US embassy cable - 05SANAA9

UNCLAS SECTION 01 OF 02 SANAA 000009 
 
SIPDIS 
 
SENSITIVE 
 
USAID FOR MCC AND ANE 
 
E.O. 12958: N/A 
TAGS: KMCA, KCOR, PGOV, YM, KMEPI, ECON/COM, DEMOCRATIC REFORM, HUMAN RIGHTS 
SUBJECT: MCC VISITS SANAA: YEMEN ON THE THRESHOLD 
 
1. (SBU) Summary. USAID Millennium Challenge Account 
Secretariat Representatives Bryan Kurtz and Steve Feldstein 
 
SIPDIS 
and MCC Threshold Country Managing Director Kevin Saba 
briefed senior level ROYG officials at the Ministries of 
Planning, Justice, and Human Rights December 16-19 on 
requirements for Yemen's MCA Threshold proposal.  MCC 
representatives made clear to ROYG MCC lead Ministry of 
Planning and International Cooperation (MOPIC) that 
significant funding is available, but the initiative for 
reform must come from the ROYG.  The delegation told their 
interlocutors that to qualify for threshold funding it was 
critical that Yemen's proposal addressed seriously the issues 
of corruption and rule of law.  (Note: ROYG officials report 
taking this message on board, but the proof will be in the 
proposal due to MCC January 31.) End Summary. 
 
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Yemen's Scores 
-------------- 
 
2. (SBU) Background: While a threshold country, Yemen's 
scores in the "Ruling Justly" category fall far below median 
indicators in all categories except the corruption indicator. 
 This year's Transparency International Report, however, 
dropped Yemen's scores on corruption to reflect what many 
officials tell us privately is a more accurate score. 
Yemen's score in the Rule of Law category also falls below 
the 25 percent margin, reflecting serious shortcomings in the 
execution of justice. 
 
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Planning in Charge of Threshold 
------------------------------- 
 
3. (SBU) Deputy Prime Minister and Minister of Planning Ahmed 
Sofan, head of the lead Ministry on MCC told the visiting 
delegation that his Ministry plans to use the MCC process as 
a springboard for wider reforms.  MOPIC formed a technical 
committee to handle threshold and MCC, drawing on broad 
representation from the ministries and civil society.  Jalal 
Yaqoub, Assistant Deputy Minister, MOPIC, chairs the 
committee.  Yaqoub has shared his concerns with Emboffs that 
the committee is unwieldy, comprising a range of concerns. 
The technical committee reports to a ministerial committee 
for implementation, making the process even more cumbersome. 
During a meeting with MCC officials, a member of the 
committee complained that the Threshold process does not give 
them enough time to deal with the sweeping reforms called 
for.  Comment: On the other hand, the committee is creating 
cross-ministerial buy-in to the MCC concept and tackling much 
needed reform issues.  End comment. 
 
4. (SBU) MCC representatives told ROYG officials that to 
qualify for threshold funding, MCC and USAID want to see 
immediate action on some important steps, such as the 
implementation of existing laws, as good-faith (and 
cost-free) demonstration of ROYG commitment.  There is $5-10 
million in threshold funding Yemen may draw on to aid its 
efforts to achieve MCC status, they explained.  But the funds 
will not be granted unless Yemen's proposal makes the grade. 
(Note: The Mission must first sign off on threshold proposal 
and staff have made very clear that Post will not forward to 
Washington a proposal that does not seriously address 
shortcomings in corruption and rule of law. End Note). 
 
5. (SBU) In several discussions with Deputy Prime Minister 
Ahmed Sofan, the MCC delegation stressed the centrality of 
the corruption and rule of law indicators to Yemen's success. 
 Sofan agreed that these were crosscutting issues, and said 
he understood that dealing with corruption was the key to 
eliminating many of the obstacles to reform.  Mindful of the 
difficulties he will have in taking on such a deeply routed 
issue as corruption in Yemen, Sofan broadened the MCC 
discussions to include general poverty, the investment 
climate, and the role of women in society.  He welcomed what 
he characterized as a renewed role of aid in U.S. foreign 
policy, and explained that tradition and lack of education in 
Yemen make reform difficult, but not impossible. 
 
6. (SBU) One MOPIC official confided on the margins of the 
meetings that the ROYG may start with smaller anti-corruption 
measures.  In their view, he said, going after high-level 
abuse would create more problems than it would solve. 
Instead, he believes MOPIC will pursue smaller measures in 
its proposal, such as placing signs in ministries and 
fostering more press freedom on the issue of corruption with 
the aim of gaining popular support for a "culture of honesty". 
 
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Ministers of Justice and Human Rights 
Explain Yemen's Constraints 
------------------------------------- 
 
7. (SBU) Minister of Justice Adnan Al-Jafri described his 
five-year plan for judicial reform, including extensive 
support for commercial courts, training for judges, and 
faster trials. Claiming to have the full support of President 
Saleh in his efforts, Jafri expressed commitment to make 
needed judicial reforms. Minister of Human Rights Amat 
al-Soswa  emphasized the importance of MCC's "girls' 
education" indicator as the basis for political participation 
and the advancement of human rights in society.  According to 
Yaqoub, advancing women's roles in society will be a 
significant part of Yemen's Threshold proposal. 
 
8.  (SBU) Comment. The visiting delegation clearly 
communicated to the relevant ROYG officials what MCC expects 
from Yemen's proposal for threshold funding, and were 
impressed that MOPIC has chosen to utilize MCC as an vehicle 
for reform, whether or not Yemen qualifies for MCC.  All 
parties agree that MCC indicators reflect the most important 
challenges in Yemen, and that the countries future depends 
ultimately on progress in these areas.  Sofan, his 
subordinates, and several interlocutors see MCC threshold as 
a way to encourage the ROYG to make what they characterize as 
long-over due reforms.  MCC is providing the venue to discuss 
these issues and address critical shortcomings in the areas 
of governance and corruption.  The content of Yemen's 
Threshold funding proposal, due in January, will speak 
volumes as to whether the ROYG can meet the pace and achieve 
the focus necessary in the short run, and then it must 
sustain this momentum in the long run.  End comment. 
KHOURY