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Paris, 8-10 July 2008
Agenda Presentations and documents Conclusions
The High-level Meeting on Economic and Governance Policy Reforms in the Republic of Iraq was jointly organised by the MENA-OECD Initiative on Governance and Investment for Development and the United Nations Development Programme (UNDP) Iraq on 8-10 July 2008 at the OECD Conference Centre in Paris.
The meeting brought together representatives from Iraq as well as from OECD member countries. The high-level delegation from the Government of Iraq (GoI) included the Chairman of the National Investment Commission, the Iraqi Ambassador to France, and senior representatives from the Prime Minister’s Office, the Council of Ministers, the Ministries of Finance, Planning and Development), the Joint Anti Corruption Council and the Commission of Integrity. Members of the Iraqi Parliament as well as Iraqi business sector were also in attendance. Representatives from OECD member countries included the United States (U.S.) Ambassador to Iraq, and members from the OECD permanent delegations of Australia, France, Germany, Japan, Turkey and the U.S.
The High-level meeting focused on: Investment Climate, Anti-Corruption Policies and Aid Management, based on priorities suggested by GoI officials during prior meetings of MENA-OECD/Iraq under the framework of the International Compact with Iraq (ICI).
The first theme of the Paris meeting (addressed on the day one), focused on Economic Policy Reforms and Private Sector Development, following the first Roundtable on Economic Reforms and Capacity Enhancement for Private Sector Development in Iraq meeting organised by UNDP and MENA-OECD (1-2 July 2008, Baghdad). During day two and day three, thematic workshops addressed more in detail the three themes of Investment Climate Policy, Anti-corruption and Transparency in Public Procurement and Aid Effectiveness and Budget Planning.
In the concluding session, participants committed to Conclusions and Recommendations, which included next steps of GoI/MENA-OECD/UNDP co-operation aimed at ensuring growth and development in Iraq.
During day one of the meeting, participants discussed options for the implementation of economic and private sector development reforms, building on the outcomes of the ICI Review meeting in Stockholm (29 May) and the Roundtable in Baghdad (1-2 July). Presentations made by Iraqi officials and OECD/UNDP representatives encouraged for active discussion which helped identify the most relevant policy and reform areas in Iraqi economic reconstruction. In particular, the discussion highlighted that reforms in Investment Policy, Private Sector, Business Integrity and Anti-corruption, Tax, Public-Private Partnerships and Privatisation of State Owned Enterprises must be implemented and enforced. Representatives from different institutions (both federal and regional level) stated their priorities to improve private sector participation in the Iraqi economy and to enhance transparency within the GoI.
The following thematic workshops addressed progress achieved in the areas of co-operation between the GoI and the MENA-OECD Initiative:
The first workshop on investment climate policy focused on priorities identified in the letter of agreement recently signed between the Iraq National Investment Commission (NIC) and the MENA-OECD. These include implementing regulations of the investment law, the institutional set-up and work plan of the NIC, and the formulation of a national strategy for attracting investment in Iraq. Specific issues related to the investment policy framework were discussed, including jurisdiction, transparency in screening procedures, establishment of an efficient One-Stop-Shop, dispute settlement mechanisms, and thresholds for the definition of strategic investment projects.
Next steps identified as priorities for improving the business climate include: the development of a national investment strategy; the involvement of the NIC as well as other ministries and agencies; further legislative and institutional measures; sectoral components to be targeted for investment promotion; capacity-building for negotiation of International Investment; and double taxation Agreements.
The second workshop on Transparency in Public Procurement and Anti-corruption referred to the work conducted by MENA-OECD Initiative as well as to the ICI benchmarks, which were presented by GoI representatives. In view of enhancing transparency in public procurement, the MENA-OECD Secretariat presented the draft results of a survey conducted on “Public Procurement Regulations in Iraq”. Iraqi representatives confirmed the Secretariats’ analysis and approved preliminary policy recommendations to enhance transparency and resistance to corruption in line with international good practices. MENA-OECD also introduced tools to enable procurement officials to map-out corruption risks and to detect corruption in the public procurement process.
The MENA-OECD Secretariat presented a draft “Stocktaking on sources of corruption and anti-corruption provisions and procedures in Iraq” which was also extensively discussed. Iraqi participants – officials, parliamentarians as well as business representatives – validated the analysis identifying the main corruption causes in Iraq. Participants also agreed that legislative measures adopted to fight corruption require amendments. It was also highlighted that enforcement of anti-corruption provisions is a key challenge which is highly dependent on progress regarding security of law enforcement and anti-corruption staff. Security considerations prevail over the commonly agreed need for further efforts to strengthen law enforcement mechanisms and institution-building. Subsequent presentations by the United Nations Office on Drugs and Crime (UNODC)/UNDP as well as the MENA-OECD Secretariat highlighted key instruments to enhance integrity in both the public and the private sector.
The third workshop on Aid Effectiveness and Budget Planning provided an opportunity for participants to exchange views on the way forward following Iraq’s adherence to the Paris Declaration on Aid Effectiveness in May 2008. Experts from the OECD Development Assistance Committee highlighted the significance of this step, to provide an important signal to the international community about the GoIs intention to take ownership over its own development strategy. It was also noted that Iraq’s adherence represents a commitment taken by together with over 100 countries and organisations o increase efforts in harmonization, alignment, ownership, managing aid for results and mutual accountability - the 5 Principles of the Declaration - on the basis of a set of monitorable actions and indicators The main elements of the review process and of a monitoring survey on the targets were presented, with particular attention to the Fragile States Framework. GoI officials presented the Iraq context vis-à-vis the Paris Declaration, highlighting progress made and the way forward as outlined in the country plan. The obligations and commitments to be undertaken by both donors and GoI for each of the 5 Principles of the Declaration were presented and discussed by participants. Discussion focused on priorities and next steps to establish a baseline for the definition of the 2010 targets. A presentation on public budget management, outlining OECD practices and tools, served also to underline the link between aid accountability and budget planning.
A parallel anti-corruption training was organised by MENA-OECD in co-operation with the French anti-corruption agency - Service Central de la Prevention de la Corruption (SCPC). The training provided Iraqi representatives an opportunity to exchange experience with experts from the SCPC and other major French anti-corruption, anti-money laundering and asset recovery bodies. General intra-governmental co-ordination to prevent and fight corruption was given particular attention.
The concluding session (10 July) provided a platform to identify the key outcomes of the 3-day event and to decide upon the next steps for co-operation between the GoI, MENA-OECD and UNDP. The discussion led to the final Conclusions and Recommendations for next steps in GoI/MENA-OECD/UNDP co-operation on Private Sector Development, Anti-Corruption and Aid Management. The document, which includes the input of all participants, was approved as an official commitment between the GoI delegation present and MENA-OECD/UNDP.
Agenda (English / Arabic)
Presentations and documents :
Economic Policy Reforms in Iraq:
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Investment in Iraq, by Dr. Al Anbaki, Economic Advisor of the Prime Minister, Prime Minister's Economic Council, Iraq.
Investment Policies:
Anti-Corruption and Public Procurement:
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The Iraq Compact, by Mr. Sirwan Ibrahim, Chief of Staff, Deputy Prime Minister's Office, Iraq.
Public Procurement:
Anti-Corruption and Integrity:
Aid Management and Budget Planning:
Conclusions (English / Arabic)
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