Partnership for Democratic Governance - Readout on

UNCLAS SECTION 01 OF 04 PARIS 000307 SIPDIS SIPDIS FROM USOECD PARIS STATE FOR EEB JONATHAN MUDGE AND NANCY SMITH-NISSLEY STATE FOR S/CRS MARK ASQUINO E.O. 12958: N/A TAGS: EAID ECON KDEM OECD SUBJECT: Partnership for Democratic Governance - Readout on Inaugural Steering Group Meeting PARIS 00000307 001.2 OF 004 ¶1. Summary. The PDG Steering Group convened for the first time on February 13-14 in Paris. Secretary General Gurria chaired the meeting, which was attended by the nine Steering Group countries, plus the UNDP. Assistant Secretary for Economic, Energy, and Business Affairs Daniel S. Sullivan represented the United States. Gurria announced that all Steering Group Members and the OECD have signed the PDG Memorandum of Understanding. He welcomed the hiring of Polish diplomat Jerzy Pomianowski as head of the PDG Advisory Unit. The Steering Group agreed it would operate with one chair and three vice chairs, and take decisions by consensus. It deferred decisions on operating models, rules, and regulations to its next meeting, scheduled for early May. End Summary. ¶2. OECD convened the first PDG Steering Group meeting on February 13 and 14. The gathering drew high-level attendance, including Secretary General Gurria, Polish Deputy Foreign Minister Ryzsard SIPDIS Schnepf, Ambassador Egan, EEB Assistant Secretary Dan Sullivan, Chilean MFA Planning Director Ambassador Angel Flisfisch, and UNDP Administrator Kemal Dervis. All nine Steering Group countries, plus the UNDP were represented. The Steering Group member countries are: Australia, Canada, Chile, Denmark, Korea, Mexico, Poland, Turkey and the United States. PDG founding members Brazil, Japan, the Organization of American States and the Inter-American Development Bank participated. The UK and World Bank attended as observers. Progress Report -- The State of Play -------------- ¶3. Prior to addressing the meeting's core agenda items -- governance structure and operating procedures -- the Secretary General gave a progress report. He announced the crossing of two PDG milestones: completion of the PDG Memorandum of Understanding (MOU) signing process; and the hiring of a head for the PDG Advisory Unit (AU). Turkey signed the MOU on February 8; Deputy Secretary General Mario Amano signed for the OECD (the final signatory) shortly thereafter. Gurria introduced Poland's former Ambassador to Japan Jerzy Pomianowski, current Head of Development Cooperation at Poland's Ministry of Foreign Affairs, as the new AU head. Pomianowski will assume his functions in Paris on April 1. During the first year of PDG, Pomianowski hopes to convene two conferences to promote the PDG, one on capacity-building in Africa and one on public-private service delivery. ¶4. Note. Bonnie Schaefer, Administrative Officer, is the only member of the planned eight-person AU; Pomianowski will be the second. Pomianowski underscored the need to finish recruitment for the AU. He anticipates it will take three to four months for the AU to become fully operational. End Note. Update on Funding -------------- ¶5. The Secretariat noted member countries have so far pledged about EUR 5.3 million of the AU's EUR 7.4 million three-year budget. In addition to the EUR 2.1 million shortfall, there exists a sizeable (numbers not available) deficit between the EUR 5.3 million pledged and sums actually provided. Deputy Head of the OECD's Development Coordination Directorate Stephen Groff said that barring receipt of PARIS 00000307 002.2 OF 004 additional monies already pledged the OECD would not be able to staff fully the AU this summer. Both Groff and Pomianowski asked members to encourage other countries to join (and hence contribute to) the PDG. They also called for increased support from current members. Such support could be in-kind (such as assigning personnel or allowing use of member-country embassy services) or financial. Turkey announced it will assign one diplomat, at the First Secretary level, from the MFA in Ankara to the PDG AU in Paris, for a two-year period beginning in summer 2008. PDG Steering Group - Governance Structure -------------- ¶6. Delegates approved a Steering Group structure consisting of one chair and three vice chairs. The chair and one vice chair, occupied by OECD and UNDP respectively, are permanent. The remaining two vice chairs are designated for member countries on a rotational basis. The group elected Chile to serve as vice chair for a two-year period. Canada and Australia agreed to share the second vice chair position, with Canada taking the first year and Australia the second. Delegates agreed the Steering Group would take decisions based on consensus, in line with standard OECD practice. ¶7. This governance structure differs from that called for in the June 2007 Council document that established the PDG, which envisaged only two co-chairs, one being the OECD and the second to be decided upon at the first Steering Group meeting. Insofar as the Council empowered the Steering Group to decide upon its own governing structure, however, the new arrangement is not problematic. The structure both reflects common agreement on the importance of UNDP and accommodates concerns (in particular those of Chile) that member countries play a prominent leadership role. ¶8. Delegates discussed at length OECD proposals to establish a "Consultative Group" and a "Reference Expert Group" to advise the AU and Steering Group. Pomianowski envisaged a Consultative Group composed of focal-point personnel from member-country aid agencies to provide advice, support, and feedback to the AU and Steering Group. Terry Jones, Director of the UNDP's Bureau for Development Policy, called for a Reference Expert Group to be composed of a small number of intellectuals who could look at big-picture issues and "guide, certify, and validate" the AU's approach. U.S. Assistant Secretary Sullivan, backed by Mexico, Chile and Canada, suggested delegates determine the activities of, and rules governing, the AU before considering the creation of additional bodies. He cautioned against PDG's becoming too bureaucratic. Delegates agreed to defer discussion on these groups to the next meeting. PDG -- Rules and Operating Models -------------- ¶9. Numerous delegates praised the innovative nature of the PDG initiative and underscored the need for flexibility in operations, but concomitantly stressed the need for clear rules governing PDG activities. Such rules and/or guidelines would set, for example, the parameters within which the AU can take decisions independent of PARIS 00000307 003.2 OF 004 the Steering Group. They would also outline general criteria for use in determination of PDG-appropriate projects, and criteria for expanded membership. ¶10. Canada asked the OECD to prepare documentation outlining structure, operational models and approaches, and procedural issues for determination at the May Steering Group meeting. The Canadian delegate undertook to ask Ottawa to fund a consultant to help in the preparation of these materials, insofar as the AU will not yet be fully operational by that time. Canada suggested, and delegates agreed, that a working group (membership undefined) should convene immediately prior to the May Steering Group meeting to review this documentation. Expanding PDG: from Observer to Member Status -------------- ¶11. Delegates identified the need to expand PDG membership, and agreed that the Steering Group could invite (by consensus) observers. All agreed that observer status be considered a pathway towards membership. For reference, the PDG has three levels of membership. Steering Group members are those that both express support for the Partnership's objectives and contribute at least 50,000 EUROS/year either in cash or in kind. Founding members are those countries that express support for the PDG objectives, but do not support PDG financially. Observers are those countries that neither contribute financially nor formally express support for PDG objectives. The Road Ahead -------------- ¶12. UNDP Administrator Kemal Dervis promised that after the meeting the UNDP would task its country offices to identify demand, in similar fashion to the USG tasking of embassies this past autumn. He anticipated UNDP would then develop a list of 10-15 countries for possible PDG projects. The Steering Group agreed to meet on an annual basis, and to circulate information between meetings using the OECD's OLIS system. However, to maintain momentum, at the suggestion of U.S. Assistant Secretary Sullivan, the group set the next Steering Group meeting for May, on the margins of the May 4-5, 2008, OECD Executive Council in Special Session (ECSS). Secretary General Gurria noted that between now and Pomianowski's start on April 1, member countries could channel all PDG input to OECD's Steve Groff. Comment -------------- ¶13. The first meeting of the PDG Steering Group proved successful insofar as it increased momentum for the initiative, yielded quick agreement on a governance structure, garnered senior-level participation, and reaffirmed OECD and member country commitment. Key elements of the initiative, however, are still not in place, notably: rules and procedures for PDG operations, especially vis-`-vis the AU, and the creation and composition of "experts" and "consultative" groups. Staffing and financing also remain problematic. The AU currently has only one employee; its new head PARIS 00000307 004.2 OF 004 starts April 1; its five additional staff members have yet to be hired. Deficits exist between funds pledged and budget requirements, as well as between amounts pledged and actually disbursed. PDG members will need to maintain sustained, persistent engagement with OECD to ensure success. Egan