US embassy cable - 04DJIBOUTI452

C O N F I D E N T I A L SECTION 01 OF 02 DJIBOUTI 000452 
 
SIPDIS 
 
STATE FOR AF AND AF/E 
STATE PASS USAID 
 
E.O. 12958: DECL: 03/28/2014 
TAGS: PREL, PGOV, ECON, EAID, PHUM, SCUL, LE, SG, DJ 
SUBJECT: DJIBOUTI'S MFA HIGHLIGHTS MOVE TOWARDS MILLENNIUM 
CHALLENGE ACCOUNT ELIGIBILITY 
 
Classified By: AMBASSADOR MARGUERITA D. RAGSDALE. 
REASONS 1.4 (B) AND (D). 
 
 1. (C) In Ambassador's recent meeting with Mahmoud Yusuf 
Ali, Minister for Cooperation at the Ministry of Foreign 
Affairs, Ali stated that he believed all U.S. criteria and 
standards under the Millennium Challenge Account (MCA) were 
achievable for Djibouti.  Democracy, he said, is Djibouti's 
ultimate objective and it recognizes the need to consider 
most productive ways to achieve that. 
 
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Progress at the Political Level 
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2. (C) Ali took pride in what he described as national 
reforms at the political level. He noted the country's 
progression from single party representation to four parties, 
and finally to a "genuine, multi-party system," culminating 
in the intention to host regional elections in October of 
this year.   On human rights, he said a committee has been 
established to look at the preservation and guarantee of 
human rights.  In addition, Djibouti has "no political 
prisoners" and its prisons remain open venues for inspection. 
 
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At the Justice Level 
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3. (C) At the judicial level, Djibouti has moved forward 
toward judicial reform, Ali emphasized.  A "concierge" to 
control the workings of the judicial system has been set up 
and it is an organ that respects separation of state and 
judiciary.  In addition, a state inspection committee is 
already operating with a function to prevent delays in 
judicial matters. 
 
4. (C) Ali said Djibouti is also taking steps to improve 
quality, integrity, and efficiency of judges.  For starters, 
it is raising salaries in order to encourage better justice 
performance.  He lamented the lack of a sufficient number of 
trained judges in Djibouti and said Djibouti is asking 
countries with a similar language and culture to loan judges 
for perhaps two to three years.  Lebanon has already been 
approached as its Court of Appeals system is similar to 
Djibouti's.  Senegal may also be approached.  The Government 
of Djibouti has dismissed an option to use French judges who 
are at the end of their careers in France.  Ali said France 
already has great influence in Djibouti at the economic 
level, thus it was believed "unwise" to open doors to their 
influence at the judicial level as well.  He said Djibouti 
wants greater transparency in its judicial system.  What 
happened with the Exxon-Mobil case (subsequent change of 
verdict), is an example of the system's failure, in this 
area, Ali said.  (Comment:  We have argued that is an 
egregious example of justice poorly served. End comment.) 
 
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And at the Economic Level 
------------------------- 
 
5. (C) Ali noted reforms currently under way, economically, 
in Djibouti.  He also said that a closer examination of 
economic assistance by donors is needed to ensure they are in 
synchronization with government objectives.  Djibouti prefers 
a "program approach" to assistance rather than a "project 
approach," Ali said.  Arab states in the past had bilateral 
assistance programs with Djibouti, but shifted to 
multilateral giving through loans at favorable interest 
rates.  Djibouti has limited capacity to service these loans, 
Ali added, but is grateful for their investment in 
infrastructure.  The Kuwait Fund, he said, has invested in 
Djibouti's port and other funds in its energy sector.  Now 
the Arab Fund is investing in housing.  He indicated that 
Gulf country aid to Djibouti has slowed considerably in 
recent years, adversely affected by the two Gulf wars.  Also, 
Ali admitted, loans are increasingly seen by the Funds as a 
better way to exercise control over disbursements. 
 
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Comment 
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6. (C) Despite the optimism of the Minster of Cooperation, 
Djibouti has considerable distance to go to attain 
eligibility for the incentive-based supplement to aid called 
the Millennium Challenge Account.  While "encouraging 
economic freedom" and "investing in people." as policy 
categories, would yield a more favorable report card, there 
is still too much room for improvement in the category of 
"ruling justly" to cross the threshold in the short term. 
End comment. 
RAGSDALE