Identifier
Created
Classification
Origin
07ASHGABAT1282
2007-11-26 13:12:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Ashgabat
Cable title:
TURKMENISTAN: MINISTRY OF ECONOMY AND FINANCE MISSES BOAT
how-toVZCZCXRO5369 RR RUEHAG RUEHAST RUEHBI RUEHCI RUEHDBU RUEHDF RUEHIK RUEHLH RUEHLN RUEHLZ RUEHPW RUEHROV RUEHVK RUEHYG DE RUEHAH #1282/01 3301312 ZNR UUUUU ZZH R 261312Z NOV 07 FM AMEMBASSY ASHGABAT TO RUEHC/SECSTATE WASHDC 9768 INFO RUCNCIS/CIS COLLECTIVE RUCNMEM/EU MEMBER STATES COLLECTIVE RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE RUEHBJ/AMEMBASSY BEIJING 0846 RUEHKO/AMEMBASSY TOKYO 0720 RUEHAK/AMEMBASSY ANKARA 3030 RUEHIT/AMCONSUL ISTANBUL 1296 RUEHVEN/USMISSION USOSCE 1942 RUEATRS/DEPT OF TREASURY WASHDC RUCPDOC/DEPT OF COMMERCE WASHDC RHMFIUU/CDR USCENTCOM MACDILL AFB FL RUEAIIA/CIA WASHDC RHEFDIA/DIA WASHDC RUEKJCS/JOINT STAFF WASHDC RUEKJCS/SECDEF WASHDC RHEHNSC/NSC WASHDC
UNCLAS SECTION 01 OF 02 ASHGABAT 001282
SIPDIS
SENSITIVE
SIPDIS
STATE FOR SCA/CEN (SNELSIRE)
E.O. 12958: N/A
TAGS: ENRG EAID PINR PREL PGOV TX
SUBJECT: TURKMENISTAN: MINISTRY OF ECONOMY AND FINANCE MISSES BOAT
WITH COOLNESS TO INVESTOR'S ROADMAP PROPOSAL
REF: A) ASHGABAT 729
B) ASHGABAT 864 (Sullivan-Jeparov)
UNCLAS SECTION 01 OF 02 ASHGABAT 001282
SIPDIS
SENSITIVE
SIPDIS
STATE FOR SCA/CEN (SNELSIRE)
E.O. 12958: N/A
TAGS: ENRG EAID PINR PREL PGOV TX
SUBJECT: TURKMENISTAN: MINISTRY OF ECONOMY AND FINANCE MISSES BOAT
WITH COOLNESS TO INVESTOR'S ROADMAP PROPOSAL
REF: A) ASHGABAT 729
B) ASHGABAT 864 (Sullivan-Jeparov)
1. (U) Sensitive but unclassified. Not for public Internet.
2. (SBU) SUMMARY: Despite earlier expressions of interest in a
USAID proposal to develop an Investor's Roadmap to improve
Turkmenistan's investment climate, the Ministry of Economy and
Finance (MOEF) is unwilling to commit to USG technical assistance in
this area. Previously, MOEF experts said a heavy workload and the
need to wait for a long-delayed EU-TACIS program to begin were
preventing a decision on the Roadmap. The most recent explanation
is that the Minister won't consider USAID's proposal until the
Ministry develops its own draft strategy for improving the
investment climate. Given the lack of expertise regarding
international best practices, the Ministry may be missing an
important opportunity regarding economic reforms since the roadmap
exercise could provide valuable input to the existing task of
preparing a draft strategy. END SUMMARY.
ACKNOWLEDGED NEED TO IMPROVE INVESTMENT CLIMATE
3. (SBU) During meetings this summer with various USG delegations
(reftel),First Deputy Economy and Finance Minister Tuwakmamet
Jeparov acknowledged the importance of an attractive business
climate. In response, USAID submitted a proposal in August to
cooperate with the Ministry in an Investor's Roadmap exercise, and
in mid-September submitted a sample Investor's Roadmap report from
Kazakhstan in response to the Ministry's direct request.
4. (SBU) USAID has supported the Investor's Roadmap process in
numerous countries around the world. The Investor's Roadmap is an
analytical methodology that spells out the step-by-step requirements
an investor or entrepreneur must satisfy in order to become
operational in full compliance with all laws, regulations,
procedures, and institutional practices. The approach can be
applied to many different kinds of investors, including, for
example, to focus on the steps required for: converting from
informal to formal status for micro-enterprises; stimulating direct
foreign investment; and improving investment to specific sectors,
such as health care providers, non-traditional horticulture
producers, and different regions of the country. The approach
proposed by USAID was specifically targeted to identify the key
factors affecting direct foreign investment.
RELUCTANCE TO COMMIT -- OR DESIRE TO FOLLOW ITS OWN PATH?
5. (SBU) Although interactions at the working-level have become
somewhat more cordial, repeated phone calls to Ministry specialists
beginning just after the proposal's submission have yielded mixed
indications with regard to interest in the exercise. In a November
14 telephone inquiry from a USAID project management specialist, the
MOEF department head familiar with the proposal stated that the
recent IMF delegation and the need to develop new exchange rate
policies were more pressing issues. A follow-up phone call on
November 20 provided no clearer answer, since key specialists
reportedly had traveled to Brussels to participate in the bidding
process for the upcoming EU-TACIS economic reform program. The MOEF
advised, however, that she had brought this issue to the attention
of the Minister, who reportedly told her that he wouldn't consider
the roadmap proposal until the Ministry's own specialists developed
their own draft strategy for improving the investment climate. Only
after that could they determine whether the proposal would move
forward.
6. (SBU) COMMENT: While the Ministry might desire to work on its
own proposal, a key question is whether it actually has staff with
sufficient knowledge of international best practices to prevent them
from implementing changes that do not actually improve the
situation. The Investor Roadmap exercise is a tool that looks at
existing regulations and laws and identifies - from the perspective
ASHGABAT 00001282 002 OF 002
of an investor - the changes that might help improve the investment
climate. As a result, it could provide valuable input to the
pressing task of preparing a draft strategy of investment climate
improvement. END COMMENT.
CURRAN
SIPDIS
SENSITIVE
SIPDIS
STATE FOR SCA/CEN (SNELSIRE)
E.O. 12958: N/A
TAGS: ENRG EAID PINR PREL PGOV TX
SUBJECT: TURKMENISTAN: MINISTRY OF ECONOMY AND FINANCE MISSES BOAT
WITH COOLNESS TO INVESTOR'S ROADMAP PROPOSAL
REF: A) ASHGABAT 729
B) ASHGABAT 864 (Sullivan-Jeparov)
1. (U) Sensitive but unclassified. Not for public Internet.
2. (SBU) SUMMARY: Despite earlier expressions of interest in a
USAID proposal to develop an Investor's Roadmap to improve
Turkmenistan's investment climate, the Ministry of Economy and
Finance (MOEF) is unwilling to commit to USG technical assistance in
this area. Previously, MOEF experts said a heavy workload and the
need to wait for a long-delayed EU-TACIS program to begin were
preventing a decision on the Roadmap. The most recent explanation
is that the Minister won't consider USAID's proposal until the
Ministry develops its own draft strategy for improving the
investment climate. Given the lack of expertise regarding
international best practices, the Ministry may be missing an
important opportunity regarding economic reforms since the roadmap
exercise could provide valuable input to the existing task of
preparing a draft strategy. END SUMMARY.
ACKNOWLEDGED NEED TO IMPROVE INVESTMENT CLIMATE
3. (SBU) During meetings this summer with various USG delegations
(reftel),First Deputy Economy and Finance Minister Tuwakmamet
Jeparov acknowledged the importance of an attractive business
climate. In response, USAID submitted a proposal in August to
cooperate with the Ministry in an Investor's Roadmap exercise, and
in mid-September submitted a sample Investor's Roadmap report from
Kazakhstan in response to the Ministry's direct request.
4. (SBU) USAID has supported the Investor's Roadmap process in
numerous countries around the world. The Investor's Roadmap is an
analytical methodology that spells out the step-by-step requirements
an investor or entrepreneur must satisfy in order to become
operational in full compliance with all laws, regulations,
procedures, and institutional practices. The approach can be
applied to many different kinds of investors, including, for
example, to focus on the steps required for: converting from
informal to formal status for micro-enterprises; stimulating direct
foreign investment; and improving investment to specific sectors,
such as health care providers, non-traditional horticulture
producers, and different regions of the country. The approach
proposed by USAID was specifically targeted to identify the key
factors affecting direct foreign investment.
RELUCTANCE TO COMMIT -- OR DESIRE TO FOLLOW ITS OWN PATH?
5. (SBU) Although interactions at the working-level have become
somewhat more cordial, repeated phone calls to Ministry specialists
beginning just after the proposal's submission have yielded mixed
indications with regard to interest in the exercise. In a November
14 telephone inquiry from a USAID project management specialist, the
MOEF department head familiar with the proposal stated that the
recent IMF delegation and the need to develop new exchange rate
policies were more pressing issues. A follow-up phone call on
November 20 provided no clearer answer, since key specialists
reportedly had traveled to Brussels to participate in the bidding
process for the upcoming EU-TACIS economic reform program. The MOEF
advised, however, that she had brought this issue to the attention
of the Minister, who reportedly told her that he wouldn't consider
the roadmap proposal until the Ministry's own specialists developed
their own draft strategy for improving the investment climate. Only
after that could they determine whether the proposal would move
forward.
6. (SBU) COMMENT: While the Ministry might desire to work on its
own proposal, a key question is whether it actually has staff with
sufficient knowledge of international best practices to prevent them
from implementing changes that do not actually improve the
situation. The Investor Roadmap exercise is a tool that looks at
existing regulations and laws and identifies - from the perspective
ASHGABAT 00001282 002 OF 002
of an investor - the changes that might help improve the investment
climate. As a result, it could provide valuable input to the
pressing task of preparing a draft strategy of investment climate
improvement. END COMMENT.
CURRAN