GUELLEH ASSIGNS TASKS TO NEW CABINET

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