ARAB COUNTRIES LAUNCH GFD INITIATIVE; PRESIDENT

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