US embassy cable - 05AMMAN1351

UNCLAS SECTION 01 OF 03 AMMAN 001351 
 
SIPDIS 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: PGOV, PHUM, PREL, KCRM, KDEM, KMPI, ECON, EINV, JO 
SUBJECT: ARAB COUNTRIES LAUNCH GFD INITIATIVE; PRESIDENT 
BUSH PLEDGES SUPPORT FOR ARAB LEADERS COMMITTED TO REFORM 
 
REF: 04 AMMAN 08135 
 
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SUMMARY 
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1.  (SBU) At a February 6-7 conference in Jordan, 
representatives of Arab governments formally launched the 
"Governance for Development in the Arab Countries" (GFD) 
initiative under the auspices of King Abdullah.  The GFD 
calls for partnerships between Arab states and OECD countries 
and the UNDP in developing action plans centered around six 
public reform themes.  Under Secretary of the Treasury John 
Taylor headed a U.S. delegation to the conference and read a 
personal message to participants from President Bush.  A 
declaration adopted at the conclusion of the conference 
approved a three-year work plan to implement and monitor 
reform measures developed through regional working groups -- 
co-chaired by Arab and OECD countries -- and national 
committees.  The U.S., Jordan and France will direct the 
working group on judicial reform and enforcement.  Although 
the U.S. was a key player in bringing GFD together, Arab 
ownership of the initiative will be critical to its success. 
End Summary. 
 
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BACKGROUND 
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2.  (SBU) Since 2001, the U.S. has been working to advance 
President Bush's Global Anticorruption Initiative.  These 
efforts have encompassed the Global Forum on Fighting 
Corruption, the Millennium Challenge Account (MCA), and the 
formation of regional partnerships to combat government 
corruption worldwide, including in Arab countries.  In 
September 2003, after earlier consultations with key Arab 
leaders throughout the Middle East and North Africa (MENA), 
the State Department hosted a meeting in Washington, D.C. 
with representatives from the Arab League, United Nations, 
OECD, and World Bank to develop a program that would promote 
good governance and reform in the region.  Although State/INL 
funded all of the preparatory work, the Department has wanted 
to ensure from the beginning that this was an Arab-led 
process that would develop into a partnership with G8/OECD 
member states.  Thirteen to fifteen MENA countries have been 
actively involved since the Washington meeting in designing a 
reform program framework under the GFD label.  The goal of 
the GFD initiative is to assist MENA states in their efforts 
to modernize government structures and fight corruption in 
order to strengthen the rule of law, foster transparency and 
accountability, and increase investment and job creation. 
The government of Jordan (GOJ) has been chairing the GFD 
planning process over the past year with assistance from the 
OECD and the UNDP Secretariat.  Arab organizers have promoted 
the GFD initiative as a means to help realize reform 
commitments made at the May 2004 Arab League Summit in Tunis. 
 
 
3.  (U) After a series of earlier meetings in Amman, Beirut, 
Rabat, and Cairo, a final preparatory meeting for the 
launching of the GFD initiative was held in Jordan in 
September 2004 (reftel).  Fifteen Arab ministers (mostly 
Finance and Justice) and other participants unanimously 
approved the formation of the following six thematic working 
groups, each led by an Arab country with relevant reform 
experience in that particular subject:  civil service 
performance (Morocco), e-government (UAE), oversight of 
public resources and funds (Egypt), public service delivery 
(Tunisia), civil society and open media (Lebanon), and 
judicial modernization and enforcement (Jordan).  All groups 
will eventually formulate a work plan that includes specific 
recommendations and mechanisms for implementation.  The OECD 
Council approved the GFD initiative in Paris in November 2004 
and Jordanian Justice Minister Al Bashir presented it at the 
G8-sponsored Forum for the Future meeting in Rabat in 
December 2004.  State has been working through the NSC and 
the G8 to integrate GFD into the G8 BMENA process.  G8 
countries (including the U.S.), the EU, World Bank and other 
donors have all pledged resources in support of the program. 
 
 
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A BUSY AGENDA 
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4.  (U)  From February 6-7, 2005, a ministerial-level 
conference with senior government officials from Arab and 
OECD countries was held at the Dead Sea in Jordan to 
officially launch the GFD initiative and unveil initial 
recommendations to develop and implement reform measures. 
The conference also provided an opportunity for attendees -- 
including individuals from the private sector and civil 
society groups -- to exchange ideas and views.  Over 300 
participants from 40 countries were present during the two 
days of meetings, including representatives from all Arab 
League states except for Saudi Arabia, Djibouti, Somalia and 
the Comoros Islands.  (NOTE:  Arab League chief Amre Mussa 
attended, as did delegations from Iraq and the Palestinian 
territories.  END NOTE.)  Official statements from the heads 
of delegations from each participating Arab and OECD state 
were followed on the first and second day by panel 
discussions on each of the six reform themes. 
 
5.  (U) Under Secretary of the Treasury for International 
Affairs John Taylor headed the U.S. delegation to the 
conference.  In his address on February 6, Taylor highlighted 
the strong link between good governance and economic 
development while stating U.S. support for the GFD initiative 
as a means of improving peoples' lives in the region.  He 
noted that efficient and transparent governance encourages 
investment, promotes better use of domestic resources, and 
increases the effectiveness of international aid.  Taylor 
urged Arab states to integrate measurable indicators of 
progress into work plans and emphasized that good governance 
must be home-grown.  "Only when the push for reform comes 
from within does reform have a chance of succeeding," he 
stated.  Taylor also read a personal message from President 
Bush to conference participants applauding the efforts of 
those in the region who are working to advance "the universal 
values of human dignity, democracy, economic opportunity and 
social justice."  The President's message expressed U.S. 
commitment to "helping nations that embrace clear standards 
of economic, political and social reform" and to backing 
leaders who push for positive change.  In his statement, the 
President also announced that Jordan would host the G8 Forum 
for the Future in 2006. 
 
6.  (U) OECD Secretary General Donald Johnston noted in his 
remarks that "effective, efficient, fair and responsible 
government is essential for development" and that more can be 
achieved through international cooperation than by countries 
acting on their own.  Johnston promised that the OECD would 
help provide financial support, technical assistance, and 
international best practices, but acknowledged that the 
success of the GFD initiative ultimately rested with the 
leadership of Arab states. 
 
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NEXT STEPS 
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7.  (U) Following panel discussions on the second and final 
day, the conference concluded with Jordanian Justice Minister 
Salah Al-Bashir, head of the GFD Steering Committee, 
presenting a formal "declaration."  This declaration, agreed 
to by Arab government representatives, formally approved the 
six reform themes in the GFD initiative and pledged support 
for the activities of the related working groups.  To 
increase working group resources and expertise, the Arab 
chair of each group was partnered with one or two co-chairs 
from an OECD country.  For example, the U.S. (along with the 
France) will co-chair the working group on judicial reform 
and enforcement with Jordan.  The declaration further 
embraced a draft three-year work plan and committed Arab 
states to developing meaningful standards, criteria and 
indicators to monitor progress in reform implementation. 
(NOTE:  Amre Mussa called on all Arab League members to work 
on implementing the actions and principles outlined in the 
GFD declaration.  END NOTE.)  The need for all participating 
countries to sign and ratify the United Nations Convention 
Against Corruption was also highlighted.  The GFD declaration 
will be presented at the G8/Arab League conference in Cairo 
March 2-3, as well as at the annual Arab League Summit in 
Algeria in May.  The next GFD meeting will be held in Spain 
in May 2005 to continue development of implementation 
mechanisms for the six reform themes. 
 
8.  (U) As currently envisioned in the work plan, the GFD 
initiative will be developed and implemented on three levels. 
 At the regional level, the six thematic working group will 
meet approximately three times a year and serve as forums for 
exchanging information and analyzing obstacles to reform 
implementation across the Arab world.  At the national level, 
each Arab state will create a national committee to develop 
country-specific action plans that reflect local priorities 
and capacities.  Overseeing the entire process will be an 
Arab Steering Committee and a joint OECD/UNDP Program 
Executive Secretariat that will support the regional working 
groups and national committees.  The estimated budget for the 
GFD initiative is approximately USD 17 million.  The 
President's statement, U/S Taylor's remarks, and the final 
GFD declaration can be found at the State/INL/Anticorruption 
website (www.state.gov/g/inl/corr/).  Additional information 
may be found at the OECD website (www.oecd.org) as well as a 
specialized UNDP website (www.arabgov-initiative.org). 
 
9.  (U) In a press interview following the conference, Adel 
Abdellatif, regional coordinator for the UNDP's Programme on 
Governance in the Arab Region (which will help shepherd the 
GFD initiative), summarized the importance of what was 
achieved at the Dead Sea:  "We got the endorsement of Arab 
countries for an initiative based on the 2004 Tunis Arab 
summit decision to adopt reform policies, and we have started 
to put into action that which the Arab leaders agreed to last 
year.  The industrialized countries now support a purely Arab 
initiative ... and we have formally launched the reform 
process itself, using the six working groups as platforms for 
change." 
 
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COMMENT 
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10.  (SBU) Conference participants were enthused by the GFD 
initiative, particularly the emphasis on forming innovative 
partnerships between Arab states and G8/OECD countries. 
Interest in these partnerships may help push along reforms in 
the region (which have often stalled in the past), while 
monitoring efforts using measurable standards and indicators 
should help ensure that oral support for reform results in 
real action.  The final conference declaration underscores 
Arab commitment to ratifying the UN Convention Against 
Corruption - a key U.S. goal; many Arab attendees at the 
conference said that anti-corruption efforts will be one of 
the linchpins for the GFD initiative and other regional 
reform programs.  In working with all partners, the U.S. 
succeeded in helping to develop an Arab-led initiative on 
governance that can be owned and supported by reform-minded 
leaders in the region.  It further provides a vehicle for 
Arab countries to partner with the G8 and OECD on a number of 
governance areas essential to realizing reform.  The U.S. 
will continue to work with other donors to support the six 
working groups, while State/INL will coordinate with USAID 
missions and NEA's MEPI Office on implementation of resulting 
projects, particularly those related to the rule of law, the 
judiciary, and budget transparency/public finance management. 
 State/INL will also coordinate with EB and NEA on the OECD 
MENA Investment Initiative and with the NSC on related G8 
efforts. 
HALE