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UNCLAS SECTION 01 OF 04 PARIS 000307 
 
SIPDIS 
 
SIPDIS 
 
FROM USOECD PARIS 
 
STATE FOR EEB JONATHAN MUDGE AND NANCY SMITH-NISSLEY 
 
STATE FOR S/CRS MARK ASQUINO 
 
E.O. 12958: N/A 
TAGS: EAID ECON KDEM OECD
SUBJECT: Partnership for Democratic Governance - Readout on 
Inaugural Steering Group Meeting 
 
 
PARIS 00000307  001.2 OF 004 
 
 
¶1.   Summary.  The PDG Steering Group convened for the first time on 
February 13-14 in Paris.  Secretary General Gurria chaired the 
meeting, which was attended by the nine Steering Group countries, 
plus the UNDP.  Assistant Secretary for Economic, Energy, and 
Business Affairs Daniel S. Sullivan represented the United States. 
Gurria announced that all Steering Group Members and the OECD have 
signed the PDG Memorandum of Understanding.  He welcomed the hiring 
of Polish diplomat Jerzy Pomianowski as head of the PDG Advisory 
Unit.  The Steering Group agreed it would operate with one chair and 
three vice chairs, and take decisions by consensus.  It deferred 
decisions on operating models, rules, and regulations to its next 
meeting, scheduled for early May.  End Summary. 
 
¶2.  OECD convened the first PDG Steering Group meeting on February 
13 and 14.  The gathering drew high-level attendance, including 
Secretary General Gurria, Polish Deputy Foreign Minister Ryzsard 
 
SIPDIS 
Schnepf, Ambassador Egan, EEB Assistant Secretary Dan Sullivan, 
Chilean MFA Planning Director Ambassador Angel Flisfisch, and UNDP 
Administrator Kemal Dervis.  All nine Steering Group countries, plus 
the UNDP were represented.  The Steering Group member countries are: 
Australia, Canada, Chile, Denmark, Korea, Mexico, Poland, Turkey and 
the United States.  PDG founding members Brazil, Japan, the 
Organization of American States and the Inter-American Development 
Bank participated.  The UK and World Bank attended as observers. 
 
Progress Report -- The State of Play 
------------------------------------ 
 
¶3.  Prior to addressing the meeting's core agenda items -- 
governance structure and operating procedures -- the Secretary 
General gave a progress report.  He announced the crossing of two 
PDG milestones: completion of the PDG Memorandum of Understanding 
(MOU) signing process; and the hiring of a head for the PDG Advisory 
Unit (AU).  Turkey signed the MOU on February 8; Deputy Secretary 
General Mario Amano signed for the OECD (the final signatory) 
shortly thereafter.  Gurria introduced Poland's former Ambassador to 
Japan Jerzy Pomianowski, current Head of Development Cooperation at 
Poland's Ministry of Foreign Affairs, as the new AU head. 
Pomianowski will assume his functions in Paris on April 1.  During 
the first year of PDG, Pomianowski hopes to convene two conferences 
to promote the PDG, one on capacity-building in Africa and one on 
public-private service delivery. 
 
¶4.  Note.  Bonnie Schaefer, Administrative Officer, is the only 
member of the planned eight-person AU; Pomianowski will be the 
second.  Pomianowski underscored the need to finish recruitment for 
the AU.  He anticipates it will take three to four months for the AU 
to become fully operational.  End Note. 
 
Update on Funding 
----------------- 
 
¶5.  The Secretariat noted member countries have so far pledged about 
EUR 5.3 million of the AU's EUR 7.4 million three-year budget.  In 
addition to the EUR 2.1 million shortfall, there exists a sizeable 
(numbers not available) deficit between the EUR 5.3 million pledged 
and sums actually provided.  Deputy Head of the OECD's Development 
Coordination Directorate Stephen Groff said that barring receipt of 
 
PARIS 00000307  002.2 OF 004 
 
 
additional monies already pledged the OECD would not be able to 
staff fully the AU this summer.  Both Groff and Pomianowski asked 
members to encourage other countries to join (and hence contribute 
to) the PDG.  They also called for increased support from current 
members.  Such support could be in-kind (such as assigning personnel 
or allowing use of member-country embassy services) or financial. 
Turkey announced it will assign one diplomat, at the First Secretary 
level, from the MFA in Ankara to the PDG AU in Paris, for a two-year 
period beginning in summer 2008. 
 
PDG Steering Group - Governance Structure 
----------------------------------------- 
 
¶6.  Delegates approved a Steering Group structure consisting of one 
chair and three vice chairs.  The chair and one vice chair, occupied 
by OECD and UNDP respectively, are permanent.  The remaining two 
vice chairs are designated for member countries on a rotational 
basis.  The group elected Chile to serve as vice chair for a 
two-year period.  Canada and Australia agreed to share the second 
vice chair position, with Canada taking the first year and Australia 
the second.  Delegates agreed the Steering Group would take 
decisions based on consensus, in line with standard OECD practice. 
 
 
¶7.  This governance structure differs from that called for in the 
June 2007 Council document that established the PDG, which envisaged 
only two co-chairs, one being the OECD and the second to be decided 
upon at the first Steering Group meeting.  Insofar as the Council 
empowered the Steering Group to decide upon its own governing 
structure, however, the new arrangement is not problematic.  The 
structure both reflects common agreement on the importance of UNDP 
and accommodates concerns (in particular those of Chile) that member 
countries play a prominent leadership role. 
 
¶8.  Delegates discussed at length OECD proposals to establish a 
"Consultative Group" and a "Reference Expert Group" to advise the AU 
and Steering Group.  Pomianowski envisaged a Consultative Group 
composed of focal-point personnel from member-country aid agencies 
to provide advice, support, and feedback to the AU and Steering 
Group.  Terry Jones, Director of the UNDP's Bureau for Development 
Policy, called for a Reference Expert Group to be composed of a 
small number of intellectuals who could look at big-picture issues 
and "guide, certify, and validate" the AU's approach.  U.S. 
Assistant Secretary Sullivan, backed by Mexico, Chile and Canada, 
suggested delegates determine the activities of, and rules 
governing, the AU before considering the creation of additional 
bodies.  He cautioned against PDG's becoming too bureaucratic. 
Delegates agreed to defer discussion on these groups to the next 
meeting. 
 
PDG -- Rules and Operating Models 
--------------------------------- 
 
¶9.  Numerous delegates praised the innovative nature of the PDG 
initiative and underscored the need for flexibility in operations, 
but concomitantly stressed the need for clear rules governing PDG 
activities.  Such rules and/or guidelines would set, for example, 
the parameters within which the AU can take decisions independent of 
 
PARIS 00000307  003.2 OF 004 
 
 
the Steering Group.  They would also outline general criteria for 
use in determination of PDG-appropriate projects, and criteria for 
expanded membership. 
 
¶10.  Canada asked the OECD to prepare documentation outlining 
structure, operational models and approaches, and procedural issues 
for determination at the May Steering Group meeting.  The Canadian 
delegate undertook to ask Ottawa to fund a consultant to help in the 
preparation of these materials, insofar as the AU will not yet be 
fully operational by that time.  Canada suggested, and delegates 
agreed, that a working group (membership undefined) should convene 
immediately prior to the May Steering Group meeting to review this 
documentation. 
 
Expanding PDG: from Observer to Member Status 
--------------------------------------------- 
 
¶11.  Delegates identified the need to expand PDG membership, and 
agreed that the Steering Group could invite (by consensus) 
observers.  All agreed that observer status be considered a pathway 
towards membership.  For reference, the PDG has three levels of 
membership.  Steering Group members are those that both express 
support for the Partnership's objectives and contribute at least 
50,000 EUROS/year either in cash or in kind.  Founding members are 
those countries that express support for the PDG objectives, but do 
not support PDG financially.  Observers are those countries that 
neither contribute financially nor formally express support for PDG 
objectives. 
 
The Road Ahead 
-------------- 
 
¶12.  UNDP Administrator Kemal Dervis promised that after the meeting 
the UNDP would task its country offices to identify demand, in 
similar fashion to the USG tasking of embassies this past autumn. 
He anticipated UNDP would then develop a list of 10-15 countries for 
possible PDG projects.  The Steering Group agreed to meet on an 
annual basis, and to circulate information between meetings using 
the OECD's OLIS system.  However, to maintain momentum, at the 
suggestion of U.S. Assistant Secretary Sullivan, the group set the 
next Steering Group meeting for May, on the margins of the May 4-5, 
2008, OECD Executive Council in Special Session (ECSS).  Secretary 
General Gurria noted that between now and Pomianowski's start on 
April 1, member countries could channel all PDG input to OECD's 
Steve Groff. 
 
Comment 
------- 
 
¶13.  The first meeting of the PDG Steering Group proved successful 
insofar as it increased momentum for the initiative, yielded quick 
agreement on a governance structure, garnered senior-level 
participation, and reaffirmed OECD and member country commitment. 
Key elements of the initiative, however, are still not in place, 
notably: rules and procedures for PDG operations, especially 
vis-`-vis the AU, and the creation and composition of "experts" and 
"consultative" groups.  Staffing and financing also remain 
problematic.  The AU currently has only one employee; its new head 
 
PARIS 00000307  004.2 OF 004 
 
 
starts April 1; its five additional staff members have yet to be 
hired.  Deficits exist between funds pledged and budget 
requirements, as well as between amounts pledged and actually 
disbursed.  PDG members will need to maintain sustained, persistent 
engagement with OECD to ensure success. 
 
Egan