VZCZCXRO4230
RR RUEHDE
DE RUEHAD #1437/01 1050748
ZNR UUUUU ZZH
R 150748Z APR 06
FM AMEMBASSY ABU DHABI
TO RUEHC/SECSTATE WASHDC 4497
INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE
RUEHFR/AMEMBASSY PARIS 0980
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS SECTION 01 OF 02 ABU DHABI 001437 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR NEA/ARP, EB, IO 
 
E.O. 12958: N/A 
TAGS: OECD ECON EFIN AE
SUBJECT: OECD PROGRAMS ON GOOD GOVERNANCE AND INVESTMENT IN 
MIDDLE EAST AND NORTH AFRICA (MENA) 
 
¶1. (U) Summary: On April 9, Ambassador met with Richard 
Hecklinger, Deputy Secretary General of the Organization for 
Economic Cooperation and Development (OECD), to discuss the 
MENA-OECD Initiative on Governance and Investment for 
Development.  The initiative, which began in February 2005, 
is a regional effort that promotes broad reforms to enhance 
the investment climate, modernize governance structures and 
operations, strengthen regional and international 
partnerships, and promote sustainable economic growth 
throughout the MENA region.  The initiative consists of two 
programs: 1) Good Governance for Development, and 2) 
Investment.  Both programs work in close cooperation with the 
World Bank, Arab League, European Union, and other 
international and regional organizations.  Each program is 
divided into sub-committees, chaired by a MENA country and 
co-chaired by an OECD country.  Ambassador Hecklinger told 
Ambassador the MENA initiatives have made significant 
progress in the first year.  End Summary. 
------------------------------------------ 
Good Governance for Development Program 
------------------------------------------- 
¶2. (SBU) The Good Governance for Development Program builds 
upon ongoing reform efforts to modernize public governance in 
the MENA region.  By improving the environment for 
entrepreneurs and investors and by creating jobs, the program 
builds sustainable development in the region.  This program 
strengthens civil servants, capacity to design, implement 
and monitor public governance reforms; creates a network for 
dialogue between policy makers from MENA and OECD countries; 
designs innovative solutions tailored to the specific policy 
environment of each MENA country; assists ministries and 
government agencies to coordinate their work; and reinforces 
development initiatives supported by international, regional 
and bilateral donors. 
 
¶3. (SBU) There are six working level groups in the Good 
Governance Program:  1) civil service and integrity, 2) 
e-government and administration simplification, 3) governance 
of public finance, 4) public service delivery, public-private 
partnerships and regulatory reform, 5) role of the judiciary 
and enforcement, and 6) civil society and the media.  Each 
group is chaired by a MENA member and co-chaired by an OECD 
member.  Dubai has been the chair of the e-government and 
administration simplification committee for the past year. 
However, the UAE Ministry of Governmental Sector Development 
headed by Sultan bin Saeed Al Mansouri will take over 
chairing this group. (Note:  Hecklinger told Ambassador that 
both Al Mansouri and Sheikha Lubna Al Qasimi, Minister of 
Economy, asked Hecklinger if the UAE can join the OECD.  End 
note.) 
-------------------------------------- 
Investment for Development Program 
-------------------------------------- 
¶4. (U) The key objective of the Investment Program is to 
mobilize investment--foreign, regional, and domestic--as a 
driving force for economic growth and employment throughout 
the MENA region.  The program supports reform efforts by MENA 
governments to enhance their investment climate by: 
strengthening country capacity for designing, implementing 
and monitoring investment policy reforms; creating a network 
for policy dialogue among investment policy makers from MENA 
and OECD countries; creating a favorable environment for 
employment creation through financial sector development 
towards an entrepreneurial culture; improving 
intra-governmental policy coordination and cooperation 
between ministries; and reinforcing the impact of development 
initiatives supported by international, regional and 
bilateral funds. 
 
¶5. (U) There are five working level groups under this 
program:  1) general investment climate, 2) investment 
promotion, 3) tax policies and incentives, 4) economic 
diversification/financial sector and enterprise development, 
and 5) corporate governance.  Currently, Dubai chairs the 
investment promotion sub-committee.  However, Sheika Lubna 
will soon take over as the head of the committee. 
 
¶6. (U) Hecklinger told Ambassador the good governance 
programs are well funded, but the OECD needs funding for the 
investment group.  Hecklinger also said that Jordan is 
currently the OECD,s &closest8 partner in these 
initiatives. Jordan has chaired the steering committees for 
both the Good Governance for Development Program and the 
Investment Program since their inception last year.  Egypt is 
set to take over the leadership of both programs.  The 
private sector from both MENA and OECD countries actively 
participates in the investment sub-committee and is a strong 
 
ABU DHABI 00001437  002 OF 002 
 
 
supporter of the initiative. 
------------------------------- 
Future of the Initiative 
------------------------------- 
¶7. (U) Each of the MENA countries is drawing up a national 
reform action plan listing concrete, time-bound objectives. 
Many of the MENA countries also want to expand the work of 
the initiative.  The OECD says that -- with additional 
resources -- it could do more work on key issues such as 
anti-corruption, women in the economy, and tax policy.  The 
primary focus of the initiative for 2006 is development and 
implementation of the national action plans.  A high priority 
will be placed on matching national action plans with OECD 
and non-governmental organization assistance programs. 
SISON