VZCZCXRO1638
PP RUEHBC RUEHDA RUEHDE RUEHIHL RUEHKUK
DE RUEHGB #0386/01 0441409
ZNR UUUUU ZZH
P 131409Z FEB 09 ZDK
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC PRIORITY 1707
INFO RUCNRAQ/IRAQ COLLECTIVE

UNCLAS SECTION 01 OF 02 BAGHDAD 000386 
 
SIPDIS 
SENSITIVE 
 
NEA/I FOR WWEEMS 
 
E.O.12958: N/A 
TAGS: PGOV PREL ECON AMGT EAID EAGR SOCI IZ
SUBJECT: PRT TEAM LEADERS CONFERENCE: FOCUSING EFFORTS POST 
PROVINCIAL ELECTIONS 
 
¶1.  (U) Summary.  On February 9-10, Embassy Baghdad Office of 
Provincial Affairs (OPA) hosted its quarterly Team Leaders 
Conference of Provincial Reconstruction Teams (PRTs).  Addressing 
the post-provincial elections theme, Ambassador Ryan Crocker said 
the next 18 months will be pivotal to Iraq's democratic development 
and encouraged team leaders to expand their efforts to integrate 
anti-corruption activities into their work.  The United Nations 
Secretary General's (UNSYG) Special Representative for Iraq, Staffan 
De Mistura praised the strong relationship between UN Assistance 
Mission Iraq (UNAMI) and the PRTs, and described shifting UN 
priorities in country.  Other panelists discussed challenges to 
post-elections challenges to governance in Iraq, the Provincial 
Powers Law, Security Agreement implementation, capacity building and 
economic development.  Thirty of the thirty-one PRTs, embedded 
Provincial Reconstruction Teams (ePRTs) and Regional Embassy Offices 
(REOs) participated, including those teams lead by the British and 
Italians.  End Summary. 
 
-------------------------------------- 
ELECTORAL CHANGE IRAQIS CAN BELIEVE IN 
-------------------------------------- 
 
¶2.  (SBU) Ambassador Crocker said that while successful provincial 
elections were a major milestone in Iraq's democratic development, 
the next 12 to 18 months will be critical for both the USG and 
international community to help the Iraqis develop functional 
governmental structures.  During this time, Iraq will witness the 
formation of provincial councils, the selection of governors, 
regional elections in the Kurdistan Regional Government, and 
possibly local and national elections.  All of this will occur as 
coalition military force levels will fall and U.S. civilian presence 
will peak.  He asked team leaders to reassess their activities, and 
focus on those that maximize and sustain their impact during this 
crucial period, utilizing PRT resources and international 
organizations such as UNAMI. 
 
¶3.  (SBU) The Ambassador said Secretary Clinton is focused on Iraq 
and wants U.S. efforts to build on the success of the provincial 
elections.  He noted her personal interest in this conference, in 
provincial capacity development and team leader suggestions for the 
way forward, and her commitment to fighting for the resources team 
leaders require to do their jobs. 
 
¶4.  (SBU) Finally, the Ambassador urge team leaders to increase 
their efforts to integrate anticorruption activities into PRT local 
governance training and asked them to work with the Embassy's 
Anti-Corruption Coordination Office.  Voters in the recent 
provincial elections complained of incompetence and corruption and 
are widely expected to have voted out numerous incumbents, thus 
providing a window of opportunity for PRTs to make a meaningful 
impact in this area. 
 
---------------------------------------- 
FOCUSED ENGAGEMENT IS KEY FOR UN IN IRAQ 
---------------------------------------- 
¶5. (U) Reiterating the Ambassador's message of reassessment and 
refocusing of international efforts in Iraq, UNSYG Special 
Representative for Iraq Staffan de Mistura praised the Embassy's 
relationship with the UN and called for a stronger partnership.  De 
Mistura recalled his initial suspicion and distrust of the PRT 
program, but admitted he had been incorrect.  PRT team leaders had 
managed their presence well, and provided the UN with the ability to 
extend its own efforts.  He described the Embassy and the PRTs as 
"instrumental" to the success of the recent provincial elections, 
Q"instrumental" to the success of the recent provincial elections, 
and expressed his hope the PRT program would continue. 
 
¶6. (U) Looking ahead, de Mistura noted that UNSYG Ban Ki Moon's view 
of Iraq was not emotionally clouded by the 2003 bombing of UN 
headquarters in Baghdad, leading him to push for a more proactive UN 
agenda.  However, de Mistura said the international community now 
views Iraq as a wealthy country and is more interested in providing 
ideas in lieu of money.  As a result, the UN plans to coordinate 
capacity building in part by recruiting advisors to help Iraq wisely 
spend its own money and teach newly-elected provincial officials how 
to identify crucial projects and effectively lobby Baghdad for 
funds.  De Mistura also noted a continued UN interest in the plight 
of Internally Displaced Persons (IDPs).  He concluded with a 
prediction that the UN mission in Iraq would likely downsize, given 
the country's continued stability and normalization. 
 
--------------------- 
CONFERENCE HIGHLIGHTS 
--------------------- 
¶7. (U) During a discussion of governance challenges in the 
post-election environment, panelists predicted that the status of 
Kirkuk, the return of IDPs, and legislative priorities would present 
ongoing challenges at both the national and provincial levels.  The 
final results of the provincial elections and yet undetermined 
composition of provincial councils would influence national election 
 
BAGHDAD 00000386  002 OF 002 
 
 
outcomes, and progress on national-level legislation.  All panelists 
highlighted the critical opportunity to promote anti-corruption - 
and good governance - initiatives with incoming provincial council 
members, new governors, and GOI Directors-General at the provincial 
level. 
 
¶8. (U) The Embassy's Constitutional and Legislative Affairs Deputy 
Director said the implementation of the Provincial Powers Law (PPL) 
could potentially exacerbate tensions between provincial governments 
and the Government of Iraq (GOI) on three main issues: security, 
legislation and taxation, due to its complexity and latitude of 
interpretation.  The provincial governments are limited in 
experience, professional staff, and organizational structure to 
exert their new authorities under the PPL.  The Deputy 
Chief-of-Party for USAID's Local Governance Program III (LGP III), 
presented that group's plan to train and support provincial 
government leaders in implementing the PPL. (Note: LGP III is a 
USAID project currently planned to be implemented in 11 of 18 Iraqi 
provinces.  End Note.)  Acting POLCOUNS encouraged team leaders to 
continue reporting on developments in political coalition formation 
as the recently elected provincial council members are seated. 
 
¶9.  (U) Multinational Corps-Iraq (MNC-I) Deputy Commanding General, 
Major General Paul Lefebvre, said the transition from UN Security 
Council Resolution 1790 to the new Security Agreement has been 
successful and affirmed the military's commitment to support for PRT 
efforts to build civil capacity in Iraq.  The road ahead is clear 
for all USG actors to maintain unity-of-effort and command as they 
help the GOI maintain security and build capacity.  According to 
Multinational Force-Iraq (MNF-I) Director of Operations, Major 
General Guy Swan, the U.S. military mission has not drastically 
changed under the new security agreement, but operating conditions 
are different.  There are now joint committees for U.S. military 
leaders, embassy officials, and Iraqi counterparts to resolve 
outstanding issues. 
 
¶10.  (U) The Director of the Iraq Transition Assistance Office 
(ITAO) described that office's main programs and funding situation. 
Team leaders agreed the Provincial Reconstruction and Development 
Committee (PRDC) project implementer, the Gulf Region Division of 
the Army Corps of Engineers, is sufficiently screening all new 
proposals, but they are concerned about the decreasing funding 
levels available to the PRTs. 
 
¶11.  (U) Discussing Iraq's economic development, panelists described 
a challenging economic environment, in which unemployment, 
inadequate legal protection and regulation, and GOI overdependence 
on petroleum revenues are major impediments.  EMIN and Coordinator 
for Economic Transition in Iraq Ambassador Marc Wall said the dire 
U.S. economic situation was putting pressure on U.S. foreign 
assistance funding.  We have shifted our focus to capacity 
development programs.  The Iraqis now must take the lead on economic 
reform, private sector development and sustainment.  A UN Senior 
Economist blamed the GOI's subsidy of state-linked businesses for 
hindering private sector development and predicted that a lack of 
jobs could lead to a brain drain of young Iraqis.  The MNC-I 
Economic Chief said, due to demographics, the GOI needed to create 
250,000 jobs per year just to maintain the current unacceptably high 
level of unemployment (18 percent).  USAID's Mission Director 
described assistance programs covering business development, 
community stabilization and agriculture, but added that USAID is 
Qcommunity stabilization and agriculture, but added that USAID is 
currently undergoing an internal strategic review to reassess its 
programs and priorities.  The USDA Agricultural Advisor said that 
while agriculture is growing due in part to U.S.-sponsored programs, 
it is not a panacea for unemployment.  He expressed uncertainty 
about USDA continuing to deploy agricultural advisors on PRTs. 
 
¶12.  (U) Other presentations and workshops focused on internal 
planning and assessments, management and logistics, and leadership 
and Equal Employment Opportunity training.  OPA's next Team Leaders 
Conference is planned for May. 
 
CROCKER