BABIL REFORMERS CREATE PROTO-INVESTMENT COMMISSION

C O N F I D E N T I A L HILLAH 000047

SIPDIS

SIPDIS

E.O. 12958: DECL: 3/28/2017
TAGS: ECON EFIN ETRD PGOV IZ
SUBJECT: BABIL REFORMERS CREATE PROTO-INVESTMENT COMMISSION

CLASSIFIED BY: Charles F. Hunter, Babil PRT Leader, REO
Al-Hillah, Department of State.
REASON: 1.4 (b),(d)




1. (U) This is a PRT Babil Cable.


2. (SBU) Summary: In the wake of the CoR's passage of the
investment law, Babil business and political reformers recently
formed a "preparatory" provincial investment commission awaiting
the creation of the National Commission for Investment. Despite
its unofficial status, the Babil body presents itself as a
commission-in-waiting and has already begun inserting itself
into the provincial decision-making process. Driven by
energetic PC Planning Committee Chair Qusay Nadi Ali -- who
despite belonging to the Iraqi Communist Party is arguably the
strongest free-market advocate among elected officials in Babil
-- the group seeks to establish ties with the PC's economic,
project, planning, and legal committees. Upon the creation of
the National Commission for Investment, the unofficial Babil
investment group will seek formal blessing from the Provincial
Council (PC) to morph into the official body called for by the
investment law. End summary.


3. (U) Thus far, membership in the shadow commission is six
members (two members of the PC, one from the chamber of
commerce, two from the economic development center, and the
governor's administrative assistant). Qusay hopes to organize a
consensus for investment projects from among the PC economic,
project, planning, and legal committees, following which the
planning committee would funnel the accepted proposals to the
investment commission for its consideration.


4. (C) Qusay conceded that while there was "general acceptance"
of the investment law within the Babil PC, he lamented that the
creation of the investment commission had yet to reach its
legislative agenda. He cited opposition by the SCIRI-leaning
Economic Committee Chair Saad Yehia as the main obstacle to the
formalization of the commission's status. Qusay attributed
Saad's opposition to the latter's vague socialist leanings and
utter lack of knowledge about economics but believes that Saad's
opposition can be overcome (NFI). The incipient commission
already plans to publicize its existence through local centers
for economics and trade as well as by hosting an investment
conference. For Qusay, two key issues remain: security and
support from the provincial government. He specifically cited
the SCIRI governor's efforts to forge stronger trade and
investment ties with Iran as indicative of the provincial
leadership's sentiments.


5. (C) Comment: Qusay implied to visiting Embassy EconOff on
March 5 that the formal appointment of Babil's investment
commission had been completed, but apparently the process is not
as far along as hoped. While the establishment of this
provincial investment commission-in-waiting signifies the desire
of the province's more progressive political and business
elements to forge ahead with free-market reforms, the current
political situation may delay its transformation into an
officially recognized body. End Comment.

HUNTER