Not long ago, President Václav Klaus made the controversial comment that non-governmental organizations (NGOs) were almost on the same level as communism, lacking democratic features. Petr Hlobil, campaign coordinator for NGO Bankwatch Networks, offers a different opinion on the role of NGOs in Europe. As a representative of the organization that ensures the effective use of European Union funds in Central and Eastern Europe, Hlobil talks with The Prague Post about what the Czech Republic and other new EU member states need to do in order to effectively draw EU funds.

1. CEE Bankwatch network is celebrating its 10th anniversary this year. What are the milestones in your business here?

After setting up a network in Central Europe and establishing ourselves on a firm footing in the '90s, we recently started to work more closely with NGOs from the former Soviet Union, Central Asia and the Balkan countries. This work shifts our focus from examining not just the environmental impacts of the investments funded by publicly financed banks, such as the World Bank or the European Bank for Reconstruction and Development, but social and human rights issues, too.

2. What do you regard as Bankwatch's most significant achievements?

We have successfully demonstrated to local organizations and communities with whom we work closely that they should not be afraid to stand up and fight for their rights. This kind of impact is crucial for the long-term development of our region.

3. In 2000, during the World Bank and International Monetary Fund's summit in Prague, the summit was advertised as a unique opportunity to better introduce the Czech Republic to finance gurus, and to attract more investment in this country. Do you think those expectations have been met?

I don't think the Prague 2000 summit made much difference in this regard. The Czech Republic is able to attract foreign investors through direct and indirect public subsidies and special tax regimes. However, this of course happens at the expense of small local businesses, which do not enjoy the same special treatment as large multinational corporations.

4. Why do you think the Czech Republic and other new member states lag behind in terms of drawing EU money and implementing projects subsidized by the EU?

I would see several reasons for this. First, the state administrations are still in the learning phase, and are not experienced enough with utilizing the opportunities that the EU offers newcomers. In some cases, the smell of EU money seems to induce a rush, and flawed project proposals are submitted without adequate consideration being given on how to implement them in line with EU requirements.

5. Given the high deficit of the Czech Republic's state budget and the EU requirement to co-finance particular projects, do you think this country can afford to draw all of the available EU subsidies?

I would not say the basic problem is not 'fiscal insufficiency,' but rather the fact that our country is lacking when it comes to the quality of its strategizing and fiscal discipline. Bankwatch suspects there will be cases where project costs might be artificially inflated and, as a result, will require higher amounts of co-financing than can be fully and reasonably justified.

6. Do you think the decreasing role of national governments within the EU gives NGOs unprecedented opportunities to take more control of the business environment?

I hope that EU integration will lead to the transfer of increased power from national governments toward regional and local bodies. But it's also clear that multinational corporations are already beyond national control — in fact, they operate without any meaningful control. And here the EU could play a very positive role. But I do not believe that anyone considers joining an NGO with the ambition to control anything, including the business environment.

7. President Klaus said recently that NGOism is for him almost on the same level as communism. He pointed out what he perceived to be the nondemocratic features of NGOs. How would you respond to that remark?

We should not waste our time on such rhetoric. Klaus is right to be afraid of NGOs, including those with whom he works very closely: They are helping to build a strong civic society, with self-confident citizens. Such a society bolstered by pro-active citizens reduces the possibility for political and social experiments, and promotes consensus building among a range of formal and informal players.

8. The World Bank received sharp criticism in Slovakia after the opposition complained that the bank intervened in Slovak domestic politics by advising the government how to fight the opposition. Do you think it is justifiable for the World Bank to make such recommendations to a government?

Of course it is not justifiable, but it is not surprising. If you take even a quick look at how the World Bank operates, that institution is very often influencing national policies and legislation. They do it behind closed doors. But when you ask the World Bank to do something to protect human rights in countries like Belarus or Uzbekistan, bank representatives will tell you that the bank cannot intervene in national politics.

9. In Slovakia, the World Bank reportedly recommended that the government emphasize the opposition's intention to destroy its widely praised but unpopular reform program. Do you think the ruling Social Democrats here could also use this World Bank recommendation in the run-up to next summer's general election?

Well, Slovakia has become an interesting political laboratory, so I am sure the World Bank and their consultants want to continue testing there. But it is up to Slovak citizens to decide which way to go. And I believe that in Slovakia they have the same problem we have here — politicians never ask people how their quality of life can be improved because they already have the answers, which are unfortunately often supplied by PR agencies and World Bank consultants.

10. Now, let me ask a personal question. Working for an NGO suggests that you are independent from various political pressures. Do you really feel independent in your work?