IRAQ SCIENCE AND TECHNOLOGY FUNDING INADEQUATE

UNCLAS SECTION 01 OF 03 BAGHDAD 001331 SENSITIVE SIPDIS DEPT FOR NEA/I, OES/STAS E.O. 12958: N/A TAGS: TSPL TPHY SCUL TBIO TNGD TINT PREL KPAO AORC IZ SUBJECT: IRAQ SCIENCE AND TECHNOLOGY FUNDING INADEQUATE REF: A. BAGHDAD 1204 ¶B. 08 BAGHDAD 2769 BAGHDAD 00001331 001.2 OF 003 -------------- SUMMARY -------------- ¶1. (SBU) From May 11-13, visitors from the U.S. National Academy of Sciences and National Science Foundation met with numerous Government of Iraq (GOI) officials to discuss science and technology (S-T) policy development and funding. GOI officials admitted Iraq lacks a driving force and vision to adequately manage S-T contributions to reconstruction efforts. S-T funding is a paltry 0.2% of gross domestic product and private sector S-T production capacity is nonexistent. Inter-ministry communication is limited and only a new government entity working for the Prime Minister's Office or Parliament would be able to garner the necessary cooperation. NSF and NAS visitors emphasized the need for policy commitment, coordination, and continuity in order to build effective S-T institutions. They provided an overview of S-T funding and policy coordination mechanisms in the United States. The Embassy will continue to engage the GOI on this issue through the SFA S-T Working Group to build GOI capacity to develop and manage national S-T priorities. -------------- EACH MINISTRY, AN ISLAND -------------- ¶2. (SBU) As part of an ongoing project to assist the Government of Iraq (GOI) to develop national science and technology (S-T) policy and funding mechanisms (ref A),Dr. John Boright, Executive Director of the Office of International Affairs of the U.S. National Academy of Sciences (NAS),and Dr. Clifford Gabriel, Senior Advisor in the U.S. National Science Foundation (NSF),addressed a group of over one hundred GOI officials on May 11 in a special four-hour symposium hosted by the Ministry of Science and Technology (MoST). Participants from the Council of Representatives (CoR),Prime Minister's Office (PMO), universities, and seven ministries discussed the principles of mobilizing S-T for national development, with special emphasis on the U.S. system of developing and funding national S-T priorities. One of several programs under the joint U.S.-Iraq Strategic Framework Agreement's S-T Working Group, the symposium was followed by two days of small group meetings to further explore and enhance GOI capacity to manage S-T. ¶3. (SBU) Ra'id Fahmi, Minister of Science and Technology, identified an issue which became a theme of most discussions of S-T policy: "Each Ministry has its own vision -- there is no single vision, nor is there a driving force to create one." When asked if MoST could perform such a function, the Minister responded, "No, I do not have any authority over the other ministries, so I cannot dictate any of their priorities or direct their resources." (Note: An early draft version of the MoST law, still pending before the CoR, states that MoST will, "Establish policies for science and technology that will achieve national priorities and in coordination with relevant sectors and institutions." End note.) Most Iraqi interlocutors agreed that any ministry-level entity would be unable to coordinate GOI S-T policy and that a new office working directly for the PMO or a new independent S-T commission would be necessary to gain adequate inter-ministry cooperation. -------------- -- COR LOOKING FOR HELP TO DETERMINE A WAY FORWARD -------------- -- ¶4. (SBU) Both CoR members we spoke with displayed sincere interest in S-T policy issues. Dr. Ala Makki, Chairman of Qinterest in S-T policy issues. Dr. Ala Makki, Chairman of the CoR Education Committee, enthusiastically queried Dr. Boright and Dr. Gabriel regarding the Parliament's role in S-T policy development and funding and requested electronic versions of U.S. legislation establishing the NSF. "We are not looking for a carbon copy -- we will decide ourselves," he said, but also admitted he did not fully understand how the Government and Parliament might share responsibilities in S-T policy and funding. "Iraq's research and development capacity is being starved," he said, and offered that it will be a very difficult process to direct GOI resources to S-T. "Right now, the Iraqi people want personal things -- that is the pressure we in the Parliament face." Dr. Sami Al-Araji, Chairman of the National Investment Commission (NIC),beamed that he is planning for a one-time "shot in the arm" infusion BAGHDAD 00001331 002 OF 003 of USD two billion into the MoHESR. Dr. Boright observed that such funds would not go very far given the magnitude of the problems in Iraq's higher education system, and the portion of those funds that might leak through the system to the MoHESR scientific research centers could perhaps be better invested in sustainable programs. "Long-term continuity and commitment of resources is a key principle of S-T institutional development," he said. ¶5. (SBU) Another common theme throughout S-T discussions was Iraq's lack of private industry. MoST officials asked detailed questions about public-private funding for S-T, including the role of grants, cooperative agreements, and contracts. Ahmed Al-Shamma, Deputy Minister of Oil, observed that, "Even if the GOI developed a new technology or device, there is no industry in Iraq to handle production." Dr. Abid Al-Ujayli, Minister of Higher Education and Scientific Research, admitted that Iraq must first improve its banking systems, internet, and legal framework before private industry and foreign investment could begin seriously participating in Iraq's redevelopment of S-T. NIC Chairman Dr. Sami Al-Araji, looking to expansion in private industry to achieve full national employment, said, "You cannot put a dollar value on what Iraq has -- the region's best political system, plentiful natural and human resources, and the revenues from 6 million barrels of oil per day by 2015." He was confident that continued incremental restructuring of state-owned enterprises would also contribute an important piece to the development of private industry in Iraq. -------------- A STRUCTURAL DISREGARD FOR S-T? -------------- ¶6. (SBU) Many officials pointed to what one called a structural disregard for S-T in both the GOI and international efforts to rebuild Iraq. Dr. Samir Attar, Deputy Minister of Science and Technology, noted that the Iraq Ministry of Planning, largely responsible for Iraq's five-year plans, does not consider S-T as an independent sector in its planning process. "The World Bank's 2004 plan did not contain an S-T section, nor is there one in the International Compact with Iraq," he lamented. Dr. Ammar Hassan, Deputy Minister of Higher Education and Scientific Research, echoed what we heard from many other officials when he observed that, "The GOI is still working on basic services and government structures -- S-T policy just isn't a priority yet." Interlocutors variously estimated current GOI S-T funding at somewhere between 0.015% and 0.3% of gross domestic product and agreed that it will be politically complex and very challenging to generate policy coherence and expand funding. ¶7. (SBU) MoST efforts to conduct a GOI-wide Science and Technology Innovation Policy (STIP) review by the United Nations Conference on Trade and Development (UNCTAD) is an informative example of GOI priorities (ref B). The goal of the review is to inventory Iraq's S-T resources and prioritize efforts in order to contribute to Iraq's economic growth and ensure Iraq is able to successfully participate in a knowledge-based globalized economy. When funding for the review from the Iraq Trust Fund (ITF) was temporarily cancelled earlier this year, MoST officials had to look outside the GOI for international donors to pay for the review, estimated at USD 800,000. Thinking ITF funding was still unavailable, Deputy Minister Attar, the GOI lead for the STIP review, asked Dr. Boright and Dr. Gabriel numerous Qthe STIP review, asked Dr. Boright and Dr. Gabriel numerous detailed questions about other resources that might help the GOI continue their review, such as S-T policy review templates or completed studies conducted for other countries. It was clear that absent ITF funds, the GOI was not considering funding the STIP review, so Dr. Attar was attempting to economize while maintaining momentum. MoST officials say they are working with 15 GOI ministries on the STIP review and are continuing to gather data for the study. MoST would appreciate NSF and NAS reviews of their STIP products as they become available. (Note: Earlier this week, the United Nations tentatively agreed to use the ITF to pay for the STIP review. End note.) -------------- COMMENT -------------- ¶8. (SBU) Following three days of discussions with GOI officials, Dr. Boright and Dr. Gabriel met with EmbOffs to discuss possible new GOI governmental structures to develop S-T policy and allocate funding, resulting in a preliminary BAGHDAD 00001331 003 OF 003 GOI wiring diagram describing new Science Policy Development and Research Support Offices, including flow lines of advisory, policy, and budgetary responsibilities. The Embassy will continue to engage the GOI on this issue through the SFA S-T Working Group to build GOI capacity to develop and manage national S-T priorities. HILL