US embassy cable - 05SANAA1300

UNCLAS SECTION 01 OF 04 SANAA 001300 
 
SIPDIS 
 
PLEASE PASS TO NEA/PI; 
 
E.O. 12958: N/A 
TAGS: AMGT, ECON, PREL, PGOV, KDEM, KPAO, KMPI, KMCA, YM, DEMOCRATIC REFORM 
SUBJECT: YEMEN'S DEMOCRATIC REFORM STRATEGY TO SUPPORT 
FREEDOM AGENDA 
 
REF: SECSTATE 80607 
 
1. Per reftel, included below is requested report on Yemen's 
democratic reform strategy to support the Freedom Agenda. 
 
Begin text. 
 
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A.  Overview 
------------ 
 
The Government of Yemen has demonstrated rhetorical and real 
commitment to the goals of democracy and human rights.  The 
ROYG is working with the USG and the international community 
to reform political processes, build civil society, fight 
corruption, increase the role of women in society, and 
attract foreign investment.  Post,s overall goal is to 
support Yemen in building the solid institutions necessary 
for a stable and representative democracy that adheres to 
rule of law and respects human rights.      Real progress in 
institution building in the next two years is critical if 
Yemen is to make the transition from saying the right thing 
to doing the right thing.  To measure Yemen,s progress in 
democratization we will look to the following desired 
outcomes: 
 
1.    Open and competitive elections 
2.    A free and independent press 
3.    Reduced corruption 
4.    Strengthened rule of law 
5.    Increased government accountability 
 
Post has a number of resources to draw on in achieving these 
outcomes.  This year, Yemen,s MCA Concept Paper was approved 
and qualified the ROYG to prepare a Business Plan to be 
submitted in August 2005.  An MCA Threshold Program, if 
approved, may provide funds in the range of $10 million over 
two years for programs in rule of law and anti-corruption. 
USAID and USDA food aid funds support important programs to 
support women,s participation in society and political 
decentralization.  A variety of MEPI programs advance our 
strategies in good governance and civil society.  Our current 
request for $30 million in ESF funds would allow for an 
expanded Democracy and Governance program of approximately $3 
million through USAID.   State and USAID operate a 
well-coordinated development program that can handle current 
projects and the addition of the MCC.  Beyond this, however, 
an increase in DG activities would require additional human 
resources.  Post intends to capitalize on a President 
Saleh,s proposed trip to Washington in Fall 2005 to advance 
democratic reform, and encourages CODELs and other high level 
visits to Yemen to reinforce this message. 
 
-------------------- 
B.  Desired Outcomes 
-------------------- 
 
1. Open and Competitive Elections 
 
The elections of 2003 were considered successful from an 
administrative perspective.  They were significantly less 
violent than previous elections, no parties boycotted and 
voter participation rose to more than 75% of eligible voters 
(including a more than 40% increase in voting women).  For a 
truly democratic system to take root in Yemen, however, there 
must be healthy competition for elected positions, women,s 
participation in the process must increase, and the elections 
system itself must be self-sustaining and non-partisan.  The 
2006 elections will prove a solid benchmark for these 
measures. 
 
Milestones & Diplomatic Strategies 
(Each milestone followed directly by diplomatic strategy) 
 
Milestone: International and local observers declare the 2006 
Presidential and local council elections free and fair with 
increased voter participation.  Election legislation 
governing local councils is revised. 
 
-- MEPI provides $1.2 million over two years, managed by 
USAID, to the IFES Election Systems Assistance program.  IFES 
will work with the Supreme Council for Elections and 
Referenda to craft necessary legislation, train elections 
workers, and assist in the voter registration process. 
 
Milestone: Number of women candidates in local council 
elections reaches at least 150 candidates, and women win at 
least 50 seats on councils. 
 
-- MEPI is funding a program for women in political parties, 
with a focus on expanding female participation in elections, 
possibly through a quota system currently in favor among 
Yemeni women politicians and activists.  Funding expires Fall 
2005.  Post recommends new funding. 
 
Milestone: Responsible, vigorous and non-violent campaign 
waged by political parties. 
 
-- An NDI grant of nearly $700,000 supporting political 
parties will terminate Fall 2005.  This has been an important 
element, along with ongoing cooperation with the UNDP 
elections office, in fostering healthy competition.  Post 
will continue to meet with many parties and encourage broad 
participation in the democratic process. 
 
2. Free and Independent Press 
 
Building a strong civil society includes nurturing a free and 
independent press.  Yemen,s media is one of the most open in 
the Arab world, but recent closings of independent and 
opposition party newspapers and the imprisonment of editors 
and writers have cast a shadow over freedom of expression in 
the country.  We will work with the ROYG and the NGO 
community to help restore and expand these basic rights, as 
well as with the local media to encourage professionalism and 
accountability in journalism. 
 
Milestones & Diplomatic Strategies 
 
Milestone: Freedom House Accountability and Public Voice 
score increases from 2005 score.  International observers and 
the Yemeni Journalist Syndicate recognize that government 
interference with the media decreases. 
 
-- Post will explore options to advance these goals under the 
current MEPI media RFP.  This would help augment ongoing 
professional training provided by PD to the professional 
media, including a TV journalism workshop and programs in 
human rights reporting. 
 
Milestone:  New press law is open to public deliberation and 
increases press freedoms. 
 
-- Post actively engages NGO and ROYG stakeholders to 
encourage an open dialogue to enact a press law consistent 
with the standards of democratic countries.  PD will bring 
press experts to educate stakeholders on this issue.  Post 
will participate in a multilateral press freedom initiative 
with the donor community to advance this goal. 
 
3. Reduced Corruption 
 
We will continue to urge greater transparency and 
accountability in government, as corruption erodes trust in 
the democratic system and weakens all efforts at reform. 
Joining with other international donors, such as the World 
Bank and the UN, and using the TIFA/WTO process as an 
incentive, we will seek Yemeni partners in and out of 
government to reduce and control corruption.   The MCA 
threshold process serves as an excellent set of guidelines 
and measurements for the ROYG,s efforts in this area. 
 
Milestones & Diplomatic Strategies 
 
Milestone: Yemen's Transparency International Score on 
Corruption rises above the median. 
 
-- The ROYG has identified combating corruption as a main 
component of its MCC Threshold plan.  It proposes increasing 
parliamentary oversight and reform of the public land 
registry as the cornerstone of these efforts. 
 
Milestone: ROYG Customs standards comply with WTO. 
 
-- Post is working on a customs valuation reform project 
using MEPI and USAID matching funds, totaling up to $500,000. 
 A consultant from Booz Allen Hamilton will initiate this 
program and develop an MOU in June 2005, with implementation 
to follow. 
 
Milestone: ROYG reforms tendering processes to comply with 
international norms of transparency and fairness.  Aden 
Container Terminal tender and the third GSM tender are 
completed successfully. 
 
-- Post will continue to apply direct pressure on the ROYG 
regarding high profile tenders.  The TIFA-WTO accession 
process will also be used to bring Yemeni tendering practice 
into compliance. 
 
Milestone: Ministry of Finance, the Central Bank, and other 
key ministries demonstrate fiscal transparency. 
 
-- A coalition of international donors, including the World 
Bank, DIFD, the Dutch Embassy, and the U.S. are initiating a 
program in public financial management reform.  USAID and the 
MEPI-funded Treasury office in Abu Dhabi will contribute 
funding and expertise to specific aspects of this reform 
program. 
 
Milestone: Legislative and regulatory reform enacted for WTO 
accession. 
 
-- Ongoing efforts with USTR and specific reform projects, 
such as customs valuation, will reduce opportunities for 
corruption by introducing legal and regulatory uniformity. 
Ongoing efforts are needed in the areas of 
telecommunications, IPR, and biotechnology. 
 
4. Strengthened Rule of Law 
 
Establishing rule of law is one of the greatest challenges to 
advancing democratic freedoms in Yemen.  The Yemeni system is 
fragmented and disorganized, prone to corruption, and often 
bypassed in favor of tribal justice.  Citizens must begin to 
gain confidence in the judicial system and businesses must be 
able to trust rule of law if they are to expand investment. 
There is nascent effort and pressure from NGOs, some ROYG 
technocrats and parts of the legal community to focus on this 
issue, and it will be a key part of Post,s strategy for 
2005-2006. 
 
Milestones & Diplomatic Strategies 
 
Milestone: Court system starts to be viewed as viable option 
in cities for dispute resolution.  Higher Judicial Institute 
admits women.  Increased independence of the judiciary from 
the executive branch. 
 
-- MEPI funding for an ABA program emphasizing judicial 
independence and women in the law would provide a long-term 
strategy for these critical milestones. 
 
Milestone: Reports indicate due process is more uniformly 
adhered to in criminal cases. 
 
-- Post will use the annual Human Rights Report to advocate 
for the right to a fair trial.  A MEPI small grant will be 
given to a local NGO to train law students in human rights. 
 
Milestone: Businesses increasingly view commercial court 
system as a viable option for dispute resolution. 
 
-- The ROYG identified rule of law, specifically in the 
commercial courts, as a major component of its MCC Threshold 
proposal.  Specific programs are currently in development, 
and will be central to Post,s strategy.  The Commercial Law 
Development Program proposes to streamline Yemeni commercial 
law to make it faster and simpler to adjudicate cases.  Post 
recommends allocating funds to initiate this program. 
 
5.  Increased Government Accountability 
 
A major focus in this effort is to increase the role, power 
and authority of local government, particularly pertaining to 
fiscal authority.   Post supports strengthening local 
councils so they may actively pursue local legislation and 
exercise legitimate budgetary and legislative powers as 
enumerated in the Yemeni Constitution.  In the central 
government, a stronger oversight role for Parliament will 
help rationalize the budget process and introduce a check on 
corruption at the highest levels.  A bottom-up legislative 
process at both the local council and Parliamentary levels 
will increase citizen participation and faith in the 
democratic process. 
 
Milestones & Diplomatic Strategies 
 
Milestone: Central government increases resources to local 
councils from 2004 funding level. 
 
-- MEPI/USAID allocated $1.59 million over two years to the 
UNDP Decentralization program.  Through this effort we will 
exert bilateral and multilateral pressure on the ROYG to 
allocate funds to local government as required by law. 
 
Milestone: Increased sector decentralization within 
ministries, specifically health and education. 
 
-- USAID incorporates decentralization goals in its education 
and health programs.  With support from the U.S., UNDP is 
currently sponsoring a study and action plan for target 
sectors.  Post will vigorously support these plans through 
the relevant ministries when completed. 
 
Milestone: Parliament begins to consider seriously and, where 
appropriate, amend legislation offered by the executive. 
Political party caucuses organize to address policy issues 
and begin to initiate legislation.  Local councils 
demonstrate initiative through locally enacted legislation. 
-- A CEPS-administered, MEPI funded project with NDI is 
working on an $800,000 program for reform-minded 
parliamentarians.  U.S. funds also cover a resource center 
for responsible legislation, housed at NDI.  In the past, NDI 
provided training to new local council members.  Post 
recommends that a similar program be funded following the 
2006 elections. 
 
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C.  Consequences of Proactive Reform Agenda 
------------------------------------------- 
 
Yemen is well positioned for proactive democratic reforms. 
Local civil society and active media are pushing for reforms. 
 With a multi-party electoral system and a Parliament that is 
increasingly willing to exercise power, there are many 
reasons to be carefully optimistic about Yemen,s future. 
Considerable challenges remain, however, and there are 
several factors that could impede future progress. 
 
Corruption is endemic and retards reform efforts in all 
areas.  Although the ROYG has made considerable progress in 
increasing national security since the 2000 attack on the USS 
Cole and 9/11, any renewed terrorist activity would pose a 
threat to democratic aspirations.  General conditions in 
Yemen are primitive and complicate efforts to reach large 
portions of the population, 80% of which live in rural areas. 
 Basic demands in health, education, and infrastructure are 
considerable, and are often prioritized by the ROYG above the 
pressing need for democratic reform.  The ROYG has taken 
significant steps towards reform since unification in 1990, 
but it remains in many respects a young country and the 
coming years will offer a test of political will for Yemen,s 
leaders. 
 
End text. 
Krajeski