US embassy cable - 05DJIBOUTI565

UNCLAS SECTION 01 OF 03 DJIBOUTI 000565 
 
SIPDIS 
 
LONDOND, PARIS FOR AFRICA WATCHER; 
STATE FOR AF AND AF/E 
 
E.O. 12958: N/A 
TAGS: PGOV, PREL, SOCI, PHUM, ECON, ETRD, DJ, PDEM 
SUBJECT: GUELLEH ASSIGNS TASKS TO NEW CABINET 
 
1. (U) Summary: On May 24th, in an important speech directed 
at his new cabinet, President Ismail Omar Guelleh announced 
his "road map" for the new term. The road map gave specific 
directives to almost every ministry. Its focal point was 
the "satisfaction of basic human needs." Guelleh emphasized 
that unemployment and under-employment were vital issues 
affecting survival of the social foundation of the nation. 
In addition, Djibouti's policy for development would be 
centered on the human individual and his basic needs. Other 
issues included the need for investment, capacity building, 
exploration, agricultural growth, tourism development, 
health improvement, housing provision, women's development, 
and reform of the state. End Summary. 
 
2. (U) In a long, detailed speech May 24, President Guelleh 
addressed each of his Ministers with his specific 
objectives and expectations for them over the next six 
years in the development of Djibouti. Central to 
development was man and satisfying man's basic human needs. 
Employment and under-employment, Guelleh said, were two 
questions vital to the survival of the nation. For this 
reason, employment must be a fundamental objective, common 
to policies in every sector and a major value in the fight 
against poverty. He asked the government to immediately 
reinforce employment programs for youth and professional 
training and to create massive growth in sustainable 
employment. 
 
3. (U) Guelleh said it was imperative to reinforce the 
value of the service sector, the natural pillar of the 
economy and the government's main project for development. 
Because the majority of Djibouti's considerable potential 
and competence lies in this sector, it is necessary to 
invest strongly it and to aim towards a strong and lasting 
growth. Guelleh stated he expected the government to 
develop a vigorous and coherent policy to develop and 
commercialize the production of the service industry. 
 
4. (U) Guelleh said it was necessary to invest in 
reinforcing the competitiveness of the economy through an 
increase in strategic infrastructure capacity. As part of 
this effort, he asked the Ministry of Transport, to work 
towards: 
-Opening of the Doraleh Port Complex, 
-Construction of an Ore Carrier Harbor at Lake Assal, 
-Construction of a new international airport, 
-Modernization of the Djiboutian-Ethiopian Railway Company, 
-Construction of national roadways from Tadjourah to Obock, 
Tadjourah to Balho, Wea to Galieh, and Djibouti to Hol Hol 
and to Grand Bara. 
-Reinforcement of energy production capacity by exploiting 
geothermal energy and interconnection with Ethiopia's 
electrical power grid. 
-Seawater desalination 
-Phase II of cleaning up the capital and installation of 
incinerators in each district. 
Guelleh said the industry in Djibouti currently is lacking 
in technological and managerial resources. It also lacks a 
plan to guide development. The poor state of machines and 
training for company owners explains the poor capacity of 
Djibouti's industry to compete against foreign products. 
Guelleh said the government must focus its industrial 
policy on implementing an industrial network capable of 
supporting the development of agriculture, breeding and 
protection of natural resources. 
 
5. (U) Guelleh said he expected the government to reinforce 
and promote agricultural production and work towards 
opening the way for commercialization of the agriculture 
industry. This will aim to guarantee sustainable food 
security. In addition, Guelleh said it was necessary to 
commercialize the exploitation of farming, livestock 
breeding and products from the sea, especially through 
implementation of the livestock export facility and 
breeding shrimp. He continued, it is important to ensure 
that rural actors have the means and conditions necessary 
to work, while balancing the protection of Djibouti's 
fragile environment. Guelleh blamed endemic drought and 
mismanaged water resources for environmental problems, and 
said it would take a great deal to reverse the current 
trend. 
 
6. (U) Guelleh listed salt and perlite as the two main 
resources available in Djibouti that can accentuate the 
development of industry and increase jobs. Recent studies 
have given hope, he said, in gold and oil exploration. The 
government should respect partnerships of mutual trust 
between the state and foreign mining companies. Guelleh 
called for better administration and organization of the 
mining industry through reinforcement of professionalism 
and use of international best practices. 
 
7. (U) Guelleh said tourism and handicrafts production were 
unexploited. The capacity of these sectors has slowed due 
to insufficient governmental policy. The government must 
improve the quality of services and encourage the private 
sector to enlarge hotel capacities and rehabilitate or 
construct tourist sites. He urged that the government 
facilitate access to loans for tourist companies. He also 
expressed his desire for the government to augment the 
foreign and domestic annual tourist flow through creating a 
dynamic market of historic, cultural, and natural tourist 
potentials. Guelleh said this must be done through 
establishment of an institutional, judicial, and statutory 
framework favorable to new tourism opportunities. 
 
8. (U) Guelleh said Djibouti should count on private 
enterprise to be an agent of development. The private 
sector should identify gaps, seize possibilities, and 
commercialize products, thereby creating benefits to the 
economy. He stressed the importance of a partnership 
between the public and private sector, where government 
policies permit businesses to become an important employer, 
creator of wealth, and motor of the economy. The banking 
sector must contribute more vigorously to financing the 
national and regional economy. To do this, the government 
must complete economic reforms and apply a judicious macro- 
economic policy in step with Djibouti's financial partners 
and the country's goals in the fight against poverty. He 
added that he expected the government to put in place all 
means necessary to attract businesses to the Free Zone, 
which he called an indispensable instrument of development 
for Djibouti. 
 
9. (U) Guelleh stated that there are still weaknesses in 
budgetary discipline, balancing State accounts, control of 
expenditures, efficiency and transparency in management of 
public finances. Government must ensure a better recovery 
of income and taxes to make way for an effective taxation 
system for the economy. 
 
10. (U) Guelleh said all capital investments center on man, 
because the well being of the population is the 
government's aim. He continued that education remained a 
major challenge and it was essential to pursue and increase 
public investments in education and professional training 
to improve the technical and scientific competence of the 
population. It must also work to achieve equilibrium 
between training and the needs of the labor market. He 
suggested that training be oriented towards services, 
agriculture, sea products, and industry. 
 
11. (U) According to Guelleh, all Djiboutians must have 
access to health care and medicine. Government must 
intensify its fight against endemic and epidemic illnesses 
and must promote health for mother and child. The 
government must put in place a universal social protection, 
which guarantees equal access to care and applies to the 
largest number of risks to which Djiboutians are exposed. 
 
12. (U) Guelleh advocated improvement of basic conditions 
of life in Djibouti to protect and emancipate the family in 
strengthening its economic and social base. The government 
must offer affordable, decent housing, as well as renovate 
existing housing structures. Part of this effort, Guelleh 
said, was the construction of 7,000 housing units in the 
neighborhood of Hodane. He added that local building 
materials should be used. He also urged the government to 
contain and manage urban growth with zoning and urban 
planning, as well as with sensitization of the population 
to the need to maintain clean and hygienic conditions. 
 
13. (U) Guelleh described women as essential actors in 
development and said government should create conditions 
for their active participation. This included increased 
responsibility in managing public affairs, increased access 
to education and different channels of training, and better 
access to economic opportunities. Guelleh said, "I am 
convinced that by investing in Djiboutian women, our nation 
gives itself the means to sustainable development." 
 
14. (U) Guelleh called for more responsible human resources 
management. In the interest of transparency, the government 
will hold public calls for candidates to fill open public 
positions and will fill senior positions objectively. 
Rational human management means also redeploying those 
without precise appointments or postings. 
 
15. (U) On reform of the state, Guelleh advocated 
implementation of effective decentralization. He stated 
more citizens must have access to decision-making power so 
that not all decisions are made in Djibouti City. 
Decentralization should permit new governing bodies to 
function effectively by profiting from economic resources 
and other resources. Guelleh added he expects the 
government to hold regional elections before the end of the 
year. He stated judicial reform was also necessary to 
restore Djibouti's image of credibility and integrity. 
 
16. (U) Guelleh said the government should put in place 
better and more adapted security coverage of the country. 
Citizens must be involved in assisting in security concerns 
and security will be provided with more modern and 
professional means. "We should build the army of our needs 
instead of having the army of our habits," he said. He 
added that new engagements of forces should lead personnel 
to acquire new competencies that can complement those of 
the region. 
 
17. (U) Guelleh viewed globalization as having less 
negative effect on Djibouti if the country consolidates its 
sub-regional economic integration on the IGAD, COMESA, Arab 
and African levels.  The integration should proceed faster 
than it is currently. In this framework, implementation of 
NEPAD constitutes a major challenge for increasing the 
cadence of African development. The government should work 
towards preparing Djibouti for economic integration and for 
making better use of its cooperative advantages. 
 
18. (U) Guelleh noted that Djibouti's international 
diplomacy should be more productive and resourceful and 
bring more trade and investments while promoting a 
strategic cooperation with partners.  It should pursue 
these objectives, listen to the private sector, promote 
Djibouti's products and preserve the interests of its 
companies. 
 
19. (U) Regarding communication with the population, 
Guelleh said the government should make its citizens more 
aware of the options of the State and more fully explain 
governmental actions. To do so, it must modernize Radio 
Television Djibouti's (RTD) professionalism and training. 
Guelleh said the government must also take new information 
and communication technologies into account when deciding 
on development choices in certain sectors, such as 
education, health, commerce, administration and 
decentralized management. 
 
20. (U) In conclusion, Guelleh asked for participation and 
dialogue to be central to all domains of government 
activities.  He noted the importance of ensuring that 
Djibouti's political democracy progress is in rhythm with 
its social democracy. 
RAGSDALE