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UNCLAS SECTION 01 OF 06 RABAT 000950 
 
SIPDIS 
 
PARIS FOR US MISSION TO OECD 
 
E.O. 12958: N/A 
TAGS: EFIN EAID ECON EINV SOCI MO
SUBJECT: OECD-MENA MINISTERIAL CONFERENCE, NOVEMBER 23, MARRAKESH 
 
RABAT 00000950  001.3 OF 006 
 
 
¶1.  SUMMARY AND INTRODUCTION:  The November 23 OECD-MENA Ministerial 
Conference in Marrakesh, Morocco, brought government, business, and 
civil society leaders together to debate policy responses to the 
global economic crisis as well as government and business climate 
reforms in the Middle East and North Africa (MENA).  The day 
preceding the ministerial, Morocco also hosted the OECD/MENA 
Business Forum and a Women Business Leaders Summit, which informed 
the outcomes of the Ministerial Conference.  The Ministerial adopted 
a declaration outlining OECD and MENA partner countries' commitments 
to take concrete actions to improve public governance and their 
business climates.  During the conference, Morocco signed the OECD 
Declaration on International Investment and Multinational 
Enterprises, the second MENA country to do so following Egypt. 
Morocco also followed Egypt in assuming the co-presidency of the 
OECD-MENA Initiative for the next three years, along with Belgium 
and Spain.  End Summary. 
 
---------- 
BACKGROUND 
---------- 
 
¶2.  The Ministerial Conference in Marrakesh took place within the 
framework of the OECD-MENA Initiative on Good Governance and 
Investment for Development launched in 2005.  The Initiative guides 
OECD support to 18 MENA countries in efforts to improve their 
investment climate and foster good governance.  The Initiative's two 
components, the Investment Program and the Governance Program, 
integrate regional dialogue, peer review, definition of reform 
priorities and assistance in implementation at the regional and 
country-specific levels to improve government services to citizens 
and maximize investment successes.  Since 2005, Bahrain, Egypt, 
Morocco, Tunisia and UAE (Dubai) have opened regional centers under 
the OECD-MENA Initiative that focus on corporate governance and the 
efficient allocation of public resources. 
 
-------------- 
BUSINESS FORUM 
-------------- 
 
¶3.  The Conference events in Marrakesh opened with the OECD-MENA 
Business Forum and the Women Business Leaders Summit, both held on 
November 22.  The Forum brought together CEOs, business leaders, and 
high-level officials from OECD and MENA counties, including 
representatives of international, regional and local business 
women's associations.  Participants reviewed the impact of the 
global economic crisis on the region's financial sectors and 
discussed ways for businesses and governments to identify and 
implement lessons learned from crises.  The Forum closed by adopting 
a joint Business Statement. 
 
RABAT 00000950  002.3 OF 006 
 
 
 
----------------------------- 
WOMEN BUSINESS LEADERS SUMMIT 
----------------------------- 
 
¶4.  The OECD-MENA Women Business Leaders Summit reviewed progress 
since the 2007 OECD-MENA Ministerial Declaration on Fostering 
Women's Entrepreneurship in the MENA Region and produced a Draft 
Action Plan on Fostering Women's Entrepreneurship in the MENA 
Region.  Summit participants exchanged experiences in overcoming 
obstacles to entrepreneurship and shared recommendations to 
governments on how to improve the climate for women's economic 
participation. 
 
--------------------------------------------- - 
MOROCCO, MODEL FOR SOCIAL AND POLITICAL REFORM 
--------------------------------------------- - 
 
¶5.  U.S. Ambassador-at-Large for Global Women's Issues Melanne 
Verveer, a keynote speaker and panelist at the Women Business 
Leaders Summit, praised Morocco as a model country in the MENA 
region for its social and political reforms.  Ambassador Verveer 
lauded Morocco's support for women's rights, in particular the 2004 
adoption of a new family code, and highlighted access to 
microfinance as a contributor to improving women's economic status. 
She mentioned the MENA Women Business Network supported by the 
Middle East Partnership Initiative (MEPI) and encouraged 
participants to take part in the Global Entrepreneurship Summit, 
announced by President Obama in his Cairo speech and to be held in 
Washington in early 2010.  She urged women entrepreneurs in the MENA 
region to cooperate with each other via networks for exchanging 
experiences and dialogue. 
 
¶6.  U.S. Permanent Representative to the OECD Ambassador Karen 
Kornbluh chaired the Women Leaders Summit Networking Roundtable.  In 
opening the session, Ambassador Kornbluh noted that she had recently 
chaired a MENA-OECD Working Group meeting on Fostering Women's 
Entrepreneurship in the MENA region, and looked forward to further 
discussion on seeking ways for women in the region to overcome 
obstacles to entrepreneurship.  Participants discussed regional 
governments' roles in increasing female participation in the economy 
as part of a strategy for job creation and economic growth.  They 
also addressed concrete measures that can be taken to eliminate 
gender-specific obstacles to entrepreneurship and employment and 
explored ways to advance the MENA-OECD Women's Business Network. 
 
 
¶7.  A separate session was dedicated to the MENA Forum on 
Responsible Business Conduct, at which representatives of business, 
 
RABAT 00000950  003.3 OF 006 
 
 
government and civil society presented successful responsible 
business experiences.  A parallel session focused on the MENA 
Commercial Law Strengthening project, implemented by the 
International Advisory Group of the Arab Center for the Development 
of the Rule of Law and Integrity (ACRLI) in cooperation with MEPI. 
 
---------------- 
GOVERNANCE FORUM 
---------------- 
 
¶8.  At the OECD-MENA Governance Forum, policy makers, experts and 
civil society representatives debated preconditions for economic 
recovery and sustainable growth.  The Forum focused on governments' 
roles in anticipating and managing strategic challenges, such as the 
financial crisis.  Themes included balancing competing sectors' 
interests in policy development, ensuring participation of women in 
economic life, ensuring the integrity of increasing interactions 
between the public and private sectors, and government communication 
strategies. 
 
------------------- 
MINISTERIAL SESSION 
------------------- 
 
¶9.  In the November 23 ministerial sessions, representatives of MENA 
and OECD countries debated policy responses to the economic crisis, 
including reinforcing partnerships between MENA and OECD countries 
and within the MENA region itself, as well as reform strategies for 
building stronger and fairer economies.  Morocco's Minister Delegate 
for Economic and General Affairs Nizar Baraka presided a panel on 
Investment and Business Climate, drawing on the work of the Business 
Forum and the Women Business Summit the previous day.  Participants 
presented key measures and reforms initiated to improve the 
investment and business climate in their countries as well as 
expected follow up actions from the MENA-OECD Investment Program. 
Ministers launched a MENA-OECD Business Council to guide work with 
the private sector, provide policymakers with recommendations on 
reform priorities, strengthen the public-private dialogue, generate 
new business opportunities and foster sector-specific contacts. 
 
¶10.  Ambassador Kornbluh noted the impressive strides MENA countries 
had made in enabling growth and prosperity through economic reforms 
meant to spark development and job creation.  She added that the 
OECD-MENA program was consistent with President Obama's Cairo speech 
stressing partnership and responsibility.  Kornbluh welcomed the 
emphasis that the OECD-MENA Investment Program plans to place on 
policy reforms to support entrepreneurship and skill-building, 
especially for women and youth.  She urged MENA countries to work to 
keep markets open, warning against the dangers of protectionism. 
 
RABAT 00000950  004.3 OF 006 
 
 
Kornbluh reiterated the U.S. commitment to revitalizing multilateral 
financial institutions to help tackle global poverty and act as 
essential partners in times of financial stress.  She praised the 
OECD-MENA program's focus on encouraging partner countries to take 
responsibility for their own reform agendas through collaboration 
with their peers and business leaders.  She indicated that the U.S. 
was favorably disposed to continue financial support in 2010 for the 
OECD-MENA Investment Program, and in that regard was considering 
providing up to USD 1 million in funding to continue the good work 
underway. 
 
¶11.  Other OECD member countries making interventions in the 
Investment Business Climate Panel included Germany, Japan, 
Netherlands, Sweden, Canada, Switzerland and Turkey.  A consistent 
theme was the need to advance reform efforts most likely to bring 
about a stable business environment in the MENA region.  These would 
include measures leading to steady growth and investment and 
generating employment, with particular emphasis on the growth 
potential derived from greater women's entrepreneurship.  The 
Japanese delegate stressed her country's desire for its industry to 
be able to expand further in the region once modern and uniform 
investment regimes have been enacted and implemented.  The Japanese 
expressed a strong interest in facilitating the adoption of green 
technology and helping develop human capital (managerial skills) in 
future investment projects and hoped to create 15,000 new jobs -- 
with an expectation that a least half will be available to women. 
Both Canada and Sweden, the other major OECD-MENA donor members, 
were in agreement that the investment reforms and the business 
climate development strategy should continue to develop women's 
entrepreneurship. 
 
----------------------------------------- 
SUPPORTING GOOD GOVERNANCE IN MENA REGION 
----------------------------------------- 
 
¶12.  Morocco's Minister-Delegate in Charge of Public Sector 
Modernization Mohamed Abbou chaired a Public Governance Panel, a 
forum for participants to exchange ideas on public governance in 
order to strengthen partnerships for reform in the MENA region. 
Panelists identified priorities, opportunities and the framework for 
future regional cooperation and dialogue.  EconOff, speaking for the 
U.S., stated that good governance remains a high priority for U.S. 
foreign and development policies.  He reviewed U.S. financial 
support to OECD's work on governance, emphasizing OECD's partnership 
with the UNDP program on Governance in the Arab Region (UN POGAR). 
He affirmed continued U.S. support to the OECD-MENA partnership and 
its focus on the tools and policies to combat corruption. 
 
--------------------- 
 
RABAT 00000950  005.3 OF 006 
 
 
MARRAKESH DECLARATION 
--------------------- 
 
¶13.  The conference concluded with the adoption of the "Marrakesh 
Declaration of the MENA-OECD Ministerial Conference on Policy 
Responses to the Crisis."  The declaration included commitments to 
integrity and transparency in the public sector and to support for 
freedom of investment, trade and private sector development.  It 
also underlined the need to increase the participation of women in 
economic development and prosperity in the region.  "This 
declaration reflects the commitment of countries in the region to 
continue reforms and to act together to overcome the effects of the 
crisis," Baraka said.  "In order to achieve our growth goals, we 
have to work together and get back to basics, putting citizens at 
the heart of our policies." 
 
------------------------------ 
MOROCCO SIGNS OECD DECLARATION 
------------------------------ 
 
¶14.  On the margins of the ministerial, the Government of Morocco 
signed the OECD's Declaration on International Investment and 
Multinational Enterprises.  Morocco is the second MENA country to 
sign the declaration, following Egypt (in 2007).  The declaration 
commits Morocco to supporting an open environment for international 
investors and encouraging responsible investment by multinational 
companies as a means to promote prosperity and growth.  By signing, 
Morocco undertakes to treat foreign investors in the same way as 
domestic investors and to promote responsible business conduct. 
(Note: The Declaration's other 42 signatories include 30 OECD 
countries plus Argentina, Brazil, Chile, Egypt, Estonia, Israel, 
Latvia, Lithuania, Morocco, Peru, Romania and Slovenia.) 
 
¶15.  Speaking at a press conference, OECD Secretary-General Angel 
Gurria welcomed Morocco's action as proof of its efforts to develop 
a more open and transparent investment regime and to ensure improved 
business conditions for both domestic and foreign investors. 
Minister Baraka stressed that Morocco sees its adherence not only as 
a recognition of its investment policy achievements but also as a 
roadmap for continuing reforms in line with OECD countries' best 
practices and standards.  Morocco will continue to hold a high 
profile in the OECD-MENA Initiative for the next three years as it 
serves as co-president, along with Spain and Belgium, replacing 
Egypt in this role. 
 
----------------------- 
INFORMAL DONORS MEETING 
----------------------- 
 
 
RABAT 00000950  006.3 OF 006 
 
 
¶16.  An informal donors' session chaired by the OECD-MENA 
Secretariat reviewed expenditures to date and solicited suggestions 
on work ahead.  The Swedish representative indicated that his 
government's contributions to the OECD-MENA program are funded 
through the end of 2010, but could not commit to additional funding 
beyond that date pending his government's internal review of 
assistance programs.  Canada stated that funding for its governance 
and investment programs is assured through 2011.  Japan's commitment 
was more open-ended; its representative said it will direct its 
funding to the investment program and evaluate the results over 
time.  The U.S. explained that while we intend to seek funding for 
2010, additional funding in 2011-12 will depend on the ability of 
the program to show measurable deliverables, especially those 
targeted to improving youth employment and women's entrepreneurship. 
 
 
¶17.  EEB, S/GWI and USOECD cleared this message. 
 
JACKSON