NEW GOVERNMENT HAS STRONG ECONOMIC TEAM

UNCLAS SECTION 01 OF 02 DAKAR 001330 SIPDIS SIPDIS SENSITIVE DEPT FOR AF/W, AF/RSA, INR/B AND INR/AA PARIS FOR POL - D'ELIA E.O. 12958: N/A TAGS: PGOV PHUM PINR PREL EFIN ECON SG SUBJECT: NEW GOVERNMENT HAS STRONG ECONOMIC TEAM DAKAR 00001330 001.2 OF 002 SUMMARY -------------- ¶1. (SBU) President Wade, following a historically low turn out at recently concluded legislative elections, ousted Prime Minister Macky Sall. Even though Wade was not expected to keep Sall he used him as a scapegoat for being unable to maintain unity within the ruling Senegalese Democratic Party (PDS) and to successfully counter the opposition's boycott. By appointing a technocrat with a budget and finance background, Cheikh Hadjibou Soumare, as the new Prime Minister, Wade is sending a signal about his resolve to address financial and economic issues. While there are many familiar faces, the make-up of the new Cabinet also shows his wish to rebuild his party to win back the hearts and minds of citizens who have lost faith in the political class. END SUMMARY. A CAUTIOUS APPROACH -------------- ¶2. (SBU) The current cabinet consists of 37 members including 11 women. Unfortunately, Wade did not keep his widely publicized pledge to create a leaner cabinet. (NOTE: He had mentioned 16-20 ministries. END NOTE). He removed 17 Ministers and appointed 14 new ones. Importantly, he doubled the number of women, underlining his commitment to the spirit of parity he has longed espoused. The new cabinet is a carefully balanced mix of senior politicians close to Wade and technocrats who will be tasked to fix critical financial deficits and chronic agricultural problems, prioritize a development agenda, and head-off social unrest. Another key aspect of the Cabinet is the number of young and women Ministers who were brought in to inject new blood into the ranks of the PDS. The Cabinet also reflects Senegal's religious, geographic and ethnic diversity. SIGNAL TO RECALCITRANTS -------------- ¶3. (SBU) Party rebels who opposed Wade by rejecting the party's centralized form of selecting its candidates for legislatives elections and who then instructed their supporters not to vote for their party's own nominees, were all removed. They include Minister of Planning and International Cooperation, Sustainable Development and International Cooperation Lamine Ba, Minister of Commerce Khoureychi Thiam, Minister of Renewable Energy Sina Diatta, and the Minister of Urban Affairs Assane Diagne. ENDING COALITIONS -------------- ¶4. (SBU) The Cabinet reflects Wade's decision to end the coalitions he had formed with several small parties to further divide the opposition. Seven ministers belonging to these smaller parties were sacked. Mamoune Niasse, a well-known religious leader, active in the political scene who was placed in the previous Cabinet to weaken Wade's nemesis, Idrissa Seck, is now angling to become the leader of the opposition. In the end, these small parties brought little of value to Wade in terms of votes, but he used them effectively as "bloodhounds" to attack opposition leaders and to inflate the number of parties he could cite as allies. PREPARING THE SUCCESSION -------------- ¶5. (SBU) Many observers believe that Wade is preparing his son, Karim, to succeed him. As rumors abound, Wade's office issued an unusual press release four days ago to refute claims that President Wade was planning to have his son succeed him. Former Senior Minister Aminata Tall, who many expected to become Prime Minister, is conspicuously absent. Some of the other former government heavyweights, such as Prime Minister Macky Sall, Minister of Youth Alioune Sow, Secretary General of the Government Alioune Badara Cisse, and Minister of Women, Family, Social Development and Women's Entrepreneurship Aida Mbodj, were all removed. That said, Wade once again showed his political acumen as Sall was elected President of the National Assembly and Mbodj Second Vice-President. Thus, they have not been completely sidelined. Newcomers include people close to Karim's camp such as Mamadou Lamine Keita, Minister of Youth and Employment, and Ms. Innocence Ntap, Minister of Civil Service, Labor and Professional Organizations. A STRONG ECONOMIC TEAM -------------- ¶6. (SBU) By appointing economic technocrats with little political ambition Wade is sending a clear message that "he gets it" and that the economy must be jump-started. Prime Minister Soumare, Senior Finance Minister Abdoulaye Diop, Minister of Commerce A. Hadjibou Ndiaye, and Junior Minister of Budget Ibrahima Sarr are the country's most senior and longest serving economists. The three graduated from the National School of Administration and Judicial Studies. Soumare has been Wade's Junior Minister of Budget since May 23, 2001. He was most previously the Director General of Finance at the Ministry of Finance. Senior Minister Diop has been DAKAR 00001330 002.2 OF 002 Wade's Minister of Economy and Finance since May 2001. He was first appointed in April 2000 as Junior Minister for Budget. Ibrahima Sarr, who replaces Soumare as Junior Minister of Budget, was most recently the Junior Minister for Budget's Chief of Staff. Amadou Habibou Ndiaye, the new Minister of Commerce, is also an upgrade having previously been a Director of Cabinet, a key interlocutor for the 2005 African Growth and Opportunity Act (AGOA) Forum in Dakar, and a past participant in the International Visitors' Program. MANY FAMILIAR FACES -------------- ¶7. (U) Many key Ministers did not change. Cheikh Tidiane Gadio retains his post as Senior Minister for Foreign Affairs; Cheikh Tidiane Sy remains Senior Minister of Justice; Ousmane Ngom stays at Interior but was promoted to Senior Minister; Habib Sy retains the Infrastructure portfolio; Becaye Diop is still Minister of Armed Forces; Samuel Sarr stays at Energy; Mame Birame Diouf keeps the Culture portfolio; Moustapha Sourang remains at Education; and Issa Mbaye Samb, the former Minister of Hygiene and Sanitation, goes back to his earlier post as Minister of Health. COMMENT -------------- ¶8. (SBU) Wade's Cabinet strikes a balance between change and continuity as he continues to focus on reconstructing a PDS mired in internal fights. Senior politicians in the Cabinet, who are all the President's men, will primarily focus on that task, while the technocrats and younger political leaders will work closely with his son Karim who looks likely to increase his involvement in state affairs. ¶9. (SBU) As a technocrat and economist, the new Prime Minister does not have a political network and is not a player in the current succession fight. We believe that Soumare, Diop and Sarr know their domain inside out. Their background may not serve as a total firewall from political pressures, but does mean any mistakes they might make will not be because they are in unfamiliar territory. Challenges they face include resuming negotiations with the IMF, pursing efforts for the implementation of the Accelerated Growth Strategy, pursuing privatization, reducing the internal debt burden, controlling the off-budget agencies, and managing the fiscal deficit. However, in the current tense political climate and difficult financial circumstances further Cabinet changes and political realignments are not out of the question. Moreover, with an expanded National Assembly and a new Senate coming on-line, Senegal does not yet appear ready to tackle much-needed civil service reform. END COMMENT. ¶10. (U) Visit Embassy Dakar's SIPRNET Web site at http://www.state.sgov.gov/p/af/dakar. JACOBS