indonesia Sri Lanka

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IDLO RULE OF LAW ASSISTANCE DIRECTORY

IDLO GOVERNANCE AND ADVISORY STRUCTURE

FACTS AND FIGURES

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2007 Annual Report / Who We Are

IDLO International Development Law Organization

Who We Are The International Development Law Organization (IDLO) is an inter-governmental organization dedicated to promoting the rule of law and good governance in developing countries, transition economies and nations emerging from conflict.

In 2001, IDLO was granted ‘Observer Status’ by the United Nations General Assembly and in 2007, the Organization opened a permanent representative office in New York.

IDLO’s objective is to help these countries establish the effective legal infrastructure needed to achieve sustainable economic growth, security and access to justice.

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.

In line with the OECD’s Paris Declaration on Aid Effectiveness, IDLO encourages its country partners to take charge of their own development agendas. The Organization works closely with local groups, addressing their specific needs and empowering them to actively contribute to their nation’s development.

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.

IDLO’s 43 Alumni Associations around the world provide continuing legal education, assistance, research and publications at a local and regional level. IDLO has its Headquarters in Rome, Italy and Regional Offices in Cairo, Egypt (covering Arabic-speaking countries) and Sydney, Australia (covering the Asia Pacific area). IDLO currently operates Project Offices in Afghanistan, Indonesia and Kyrgyzstan.

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 works directly with lawyers, jurists, policy-makers, regulators, civil society representatives, public and private institutions and government ministries. Since its establishment in 1983, IDLO has worked with over 18,000 legal professionals in more than 175 countries.

IDLO is supported by voluntary contributions from governments, multilateral organizations, foundations and the private sector.

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2007 Annual Report / Who We Are

IDLO International Development Law Organization

Introduction from the IDLO Director-General For IDLO, 2007 was a year of transition. Vital steps were taken to prepare for significant improvements in IDLO’s governance, its strategic approach and its programming. These improvements will facilitate closer integration into the international development agenda, foster a new level of innovation and effectiveness, and allow IDLO to better channel its valuable resources with the achievement of measurable results. In 2007, IDLO focused even more intensively on aligning its work with nationally-based development agendas, as envisioned by the Paris Declaration on Aid Effectiveness. First, the Organization created a dedicated function devoted to reviewing and analyzing poverty reduction strategies (PRS), with particular focus on the rule of law and governance sectors. Then in October, IDLO launched its Rule of Law Assistance Directory at the United Nations in New York. The Directory is the first global database of international assistance efforts in the field of law and development. Together these innovations enable IDLO to continually update its program design ensure consistency with national development strategies and international assistance, and provide the international community with a greater understanding of the character, scope and distribution of rule of law initiatives. In its peace-building work, IDLO has continued to support countries emerging from violent conflict in the development of institutions which will enable legal reform on a sustainable basis. In Afghanistan, IDLO has worked closely with national authorities on the establishment of the National Legal Training Center which will provide Afghan-led capacity building for the entire justice sector. IDLO has also assisted in the founding of the Legal Aid Organization of Afghanistan (LAOA) which is now the primary source of criminal defense counsel for the poor in Afghanistan. In Sudan, IDLO worked with the Judiciary of Southern Sudan and the Ministry of Legal Affairs on the founding of the Law Development Institute which will serve as the sole post-graduate source of legal training in South Sudan. IDLO has sought to integrate its work with that of the other international organizations working in the rule of law field. Through its establishment of a Permanent Observer Mission at UN Headquarters in New York in 2007, IDLO has been able to develop relationships with the UN Rule of Law Assistance Unit, the Peace Building Commission, the Commission for the Legal Empowerment of the Poor, and the United Nations Development Program. It has maintained a strong partnership with the World Trade Organization, which makes post-Doha capacity-building a reality. In its field work, IDLO has partnered with a range of UN specialized agencies such as UNICEF and the UNODC to support the legal aspects of their work. Together these efforts will ensure that the resources provided to IDLO are used in the most efficient manner and complement other development assistance efforts underway. At an organizational level, IDLO has undertaken a number of important initiatives. First, IDLO completed the installation of a new

financial management system enabling the organization to manage its finances worldwide in real-time. This has already paid dividends in terms of cost control, cash management and financial reporting. At the same time, IDLO initiated an ambitious internal change process to implement a system of results-based management. This will result in the introduction of a new four-year strategic plan, a management plan, results-based budgeting, and performance monitoring systems. In 2008 and beyond, IDLO will be able to combine management best practices with a programming strategy that takes advantage of the substantial learning that has taken place in our field over the last two decades. IDLO’s Member State Assembly of Parties launched a working group on governance reform in 2007. The chief rationale for this initiative was to ensure the continuing responsiveness of the Organization to the emerging international development agenda and to enable the Organization to pursue its mandate efficiently and cost-effectively. Acting on the proposals of this working group, the Assembly of Parties approved a revised charter in 2008, which established a direct role for the Assembly of Parties in the governing the Organization and created a subsidiary Board of Advisors composed of distinguished legal and development professionals to provide advice on important issues. These changes have now aligned IDLO more closely with the other key multilateral development partners and with the national development priorities of the members of the Assembly. As the international organization mandated to further the progressive development of the rule of law and good governance, IDLO has a significant role to play in the international community. Working alongside its multilateral and national partners, IDLO will continue to facilitate improvements in the legal and judicial systems of developing countries as part of their wider development process. In an increasingly interdependent world, facing poverty, human insecurity, and substantial transnational problems, IDLO can help make progress on numerous fronts. The achievement of international development targets will help reduce poverty. This in turn will contribute to the achievement of peace and stability, the security of individuals, effective management of the impact of turbulence in the world’s financial markets, and the mitigation of risks posed by global environmental issues such as climate change and the emerging food crisis. IDLO’s efforts in 2007 demonstrate the key role it can play in these efforts and why it is worthy of continued support. Finally, I wish to thank our host country, Italy, and our many supporters and donors for providing the precious resources required to enable our work. Their generous contributions make it possible for IDLO to continue and strengthen its efforts to promote the rule of law.

William T. Loris

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2007 Annual Report / What We Do

IDLO International Development Law Organization

What We Do

■ Needs

Over the course of its 25-year history, IDLO has received an everincreasing number of requests for assistance on rule of law matters. These requests come directly from national institutions and organizations, such as government ministries or judicial bodies, NGOs or universities. Alternatively, they come from international development partners or donors seeking expertise on critical national or global issues.

■ Policy

IDLO selects its programs on the basis of previous experience in the subject matter and the country, the viability of programs in terms of effectiveness and the ability to apply international best practice, and the potential support available from partners. IDLO organizes its work into program streams based on the key legal challenges faced by developing countries. IDLO Program Streams ■ Economic Growth and Trade ■ Peace-Building Assistance ■ Institutional Capacity-Building ■ Poverty Reduction Strategy Assistance ■ Post-Disaster Legal Support

IDLO PROGRAMS ■ Diagnostic

Dialogues As part of an initial program evaluation, IDLO often conducts videoconference discussions with relevant experts and local stakeholders, in order to gain an overview of rule of law priorities in the country or region and begin identifying potential program partners.

Assessment IDLO experts conduct a thorough needs analysis in the field to assess specific requirements relating either to the state of the rule of law or to legal development issues in the country or region. This mission is used to establish local partnerships and agree with stakeholders the most appropriate program and calendar of activities. Dialogues IDLO facilitates discussions with high-level representatives of all the relevant stakeholders concerned with specific legislation or procedure. The aim of such dialogue is to bring together national or regional policy-makers to identify major obstacles and share observations, with the ultimate goal of gaining each party’s agreement to the development of an action plan.

■ Training

IDLO uses training to address specific gaps in professional legal knowledge and skills. The Organization liaises closely with local partners and donors in determining the design and delivery of training activities and applies a well-established methodology for identifying performance and instructional objectives. Performance objectives are determined by assessing the discrepancy between what the situation is and what it should be. Instructional objectives are determined by a topic analysis (where the problem is one of inadequate knowledge) or a task analysis (where the problem is one of inadequate skills). Using this detailed assessment, training programs are developed to meet the specific needs of beneficiaries. IDLO training programs include: interactive workshops, case studies, films, role-plays, simulated exercises and group discussions. © IDLO

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2007 Annual Report / What We Do

Workshops The flexible nature of IDLO workshops allows the Organization to tailor in-country training activities to rapidly and effectively respond to local needs. Workshop participants are selected either from a single institution or organization (government ministries, bar associations, courts) or from several entities working on a same issue (such as water, gender, microfinance). International “visiting experts” are brought in where necessary to support IDLO in-house teams. Regional Workshops IDLO also provides regional training workshops which enable participants from neighboring countries to address shared issues. The identification of common experiences in similar contexts sets the ground for establishing legal strategies which seek to achieve specific regional objectives. Workshops and regional workshops can also include study tours and internships in relevant institutions at home or abroad.

IDLO International Development Law Organization

■ Technical

Assistance Structural weaknesses or a lack of professional capacity are often a major obstacle in the development of efficient, transparent and fair judicial institutions. In these cases, IDLO incorporates specific technical assistance activities into its programs. Technical assistance can take the form of advice and mentoring on legal aspects of policy or legislative drafting; physical support such as the establishment of court libraries and supplying essential legal texts; or knowledge support through the development of professional resources in the native language. These professional resources can include benchbooks (practical manuals for judicial staff providing technical guidance on law and procedure); glossaries on human rights and international law; and guidebooks for local and international organizations on specific legal issues.

■ Legal

Distance Learning Seminars IDLO regularly holds academic seminars and training workshops via videoconference to support ongoing programs. These sessions can be designed for an audience from a single institution, or alternatively a selected group of national or regional stakeholders. Training of Trainers The purpose of this activity is to facilitate institutional change by encouraging participants to share the knowledge and skills gained during the course with colleagues and local counterparts in their country. IDLO, in conjunction with local partners, selects a small number of course participants and instructs them on how to become trainers. Training of trainers (TOT) courses provide these participants with the necessary skills to complete a task analysis, select course contents and apply IDLO’s participatory objective-based methodology.

Awareness With the aim of improving access to justice, IDLO works in partnership with local civil society groups to diffuse information and raise legal awareness. Communication activities include: producing and screening educational films, publishing legal advice articles in local newspapers, and providing legal training and funding to NGOs working within target communities.

■ Research

and Publication The generation and dissemination of knowledge on development law is an important part of IDLO’s mandate. Research and publication activities include: engagement in international conferences; the establishment of working groups and policymaking forums; the development and publication of monographs, working papers and policy briefs on legal and institutional reform experiences, trends and priorities.

■ Monitoring

and Evaluation IDLO is establishing a rigorous monitoring and evaluation system throughout the Organization. As a lead player in the rule of law development sector, IDLO is advancing its ability to accurately measure the performance of its programs and larger projects.

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2007 Annual Report / Economic Growth and Trade

IDLO International Development Law Organization

PROGRAMS

Economic Growth and Trade Economic growth and trade is essential to enable developing and transition economy countries to alleviate wide-spread poverty and reduce the risk of internal conflict. IDLO programs on economic growth and trade are designed to assist governments, public institutions, business communities and NGOs in building a strong commercial law framework and maximizing the benefits of development assistance and international trade.

Enterprise and Investment Lawyers Course (5 weeks) Designed to assist lawyers and advisors to governments and the business community in meeting the legal and policy challenges associated with economic development in the private sector and the need to attract investment. The course is designed for midcareer and senior legal professionals working in private practice, regulatory institutions and policy-making bodies. ■ ■ ■

IDLO REGULAR COURSES IDLO holds practical, interactive training courses covering core areas in development law. These courses are designed to provide legal professionals and policy-makers with the theoretical and practical skills required to become a driving force of change within their countries. Development Lawyers Course (10 and 3 weeks): Provides training on substantive legal issues closely related to the development of a country. The program aims to improve the position of developing countries in international negotiations and enhance the rule of law in the development process. The course is designed for mid-career legal professionals working in policymaking bodies, regulatory institutions and the private sector.

Counterparts: (Cairo course) United Nations Conference on Trade and Development, The General Authority for Investment and Free Zones in Egypt Public International Trade Law Course (3 weeks) Examines the rules, operations and impact of the World Trade Organization’s multilateral trading system. Provides substantive content on emerging issues in the world trade system. The course is designed for ministry officials and other government institutions dealing with trade. ■ ■

The program was re-designed in 2007 to comprise a three-week course in Rome including a training of trainers session; follow-up video conferences with national counterparts on key commercial law issues; and the development of in-country projects to address these issues. The francophone program in 2007 followed this new structure. ■ ■

In English: Rome, April 2 - June 8 Countries Represented: 17 In French: Rome, November 26 - December 14 Countries Represented: 10

Counterparts: Ministry of Commerce of Bénin, Ministry of Agriculture of Burkina Faso, Ministry of the Economy of Madagascar, Senegal Bar Association

In English: Rome, January 8-February 9 Countries Represented: 23 In French: Rome, February 19-March 23 Countries Represented: 21 In Arabic: November 11-December 13 Countries Represented: 8

■

In English: Rome, Sydney, November 9-30 Countries Represented: 13 In French: Dakar, July 9-27 Countries Represented: 16 In Spanish: Lima (Peru), January 22 - February 9 Countries Represented: 14

Counterparts: Federal Department of Foreign Affairs and Trade for Australia, World Trade Organization, Ministry of Commerce and Consumption of Senegal

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2007 Annual Report / Economic Growth and Trade

IDLO International Development Law Organization

BURKINA FASO Land Law Reform

SOUTH AFRICA Commercial Law & Trade

In 2007, the Ministry of Agriculture in Burkina Faso began drafting a revision of the country’s rural land law, with the aim of providing legal security and increasing the financial prospects of people living and working in rural areas. Draft proposals include a three-phase land ownership scheme which gives priority to original occupiers and will enable the population to legally formalize their social and economic status.

For the past two years, IDLO has been working with LLM students from the University of Pretoria on keys issues relating to commercial law. The University’s LLM program brings together business law students from all over southern Africa.

IDLO was brought in to support the Ministry of Agriculture in the planning and implementation process of this reform. IDLO workshops examined existing land policy and law and the new government proposals. Ministry staff, magistrates and private lawyers were also trained on dispute settlement mechanisms for use with farmers and local authorities. This program was completed in 2008 with a training of trainers session on how to educate local authorities, community and religious leaders about the new reform. ■ ■ ■

Needs Assessment: Ouagadougou, July 3-6 Workshop: Ouagadougou, October 15-19 Workshop: Ouagadougou, November 12-16

In 2007, IDLO focused on strengthening students’ knowledge and skills on trade negotiation. This included examining the major issues and positions of the key players in the Doha Development Agenda negotiations, and how to effectively utilize the dispute settlement procedures of the World Trade Organization. ■ ■ ■

Distance Learning Seminar: August 13-16 Distance Learning Seminar: October 8-9 Workshop: Pretoria, November 12-16

Donors: The Carnegie Corporation of New York, The Bill & Melinda Gates Foundation Counterpart: The University of Pretoria

Donor: Ministry of Foreign Affairs of Italy Counterpart: Ministry of Finance of Burkina Faso

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2007 Annual Report / Economic Growth and Trade

IDLO International Development Law Organization

MOZAMBIQUE Negotiation Skills

MOZAMBIQUE Transparency in Public Procurement

Mozambique has been examining how best to manage its natural resources in order to drive economic development and reduce poverty in the country.

An effective, transparent and competitive public procurement system is one of the fundamental components in the harmonious development of a country. The absence of such a system may lead to the incorrect or corrupt use of a country’s financial resources which in turn generates mistrust in a country’s institutions, and leads to the loss of future and current foreign investments.

At the request of the President of the Republic of Mozambique, IDLO began working with government officials in 2006. By the end of 2007, IDLO had run a total of four workshops on oil, mineral and gas concession contracts, as well providing the negotiation and alternative dispute resolution skills needed to implement such contracts. These workshops were designed to ensure that the government is prepared to manage the challenges associated with the discovery of oil resources, including a possible influx in foreign investment. ■

Workshop: Maputo, August 21-24 and November 19-21

The Government of Mozambique recently issued legislation on public procurement which incorporates general international principles and recent trends. However, this new legislation was not widely known by the public sector officials and private sector professionals. IDLO provided an analysis of the new legislation with reference to international conventions and best practice. ■

Donor: Ministry of Foreign Affairs of Italy Counterpart: Ministry of Mineral Resources of Mozambique

Workshop: Maputo, November 19-22

Donor: Government of Ireland (Irish Aid) Counterpart: Mozambique Bar Association

ETHIOPIA International Procurement and Contract Negotiations The Government of Ethiopia has revised its national procurement law in an effort to advance developmental goals. In order to ensure that international public resources are used judiciously, government ministry officials must be familiar with these new national procurement policies, as well as the practices of aid development institutions operating in Ethiopia, such as the World Bank, the African Development Bank and the Arab Bank for Economic Development in Africa. IDLO’s program for ministry personnel was designed to improve the efficiency and impact of development aid. It covered the key legal principals of procurement and the harmonization of the rules, procedures and practice of multilateral financial contributors. ■

Workshop: Nazareth, August 1-15

Donor: Arab Bank for Economic Development in Africa Counterparts: Ministry of Finance and Economic Development of Ethiopia and The Public Procurement Agency (Ethiopia)

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2007 Annual Report / Economic Growth and Trade

AFGHANISTAN Procurement Capacity-Building and Legal & Institutional Framework Development Project March 2007 - March 2010 In 2007, IDLO began contributing to a three-year project on public reform support designed to enable government ministries to take increasing ownership of their procurement requirements. The project seeks to increase the capacity within the public and private sectors to manage procurement procedures and practice, develop the country’s legal and institutional framework, and strengthen regulatory reforms for enhancing the procurement environment. Within the project, IDLO is responsible for providing training and technical assistance on procurement law and regulation. Donor: The World Bank Counterparts: Charles Kendall & Partners, UK Chartered Institute of Purchasing and Supply, Ministry of Finance of Afghanistan

WORLDWIDE Public Procurement: Policy Strategy and Reform In 2007, IDLO held an international workshop aimed at supporting World Bank efforts to educate developing countries about its requirements for funding applications and to encourage adherence to international principles and regulation on procurement at a local level. The workshop introduced participants to a range of new tools designed to support a public procurement system, monitor public financial management systems and aid the development of integrated strategies for reform. ■

International Workshop Rome, July 16-20 Countries represented: 12

Counterpart: The World Bank

IDLO International Development Law Organization

WORLDWIDE Intellectual Property Development Program Many developing countries are members of the World Trade Organization, which requires them to enable legitimate owners of intellectual property (IP) rights to take action against infringers and recover any losses incurred.Yet in reality, these countries are often unable to guarantee the enforcement of such rights, due to institutional weaknesses and the lack of an adequate number of judges with specific IP experience. The IDLO Intellectual Property Program consists of four main elements: ■ One-week country-specific training workshops on IP and on the enforcement of IP rights. ■ Impact Projects which disseminate international and country-specific knowledge on IP issues. Local IDLO Alumni Associations commit to organizing two training workshops per year over a three-year period on IP issues ■ Dissemination of IP reference materials ■ Insertion of modules on IP in IDLO regular programs Training workshops on intellectual property and the enforcement of IP rights conducted by IDLO in collaboration with the respective Alumni Association: ■ Amman (Jordan): May 5-10 ■ Katmandu (Nepal): September 24-28 Rome-based research and study mission for country IP Resource Person: ■ China and Kenya: June 10-30 Impact Project training workshops conducted by the in-country IP Resource Person and coordinated by the respective Alumni Association: ■ Cairo and Alexandria (Egypt): May 26-31 ■ Quito (Ecuador): June 20-22 and June 25-27 ■ Jakarta (Indonesia): July 23-25 ■ Bogotà (Colombia): August 1-3 ■ Bogotà (Colombia): September 3-5 ■ Sofia (Bulgaria): November 22-23 Donor: Microsoft Counterparts: Ministry of Trade and Industry of Jordan, Bibliotheca Alexandrina (Egypt), IDLO Alumni Associations in China, Ecuador, Egypt, Jordan, Kenya and Nepal

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2007 Annual Report / Peace-Building Assistance

Peace-Building Assistance When countries emerge from periods of armed conflict, rebuilding the legal system is a key first step in creating stability and establishing a framework for peaceful development and continued growth.

IDLO International Development Law Organization

Increasing Afghanistan’s Capacity for Sustainable Legal Reform March 2007 - December 2008

IDLO began working for the reconstruction of the justice system in Afghanistan in late 2001 and, by the end of 2007, the Organization had completed three major judicial reform projects. A fourth project, Increasing Afghanistan’s Capacity for Sustainable Legal Reform will continue through 2008.

Project Highlights 2007 Assistance in the establishment of the new Independent National Legal Training Center, in particular in the formation of an Interim Board of Directors and the curricula for the first academic year. ■ Creation of a training unit within the Ministry of Justice and the implementation of an extensive training of trainers program. ■ Continued technical and financial support to LAOA, which provides free legal assistance to women and children in Kabul and other 10 provinces in the country. ■ Training in criminal, civil, commercial and family law and judicial skills provided for over 300 judges. ■ First legal training courses for professional staff of the Ministry of Foreign Affairs, Ministry of Commerce and Industry and Ministry of Mines. ■ Creation of a law library for the Faculty of Shari’a at Kabul University. ■ Organization of the Panel on Higher Legal Education and Training at the Rome Conference on the Rule of Law in Afghanistan, for which IDLO acted as rapporteur.

In 2007, IDLO joined a consortium of implementing partners on a Public Procurement Reform Support Project, sponsored by the World Bank. As part of this project, IDLO is responsible for training personnel in Afghanistan’s central government ministries on Afghan procurement law, the rules of procedure and international best practice.

Donor: Ministry of Foreign Affairs of Italy Counterparts: Supreme Court of Afghanistan, Ministry of Justice of Afghanistan, Office of the Attorney General, National Assembly of Afghanistan, the Faculty of Law and Political Science and the Faculty of Shari’a at Kabul University (Afghanistan)

This often involves the revision and modernization of much of the previous legal and legislative infrastructure and the reform of most public institutions, including the judiciary.

AFGHANISTAN Following decades of war and radical regimes, Afghanistan’s established written code of law is being largely undermined by a severe lack of resources, weak administration and wide-spread corruption within the judicial system.

Through these projects, IDLO has provided training for over 1500 legal professionals, including judges, prosecutors, defense lawyers, Members of Parliament, civil servants and academics. Other activities have included the preparation of judicial candidates for the entrance exam to the judiciary, the provision of technical assistance in the development of the Independent National Legal Training Center, and the formation of the Legal Aid Organization of Afghanistan (LAOA), an Afghan nongovernmental organization providing legal services to the poor and disempowered. IDLO uses both Afghan and international experts in its programs, working continually towards building local capacity through the increasing involvement of Afghan instructors. In 2007, Afghan officials and professors were responsible for the majority of training in courses on Afghan Law.

■

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2007 Annual Report / Peace-Building Assistance

Strengthening the Rule of Law in Afghanistan Project March 2005 - December 2007 Project Highlights 2007 ■ Continued technical and financial support to LAOA. ■ Specialized training for 50 judges on criminal law and procedure. ■ Practical lawyer skills training for 88 students of the Faculty of Law and Political Science at Kabul University. ■ Assistance to the Ministry of Justice on ways to provide legal aid in keeping with the Government’s obligation under Article 31 of the constitution, which entitles defendants to legal counsel. ■ Training for practicing lawyers on international mechanisms of human rights protection. ■ Participation in the Ministry of Justice law reform technical working group. ■ Public awareness campaign on the legal rights of women in the provinces of Ghor and Bagdhis.

IDLO International Development Law Organization

■

In coordination with the United Nations Development Fund for Women, training on criminal law and procedure provided for staff and partners of Ministry of Women’s Affairs, the Ministry of the Interior, Violence Against Women Referral Centers in Parwan and Jalalabad, as well as police, prosecutors, staff from the Department of Women’s Affairs and members of the provincial council in Chagcharan (Province of Ghor). Production of a benchbook on judicial ethics and criminal procedures, a human rights and international law glossary, and a mock trial dialogue DVD.

Donor: Government of Canada (CIDA) Counterparts: Supreme Court of Afghanistan, Office of the Attorney General, the Faculty of Law and Political Science and the Faculty of Shari’a at Kabul University, Ministry of Women’s Affairs of Afghanistan, Legal Aid Organization of Afghanistan, United Nations Assistance Mission in Afghanistan, USAID, Norwegian Refugee Counsel

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2007 Annual Report / Peace-Building Assistance

SUDAN Strengthening the Rule of Law in South Sudan June 2006 - Ongoing More than a year after the signing of its Comprehensive Peace Agreement (CPA), pronounced religious, ethnic and socioeconomic factors continue to divide the north and the south of the country. In Southern Sudan, despite the adoption of important resolutions, more effective measures are needed to implement the CPA. Key challenges facing the nascent legal and judicial systems include an under-staffed and under-trained judiciary and Ministry personnel, a lack of institutional infrastructure and equipment, and the need to develop a consistent legal framework for Southern Sudan. There is an urgent need to strengthen the capacity of the judicial system. In addition to training on the new body of legislation being introduced by the government, judicial sector personnel in Southern Sudan also need training in Islamic and customary law in order to be able to address potential areas of conflict between Sudanese statutory law and local customs, social norms, beliefs and practices. IDLO began examining the Sudanese judicial landscape in 2006, and in mid-2007 began the first phase of the project “Strengthening the Rule of Law in South Sudan”, funded by the Canadian Department of Foreign Affairs and International Trade (DFAIT). Initial project activities were completed by March 2008, and IDLO produced a report summarizing the outcomes and recommendations for future initiatives.

IDLO International Development Law Organization

Project Highlights 2007 Following several months of extensive consultations with Southern Sudanese authorities regarding the development of an Institute for Judicial and Legal Studies, IDLO held a roundtable event in December 2007. With support from the Judiciary of Southern Sudan and the Ministry of Legal Affairs and Constitutional Development, stakeholders came together to identify the best way to train, and upgrade the skills of Southern Sudanese judges and lawyers, to enable them to implement justice and strengthen the rule of law in a way that ensures greater fairness and transparency. Donor: Government of Canada (DFAIT) Counterparts: Ministry of Legal Affairs and Constitutional Development of South Sudan

POST-CONFLICT PREPAREDNESS AND ASSISTANCE INITIATIVE In 2007, IDLO continued its two-year program providing analytical support to programs in post-conflict countries. Research missions were carried out in Nepal and Haiti. Reports on these missions containing a structured needs analysis were sent to the local authorities and to representatives of the donor community, along with recommendations for development law programs. ■

Needs Assessments and Reports Haiti, March 4-14 Nepal, March 19-23

Donor: Government of Canada (CIDA) Counterparts: IDLO Alumni Associations in Haiti and Nepal

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2007 Annual Report / Institutional Capacity-Building

Institutional Capacity-Building

IDLO International Development Law Organization

Project Highlights 2007 Opening of Kyrgyzstan’s first commercial law library in Bishkek, designed for use by all national judicial sector staff. ■ Training of trainers course for 20 senior judges. ■ Apprenticeship of 12 Kyrgyz judges with the Supreme Court of Kazakhstan. Kyrgyz judges received hands-on experience in the courtroom and visited the Judicial Academy and the Center for Judicial Studies. The success of the apprenticeship highlighted similarities in the legislation of the two Central Asian states, and showcased possibilities for future cooperation within the context of judicial reform. ■ Training of 270 judges on real estate and land law, contracts, accounting and secured transactions, and 100 judges on arbitration and tax law. ■ Continuing development of a commercial law benchbook. ■

By increasing the efficiency of the judicial process and encouraging the independence of the judiciary, institutional capacity-building programs help to promote access to justice, human rights and gender equality. IDLO assists various local institutions in strategic and program planning, financial management, financial and program reporting, board selection and development, and institutional transparency and accountability. KYRGYZ REPUBLIC Commercial Law Judicial Capacity Building Project April 2006 - February 2009 Three years after the Tulip revolution of 2005, much of Kyrgyzstan’s social and economic potential remains unfulfilled due to continuing instability in the country’s infrastructure, which has in turn lead to parliamentary struggles, uprisings, demonstrations, and widespread corruption. These problems are clearly reflected in the judicial system. While many of the Kyrgyz law codes have been modernized, legislation as a whole still does not reflect the present economic reality. There is no effective mechanism to prepare new judges for their duties or to provide continued professional training to sitting judges. Since 2006, IDLO has been implementing a judicial capacitybuilding project on commercial law in the Kyrgyz Republic. The two-year project aims to actively contribute to creating a business-enabling environment in the country and maximize conditions for building long-lasting and efficient institutions which serve their population in a more effective manner.

Donor: European Bank for Reconstruction and Development Counterparts: Supreme Court of Kyrgyzstan, Kyrgyz Judicial Training Center

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2007 Annual Report / Institutional Capacity-Building

EGYPT Building the Capacity of the Egyptian Council of State September 2006 - September 2008 The Egyptian Council of State is the administrative judiciary which rules on cases where the state is involved. The Council has long been recognized as one of Egypt’s most important independent bodies because of its crucial role in mediating the relationship between citizens and the state. In March 2007, IDLO begun a major two-year project, funded by USAID, which is designed to improve the quality of the Council of State’s work in terms of its effectiveness and the consistency of its decisions. Project Highlights 2007 ■ Roundtable on “Access to Administrative Justice” . ■ Training for 280 Judges from the Egyptian Council of State on the rule of law, legislative drafting, legal protection of intellectual property rights. ■ Comprehensive handbooks prepared on each training topic, including national and international reference materials. This represents a significant addition to the body of knowledge available in Arabic. ■ Ongoing development of a benchbook for Egyptian Council of State. ■ Ongoing development of the Council of State law library.

IDLO International Development Law Organization

MAURITANIA Judicial Capacity Building IDLO has been working with the Ministry of Justice of Mauritania since 2002, in support of government structural reform and economic stabilization. In 2007, IDLO implemented the second phase of its three-year program aimed at improving the professional skills of the Frenchspeaking judicial sector, and providing the Arabic-speaking judicial sector with comprehensive training and technical assistance. Workshops on bankruptcy and jurisdictions and procedures in commercial disputes assisted judges in dealing with enterprises in financial difficulty. ■ ■ ■

Needs Assessment Nouakchott, August 13-17 Workshop Nouakchott, November 5-9 Workshop Nouakchott, December 24 -28

Donor: Ministry of Foreign Affairs of Italy Counterpart: Ministry of Justice of Mauritania

Donor: USAID Counterpart: Egyptian Council of State

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KENYA Judicial Capacity-Building

SENEGAL Support to the Senegalese Bar Association

In June 2007, the Chief Justice of Kenya requested the assistance of IDLO in assessing practical requirements for the establishment of a dedicated judicial training institute. Having completed the needs assessment, IDLO then joined a two-day workshop in December on the World Bank Judicial Performance Improvement Project in Mombasa.

In 2007, IDLO continued its support for the Senegalese judicial sector by working with the national Bar Association to enhance further legal education in the country. Following a needs assessment, IDLO began a series of three francophone seminars on alternative dispute resolution and technical legal skills, designed to build the professional capacity of young Senegalese lawyers and magistrates. This series concluded with the final workshop held in early 2008.

In 2008, IDLO will be holding a judicial education workshop, in conjunction with the World Bank, to offer a comparative view on how the judicial training is organized in different jurisdictions.

■

Needs Assessment Nairobi, September 17-19

■

Donors: Ministry of Foreign Affairs of Italy, The Bill & Melinda Gates Foundation Counterpart: The World Bank

Needs Assessment Dakar, July 9-13 Workshop Dakar, November 5-9 Workshop Dakar, December 3-7

Donor: Ministry of Foreign Affairs of Italy Counterpart: Senegal Bar Association CHAD Strengthening the Capacity of the Judiciary Having emerged from decades of civil war, Chad is beginning the process of modernizing the state justice sector in accordance with its new national strategy for good governance. In 2007, IDLO was asked to identify ways of strengthening the national legal training center, and advise on the selection of trainers and the development of a training program. ■

Needs Assessment Ndjamena, July 16-20

Donors: Department of Cooperation and Cultural Events, French Embassy in Chad

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IDLO International Development Law Organization

WORLDWIDE Conventions on Countering Terrorism and Domestic Laws

WORLDWIDE Global Network of Alumni Associations

Under United Nations’ requirements, Member States are obliged to introduce and implement domestic measures to address the threat of terrorism and transnational crime. This includes ratifying the 16 UN Counter Terrorism Conventions and putting in place domestic legislation to effectively combat terrorism.

The Global Network of Alumni Associations contributes significantly to the overall impact and long-term sustainability of IDLO’s work.

Throughout 2007, IDLO held a series of policy dialogues aimed at assisting selected countries in meeting these United Nations obligations. This involved identifying areas of incompatibility between the international conventions on terrorism and domestic laws, and developing practical in-country activities for drafting domestic counter terrorism legislation.

In 2007, two new Alumni Associations (Argentina and Ethiopia) joined the IDLO network, bringing the total number to 43. Many of these Associations are based in the least developed countries of the world. With support from IDLO, they are increasing their capacity to manage their own training and technical assistance programs as self-sustaining civil society organizations. Highlights of 2007 Alumni Association activities include: Close collaboration on the promotion and implementation of IDLO in-country activities: Microfinance (Ecuador, Cameroon, China), Water Resource Management (Benin, Burkina Faso, Cameroon, Senegal), Intellectual Property (Nepal) and Public International Trade Law (Peru). ■ Following the 2006 IDLO program on “Integrated Water Resource Management”, alumni from Ecuador organized a roundtable on efficient environmental justice, in partnership with CEDA (Centro Ecuatoriano de Derecho Ambiental), environmental law database ECOLEX, and the Universidad Técnica Particular de Loja for environmental activities. ■ Six-month public awareness campaign by the Bulgarian Association to increase public confidence in the Bulgarian justice system. Financial support was provided by the USAID/Bulgaria Judicial Strengthening Initiative and the EastWest Management Institute. ■ Seminars on the integration of Romania in the European Union, fiscal law in the Democratic Republic of the Congo, new banking legislation in Madagascar and capacity-building in good governance in Benin. ■ Knowledge-sharing activities on a wide range of topics from direct foreign investment, international tax law and competition law and policy to negotiation skills and mediation. ■ IDLO training of trainers for Associations in Cameroon and Peru. ■

Following the policy dialogues, IDLO began holding in national workshops designed to facilitate the task of competent authorities in ratifying, incorporating in law and implementing universal anti-terrorism instruments. The first of these workshops was held in Papua New Guinea at the end of 2007. As a result of the workshop, an intergovernmental legislative committee was formed comprising the Ministries of Justice and Foreign Affairs, the Prime Minister’s Office, national intelligence and the police. New proposals for national legislation are due to be presented to the Cabinet by mid-2008. ■

■

Policy Dialogues Khartoum (Sudan) January 25 Dhaka (Bangladesh) March 15 Port Moresby (Papua New Guinea) April 18 Phonm Penh (Cambodia) June 15 Dili (East Timor) September 28 Workshop Port Moresby, December 3-5

Donor: United Nations Office on Drugs and Crime Counterparts: World Bank Distance Learning Site, BRAC University Distance Learning Site, Timor-Leste Distance Learning Center, Jakarta-Distance Learning Center GDLN, Papua New Guinea Distance Learning Center, Ministry of Microfinance and International Decentralized Cooperation of Senegal, Ministry of Finance of Morocco

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2007 Annual Report / Institutional Capacity-Building

IDLO International Development Law Organization

IDLO has over 18,000 alumni worldwide and a network of 44 alumni associations LATIN AMERICA AND CARIBBEAN (6) Argentina Colombia Cuba Ecuador Haiti Peru

CENTRAL AND EASTERN EUROPE (5) Albania Armenia Bulgaria Macedonia Romania

ASIA (8) Bangladesh China India Indonesia Jordan

AFRICA (25) Benin Burkina Faso Cameroon Central African Republic Chad Comoros Congo Côte d’Ivoire

D. Rep. of Congo Ethiopia Ghana Guinea Kenya Madagascar Mali Mauritania Mozambique

Niger Nigeria Senegal Tanzania Tunisia Togo Uganda Zambia

Nepal Pakistan Sri Lanka

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2007 Annual Report / Poverty Reduction Strategy Assistance

Poverty Reduction Strategy Assistance IDLO’s poverty reduction strategy assistance is directed at the legal and regulatory aspects of a developing nation’s Poverty Reduction Strategy. This assistance focuses on addressing global development challenges such as; water management; climate change and sustainable energy; the economic empowerment of women, the legal, regulatory and practical aspects of microfinance and the legal issues related to HIV and AIDS. GENDER Worldwide Economic Empowerment of Women Each year, IDLO focuses on a specific field of law related to the UN Millennium Development Goals (MDG) and holds several international seminars for relevant specialists from developing countries on overcoming the legal obstacles to meeting these goals by 2015. The 2007 MDG Seminar held in Rome examined the “Economic Empowerment of Women”.

IDLO International Development Law Organization

Donors: ING Foundation, OPEC Fund for International Development, Microsoft, Governments of France, Italy and Ireland Counterpart: Center for Arab Women for Training & Research (Arab course) Ecuador Legal and Regulatory Aspects of Gender, Remittances and Economic Inclusion Remittances to Ecuador have increased significantly in the last five years in line with migration. They now represent the second largest source of foreign income after oil. Yet this substantial flow of money coming into the country has improved neither the economic development of the country, nor the quality of life for its recipients, the majority of whom are women. IDLO’s 2007 program focused on migration, the productive reinvestment of remittances, the legal and financial aspects of the process of economic inclusion, the economic empowerment of women and fair trade. ■

Women living in poverty are often denied the right to access to critical resources such as education, property and credit. Their work often goes unrewarded and unrecognized. Their health care and nutritional needs are not given priority. Caught in the cycle of poverty, women lack access to the resources and services needed to change their situation. The IDLO MDG Seminar addressed areas in which lawyers and jurists can work together to build the capacity of legal systems so that they; 1) recognize the extent to which de jure guarantees may not necessarily reflect the de facto female condition; 2) identify ways to better protect the rights of women; and 3) work to increase the entitlements of women in order to economically empower them to break the cycle of poverty. The seminar was attended by lawyers and high-level government policy advisors involved in gender-related policies and programs, as well as practitioners and representatives from NGOs and Gender Associations. Regional Workshop ■ In English: Rome, September 10-21 Countries represented: 21 ■ In French: Rome, June 18-29 Countries represented: 21 ■ In Arabic: Cairo, October 21 - November 1 Countries represented: 11

Workshop Quito, December 10-14

Donor: The Bill & Melinda Gates Foundation Counterpart: IDLO Alumni Association in Ecuador Pacific Islands Advancing Women’s Representation and Participation in Political Decision-Making In the Pacific Islands, the under-utilization of women in government decision-making is particularly stark. For example, Papua New Guinea currently has only one female parliamentarian out of a total of 109, and the Cook Islands have three female parliamentarians out of 24 - the highest number since self-government in 1965. Technical Assistance In late 2007, IDLO began supporting the Pacific Islands Forum Secretariat in its project on “Advancing Women’s Representation and Participation in Political Decision-Making in the Pacific”. The project to promote democratic and representative governance in the region is due to continue through 2008. Donor: The Bill and Melinda Gates Foundation Counterpart: Pacific Islands Forum Secretariat

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2007 Annual Report / Poverty Reduction Strategy Assistance

IDLO International Development Law Organization

ENVIRONMENT

WATER RESOURCE MANAGEMENT

South-East Asia Good Governance & Sustainability of Biofuels

Developing countries face a wide range of daunting challenges regarding the development and management of water resources. A key task is to conceive and develop the necessary laws, regulations and institutions required to efficiently manage water resources in a more economically productive, socially responsible and environmentally sustainable way. In efforts to address this critical issue, many legal regimes for water resource management are currently being reviewed and amended.

In 2007, IDLO produced a research project on the interplay between good governance, the sustainability of biofuel, and the opportunities for benefiting from the Clean Development Mechanism (CDM) in South-East Asia. The findings were presented at the World Renewable Energy Regional Conference and Exhibition in Jakarta in November, and at a panel discussion at Forest Day, an event held in Bali in December parallel to the UN Framework Convention on Climate Change and Kyoto Protocol Conference of the Parties. A full report is due for publication in 2008. Research Project Sustainable Biofuel in Indonesia: Overcoming Legal, Regulatory and Governance Challenges to the Sustainable Development of Biofuel and Drawing Benefits from the CDM. Donor: The Bill and Melinda Gates Foundation Indonesia Environmental Law IDLO continued its contribution to the Indonesia-Australia Specialised Training Project (IASTP III), a bilateral project supported jointly by the Governments of Australia and Indonesia, by holding a further four one-week capacity-building courses in July 2007 on environmental law enforcement in Indonesia. These highly specialised yet practical courses helped Indonesian judges, prosecutors, police officers, government officials, academics and NGO lawyers understand the importance and implications of environmental law enforcement. ■

Workshops Surabaya, July 9-14 Mataram, July 16-21 Makassar, July 23-28 Timika, July 30-August 4

Donors: Governments of Australia and Indonesia Counterparts: Supreme Court of Indonesia, PT Sucofindo

Leading on from the 2006 series of MDG Seminars on Water Resource Management, IDLO continued to offer training and technical assistance on this subject throughout 2007. South Africa Improving Legal and Regulatory Efficiency for Water Resource Management in South Africa Within the Member Countries of the Southern African Development Community (SADC), the demand for water is projected to rise by at least 3% annually until 2020 - a rate equal to the region’s population growth. As a consequence, it is estimated that by 2025, the SADC population will face significant water scarcity. At the beginning of 2007, IDLO held a workshop in Pretoria on integrated water resource development and management, which provided practical assistance for those working in the South African water sector, including government policy-makers and program implementers, the Water Research Commission and key service providers. ■

Workshop Pretoria, January 22-26

Donor: Food and Agriculture Organization of the United Nations Counterpart: Water Research Commission in Pretoria

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IDLO International Development Law Organization

Cameroon Legal Framework of Integrated Water Resources Management

Asia Pacific Legal Frameworks of Water Resource Management

Half of the Cameroonian population is without access to adequate, safe water supply and a quarter is without access to adequate sanitation services. Water-related diseases account for 65% of all recorded illness and 52% of deaths.

Legal professionals from 13 countries throughout Asia, including lawyers, government officials and engineers working in key positions in the field of water resource management attended the course, which examined the legal challenges in meeting the Millennium Development Goal to halve the proportion of people without sustainable access to safe water and improved sanitation services by 2015.

Poor water resource management in Cameroon is a severe constraint to the sustainable development of the country. Critical water management problems include: inadequate institutional and legal frameworks for the protection and regulation of water resources; inadequate data for informed decision-making; the lack of an integrated water resource management policy; a dwindling flow of rivers and shrinking bodies of water. An IDLO workshop held in November 2007 addressed key aspects of the policy and law-making, implementation and enforcement processes. The workshop was designed to support participants in the effective drafting, administration, implementation and enforcement of new water regulations in Cameroon. ■

Workshop Bamenda, November 5-9

Donor: The Coca-Cola Company Counterparts: Foundation for Environment and Development, Food and Agriculture Organization of the United Nations, Global Water Partnership

■

Regional Workshop Sydney, October 22-November 2

Donors: AusAID, The Bill & Melinda Gates Foundation, The Coca-Cola Company Senegal, Burkina Faso, Benin, Madagascar The Effective Use of Tools for the Management of Water Resources as a Poverty Reduction Strategy Legal professionals and policy-makers from relevant state institutions and water providers in Benin, Burkina Faso, Madagascar and Senegal came together for a regional program which examined the judicial obstacles to the management of integrated water resources. IDLO follow-up activities to support the implementation of local action plans are continuing in 2008. ■ ■

Distance Learning Workshop Rome, October 16 Regional Workshop Dakar, November 17-23

Donor:The Bill & Melinda Gates Foundation

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IDLO International Development Law Organization

GLOBAL HEALTH

MICROFINANCE

China HIV and AIDS Law and Access to Justice

Worldwide Building Inclusive Financial Sectors and Supportive Legal and Regulatory Framework

The Yunnan Province in China is currently facing an advanced HIV epidemic. Despite the fact that China has relatively sound legislation at both national and provincial levels designed to protect those with HIV, these laws are very often not enforced. Wide-spread ignorance of the medical facts relating to HIV and AIDS and the legal rights of people living with HIV (PLHIV) leads to frequent discrimination in all walks of life. IDLO’s 2007 program included a workshop in Yunnan attended by lawyers from legal aid centers and NGOs, as well as legal academics and law society members. The workshop provided specialist education on HIV and AIDS issues, relevant legislation and regulation and advice on how to communicate with PLHIV and key populations at higher risk, such as sex workers and drug users. Following the workshop, IDLO began developing a guidebook on HIV/AIDS and the law which is due to published in 2008. In addition, a formal network of pro-bono lawyers is being established within the Yunnan province, helping to identify those able to advise on the legal rights of PLHIV regarding rights to medical care and treatment, insurance, education, and employment. ■ ■

Workshop December 15 -17 Guidebook on HIV/AIDS and the Law (Yunnan Province) 2007-2008

Donor: The Bill and Melinda Gates Foundation Counterparts: Yunnan Daytop Drug Abuse Treatment Center, Yunnan Righteous Law Firm, Asia Pacific Council of AIDS Service Organizations

Microfinance has become widely recognized as one of the most highly effective tools for alleviating poverty throughout the developing world. What began with scattered grassroots NGOs has rapidly expanded into a fully-fledged global industry, with micro-lenders transforming into regulated banks and traditionally donor-led entities beginning to tap into the financial resources offered by capital markets. IDLO is currently running a three-year worldwide program (200609) which encourages and enables legal professionals to take an active role in the industry by providing advice and assistance on the legal, regulatory and practical aspects of microfinance. In 2007, a dedicated web site was established to provide details of IDLO’s activities in this area and to serve as a reference tool for legal professionals throughout the developing world. www.idlo.int/microfinance Needs Assessments Beijing (China): April 18-25 ■ Dakar (Senegal for Western Africa): February 7-13 ■ Rabat (Morocco for Maghreb & Mauritania): February 26- March 2 ■ Yaoundé (Cameroon): September 5-8 ■

Regional Workshops ■ In English Beijing (China): September 17-28 ■ In Spanish Quito (Ecuador): February 26-March 9 Mexico City (Mexico): October 29-November 9 ■ In French Yaoundé (Cameroon): October 22-November 2 ■ In Arabic Cairo (Egypt): July 1-12 Donor: Omidyar Network Counterparts: Ministry of Microfinance and Decentralized International Cooperation of Senegal, National MFI Association of Cameroon, Ministry of Finance of Cameroon, Sanabel Microfinance Network of Arab Countries, Alexandria Business Association (Egypt), IDLO Alumni Associations in respective countries

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2007 Annual Report / Post-Disaster Legal Support

IDLO International Development Law Organization

Post-Disaster Legal Support

INDONESIA

Post-Tsunami Legal Assistance Initiative for Indonesia and Sri Lanka

Post-Tsunami Legal Assistance Initiative for Indonesia January 2006-December 2007

IDLO’s Post-Tsunami Legal Assistance Initiative for Indonesia and Sri Lanka supported individuals, communities and institutions in the rehabilitation and rebuilding process following the December 2004 Tsunami. With funding from the Government of Italy, IDLO was able to carry out five needs assessment missions to Indonesia and Sri Lanka throughout 2005. These missions revealed that a range of legal issues had risen and would continue to arise as a result of the a significant number of deaths and displacements within the population, the loss of and damage to livelihoods, land and shelter, legal and judicial institutions and government agencies, and civil/personal documentation such as birth and marriage certificates and national identity cards, caused by the tsunami. The Legal Assistance Initiative was implemented from IDLO offices in Banda Aceh in Indonesia and Colombo in Sri Lanka between 2006 and 2007 and focused on: ■

■ ■ ■ ■

Raising awareness of laws and legal issues relating to guardianship, inheritance and land: three of the most important areas in the post-tsunami context. Re-building sustainable economic livelihoods. Re-establishing and strengthening the rule of law and informal dispute settlement mechanisms. Promoting good governance. Assisting vulnerable groups, including women, children, internally displaced persons and poor communities. Addressing the wide-spread lack of understanding and awareness of an individual’s rights and the appropriate legal procedures, particular among women.

Project Highlights 2007 Training of over 1,300 beneficiaries (mostly community leaders) from over 200 villages on mediation skills and laws and legal issues relating to guardianship, inheritance and land. ■ Screening to 3,500 women in 116 villages of a film covering laws and legal issues relating to guardianship, inheritance and land from a gender sensitive perspective. ■ Financial support, technical assistance and training to KKTGA, a leading Acehnese NGO that provides legal aid services to women and children, including those affected by the tsunami. ■ An extensive print media campaign to increase public understanding of topical legal issues and justice sector institutions. ■ Production of a report on “Women and Law in Aceh: PostConflict, Post-Tsunami and Beyond”, available in both Indonesian and English. ■ Continued widespread dissemination of the “Guidebook on Guardianship, Inheritance and Land Law in Post-Tsunami Aceh” and other information resources (produced in 2006). ■

Donors: Ministry of Foreign Affairs of Finland and Government of Ireland (Irish Aid) Counterparts: Rehabilitation and Reconstruction Agency for Aceh and Nias (Badan Rehabilitasi dan Rekonstruks), Shari’a Court (Mahkamah Syar’iyah), Aceh Legal Aid Foundation (Lembaga Bantuan Hukum), Aceh Adat Council (Majelis Adat Aceh), Aceh High Court, Banda Aceh State Court, KKTGA (Kelompok Kerja Transformasi Gender Aceh), Australian-Indonesia Partnership for Reconstruction and Development-Local Governance and Infrastructure for Communities in Aceh, United Nations Development Programme, The World Bank

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2007 Annual Report / Post-Disaster Legal Support

Protecting and Promoting the Legal Rights of Tsunami Children without Primary Caregivers and/or Living with Extended Family Members in Nanggroe Aceh Darussalam May-October 2007 In 2007 IDLO also implemented a short-term project for UNICEF in the Aceh Province on protecting and promoting the legal rights of tsunami orphans. Project Highlights 2007 ■ Production and widespread dissemination of a booklet “20 Frequently Asked Questions on the Guardianship of Children without Parental Care in Post-Tsunami Aceh” covering laws relevant to guardianship and the inheritance of orphans in Aceh, the procedures for legalizing guardianship the benefits of legalizing guardianship, and the obligations of guardians. ■ Training to over 120 staff from UNICEF Child Care Centres and orphanages, the Indonesian Child Protection Secretariat (Dinas Sosial), and the Indonesian Child Protection Inter-Agency. ■ Training on guardianship and inheritance laws for 380 appointed guardians, primary caregivers, and community leaders in 15 tsunami-affected villages. ■ Assisting in the appointment of legal guardians for 150 orphans through the mobile Shari’a Court. Donor: UNICEF Counterpart: UNICEF Supporting the Development of the Justice Sector in Aceh November 2007-November 2008 At the end of 2007, IDLO commenced a 12-month project in the Aceh Province on behalf of OXFAM. This project continues three of the programs implemented by IDLO under the Indonesian component of the Post-Tsunami Legal Assistance Initiative: ■ Training of community leaders on mediation skills and laws and legal issues relating to guardianship, inheritance and land. ■ Continuation of the screening of the IDLO film on laws and legal issues relating to guardianship, inheritance and land. ■ Print media campaign to increase public understanding of topical legal issues and justice sector institutions. Donor: OXFAM Counterpart: OXFAM

IDLO International Development Law Organization

SRI LANKA Post-Tsunami Legal Assistance Initiative for Sri Lanka May 2006-December 2007 Project Highlights 2007 Supporting the Norwegian Refugee Council (NRC) in its work with tsunami and conflict-affected communities in the north and east of Sri Lanka, including its “Information, Counseling, Legal Assistance and Advocacy” program. Legal capacitybuilding training was also provided to NRC staff and partners. ■ In partnership with the Legal Aid Commission of Sri Lanka, provision of training on children’s rights to 300 people working to protect children and their rights, including police officers, probation officers, child rights promotion officers, relevant staff from the offices of the Divisional Secretary, school principals and teachers and journalists. ■ Production and dissemination of 2,500 copies of the “Guidebook on the Rights of the Child in Sri Lanka”. ■ Training and technical assistance on legal issues relating to the provision of microfinance to poor tsunami-affected communities and the establishment of sustainable businesses enterprises in these communities including: microfinance/credit law, business law, contract law, employment law, and consumer protection law. Beneficiaries were over 900 staff and clients of Sarvodaya Economic Enterprises Development Services Gte Ltd, the Sewalanka Foundation and members of the Sri Lanka Microfinance Network ■ Production of training manuals and training of trainers workshops for SEEDS and the Sewalanka Foundation to facilitate on-going grassroots level training on laws and legal issues relating to the provision of microfinance to poor communities and the establishment of sustainable businesses enterprises in these communities. ■ Production and widespread dissemination of 5,000 copies of guidebooks on the “Legal Aspects of Small Business” and “Economic Livelihoods Development”. ■ Technical assistance to the Committee established by the Government of Sri Lanka to consider and report on possible changes to the regulation of non-government organizations in Sri Lanka (which have played a major role in the tsunami recovery and reconstruction effort). ■

Donors: Ministry of Foreign Affairs of Finland and Government of Ireland (Irish Aid) Counterparts: Legal Aid Commission of Sri Lanka, Norwegian Refugee Council, Sarvodaya Economic Enterprises Development Services Gte Ltd, Sewa Lanka Foundation

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2007 Annual Report / Post-Disaster Legal Support

IDLO International Development Law Organization

IDLO Rule of Law Assistance Directory In 2006, a high level expert panel on rule of law convened by the Hague Institute for the Internationalization of the Law (HIIL) 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. This work was carried out in partnership with the HIIL, which conducted parallel research to develop a compendium of theoretical and academic analyses of rule of law. In 2007, IDLO launched its Rule of Law Assistance Directory on a dedicated website containing a database of rule of law initiatives undertaken worldwide in the past four years. The Directory includes a comprehensive list of organizations working in this specialist field, along with a full profile of their programs. Users can search for information by donor/implementer, type of project, location or year. No password or subscription is needed. In addition to being a gateway for information, the web site is also designed to be a forum for development professionals in the rule of law field who wish to exchange information, generate debate and harmonize strategies. The Directoryâ&#x20AC;&#x2122;s extensive list of contacts provides substantial networking and information gathering opportunities.

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2007 Annual Report / IDLO Governance and Advisory Structure

IDLO International Development Law Organization

IDLO GOVERNANCE AND ADVISORY STRUCTURE

At the Assembly of Parties on March 28, 2008, the Parties formally approved an amendment to the Agreement for the Establishment of IDLO. The governance structure of the Organization is now composed of: The Assembly of Parties is composed of all representatives of IDLO’s Member States. The Assembly is IDLO’s highest decisionmaking body and it convenes in Rome at least once a year. The role of the Assembly is to determine the Organization’s policies and oversee the work of the Director-General. Its duties include the adoption of the budget, the action plan and the by-laws for the governance of the Organization and the appointment of the Director-General and members of the Board of Advisers. The parties to IDLO’s establishment agreement are currently: ■ ■ ■ ■ ■ ■ ■ ■ ■

Australia Austria Bulgaria Burkina Faso Colombia Ecuador Egypt France Italy

■ ■ ■ ■ ■ ■ ■ ■ ■

Norway Philippines People’s Republic of China Romania Senegal Sudan The Netherlands Tunisia United States

The Board of Advisers includes a maximum of ten members elected by the Assembly for a four-year term. Half the members are renewed every two years. All Board Members are selected on the basis of their expertise in the fields of development or law or their experience of the management of international organizations. They serve in their personal capacities and not as representatives of their governments or organizations. Meetings of the Board are convened at least once a year prior to the regular meeting of the Assembly. The Standing Committee provides the link between the Assembly, the Board of Advisers and the Director-General. It includes the President and Vice-Presidents of the Assembly, the Chairman and Vice-Chairman of the Board, and on a rotational basis, a Representative of a State Party (ad hoc member), for a one year term. Its main function is to monitor the proper implementation of the budget and report on this item to the Assembly. The Standing Committee meets at least every two months and prepares the meetings of the Assembly. The International Advisory Council was established in 2006 to bring new and wise voices into IDLO’s planning and to help emphasize the importance of IDLO’s role to the global audience. The profile for membership on the Council includes people of 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

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President Abdou Diouf Secretary General, International Francophony Organization, Former President of the Republic of Senegal

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Mr. William H. Gates Sr. Co-Chair, Bill and Melinda Gates Foundation

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President Mary Robinson Chair, Ethical Globalization Initiative, Former President of the Republic of Ireland, Former UN High Commissioner for Human Rights

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Justice Albie Sachs Justice, Constitutional Court of South Africa

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Mr. Thomas Pickering Former US Assistant Secretary of State of Political Affairs

The following countries are in the process of becoming parties: ■ ■ ■ ■ ■ ■

Afghanistan Central African Republic Georgia Jordan Kazakhstan Madagascar

■ ■ ■ ■ ■

Mauritania Mozambique Poland Republic of Congo Turkey

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2007 Annual Report / Facts and Figures

IDLO International Development Law Organization

FACTS AND FIGURES BALANCE SHEET (Euro) As at December 31, 2007

Assets ■ Current assets – Cash (Note 3) – Deposits (Note 4) – Accounts receivable – Prepaid expenses Total current assets

2007

2006

6,194,433 3,376,333 1,392,207 194,959 11,157,932

3,591,450 38,200 756,335 185,936 4,571,922

300,145 2,281,309

159,686 745,392

759,482 10,641,456 11,400,938

777,580 11,923,925 12,701,505

13,982,392 25,140,323

13,606,583 18,178,505

285,926 2,565,059 8,815,706 11,666,691

285,671 969,920 2,839,435 4,095,025

11,666,691

4,095,025

12,706,369 767,263 13,473,632 25,140,323

13,316,217 767,264 14,083,480 18,178,505

■

Non current assets – Fixed assets, net of depreciation (Note 5) – Leasehold improvements, net of depreciation (Note 5) – Investments: Donor endowment funds (Notes 6.1, 9) General endowment fund (Notes 6.2, 9)

Total non current assets Total assets Liabilities and fund balances ■ Current liabilities – Accounts payable and accrued expenses – Short Term Financial Debts (Note 7) – Deferred revenue and grants received in advance (Note 8) Total current liabilities Non current liabilities Total liabilities ■

Fund balances – Unrestricted (Note 9) – Restricted (Notes 9) Total fund balances Total liabilities and fund balances

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2007 Annual Report / Facts and Figures

IDLO International Development Law Organization

STATEMENT OF SUPPORT REVENUE & EXPENSES (Euro) As at December 31, 2007 2007

2006

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

2,409,547 302,527 10,012,132 (18,098) 71,698 12,777,806

3,744,051 242,688 7,762,329 9,649 239,731 11,998,447

Program services Project activities Travel & per diem - participants

4,691,929 6,658,930 128,775 11,479,634

5,129,693 5,591,001 373,604 11,094,298

General administration and fundraising Depreciation Total expenses

1,610,533 227,189 1,837,722 13,317,355

1,537,128 177,975 1,715,103 12,809,401

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

(539,549)

(810,954)

9,050

1,061,802

(95,826) 16,478 (609,847)

(30,280) 7,011 227,579

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

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IDLO International Development Law Organization

STATEMENT OF CONTRIBUTION AND SPONSORSHIP INCOME For the Year Ended December 31, 2007 (Euro) Restricted and Unrestricted Grant Donors Arab Fund for Economic and Social Development (AFESD) Australian Agency for International Development (AusAID)

in 2007

Total grants utilized in 2006

Total grants utilized in 2005

Euro

–

14,605

41,914

Projects activities

Fellowships & other

Total restricted

Total unrestricted

Deferred to 2008

Total grants

Euro

–

39,277

–

39,277

8,699

–

47,976

33,846

252,393

Government of Canada (CIDA & DFAIT) 1,716,342 Government of China – Government of Finland 1,050,020 Government of France 30,588 Government of Ireland (Irish Aid) 104,698 Government of Italy 3,386,159 Government of the Netherlands – Government of the Philippines – Government of Senegal – Kuwait Fund for Arab and Economic Development (KFAED) – Microsoft Corporation 92,308 Norwegian Agency for Development Cooperation (Norad) – OPEC Fund for International Development (OFID) – Swedish International Development Cooperation Agency (Sida) – United Stated Agency for International Development (USAID) 612,333

– – 260,000 – – – – – –

1,716,342 – 1,310,020 30,588 104,698 3,386,159 – – –

– 6,803 – 100,000 100,000 1,032,913 – – 102,041

201,201 – 75,007 57,700 67,245 6,443,609 – – –

1,716,342 6,803 1,310,020 130,588 204,698 4,419,072 – – 102,041

1,656,667 7,968 924,693 86,693 322,959 5,199,061 762,948 25,251 119,522

1,103,005 15,471 89,942 175,440 143,068 4,263,499 400,000 20,106 109,764

– 84,615

– 176,923

– –

8,873 156,463

– 176,923

240,507 159,363

111,008 160,000

–

432,280

–

432,280

431,111

458,820

69,444

–

69,444

79,681

4,180.80

–

273,904

250,393

–

612,333

–

305,688

612,333

73,742

61,764

Total income from grantors

414,060 0

7,445,785

1,782,735

7,315,787

9,228,520

10,412,520

7,660,767

– –

– 64,437

14,400.00 –

– – – – 59,559

55,882 – – – 117,441

– – – – –

– – 18,762 14,991 24,757

55,882 – – – 117,441

71,713 43,825 – 65,476 7,268

60,000 – – – 7,297

– – –

712,501 19,231 564,451

– – –

– – 167,078

712,501 19,231 564,451

459,610 – –

461,448 – –

–

8,000

19,568

–

87,064

–

27,955

–

– – – –

– 920,983 – 22,176

– – – –

– 1,271,408 2,924 –

– 920,983 – 22,176

27,955 151,984 – 21,494

– – – 21,580

–

409,679

–

409,679

–

7,031,725

Restricted Project Sponsors ABA CEELI – Embassy of France in Dakar – Arab Bank for Economic Development in Africa (BADEA) 55,882 Astaldi – Baker & McKenzie - Chicago – The Carnegie Corporation – The Coca-Cola Company 57,882 European Bank for Reconstruction and Development (EBRD) 712,501 Food and Agriculture Organization (FAO) 19,231 The Bill and Melinda Gates Foundation 564,451 Tanzania Global Development Learning Center (TGDLC) – International Development Association (World Bank) – KPMG GJLOS - Reform Programme - Kenya – Ministry of Justice & Constitutional Affairs - Uganda – Omidyar Network 920,983 Sagric International – The World Bank Institute (WBI) 22,176 The World Bank Procurement Project in Afghanistan (Charles Kendalls lead partner) 409,679 United Nations Development Programme (UNDP) – United Nations Office on Drugs and Crimes (UNODC) 33,830 White & Case – World Trade Organization (WTO) 108,237 Independently funded – Others 33,540

1688.21

1,688

–

1,688

102,869

103,281

– – – 201,144 –

33,830 – 108,237 201,144 33,540

– – – – –

33,830 – 108,237 201,144 33,540

– 7,968 131,677 105,628 48,337

– 8,970 74,409 58,160 48,530

Total income from project sponsors

2,938,390

262,391

3,200,782

–

1,499,920

3,200,782

1,281,758

964,707

Total income from grantors & project sponsors

9,970,115

676,451

10,646,567

1,782,735

8,815,707

12,429,302

11,694,278

8,625,474

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IDLO International Development Law Organization

STATEMENT OF CHANGES IN FUND BALANCES FOR THE YEAR ENDED December 31, 2007 General endowment fund 7,589,459

Operational reserve 151,860

Total unrestricted 10,352,483

Donor endowment funds 767,263

Total all fund 11,119,746

– – –

1,078,548 – 94,134

– – –

1,078,548 – 94,134

Net change in fund balances 1,172,682 Total fund balances before transfer to endowments 3,783,845 Transferred to general endowment fund (1,002,546) Fund balances at 31 December 2003 2,781,299

– 7,589,4559 1,002,546 8,592,005

– 151,860 – 151,860

1,172,682 11,525,165 – 11,525,165

– 1,172,682 767,263 12,292,428 – – 767,263 12,292,428

Fund balances at January 1st 2004 2,781,299 Excess of support & revenue over expenses before the effect of foreign exchange rate movements 195,209 Additional capital grant – Effect of foreign exchange rate movements (30,992)

8,592,005

151,860

11,525,165

767,263 12,292,428

– 1,518,603 –

– – –

195,209 – (30,992)

164,218 2,945,517 (122,845) 2,822,671

1,518,603 8,592,005 1,641,448 10,233,454

– 151,860 – 151,860

1,682,820 11,689,382 1,518,603 13,207,985

– 1,682,820 767,263 12,456,646 – 1,518,603 762,263 13,975,249

Fund balances at January 1st 2005 2,822,671 Excess of support & revenue over expenses before the effect of foreign exchange rate movements (111,661) Additional capital grant – Effect of foreign exchange rate movements 3,026

10,233,454

151,860

13,207,985

762,263

13,975,249

– – –

(111,661) – 3,026

– – –

(111,661) – 3,026

Net change in fund balances Total fund balances before transfer to endowments Transferred to general endowment fund Fund balances as at December 31, 2005

(108,635) 2,714,037 154,578 2,868,615

– 10,233,454 (154,578) 10,078,875

– 151,860 – 151,860

(108,635) 13,099,351 – 13,099,351

– (108,635) 767,263 13,866,614 – – 767,263 13,866,614

Fund balances at January 1st 2006 2,868,615 Excess of support & revenue over expenses before the effect of foreign exchange rate movements 210,185 Additional capital grant – Effect of foreign exchange rate movements 6,681 Net change in fund balances 216,866 Total fund balances before transfer to endowments 3,085,481 Transferred to general endowment fund (125,119) Fund balances as at December 31, 2006 2,960,362

10,078,875

151,860

13,099,351

767,263

– – – – 10,078,875 125,119 10,203,994

– – – – 151,860 – 151,860

210,185 – 6,681 216,866 13,316,216 – 13,316,216

– 210,185 – – – 6,681 – 216,866 767,263 14,083,480 – – 767,263 14,083,480

10,203,994

151,860

13,316,216

767,263 14,083,480

– –

(626,325) 16,478

– 10,203,994 – 10,203,994

– 151,860 – 151,860

(609,847) 12,706,369 – 12,706,369

Unrestricted 2,611,163

Fund balances at 1 January 2003 Excess of support & revenue over expenses before the effect of foreign exchange rate movements 1,078,548 Additional capital grant – Effect of foreign exchange rate movements 94,134

Net change in fund balances Total fund balances before transfer to endowments Transferred to general endowment fund Fund balances as at December 31, 2004

Fund balances at January 1st 2007 2,960,362 Excess of support & revenue over expenses before the effect of foreign exchange rate movements (626,325) Effect of foreign exchange rate movements 16,478 Net change in fund balances Total fund balances before transfer to endowments Transferred to general endowment fund Fund balances as at December 31, 2007

(609,847) 2,350,515 – 2,350,515

– – –

– –

195,209 – (30,992)

13,866,614

(626,325) 16,478

– (609,847) 767,263 13,473,633 – – 767,263 13,473,633

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IDLO International Development Law Organization

STATEMENT OF CASH FLOWS For the Year Ended December 31, 2007 (Euro) Cash flows from operating activities 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 – Increase/decrease in other debtors and prepayments – Increase/decrease in accounts receivable - operations – Increase/(decrease) in accounts payables – Increase/(decrease) in Short Term Debts Payable – Increase/(decrease) in deferred revenues and grants received in advance

2007 (609,847)

2006 216,866

227,189 (9,050) (9,023) (635,872) 255 1,595,139 5,973,989 6,532,780

169,596 (1,011,816) (120,847) 474,268 (403,792) 969,920 (1,677,960) (1,383,766)

Cash flows from investing activities – Purchase of fixed assets

(1,903,564)

(235,953)

– (Increase)/decrease in deposits – Proceeds from the sale of fixed assets – Investment of amounts transferred (to) / from general endowment fund

(3,338,405) – 1,314,203

– – 48,413

Net cash used in investing activities – Increase/(decrease) in cash

(3,927,766)

(187,540)

2,605,014 3,589,419 6,194,433 (2,565,059) 3,629,374

(1,571,306) 5,162,756 3,591,450 (969,920) 2,621,531

Net cash provided by operating activities

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

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IDLO International Development Law Organization

Notes to the financial statements

amounts received but not yet earned are reported as deferred revenue. It should be noted that IDLO currently has an unrecorded receivable in the amount of US$ 2,000,000 from the Bill and Melinda Gates Foundation. These are restricted funds for project activities. Because funds are disbursed on a yearly basis following the acceptance of an annual activity report, these funds are recorded upon receipt.

For the year ended December 31, 2007 and 2006 (amounts in Euro) NOTE 1: THE ORGANIZATION The International Development Law Organization (IDLO or the Organization), headquarters in Rome, Italy, Via di San Sebastianello 16, is an international intergovernmental organization. Its 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 20 March 1992, amended 19 July 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. The Organization also maintains regional offices in Sydney, Australia and Cairo, Egypt. IDLO promotes the use of legal resources in the development process in developing and transition economy countries through training, technical assistance, research and publication.

■

Tuition revenue Tuition revenue (fellowships) relating to course participation is recognized over the term of the applicable course.

■

Foreign exchange Revenue and expense items in currencies other than Euro 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 Euro are credited or charged to the Statement of Support, Revenue and Expenses.

■

Euro conversion IDLO conducts its operations in several currencies and has maintained its accounting records in Euro since 2007. This change occurred because IDLO’s headquarters are located in a Euro zone country and due to increasing expenses for both operational and projects in Euro. Thus, financial statements for year ended December 31, 2007 are expressed in Euro for the first time. All balances in United States Dollars have been converted to Euro at the date of January 1, 2007 by applying the exchange rate between the Euro and USD at the date of conversion, corresponding to € 1 = US$ 1,317.

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 2007, IDLO received support from fifteen governmental donors (2006: seventeen). 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. IDLO is governed by an Assembly of Member States and Board of Directors. Decisions of the Board of Directors are deemed ratified by the Assembly of Member States unless objected to within 90 days of any such decisions.

Only for comparison purposes, the figures shown on the financial statements at December 31, 2006 have been converted with the exchange rate of December 31, 2006 (€ 1 = US$ 1,317) for balance sheet items, and with the year 2006 average rate of exchange (€ 1 = $ 1,255) for income statement items.

The number of personnel employed by the Organization was 86 as at December 31, 2007 (2006: 90). 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

■

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 recorded at market value. Both realized exchange and security gains and losses and unrealized security gains and losses are reflected in income from investments.

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■

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

IDLO International Development Law Organization

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. NOTE 3: CASH Cash balance is determined by cash held in IDLO bank accounts and petty cash. An amount equivalent to € 6,194,433 (2006: € 3,591,450 equivalent to US$ 4,729,940) Of the total, approximately € 2,474,328 represents cash received by donors restricted to specific projects. NOTE 4: SHORT TERM INVESTMENTS As at December 31, 2007, IDLO has deposited in separate accounts with Banca Antoniana Popolare Veneta an amount equivalent to € 3,333,333 in short term deposits for specific related projects. The deposits have a maturity of over three months but less than a year.

NOTE 5: FIXED ASSETS The following table presents the changes in fixed assets: Leasehold Improvements

Furniture Equipment & Vehicles

€3,036,620

€1,148,122

€4,184,742

€1,670,047 – €4,706,667

€233,518 – €1,381,640

€1,903,565 – €6,088,307

€2,291,228

€988,436

€3,279,664

Balance as of December 31 2007

€134,129 – – €2,425,357

€93,060 – – €1,081,496

€227,189 – – €3,506,853

Net Book Value Balance as of December 31 2007 Balance as of December 31 2006

€2,281,310 €745,392

€300,144 €159,686

€2,581,453 €905,078

Cost ■

Balance as of January 01 2007 – Additions – Disposals Balance as of December 31 2007 Accumulated Amortization ■ Balance as of January 01 2007 – Amortization charges – Disposal of assets – Other movements

The significant additions of the period are related to the expenses occurred for the new headquarters in Rome.

TOTAL

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IDLO International Development Law Organization

NOTE 6: INVESTMENTS In 2007 UBS, the Organization’s 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, yield bonds, equities and alternative investments.

At December 31, 2007, the net investment loss of the Arab Endowment, was (€ 10,898) (2006 marked an income of € 13,917 equivalent to US$ 18,329). The principal amount of this fund is of € 457,310. At December 31, 2007, the net investment loss for the Kuwait Endowment was (€ 7,201) (2006 marked an income of € 9,195 equivalent to US$ 12,110). The principal amount of the fund is of € 302,172.

NOTE 6.1: DONOR ENDOWMENT FUNDS The “Donor Endowment Funds“ represent restricted endowment contributions by donors, which include a fund established pursuant to a grant from the Kuwait Fund for Arab and Economic Development (the “Kuwait Endowment”) and a fund established pursuant to a grant from the Arab Fund for Economic and Social Development (the “Arab Endowment”).

Given the loss on net investment on the Donor Endowment Funds in 2007, no amounts have been transferred to accounts receivable as in past years.

Income of the Arab Development is determined at year-end. It is subsequently recognized when utilized for fellowships. Income from the Kuwait 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.

The principal amount of € 759,482 represents funds subject to restrictions requiring that, unless otherwise agreed with the donors, the principal shall be retained and invested for the long term. The balance at December 31, 2007 representing the total market value of the Donor Endowment Funds was € 759,482 versus € 777,581 at December 31, 2006, constituting an unrealized loss of € 18,099. Movements on these investment accounts in 2006 and 2007 are as follows: Arab Fund

Kuwait Fund

TOTAL

Balance as of January 01 2006 Realized / unrealized gain or loss Transfers to bank accounts receivables Balance as of December 31 2006

468,208 13,917 (13,917) 468.208

309,373 9,195 (9,195) 309,373

777,581 23,112 (23,112) 777,581

Balance as of January 01 2007 Realized / unrealized gain or loss Transfers to accounts receivables Balance as of December 31 2007 Transfers to accounts receivables Amount of Original Contribution

468,208 (10,898) – 457,310 – 259,446

309,373 (7,200) – 302,172 – 309,373

777,581 (18.099) – 759,482 – 568,819

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IDLO International Development Law Organization

NOTE 6.2: GENERAL ENDOWMENT FUND In 1986 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.

NOTE 9: FUND BALANCES The following table shows the fund balances at December 31, 2007 and 2006 for the General Endowment and Donor Endowment Funds.

The General Endowment Fund investments at year end December 31, 2007 were € 10,641,456 (2006: € 12,563,047 equivalent to US$ 15,703,809), 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.

■

The General Endowment Fund is not subject to any restrictions with respect to the use of income.As such, subject to approval of the Board of Directors, the Organization may use income derived from the investment of these funds for general operating and administration costs. The expressed intention of the Board of Directors is to preserve the General Endowment Funds principal until a designated sustainability target reached. At December 31, 2007 no amounts had been transferred. NOTE 7: SHORT TERM FINANCIAL DEBTS 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 the IDLO Endowment Fund as collateral. The Board of Directors approved to use this credit line in the establishment and start up phase of the IDLO Arab Regional Office - Dr. Ibrahim Shihata Center. As at December 31, 2007, IDLO has current liabilities totaling € 2,565,059 which includes principal value of € 2,469,232 and accrued interest of € 95,826. NOTE 8: DEFERRED REVENUE AND GRANTS RECEIVED IN ADVANCE The balance of € 8,815,706 (2006: € 2,839,435) equivalent to US$ 5,952,083) includes grants received and not utilized as at December 31, 2007, and grants received in advance for 2008.

■

Unrestricted: Unrestricted operating fund Operational reserve General endowment fund Unrestricted fund balance Restricted: Donor endowment funds Total fund balances

2007

2006

2,350,515 151,860 10,203,994 12,706,369

2,960,362 151,860 10,203,994 13,316,216

767,263 767,263 13,473,632

767,263 14,083,480

Additional information on the Donor Endowment Funds and the General Endowment Fund is set out in Notes 6.1 and 6.2 respectively. It should be noted tha IDLO’s new headquarters in Rome located in Viale Vaticano 106 has been financed by a grant made available in 2005 by the Bill & Melinda Gates Foundation. A total amount of US$ 2,000,000 (€ 1,773,324) has been made available to IDLO in year 2005.These funds were restricted to the renovation works of IDLO’s new premises and the effective move as of February 2008.

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IDLO International Development Law Organization

NOTE 10: PROVIDENT FUND All eligible staff participate in the IDLO provident fund, which is a defined contribution retirement plan. The benefits are paid at retirement or termination of employment. This plan is funded by a mandatory seven percent contribution from employees' salaries, an additional fourteen percent matching contribution by IDLO and further voluntary contributions by each participant.

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:

The provident fund investments are managed by a third party advisor. IDLO's contribution to this fund was for the year ended December 31, 2007 € 334,602 (2006 € 269,348 equivalent to US$ 354,731). These amounts are included in the Statement of Support, Revenue and Expenses for both 2007 and 2006 as they represent employment expenses for the Organization.

■

NOTE 11: TAXATION The position of IDLO with respect to taxation in Italy is established in the Headquarters Agreement. Article IX, Section 12 of the Headquarters Agreement exempts “the Organization, 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 Organization, 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 Organization”.

■ ■

Year 2008: Euro 467,473,00 Year 2009: Euro 465,468,00 Year 2010: Euro 507,153,00

NOTE 13: SUBSEQUENT EVENTS As of February 25, 2008 the market value of IDLO’s General Endowment Fund and Donor Endowment Funds amounts to € 10,673,385 and from December 31, 2007 to February 25, 2008 the value of the Endowment Fund decreased by € 727,553.

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Contacts HEADQUARTERS Viale Vaticano, 106 00165 Rome – Italy Tel. +39 06 40403200 Fax. +39 06 40403232 idlo@idlo.int REGIONAL CENTERS Arab Regional Office: “Ibrahim Shihata” Center 47/C Abou El-Feda Street, 11211 Zamalek, Cairo Egypt Tel. + 202 73 50 116 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), Kabul (Afghanistan)

www.idlo.int

Cover photos: Guido Arreghini (left) Caterina Falomo (right) graphic layout: tr e associati - rome