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