Counterpart Alliance for Partnership program for the West NIS region with the support of the Eurasia 
Foundation and financed by USAID and the Charles Stewart Mott Foundation, this book proved to be 
a valuable resource for Central Asia. The book examines the international principles underlying 
taxation of noncommercial organizations (including economic activity of NCOs, tax benefits for 
NGOs, etc.) and selected international best practices in the taxation of NCOs with analytical materials 
and excerpts from legislation from the European Union, Hungary, Spain, the United States, and 
France. One thousand copies of the book were released. All publication costs were paid by GTD. 
K
AZAKHSTAN
On June 22, 2002, ICNL experts made a presentation in Astana to Kazakh government officials and 
selected NGOs on social partnership and social procurement issues. The training was organized at the 
behest of USAID, KNOK, a Kazakhstan NGO, and Arizona Kazakhstan Partnership, an American 
NGO, with the cooperation of the Ministry of Culture, Information, and Social Harmony (known by 
its Russian acronym as MKIOS) which provided its conference room as the training venue. Since 
KNOK was planning to take a small group of high ranking Kazakh government officials to St. 
Petersburg and Moscow to examine the Russian experience with state procurement of social services 
from NGOs, it was important that those officials be properly educated on best practices in state 
financing of NGOs and could distinguish between positive and negative practices in Russian 
procurement legislation. It is expected that that the officials could use this knowledge in influencing 
the drafting of Kazakh legislation on social procurement. 
The seminar was opened by Valentina Sivrukova, KNOK president, who described the trip's agenda 
and the progress being made in the implementation of the government Concept on State Support of 
NGOs and the development of the Program of State Support of Nongovernmental Organizations in 
the Republic of Kazakhstan that is expected to be adopted by September 2002. She was followed by 
Alexander Nisengolts of ICNL who spoke about the important economic role of the NGO sector in 
countries across the world, state NGO social partnerships, and public participation mechanisms used 
internationally. ICNL's new Legal Consultant for Kazakhstan Vsevolod Ovcharenko then spoke about 
Kazakh legislation affecting government financing of NGOs, including the Constitutional prohibition 
of financing of public associations, the new Kazakhstan law on state procurement and other 
legislation affecting the development of social partnerships in Kazakhstan. The final presentation was 
by ICNL's Dinara Mirzakarimova who described Russian federal and local legislation regulating 
social procurement and highlighted both positive and negative aspects of this legislation. The 
participants were very impressed by the comprehensiveness of the presentations and the depth of the 
legal analysis provided by ICNL experts. ICNL will continue to monitor the development of social 
procurement legislation in Kazakhstan and provide technical assistance to interested NGOs and 
government officials.  
ICNL has also provided technical assistance and programmatic monitoring to the Central Asian 
Institute for Development (CAID), which is developing a draft law on state social procurement in 
Kazakhstan. The CAID project seeks to develop draft mechanisms that would foster state support of 
NGOs and NGO participation in state procurement of social services in accordance with international 
best practices. As part of its assistance ICNL has drafted a glossary of terms used in state social 
procurement and provided the CAID working group with model laws on state social procurement 
from other countries. ICNL has also contributed to the writing of the analytical report that examines 
the necessity of adopting social procurement legislation in Kazakhstan and presented extensive legal 
analyses of legislation and existing practices governing state financing of NGOs in Kazakhstan, 
Central and Eastern Europe, and the NIS.  In addition, ICNL has assisted the CAID working group in 
developing the draft law on state social procurement in Kazakhstan. The initial draft of the law and 
the analytical report are expected in July or August 2002. ICNL remains committed to working with 
CAID on this project and the development of social procurement legislation in Kazakhstan that will 
improve the long term sustainability of the NGO sector and reflect international best practices in the 
state procurement of social services. 
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