CAMEROON: AMBASSADOR AND FINANCE MINISTER DISCUSS

UNCLAS YAOUNDE 000061 SIPDIS SIPDIS STATE FOR AF/C STATE PASS MCC ACCRA FOR USAID PARIS AND LONDON FOR AFRICA ACTION OFFICERS EUCOM FOR J5-A AFRICAN DIVISION AND POLAD YATES E.O. 12958: N/A TAGS: EAID PREL PGOV ETRD ECON KMCA CM SUBJECT: CAMEROON: AMBASSADOR AND FINANCE MINISTER DISCUSS MILLENNIUM CHALLENGE ACCOUNT REF: A. YAOUNDE 30 ¶B. YAOUNDE 34 ¶1. (U) Summary: On January 17, the Ambassador and Finance Minister Abah Abah discussed Cameroon's revised, updated action plan to qualify for the Millennium Challenge Account (MCA) and the ongoing anti-corruption and good governance efforts of the government of Cameroon (GRC). The Minister said he was determined about accelerating the pace of reform in 2007, and noted that the GRC would also make an effort to provide current and accurate information to agencies contributing to the MCA indicators. The Ambassador cautioned that although the GRC had created an excellent action plan for 2007, covering everything from judicial reform to elections, it would be actions -- not promises -- that would count in the end. End summary. -------------- The Plan -------------- ¶2. (U) The Ambassador and the Minister of Economy and Finance, Polycarpe Abah Abah, discussed Cameroon's 2007 MCA action plan on January 17. According to the revised, updated GRC action plan, the government plans to implement an independent elections commission (the necessary legislation was adopted in December 2006),implement Article 66 of the Cameroonian constitution which concerns declaration of assets by public officials (the necessary legislation was adopted in 2006),implement CONAC (the anti-corruption commission President Biya announced in 2006),issue broadcast licenses, continue to implement the revolutionary new criminal procedure code (Reftel A),create an office to promote small and medium sized businesses, and update available information pertaining to health, education, and the environment. -------------- The Pace of Reform -------------- ¶3. (U) Of the "big ticket" items on the GRC's MCA action plan, only the new criminal procedure code has been adopted. The Ambassador emphasized that while the GRC has developed an excellent plan, covering a wide range of reforms long advocated by civil society and the international community, it would be actions, not promises, that matter. He told Abah Abah that during his conversations with Millennium Challenge Corporation (MCC) leadership in October 2006, he was told that MCA qualification is worth Cameroon's time and effort, but it is a competitive and evolving process. Cameroon needs to move more quickly and keep up with the pack, the Ambassador said. ¶4. (U) Abah Abah acknowledged that Cameroon's biggest problems are corruption and poverty, and said the government was committed to good governance, the anti-corruption initiative, and poverty reduction. Economic growth and poverty reduction formed the basis of President Biya's 2007 address to the nation (Reftel B). The Minister shared that Cameroon plans to implement an agency to foster small and medium sized enterprises, and has taken steps to simplify and expedite the time, and reduce the cost, to start a business. He noted that he was optimistic the GRC would complete the action plan's anticipated reforms in 2007, and would also provide up-to-date and accurate information for health and education to entities managing the MCA indicators. -------------- Investment Climate -------------- ¶5. (U) The Ambassador told Abah Abah that an improved investment climate was the key to encouraging increased American investment. He pointed out that he and other ambassadors from Europe and Asia had raised this issue with the managing director of the International Monetary Fund (IMF) when he visited Cameroon January 9-10 (septel),npoting bluntly that while the GRC gets high marks for achieving budgetary stability, it is still in the starting blocks on creating a welcoming investment climate. Given President Biya's New Year's speech, the Ambassador noted that he hoped 2007 would be a year of action on economic reform in Cameroon. The Ambassador pointed out that while we apreciate the GRC's ad hoc efforts to help out investors, no system is in place to welcome them. ¶6. (U) In conclusion, the Ambassador pointed out that the success of the government's action plan would lie in inter-ministerial cooperation; most of the "big ticket" items required action by several ministries. In order for the GRC to be competitive for the MCA, qualification would need to be a government effort, not an initiative resting within any one ministry. He stressed to Abah Abah the imp(ortant roles of the President and Prime Minister in providing overall leadership, and suggested that another visit to Washington by the Prime Minister would be in order once the "big ticket items" have actually been implemented. MARQUARDT