VZCZCXRO1173
RR RUEHBC RUEHDA RUEHDE RUEHDH RUEHIHL RUEHKUK
DE RUEHGB #2953 3101251
ZNR UUUUU ZZH
R 061251Z NOV 09
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC 5361
INFO RUCNRAQ/IRAQ COLLECTIVE
RHEHNSC/NSC WASHDC

UNCLAS BAGHDAD 002953 
 
SIPDIS 
 
STATE FOR NEA/I/ECON 
 
E.O.12958: N/A 
TAGS: ECON EFIN EAID PGOV PREL IZ
SUBJECT: MND-N CONFERENCE HIGHLIGHTS ECONOMIC DEVELOPMENT ISSUES 
 
¶1. (U) SUMMARY:  Provincial Reconstruction Team (PRT) 
representatives from Kirkuk, Ninewa, Diyala, Erbil, and Salah ad Din 
provinces, emboffs, and Multi-National Division-North (MND-N) 
discussed local economic development issues at the quarterly 
conference held on October 16-17 in Tikrit.  Discussions focused on 
best practices on promoting economic development in the provinces. 
In particular, participants toured the "I-BIZ" business development 
incubator that helps Iraqi contractors improve their entrepreneurial 
skills.  Similar conferences with other MNDs are under 
consideration.  END SUMMARY. 
 
PRT ECONOMIC DEVELOPMENT PROJECTS 
 
 
¶2. (U) MND-N hosted a conference on October 16-17 that included 
MND-N leadership, PRT representatives from Kirkuk, Ninewa, Diyala, 
Erbil, and Salah ad Din, and Embassy officers from the Office of 
Provincial Affairs (OPA) and ECON.  PRTs shared best practices for 
promoting economic development in their respective provinces and 
sought greater guidance on their specific roles to promote U.S. 
trade and investment.  PRT Kirkuk briefed on its assistance to a 
small entrepreneur in establishing a mobile dairy as well as the 
PRT's role in encouraging the formation of women's organizations. 
PRT Ninewa cited their province's biggest economic challenge as the 
government's inability to execute its budget.  The PRT has focused 
on grassroots projects to bring Sunnis, Shias, and Kurds together. 
PRT Diyala planned to issue between 800-1000 micro-grants over the 
next 30 days to vendors affected by a recent market bombing to 
prevent loss of employment.  PRT Erbil added that some economic 
successes in Kurdistan could serve as models for other provinces. 
PRT Salah ad Din reported that they will be co-locating their PRT 
ECON office with Military ECON offices to enhance coordination. 
They hope to place microcredit officers in their small business 
development centers to support farmers with juicing and canning 
projects. 
 
"I-BIZ" BUSINESS INCUBATOR AT CAMP SPEICHER 
 
¶3. (U) Conference participants toured the "I-BIZ" business incubator 
on the outskirts of Camp Speicher that included approximately 20 
Iraqi-owned small and medium businesses under U.S. military 
contracts.  The "I-BIZ" is designed to enhance entrepreneurial 
skills.  Participant businesses include cement, gravel, machine 
repair, and construction companies.  An Iraqi "Souq" market for 
local artisans to sell their goods on the base has been established 
too. 
 
¶4. (U) The most successful operation at I-BIZ was the Iraqi Skills 
Enhancement Center, where up to one hundred young, unemployed Iraqis 
train in carpentry, plumbing, HVAC maintenance, welding, and engine 
repair skills.  Graduates receive certification from the U.S. 
Military and the Iraqi Ministry of Labor and Social Affairs in their 
trade after completion of a three-month course.  KBR hires most 
graduates to replace more expensive third-country national laborers. 
 Camp Speicher is also working with Al Warka Bank to open a branch 
near the contracting office and will soon require all suppliers 
participating in the I-BIZ program to accept electronic funds 
transfer instead of cash payments. 
 
¶5. (U) Econoffs briefed on Iraq's basic macroeconomic and banking 
statistics, the Embassy's organizational structure, and economic 
goals identified by the Mission Strategic Plan (MSP) to DOD 
personnel and PRT contractors.  The PRTs were particularly 
interested in how they can help further promote investment deals 
following the upcoming investment conference in DC.  Emboffs also 
briefed on developments in the banking sector, the effect of 
Qbriefed on developments in the banking sector, the effect of 
security on economic activity, and how PRTs can help foster lending 
to businesses in their communities. 
 
¶6. (U) COMMENT:  Embassy OPA Director called the MND-N conference a 
best-practices example to encourage civilian-military cooperation at 
both the national and local levels.  Our PRT and military colleagues 
gained a better understanding of the U.S. Mission's  larger economic 
goals.  In turn, they provided emboffs with briefings on economic 
development in their locations at the micro level.  Emboffs also 
gained insight into the implementation of existing Quick Response 
Funds (QRF) projects in the field.  END COMMENT. 
 
HILL