VZCZCXYZ0004
RR RUEHWEB

DE RUEHC #5235 3102343
ZNR UUUUU ZZH
R 062338Z NOV 09
FM SECSTATE WASHDC
TO IRAQ COLLECTIVE
AMEMBASSY BAGHDAD 0000

UNCLAS STATE 115235 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON PGOV PINS PREL IZ
SUBJECT: PROVINCIAL PARTICIPATION IN THE U.S.-IRAQ 
BUSINESS AND INVESTMENT CONFERENCE AND THE 
INTERGOVERNMENTAL DIALOGUE EVENTS 
 
¶1. (U) SUMMARY: Participation of Iraqi Provincial officials 
in the U.S.-Iraq Business and Investment Conference produced 
excellent results.  Iraqi Governors and Provincial Investment 
Commission Chairmen were well-prepared and active throughout 
the conference and aggressively courted potential investors. 
Seventeen remained in Washington for the follow-on 
Intergovernmental Dialogue, a series of events planned 
specifically for provincial officials, where they heard how 
U.S. state and municipal officials attract business, spur 
economic development and work as a group to lobby the federal 
government.  The Iraqis seemed surprised at the warmth of the 
welcome they received from Americans of all stripes, and they 
left with a sense that U.S.-Iraqi partnership was possible on 
a cultural and community level, not just in the realm of 
hard-power.  A series of follow-up actions to capitalize on 
the connections established at the conference are planned, on 
both the U.S. and the Iraqi side.  END SUMMARY. 
 
------------------------------------- 
Provincial Officials Go to Washington 
------------------------------------- 
 
¶2.    (U) The delegation of over 100 Government of Iraq (GOI) 
officials to the U.S.-Iraq Business and Investment Conference 
included 35 Provincial Governors and Provincial Investment 
Commission (PIC) Chairmen.  The conference generated 
tremendous energy from the hundreds of businesses and 
investors exchanging information and striking deals with 
Iraqi businesspersons and officials.  For most of the 
provincial officials (unlike many of their national-level 
counterparts), this was their first visit to the U.S. and 
their first opportunity to represent their provinces.  They 
came prepared-the Basrah delegation presented sophisticated 
and effective marketing and informational materials, and 
Karbala, Anbar, and Baghdad delegations aggressively (and 
successfully) courted investors and other non-governmental 
partnerships.  PRT representatives advised their Iraqi 
counterparts and assisted in the matchmaking, for example, 
arranging for the Anbar Governor to hold a series of meetings 
with energy companies following the conference, and for the 
Baghdad Governor to meet with American University officials 
to explore mutual interest in establishing an AU campus in 
Baghdad (a memorandum of understanding was signed). 
 
-------------------------- 
Intergovernmental Dialogue 
-------------------------- 
 
¶3.    (U) NEA/I/PRT and the Office of Provincial Affairs 
(OPA) planned two additional days of events following the 
two-day Investment Conference, specifically designed for 
provincial officials.  Continuing the focus on private 
investment, these Intergovernmental Dialogue events 
introduced the provincial officials to government and 
non-governmental U.S. officials at local, state and federal 
levels involved in economic and business development.  The 
Iraqi Governors and PIC Chairmen heard from Smithsonian 
Museum directors, Maryland State officials, the National 
Governors Association of lobbyists working on behalf of state 
governors in Washington, DC, and congressional staff on the 
Senate Foreign Relations Committee. 
 
-------------------- 
Developing the State 
-------------------- 
 
¶4.    (U) On the first day of the Intergovernmental Dialogue, 
seventeen of the visiting provincial officials journeyed to 
Annapolis, Maryland where they met with state executive and 
legislative officials.  Speakers highlighted Maryland's 
efforts to attract businesses and investment, including 
Kassie Lewis from Maryland's Department of Business and 
Economic Development (DBED) who described a process of 
listening to businesses and their problems and working to 
addresses those problems through legislation, regulatory 
action, financing, and incentives.  The Iraqis were very 
interested in the State's techniques for seeking and actively 
recruiting businesses to locate in Maryland and they were 
surprised to learn the extent to which state and local 
officials were proactive and solicitous in visiting 
businesses and trying to draw them into their borders.  The 
Iraqis seemed eager to follow up on this exchange and to 
gather additional information on DBED; they believe that this 
office could serve as a model for similar offices in 
provinces across Iraq, and that Lewis and other Maryland 
officials met throughout the day could serve as invaluable 
contacts. 
 
¶5.    (U) Discussion at the county level focused on zoning, 
business councils, business incubators, and workforce 
development, and how these areas relate to business 
development and economic climate in the area.  For example, 
Anne Arundel County officials recently completed a 10-year 
Master Development Plan, and they described the prominent 
importance of zoning regulations to economic growth.  The 
officials further stressed the importance of involving all 
aspects of the community, for example, citing business 
incubators as partnerships between government, private 
businesses, and universities that offer full infrastructure 
and service support facilities and low rent space for 
start-up companies and university spin-off enterprises until 
they are self-sustaining. 
 
¶6.    (U) Discussion of the intense competition for the best 
school systems within the state and the fact that education 
constitutes a major part of the overall state budget grabbed 
the attention of the Iraqis.  They were also very interested 
in hearing about the various sources of revenue for the 
state.  Hearing from actual practitioners seemed a very 
valuable experience to the Iraqis, with several participants 
echoing the feelings of a Karbala Provincial Council member 
who stated, "For several years, we've been inching along in 
Iraq with the development of our new government and the 
reconstruction of our country.  We have had a vague 
understanding of what we're aiming for and what our U.S. 
advisors on the PRT are trying to teach us.  But now we come 
on this visit to the U.S. and we see with our own eyes the 
full picture of what we're working towards, and we get to 
talk to people who can tell us the details of how an advanced 
democracy works.  This is very valuable and I wish it had not 
taken so long to happen." 
 
--------------------------------- 
Affecting the National Government 
--------------------------------- 
 
¶7.    (U) The last day of the Intergovernmental Dialogue 
introduced the provincial officials to the National Governors 
Association (NGA).  Leaders of this bipartisan organization 
had an informative discussion with the Iraqi Governors and 
other representatives, centering on the mandate, funding and 
mission of the NGA.  The Iraqis commented specifically on how 
the meeting gave them new ideas for organizing amongst 
provinces.  While a Governors Commission nominally exists in 
Iraq, it has yet to become very active.  The Governors of 
Baghdad, Basrah, Muthanna, and Najaf agreed afterwards to 
meet on a monthly basis to discuss joint initiatives and 
means of lobbying the national government in Baghdad. 
 
--------------------------- 
Follow-Up to the Conference 
--------------------------- 
 
¶8.    (U) Baghdad, Wasit, and Ninewa are currently planning 
post-conference follow-up events, which PRTs in those 
provinces will help facilitate.  NEA/I/PRT will follow-up 
with the individuals who met with the Iraqis during the 
Intergovernmental Dialogue event in an effort to further 
their involvement and transmittal of valuable knowledge to 
the Governors and PIC Chairs.  OPA, with assistance from 
Basrah PRT, will obtain and distribute copies of the Basrah 
delegation's marketing and informational materials for use by 
other provinces and PRTs as models to emulate.  The Iraqis 
were interested in obtaining examples of Maryland's marketing 
and investment promotion products, as well.  NEA/I/PRT and 
OPA will distribute these through the PRTs once obtained. 
NEA/I/PRT stands ready to assist provincial officials, 
through the PRTs, by following up with any business or other 
contact in the U.S. 
 
¶9.    (U) COMMENT:  The Iraqis were shocked to hear from some 
of their compatriots who have recently emigrated to the U.S. 
how far behind the Iraqi education system is compared to 
American counterparts, especially at the grade school level. 
The connection between school quality and attractiveness of a 
city or region for investment was also clearly understood by 
them and many declared their intention to return to Iraq with 
a focus to tackle improvements to the Iraqi education system. 
 The officials made several key contacts with potential 
investors and valuable U.S. counterparts in Maryland and 
Washington.  Our follow-up will help provincial officials 
capitalize on the contacts they made in the U.S., along with 
improving their skills at marketing their provinces.   END 
COMMENT 
CLINTON