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UNCLAS        AMMAN 07789
CXAMMAN:
    ACTION: POL
    INFO:   ISU USAID CONS RSO ECON RAO DCM AMB PA

DISSEMINATION: POL
CHARGE: PROG

APPROVED: CDA:DRUBINSTEIN
DRAFTED: ECON:REASON
CLEARED: USAID:AAARNES, POL:CHENZEL

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RUEHIL/AMEMBASSY ISLAMABAD 0210
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UNCLAS AMMAN 007789 
 
STATE PASS USTR 
 
E.O. 12958: N/A 
TAGS: EFIN ETRD ECON EAID JO
SUBJECT: JORDAN'S GROUP OF ELEVEN INITIATIVE 
 
¶1.  (SBU) SUMMARY: Jordan joined ten other countries on the 
margin's of last month's UN General Assembly to launch a 
"Group of Eleven."  Nine lower middle income countries joined 
Croatia and Pakistan to form a group dedicated to advance 
mutual interests in the global economic, investment and trade 
arena and to pursue a "targeted and results-oriented package 
of additional assistance," according to the September 20 
communiqu released in New York.  Next steps include 
establishing a ministerial-level secretariat, completing a 
policy matrix by early next year, and holding a summit 
meeting on the margins of the World Economic Forum meeting at 
Jordan's Dead Sea in May 2007.  END SUMMARY. 
 
¶2.  (U) On the margins of the UNGA last month, Jordan's King 
Abdullah and ten other heads of state or their 
representatives launched the "Group of Eleven/Lower-Middle 
Income Countries Initiative."  The initiative brings together 
countries following "a path of prudent macroeconomic 
management, economic liberalization, ... strengthening the 
rule of law, building good governance, zero tolerance for 
corruption, enhancing the role of civil society, and 
expanding freedoms."  According to the communique, the G-11 
will focus on the burdens of high debt and high energy costs, 
with the hope of increasing capital spending within their 
economies.  Targeted foreign assistance would then be 
complemented by developed countries exploring ways to enhance 
market access for G-11 countries, increase foreign direct 
investment and increase technology transfer. 
 
¶3.  (SBU) A senior economic advisor in Jordan's Royal Court 
provided Ecouns on September 28 with background on the G-11 
initiative and next steps.  The advisor explained that King 
Abdullah launched the initiative as a way of bridging the G-8 
process with that of the G-77.  The G-11 brings together 
countries that are determined to push ahead with economic 
reforms, he said, despite the burdens of debt, high oil 
costs, and damage from the 2004 Indian Ocean tsunami.  NOTE: 
The G-11 consists of Croatia, Ecuador, Georgia, Honduras, 
Indonesia, Jordan, Morocco, Pakistan, Paraguay and Sri Lanka. 
 Poland was originally a member but withdrew and Tunisia 
replaced it.  END NOTE. 
 
¶4.  (SBU) The process was begun via Ministries of Foreign 
Affairs, but later shifted to Economy Ministries.  Senior 
officials met in July to prepare for the leaders' event in 
New York.  The New York event was launched by the heads of 
state of Pakistan, Sri Lanka, Croatia and Jordan, as well as 
by six Foreign Ministers.  The 11 countries were chosen 
because of their commitment to economic reforms, stability, 
and improving freedom for their own societies. 
 
¶5.  (SBU) The group is currently developing a policy matrix. 
After a technical meeting in November or December, the matrix 
should be ready early in 2007.  In addition, Jordan will 
establish a ministerial-level secretariat which it will head 
the first year.  Jordan intends to hold a G-11 Summit on the 
margins of the Dead Sea World Economic Forum meeting in late 
May 2007  A G-11 meeting will be held on the margins of the 
G-8 summit to pass on the recommendations developed. 
 
¶6.  (SBU) The advisor commented that the focus of the group's 
work would initially be on debt and aid, targeting the World 
Bank and the IMF, but not the Paris Club.  Trade issues and 
addressing the WTO will be considered later. 
 
 
RUBINSTEIN