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### Viewing cable 07STATE152799, STEERING GROUP NON-PAPER FOR THE PARTNERSHIP FOR

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
07STATE152799 | 2007-11-05 22:30 | 2011-07-11 00:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Secretary of State

`

    Tim W Hayes  11/06/2007 02:13:27 PM  From  DB/Inbox:  Tim W Hayes

    Cable
    Text:

    UNCLAS    SENSITIVE     SECSTATE 152799

    SIPDIS
    CX:
        ACTION: ECON
        INFO:   FCS POL DCM AMB CONS PA RAO FAS MGT PMA

    DISSEMINATION: ECON /1
    CHARGE: PROG

    VZCZCAYO181
    OO RUEHAK
    DE RUEHC #2799/01 3092247
    ZNR UUUUU ZZH
    O P 052230Z NOV 07
    FM SECSTATE WASHDC
    TO RUEHAK/AMEMBASSY ANKARA IMMEDIATE 1916
    RUEHBR/AMEMBASSY BRASILIA IMMEDIATE 6157
    RUEHBY/AMEMBASSY CANBERRA IMMEDIATE 9448
    RUEHCP/AMEMBASSY COPENHAGEN IMMEDIATE 7544
    RUEHME/AMEMBASSY MEXICO IMMEDIATE 8653
    RUEHOT/AMEMBASSY OTTAWA IMMEDIATE 8399
    RUEHSG/AMEMBASSY SANTIAGO IMMEDIATE 7482
    RUEHUL/AMEMBASSY SEOUL IMMEDIATE 5298
    RUEHKO/AMEMBASSY TOKYO IMMEDIATE 1376
    RUEHWR/AMEMBASSY WARSAW IMMEDIATE 9260
    RUEHWL/AMEMBASSY WELLINGTON IMMEDIATE 4525
    INFO RUEHRL/AMEMBASSY BERLIN PRIORITY 0481
    RUEHLO/AMEMBASSY LONDON PRIORITY 3056
    RUEHFR/AMEMBASSY PARIS PRIORITY 5529

` `

    UNCLAS SECTION 01 OF 03 STATE 152799

    SIPDIS

    SENSITIVE
    USOECD - CHARLES RANDOLPH
    PAUL REID
    CURTIS STONE
    USOAS FOR BOB MANZANARES

    E.O. 12958: N/A
    TAGS: AU BR CA CI EAID ET JA KDEM KS MX NL NZ PL PO
    PREL, TU, UK, OAS, DA, OECD
    SUBJECT: STEERING GROUP NON-PAPER FOR THE PARTNERSHIP FOR
    DEMOCRATIC GOVERNANCE (PDG)

    REF: A. STATE 106990
         ¶B. STATE 108794
         ¶C. STATE 115400

    ¶1. (SBU) This is an action request; please see para 5.

    ¶2. (SBU) Background: The Partnership for Democratic
    Governance was successfully rolled out at a well-attended
    high level event co-hosted by OECD and UNDP in New York on
    October 1, 2007.  The Department appreciates Posts' support
    and efforts which made the launch of the PDG a great success.
     The current founding members of the PDG are: Australia,
    Brazil, Canada, Chile, Denmark, Japan, Korea, Mexico, New
    Zealand, Poland, Turkey, the U.S., OECD, UNDP, OAS and the
    Inter-American Development Bank.  The U.S. and other founding
    members must now turn our attention to effectively
    implementing this new multilateral initiative at OECD.
    Founding members will meet in Paris on November 12 to have an
    informal discussion on PDG implementation and to prepare for
    the first meeting of the PDG,s Steering Group tentatively
    scheduled for January 28-29, 2008.  The UK and possibly
    France will participate in these discussions as observers but
    have not yet joined the PDG. Paris, London and Berlin are
    slugged for information only.

    ¶3. (SBU) Action Request: Drawing on REFTELs and key PDG
    material at www.oecd.org/pdg, Department requests action
    posts to convey points contained in paras 4 and 5 and deliver
    the non-paper in para 6 on outstanding governance issues of
    the PDG to host governments.  Embassy should ask for initial
    comments on the draft non-paper by COB November 15 and inform
    host government that the U.S. hopes to discuss issues in the
    non-paper with delegations at the November 12 meeting in
    Paris.  We view this as a working document and welcome
    comments and input from other partners as we move forward.

    ¶4. (SBU) Pilot Assessments: Department requests that Posts
    inform other partners that the U.S. has begun to seek input
    and assessments from our own embassies and USAID missions on
    potential PDG pilot programs in Africa, Asia and Latin
    America.  Given the relatively short initial period for the
    PDG Advisory Unit of three years, we think it is important to
    feed as much information to the new unit as possible and
    inform its decisions about dialogue and exploration with
    target countries.  We expect UNDP to begin similar
    assessments and welcome their participation in the
    development of templates and procedures for selection of
    target countries; however, posts should encourage other
    partner countries to join us in gathering and feeding
    information to the new unit as soon as they are able to in
    parallel with UNDP,s development of its own assessment
    framework.

    ¶5. (SBU) Country Co-Chair: OECD Secretary General Gurria will
    chair the first Steering Group meeting of the PDG but the PDG
    terms of reference require that a co-chair be selected at the
    first Steering Group meeting.  The U.S. feels strongly that
    the other co-chair of the Steering Group should be a partner
    government serving perhaps on an annual rotating basis.  We
    believe that Chile would make an ideal first country co-chair
    for the Steering Group and posts should communicate this view
    to host governments and seek their opinions on this issue.

    ¶6. (SBU) Begin non-paper:

    Non-Paper: PDG Governance Issues

    This non-paper addresses two important issues that members of
    the PDG will need to decide in the coming months:

    E.O. 12958: N/A
    TAGS: AU BR CA CI EAID ET JA KDEM KS MX NL NZ PL PO
    PREL, TU, UK, OAS, DA, OECD
    SUBJECT: STEERING GROUP NON-PAPER FOR THE PARTNERSHIP FOR
    DEMOCRATIC GOVERNANCE (PD
    (1) Standards for admitting new members into the Partnership,
    as outlined in the attached OECD note; and

    (2) Principles that should guide the process for selecting
    countries for PDG-sponsored assistance.
    Membership Standards: In accordance with the attached OECD
    note, all countries wishing to join the Partnership must
    subscribe to the PDG's Declaration of Principles and
    Objectives.  The issue is whether this is both a necessary
    and sufficient condition for membership, or whether
    additional standards should be applied in considering the
    accession of new members prior to and after the January
    Steering Group members.

    From the outset, the U.S. has understood the PDG to be a
    group of like-minded democracies.  The U.S. therefore
    believes that the democratic character of countries applying
    for membership should be an important factor in admissions
    policy.  At the same time, we recognize the inherent and
    practical difficulties of reaching agreement among all
    partners on an objective and credible set of democracy
    indicators and applying them consistently -- and in a
    compulsory manner -- to specific cases.

    In consequence, it is the U.S. view that each member of the
    PDG should formulate some set of standards for evaluating
    applications for membership and, at its discretion, exercise
    its right to veto countries that do not meet these standards.
     The U.S. believes the following democracy guidelines would
    be useful in evaluating membership requests to protect the
    'like-minded' nature of the Partnership.  The U.S. also
    believes that a coordinated set of guidelines among partners
    would minimize disagreements and the necessity of any
    partners to break consensus.  We believe that all PDG members
    should base their membership decisions on similar standards.

    -- A "free ranking" from Freedom House

    -- A score of 50 percent or higher in the World Bank's Voice
    and Accountability Index

    -- Practical experience in establishing legitimate,
    effective, and accountable democratic institutions that would
    help the PDG to achieve its objectives.

    Eligibility Standards for Assistance: The United States has
    also conceived the principal, if not exclusive, aim of the
    PDG to be helping emerging democracies to improve their
    governance capacity and service delivery to their citizens.
    We recognize, of course, that the definition of emerging
    democracies should be sufficiently flexible to reflect the
    reality that democratic transitions are often protracted and
    incomplete, and that some fragile and post-conflict states
    need assistance in strengthening governing institutions, even
    if they are not yet exemplars of democratic practices, to
    successfully get on a democratic path.

    Although there is agreement that governments of any country
    on the OECD DAC list of Official Development Assistance
    recipients can contact the PDG for advice or assistance,
    whether to approve such requests will require a
    recommendation from the Advisory Unit and a separate decision
    by the Steering Group under the rules of consensus.  As with
    the case of membership, the United States does not seek
    formal agreement among PDG members on democratic guidelines
    for the assistance selection process.   However, the U.S.
    will observe the following guidelines in making these
    decisions within the Steering Group and again believes that
    close coordination in partners' decision-making will be
    important for the success of the PDG.  We, therefore,
    encourage other PDG Partners to adopt similar guidelines.

    -- Countries seeking assistance from the PDG must be willing
    to accept stringent provisions for assuring accountability,
    auditing, monitoring, transparency and open citizen feedback
    E.O. 12958: N/A
    TAGS: AU BR CA CI EAID ET JA KDEM KS MX NL NZ PL PO
    PREL, TU, UK, OAS, DA, OECD
    SUBJECT: STEERING GROUP NON-PAPER FOR THE PARTNERSHIP FOR
    DEMOCRATIC GOVERNANCE (PD
    in the implementation of the PDG-sponsored projects, based on
    best practices developed by the Advisory Unit.

    -- Applications for assistance should take into account a
    candidate's performance on Freedom House scores based on
    civil and political liberties and the World Bank's indicators
    of voice and accountability, government effectiveness, rule
    of law, and control of corruption.

    -- There should be a strong presumption of denial, with
    exceptions made on a case-by-case basis, for requests for PDG
    services from any country that received a Freedom House
    ranking of "not free" and a score of under 50 percent in the
    World Bank's Voice and Accountability Index.

    Conclusion: The United States believes that the approaches
    laid out above strike the right balance between two competing
    desiderata: preserving the flexibility of the Partnership to
    make politically sensitive decisions taking into account the
    special circumstances of individual cases, and maintaining
    the democratic character and purposes of the Partnership's
    membership and operations.  In the spirit of partnership, the
    United States would welcome the views of our PDG partners on
    the guidelines set out above -- or others that might be
    usefully applied to our decision-making process in the PDG --
    and hope we will be able to achieve consensus on a way
    forward.

    ¶6. (SBU) Points of Contact: Comments on the non-paper should
    be provided directly via e-mail to EEB/EPPD Nancy
    Smith-Nissley (Smith-NissleyN(at)state.gov) and EEB/ODF
    Christine Harbaugh (HarbaughCM(at)state.gov) copying S/P
    members Dick Sokolsky (SokolskyRD@state.gov) and Jean Geran
    (GeranJM(at)state.gov).
    RICE

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