SCIRI STRATEGIC DIALOGUE: ECONOMIC MEETING

C O N F I D E N T I A L SECTION 01 OF 02 BAGHDAD 001569

SIPDIS

SIPDIS

E.O. 12958: DECL: 05/12/2017
TAGS: ECON EFIN PGOV IZ
SUBJECT: SCIRI STRATEGIC DIALOGUE: ECONOMIC MEETING


Classified By: Economic Minister-Counselor Daniel Weygandt for reasons
1.4 (b) and (d).


1. (C) Summary: At the first meeting of the US-SCIRI
economic dialogue, both sides agreed on the need to
coordinate economic activities with local partnership and
engagement. Much of the discussion focused on the need to
understand economic policy and to implement USG activities
within a framework of Iraqi economic priorities. The May 9
meeting's SCIRI representatives consisted of Vice President
Adel Abdul Mehdi as chair, Minister of Finance Bayan Jabr,
Council of Representatives Member Abdul Kareem Al-Nakib,
Baghdad Mayor Sabir al-Esawi and VP Advisor Mohammed Ali
Al-Hakim. (Note Sabir al-Esawi has been nominated by the
Prime Minister to be the new Minster of Agriculture. End
note.) Aziz Jafar joined the group towards the end of the
meeting. The U.S. side consisted of the Economic Counselor
as chair, USAID Director, ITAO Deputy Director for Finance,
and EconOff. The committee agreed to meet the following
week; this discussion will focus on U.S. economic strategy
and activities in Iraq, and how these relate to SCIRI
priorities. End summary.

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SUCCESSFUL WORK INVOLVES PARTNERSHIPS
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2. (C) The Vice President opened the session by welcoming
the opportunity to discuss economic activities and
strategies. He noted that the Iraqi participants of this
dialogue were representing SCIRI rather than speaking as part
of representatives of the Iraqi government, although most of
them also hold important roles in the GOI. Bayan Jabr noted
the importance of developing the economy for all Iraqis,
rather than for any one group, and emphasized the
relationship between better public services and improving the
political situation. He recommended small discrete projects
that could be used as successful examples. Sabir al-Esawi
said that coordination between different groups was the most
important aspect of successful work, noting that some USG
activities do not always seem coordinated internally. USAID
Director said that the most successful projects that USAID
has done have involved close local partners. EconCouns
requested feedback and assistance in finding local partners
from the SCIRI representatives.

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FITTING ACTIVITIES INTO AN ECONOMIC STRATEGY
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3. (C) Vice President Adel Abdul Mehdi suggested the
following points as the basis for future discussion: overview
of USG economic activities within an overall economic
strategy; isolating and understanding problems faced by the
USG and by SCIRI; developing the capacity of civil society
organizations and building links with other institutions;
building a greater partnership with the US to develop a
healthy legal framework for growth. He also noted SCIRI's
influence in several Iraqi provinces and said that this
presence could assist in USG activities. Abdul Kareem
Al-Nakib raised the need for implementing regulations to
develop a legal framework that promotes economic growth.


4. (C) EconCouns agreed that these issues are important and
noted that the USG is also going through a process of
revising its economic strategy in Iraq. Resource constraints
will focus efforts on strategic projects requiring
local-level contributions, he said, and USG priorities
included the oil and gas sector, improving GOI budget
execution, diversifying the economy. More Provincial
Reconstruction Teams were one new mechanism for this work, as
was the International Compact with Iraq, which could be used
to engage more international donors. He also encouraged
SCIRI to resist expanding the public sector at the expense of
a robust private sector. ITAO Deputy Director for Finance
concurred that the remaining large amounts of reconstruction
funds are tied to ongoing projects. He and the USAID
Director both noted that Iraqi priorities and the national
development strategy should inform our project choices going
forward.

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NEXT STEPS
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5. (C) The group agreed to meet the following week, using
the USG's economic strategy and planned activities as the
basis for discussion. Certainly SCIRI's contribution and
assistance with local engagement would be valuable to our
efforts in Iraq. Gaining the political party's support for
economic policies that promote healthy economic growth and a
robust private sector would also be very useful. It is clear
that there is a great deal of confusion as to what the USG is

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doing to help Iraq's economy, and this dialogue can be an
effective way to inform Iraqis about our work.
CROCKER