Mauritania Exceeds Development Funding Target at Paris

UNCLAS NOUAKCHOTT 001010

SIPDIS

SIPDIS

DEPARTMENT PLEASE PASS TO USAID

E.O. 12958: N/A
TAGS: EAID PREL PHUM KMCA MR
SUBJECT: Mauritania Exceeds Development Funding Target at Paris
Consultative Group


1. The Government of Mauritania, with support from the World Bank,
the European Commission and the UN Development Program, convened the
fifth Consultative Group (CG) meeting in Paris December 4 and 5.
Some three dozen bilateral and multilateral partners reviewed
Mauritania's national development strategies and priorities and,
most importantly for the GOM, made commitments for development
assistance for the period 2008 - 2010. The U.S. delegation was led
by USAID Acting Deputy Assistant Administrator Wade Warren who was
joined by Ambassador Mark Boulware.


2. Faced not just with serious development challenges but
significant domestic political pressure and popular expectations of
a "democracy dividend," the GIRM laid out a relatively ambitious and
comprehensive Public Investment Program (PIP). The PIP is designed
to advance progress in six priority areas: preserving and
protecting the environment, accelerating economic growth, improving
governance and institutional capacity, poverty reduction, developing
human resources and providing access to services, and strengthening
oversight, monitoring and evaluation. The PIP identified some 140
discrete projects in support of these goals with a total estimated
cost of USD 3.2 billion. Of that amount the GIRM had identified USD
1.6 billion in internal and external resources that it could devote
to the PIP, leaving an additional USD 1.6 billion shortfall for
which it hoped to obtain donor pledges at the CG.


3. The GIRM's presentations on its development strategies and
priorities were very professional and well received by donors.
Indicative of its determination not to shrink from even the most
sensitive questions, the presentations included the GIRM's plans to
deal with the vestiges of slavery and the return of Mauritanian
refugees from Senegal and Mali. Unusual for such a meeting, Kevin
Bales, the President of US NGO Free the Slaves, was invited to speak
on essential elements of programs to eliminate slavery.


4. Donor delegations were unanimous in praise for the GIRM's recent
political progress, its open and collaborative approach and the high
technical quality of the presentations. There was very little
criticism of the GIRM's development efforts and future plans
although several representatives urged that even more be done to
strengthen health and education programs and to sharpen the focus on
women and children. Bilateral and multilateral donors responded
generously to Mauritania's appeal for additional commitments with
total pledges amounting to USD 2.1 billion, nearly half a million
more than the original goal.


5. Saudi Arabia, France, Kuwait and Spain topped the bilateral
donor's list with respective contributions of 201.2, 143, 136 and
117.6 million USD. The biggest multilateral pledges were from the
Islamic Development Bank and the Arab Fund for Economic and Social
Development (both at $300 million),the World Bank ($263 million),
the European Union ($255.44 million) and the United Nations at
($184.40 million).


6. Several delegations, including the U.S., noted that they were
not in a position to make specific commitments at the CG, but lauded
Mauritania's political progress and assured it of continuing
support. Speaking for the USG, A/DAA Warren celebrated the GIRM's
achievements in advancing democracy, human rights and good
governance, highlighted various aspects of our current USD 30
million in assistance programs, announced that USAID would establish
a contracted position at the embassy in Nouakchott in January 2008
and noted that the Millennium Challenge Corporation (MCC) would be
making a decision on Mauritania's eligibility for MCC threshold
status on December 12.


7. In a meeting with the U.S. delegation on the margin of the CG,
Prime Minister Zeine Ould Zeidane reaffirmed his government's
commitment to continue working with the U.S. on security issues and
to make real progress on democracy, governance and human rights
issues. Expressing appreciation for current USG support, he also
noted the strong pressures on the GIRM to deliver on the democracy
dividend. A/DAA Warren reiterated the USG's determination to
continue working with Mauritania on our common goals, citing USAID's
decision to establish a new position in Nouakchott and the pending
decision on MCC threshold eligibility.


8. Comment: The Mauritanian delegation was very pleased with the
donor response and almost visibly relieved that the GIRM would be
able to claim success when they returned from Paris. Although the
funding covers a three year period and technical details remain to
be worked out with the various donors, the level of commitment
augurs well for Mauritania's development programs in the mid-term.
Local commentators have noted the very strong Arab contributions to
Mauritania with some suggestions this might soften the need for the
GIRM to remain tied to democracy and equality priorities - although
the Government has done nothing to indicate less than full
commitment. Multiple short term challenges remain, however, and the
good news from Paris will not long satisfy those looking for
immediate improvement in their daily lives.



BOULWARE