SECOND PRT-SUPPORTED BUSINESS ENVIRONMENT CONFERENCE

UNCLAS SECTION 01 OF 02 HILLAH 000037 SIPDIS E.O. 12958: N/A TAGS: ECON EFIN PGOV IZ SUBJECT: SECOND PRT-SUPPORTED BUSINESS ENVIRONMENT CONFERENCE MOBILIZES BUSINESS COMMUNITY REF: HILLAH 22 ¶1. Summary: At the second Business Environment Conference (BEC2) on April 25, participants agreed on the need for the business community to advocate for solutions with regard to corruption, the need for improved infrastructure, better credit, and critical economic legislation. Co-hosted by the PRT, Babil Chamber of Commerce (BCOC) and Babylon Center for Business Community Development (BCBCD),the conference advanced proposals, such as forming a business community lobbying group, undertaking public awareness campaigns and sponsoring economic studies -- which participants were eager to follow up through continued public-private partnership. Attendance was 50 percent higher than expected, drawing at least 150 attendees, including newly elected Governor Al Zargani making his first official appearance in which he spontaneously composed and read a poem. End Summary. -------------- Building Sustainability for Business Dialogue -------------- ¶2. BEC2 was held on April 25 as a follow-up to an earlier business conference (BEC1) (reftel). The idea behind BEC1 was to start a process that would lead to; a dialogue between key business stakeholders to identify common obstacles, the development of an action program to address such obstacles, and the implementation of the program. Participants at BEC1 identified financial services/access to credit, weak infrastructure, poor economic legislation, and corruption as the key obstacles to doing business in Babil. ¶3. While the PRT took the lead in organizing and hosting BEC1, Iraqi partners assumed much of the responsibility for BEC2. The BCOC and BCBCD helped develop BEC2's agenda and invitee list and organized the venue, a conference hall at the ruins of Babylon. The PRT trained BCOC and BCBCD staff to help facilitate working group roundtable discussions on overcoming the obstacles identified in BEC1. Like BEC1, BEC2 was held entirely in Arabic. As the BEC process continues, the PRT will turn over increasing responsibility to Iraqi partners to help ensure national ownership and sustainability. ¶4. Participants uniformly told us that the conferences facilitated discussions that otherwise would not occur, particularly between the public and private sector. The working group sessions were particularly effective at getting new ideas on the table. A visiting Director General from Baghdad said the roundtable format was something he now planned to emulate in his ministry. -------------- Moving Towards Solutions to Business Concerns -------------- ¶5. The theme of BEC2 was "Moving Towards Solutions." In the first session the audience heard from speakers who addressed the need for increased credit, better infrastructure, and stronger economic legislation. The theme of corruption was raised by all speakers as a common problem that needed to be addressed. ¶6. In roundtables, facilitators helped four working groups think about ways in which the business community could address the obstacles identified in BEC1. Participants agreed that the fundamental question was how the business community could make its collective voice heard on issues of fundamental importance to the private sector. Three common approaches emerged from the working groups: create a business lobbying group that could reach out to the government at the provincial and national levels; promote studies and analyses related to areas of economic concern, and; work through the media to increase public awareness of economic issues. ¶7. Participants agreed on the usefulness of the conference and pledged to continue the dialogue. The next conference, tentatively set for mid-June, should create entities from within the business community to address government lobbying, economic studies, and public awareness campaigns as well as developing action programs for each entity. -------------- All Rows of Seats Full While Governor Asks About the Roses -------------- ¶8. Although only about 100 invitations went out, over 150 participants showed up at the conference. Every seat was full and the overflow crowd watched and listened from the sides. In addition to the parties that attended BEC1, Babil's new Governor (and outgoing Governor),Deputy-Governor, and Deputy-Provincial Council Chairman also joined the conference. Provincial Directorate heads, as well as one DG from the Oil Ministry from Baghdad, also attended. ¶9. Newly elected Governor Salman Taha Al-Zargani highlighted the importance of the conference by making his first public appearance as governor. Al Zargani actively participated in a working group discussion. Moved by the conference, Al Zargai Salman took the microphone and read a poem composed on the spots in which he asked the question "Where are the beautiful gardens and roses full of the promise of my town?" ¶10. Babil's media put on a full-court press with newspaper, radio and television coverage. During the two-hour working group sessions politicians and business association heads conducted multiple interviews. Local press reports of the conference were positive and noted the importance of the conference and the PRT role in organizing it. Still, the high attendance and press coverage was something of a double-edged sword: while it focused attention on the conference it also meant that some participants were more inclined to make speeches than engage in dialogue. -------------- Conclusion: Bottom-Up Policy Dialogue -------------- ¶11. National policies and law -- e.g. on land ownership, foreign investment and credit -- define the macro-business environment. But the BEC process has begun to create a sustainable public-private partnership for grass-roots advocacy in favor of legislation and policy decisions that improve the business environment. HILLASK