IRAQ MINISTRY OF HEALTH INVESTMENT CONFERENCE:

UNCLAS STATE 021371 SENSITIVE SIPDIS E.O. 12958: N/A TAGS: CMGT CVIS VO PA PGOV PREL SOCI ECON IZ SUBJECT: IRAQ MINISTRY OF HEALTH INVESTMENT CONFERENCE: STRATEGIC PLAN, VISAS AND EDUCATION PARTNERSHIPS REF: BAGHDAD 317 ¶1. (U) Summary: At the Iraq HEALTH Investment Summit, held on February 19 and 20 in Istanbul, the Minister of Health, Dr. Salih al-Hasnawi, showcased Iraq's 2009-2013 HEALTH plan and solicited partnerships with private companies. Potential investors believed there were opportunities in the new healthcare market. Despite assurances from the Minister of Health that security in Iraq has improved and has been stable for over a year, some investors expressed caution. The &cumbersome8 U.S. visa process was noted by Iraqis and American investors alike, with American investors highlighting lost business opportunities due to long delays before Iraqis could obtain U.S. visas. Academics and medical professionals noted that despite years of distance in the U.S.-Iraq healthcare relationship, partnerships and exchanges could help rebuild this relationship and improve the average Iraqi's outlook towards America. This is a potential area for cooperation under the Strategic Framework Agreement. -------------- Iraq HEALTH Investment Conference -------------- ¶2. (U) The investment summit in Istanbul was well attended, with approximately 100 medical company representatives participating. The conference addressed the ministry's strategic plan, acknowledged shortfalls, cited mechanisms being put in place to reform some archaic systems, such as Kimadia, the drug procurement system. The U.S.-Iraq Chamber of Commerce addressed practical investment guidelines for companies seeking business with Iraq. The Iraqi delegation was comprised of the Ministry of Health's most knowledgeable and articulate directors generals, two representatives from Prime Minister Maliki's office, a member of the Council of Representatives HEALTH and Environment Committee, and leaders in Iraqi medicine and education. Members of the Iraqi delegation challenged each other during the general sessions, asking tough questions of themselves and of the companies. -------------- Focus on Primary Healthcare and Nursing -------------- ¶3. (SBU) The Ministry of HEALTH laid out an ambitious strategic plan covering 26 areas, many of which are aimed at achieving U.N. Millennium Development Goals as well as meeting international healthcare standards. The MOH presented in great detail its plans to expand the primary healthcare center (PHC) network as well as construct new hospitals across Iraq. In the coming years, the MOH infrastructure expansion plan includes construction of an additional 1,500 PHCs (estimates of the number of existing PHCs range from 1,200-1,900) and increasing the number of hospital beds available for secondary and tertiary care. The GOI has developed plans to construct seven &turn-key8 hospitals in 2009 and has already awarded more than $1.5 billion in hospital contracts to Turkish, Australian and German companies. ¶4. (SBU) The Minister of HEALTH also announced that 2009 was the &Year of Nursing.8 Follow-up discussions with the World HEALTH Organization country lead indicated that the MOH needs to better address the nursing sector to make this year more than an empty phrase. The steps that need to be taken, however, will not be grand in nature such as those associated with a strategic plan for nursing, but rather actions that increase positive publicity about nurses and the nursing profession. The WHO has been working closely with the Ministries of HEALTH and Higher Education on key projects to improve nursing education and services as well as addressing the stigma associated with the nursing profession in Iraq. -------------- Security concerns -------------- ¶5. (U) The improvement in security was noted several times by Dr. Salih and members of his delegation. Despite their reassurances, many participants remained cautious about making any concrete commitments despite the potential of a growing HEALTH market. Several companies already active in Iraq's HEALTH sector, some employing hundreds of individuals across the country, noted to other potential investors that the security situation had improved, yet reforms in MOH procurement and contracting were still needed. Dr. Salih urged companies to &become partners8 to improve the healthcare system and service delivery as they developed business contracts. -------------- U.S. Visa Policy -------------- ¶6. (U) While security was identified as a hindrance to doing business in Iraq, no other issue raised more difficulties than obtaining U.S. visas. Both American businesses representatives and Iraqis spoke at length about the negative impact the visa process was having on investment and educational exchanges. ONE of many examples shared by Iraqi professionals included a prominent cardiologist having to turn down a fully-sponsored invitation to the American Cardiologist Association meeting in Florida because he was invited with less than a four-month window. ¶7. (U) Embassy Baghdad HEALTH Attache and NEA/I Desk Officer were asked to participate in an impromptu meeting on this issue with representatives from several American companies. The HEALTH Attache explained that for an Iraqi a visa currently takes about 90-120 days to process, and advised businesses to allow at least a four-month window for Iraqi participation in events in the U.S. While the group appreciated the various checks built into the visa processing system, they were &sad to see that U.S. policies are preventing U.S. businesses from investing in Iraq8 and noted that European countries, which issue visas to Iraqis in approximately two weeks, were &running over8 American businesses. The group of businesses was currently in the process of mobilizing support from Congressional leaders to ask the USG to reexamine Iraqi visa processes and regulations. The business representatives contended that improving the visa process has the potential of saving many small American businesses, which lose business to foreign competitors who are able to host Iraqis in their countries. -------------- Partnerships and Medical Exchanges -------------- ¶8. (SBU) The HEALTH Attache and NEA/I Desk Officer met with a prominent Iraqi cardiologist, Dr. Hillal Shawiki, responsible for overseeing a physician exchange partnership funded by the United Kingdom's Department of Health. Dr. Shawki detailed the process of this successful exchange program, which in two years has trained 400 Iraqi medical professionals in the United Kingdom at a cost of nine million dollars. This program includes rigorous selection criteria and strong monitoring and evaluation carried out by Dr. Shawki and a group of volunteers from Iraq's medical and higher education professionals. As part of the eight-week observerships, participation includes courses on Change Management and Clinical Observation. After nearly an hour of exchanging information on this successful model, which can be replicated by the United States as it seeks to carry out commitments made in the Strategic Framework Agreement with Iraq, Dr. Shawki shared his thoughts on the most important lesson the United States could learn from this process. Surprisingly it was not about how to best implement or model the program, but rather how to &win the battle of trust8 by regaining the &hearts and minds8 of the Iraqi educated middle class which can influence younger generations. ¶9. (SBU) Comment: Participants reached consensus that Iraq provides an excellent medical business market worth several hundred million dollars each year, and this is a critical time for businesses to enter that market. As Iraq rebuilds its healthcare infrastructure, huge investments by the MOH will be directed toward businesses, which can meet the needs of this rapidly expanding system. In addition, HEALTH diplomacy through increased medical exchanges is an effective tool at improving attitudes towards the U.S. among educated, middle-class Iraqis. This conference, initiated and funded by the MOH, is reflective of an Iraqi ministry that is seeking partners willing to advance its strategic goals, focused mainly on primary healthcare. Complaints about visa issuance delays mirror those Embassy Baghdad hears routinely from Iraqi officials, educators, and business leaders at all levels. CLINTON