MCC VISIT TO RWANDA A SUCCESS

UNCLAS SECTION 01 OF 02 KIGALI 001199 SIPDIS SENSITIVE SIPDIS E.O. 12958: N/A TAGS: PREL EAID KMCA RW SUBJECT: MCC VISIT TO RWANDA A SUCCESS ¶1. (SBU) Summary. From December 10-12 a Millennium Challenge Corporation (MCC) delegation held an intensive round of meetings with GOR officials, local and international NGOs (including USAID partners),the private sector, the media, and heads of diplomatic missions in Kigali. The MCC team introduced the Threshold Program, sampled opinion on progress within Rwanda on democracy and governance issues, and reached agreement with the GOR on the general outlines of a Threshold Program Concept Paper. In a separate delegation meeting with President Kagame, he expressed enthusiasm for the program, and pledged his government's best efforts to secure a viable Threshold Country Plan. End summary. ¶2. (SBU) MCC Vice President for Policy and International Relations Maureen Harrington, Threshold Program Director Malik Chaka and Development Policy Officer Alicia Mandaville met with senior GOR officials, local and international NGOs, local print and broadcast media, area business leaders, Parliamentary leaders, and head of diplomatic missions with significant donor programs. They introduced the MCC Threshold Program and explored Rwanda's performance and prospect for improvement on various MCC indicators, particularly the six Ruling Justly categories. ¶3. (SBU) The MCC team met initially with a GOR MCC team led by Presidential Advisor Francis Gatare, which included senior representatives from the ministries of Justice, Commerce, Local Government, Foreign Affairs and Finance, as well as other government offices and civil society. Harrington offered a detailed review of the Threshold program. She explained the opportunity Rwanda had to build a Theshold program that raised its scores relative to its peers with targeted assistance and focused reform efforts, and reviewed with Chaka and Mandaville Rwanda's specific shortfalls on various indicators. To receive endorsement from the MCC's Investment Committee, and, ultimately, its Board, she said, the GOR had to present a package of policy reforms and specific program initiatives that gave promise of better performance on the indicators. GOR interlocutors, while questioning the accuracy of certain scores, accepted the necessity of working to raise Rwanda's Ruling Justly indicators. Gatare noted the GOR had constituted an internal drafting team, as well as a ministerial-level review body, and he proposed regular contact with mission and MCC personnel as the government worked toward a finished draft of a Concept Paper. ¶4. (SBU) In other meetings with civil society, local media, and heads of mission of other donor governments, the MCC team explored Rwandan performance on governance and democracy issues. For example, local NGOs stated that they are generally free to pursue their objectives and are regularly consulted by the GOR on policy issues, but have major capacity problems. They also complained of the burdensome nature of registration requirements with local and national authorities. International NGOs, noting that the government often takes criticism badly, called for increased consultation with civil society by the GOR, and an opening of additional political space to allow for the increased expression of policy differences from various sectors of society. They also emphasized the need to build existing institutions, such as the Auditor General and Parliament, as a counterweight to the executive branch, as well as build the civil society base for a resilient democracy. Private Press representatives explored at length the difficult business environment they faced in a small media market with expensive production costs, while noting that their ability to function freely and express critical points of view had increased steadily from year to year. Heads of donor governments generally expressed support for the reform agenda of the Rwandan government. ¶5. (SBU) At a private sector lunch, local business representatives urged implementation of a commercial court (note: which the government is in the process of establishing),said corruption was not a serious problem (although commenting that there was petty corruption at customs offices),and spoke on the difficulty of carrying on their activities in an small, isolated economy with poor infrastructure and limited human capital. At Parliament, senators and deputies said that they had successfully amended executive branch bills as part of their oversight function, but asked for support for their institution, particularly those oversight efforts in reviewing executive branch KIGALI 00001199 002 OF 002 performance. In discussing the political party forum, the parliamentarians commented that body met every few months, was a broad policy review mechanism, and did not dictate day-to-day activities to any of the member political parties. ¶6. (SBU) Informal but detailed exchanges on potential components of a Threshold Country Plan came at several social events, including a welcoming dinner at the Ambassador's residence, and a lunch hosted by the Minister of Finance. GOR representatives expressed openness to such reforms as the repeal of criminal libel statutes in favor of a purely civil libel law regime, a new definition of "divisionism" to avoid overly broad application and dispel concerns about vagueness, and an energized and effective judiciary, sure of its independence and able to adjudicate criminal and civil matters in a timely matter. ¶7. (SBU) On December 11, the MCC team and Ambassador met with President Kagame, who welcomed them enthusiastically, and expressed his personal support for the Threshold Program endeavor. Kagame noted that Rwanda wished for a comprehensive "review" of its reform and governance agenda, mentioning its Vision 2020 goals and the NEPAD African Peer Review Mechanism. Rwanda wanted to "move forward," he said, and this required a "convergence" of approaches. For example, civil society, he said, was welcome to debate issues and discuss opportunities and impediments to reform. It was an error in attitude, he said, to assume that if an idea did not come from "your own side," it had to be opposed. Ownership of the reform agenda was key to sustainability, he said, and the GOR wanted effective aid, with lasting value. "We feel the pain of poverty, the pain of disease, among our people," he said. Rwanda had "a sense of urgency," he said, and the GOR wanted to be challenged and supported. Harrington replied that MCC came to Rwanda in a spirit of partnership, and a recognition that the program had to be designed and endorsed by Rwanda. Ambassador added that the MCC Threshold program should be seen as a tool, to be used to spur reform and advance Rwanda's own policy agenda. ¶8. (SBU) At an outbrief session chaired by the Minister of Finance, also attended by the Ministers of Foreign Cooperation and Justice, the GOR team pledged to share drafts of their concept paper with the USG mission and with MCC. "We will meet the February 15 deadline for the concept paper," said France Gatare. MCC offered to share contact information for "indicator organizations" that independently assess the Rwandan performance, to enable the GOR to keep these organizations abreast of its reforms. Harrington briefly reviewed some of the potential reform items the GOR could consider for its Threshold Program. The GOR team assured the three MCC officials and Ambassador Arietti that they understood their role and their responsibilities, and would strive to produce an acceptable Concept Paper. ¶9. (SBU) Comment. The GOR fielded a very senior team, and, despite some occasional sniping at its MCC report card, appreciated the need to assemble an effective and focused Concept Paper for MCC evaluation, and to look for ways to raise its scores with an effective reform program. President Kagame appeared engaged and well-informed, and offered partnership and cooperation, as his government pursues its reform agenda. The proof will be in the Concept Paper pudding, but the MCC's first visit was a clear success. End comment. ¶10. (U) This cable was not cleared with the MCC team. ARIETTI