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Cablegate: November 13 Meeting with Government of Niger (Gon) Prime

VZCZCXRO8481
RR RUEHLMC
DE RUEHNM #1252/01 3181544
ZNR UUUUU ZZH
R 141544Z NOV 06
FM AMEMBASSY NIAMEY
TO RUEHC/SECSTATE WASHDC 3081
INFO RUEHCO/AMEMBASSY COTONOU 1037
RUEHBP/AMEMBASSY BAMAKO 0338
RUEHFN/AMEMBASSY FREETOWN 0026
RUEHAR/AMEMBASSY ACCRA 0402
RUEHKI/AMEMBASSY KINSHASA 0053
RUEHDK/AMEMBASSY DAKAR 1804
RUEHOU/AMEMBASSY OUAGADOUGOU 8553
RUEHFR/AMEMBASSY PARIS 0482
RUEHLMC/MCC WASHDC

UNCLAS SECTION 01 OF 03 NIAMEY 001252

SIPDIS

SIPDIS

SENSITIVE BUT UNCLASSIFIED

DEPT FOR AF/W BACHMAN
ACCRA FOR USAID/WA
PARIS FOR AF WATCHER

E.O. 12958: N/A
TAGS: PGOV ECON EAID KMCA NG
SUBJECT: November 13 Meeting with Government of Niger (GON) Prime
Minister (PM) on Millenium Challenge Corporation (MCC) Threshold
Program

REF: (a) Niamey 1129 (b) Niamey 1122 (c) Niamey 920

1. (SBU) Summary. In a November 13 meeting lasting over an hour,
Ambassador Allen, accompanied by USAID program manager Mark
Wentling, met with Prime Minister Hama Amadou to discuss Niger's
selection as a MCC threshold country. PM staff members Secretary
General Malam Ari Boucar and Principal Advisor Housseini Abdou
Saleye (formerly Niger's ambassador in Brussels) also participated
in the meeting. The Ambassador congratulated the PM on Niger's
selection for the MCC threshold program, stressing that it was based
on Niger's positive reforms to date. The PM complained that the
United Nation's Development Program (UNDP) again ranked Niger last
on its Human Development Index (HDI) list. He said that Niger's
selection for the MCC threshold program was indeed most welcome
news. The PM said he will appoint a point of contact and put in
place a highly qualified team with English language ability to
manage the threshold program. He tried to allay fears about Niger
not having sufficient absorptive capacity to use and manage large
sums of money. Addressing the Ambassador's points about the
consequences of backsliding, the PM responded that there would be no
slippage in Niger's performance. End Summary.

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2. (SBU) The Ambassador began the meeting by congratulating the PM
on Niger's selection as a MCC threshold country. The PM responded
by complaining that the UNDP again ranked Niger last on its HDI
list. He said this is wrong and that he had written the UNDP
resident representative to tell him so and say that the GON would
have no part in any work that relates to such a ranking. He could
not understand how unstable countries suffering from years of armed
conflict like Sierra Leone, Guinea Bissau, DRC, etc. could be ranked
higher than Niger on this index. He noted Niger's progress in
raising school enrollments over the last few years, and refuted
UNDP's report that the average life span in Niger had dropped,
stating that average life expectancy in Niger had increased from age
46 to 50.

3. (SBU) The Ambassador provided the PM with the color coded FY 07
MCC score sheet for Niger and discussed the various indicators with
him and the sources of the data. The PM appeared to understand well
the MCC scoring process and ground rules. He indicated that he
already has a team working on improving Niger's scores in areas
where it is deficient and said that he will identify a point of
contact quickly to manage the threshold program. He claimed that
there will be no problem finding qualified, English-speaking
Nigeriens for the GON's MCC team and that there would be no slippage
in Niger's performance. He understands that an MCC program will
take a lot of work on the part of the GON and he expressed his
liking of the MCC program versus the IBRD/IMF approach, which "makes
a lot of work out of meeting conditions but achieves little." He
tried to allay fears about Niger not having sufficient absorptive
capacity to use and manage large sums of money. Aware of MCC
programs in other countries, he said he would consult with Burkinabe
contacts on how they managed its MCC threshold program.

4. (SBU) The PM understands that threshold funds need to be used to
help Niger perform better when measured against MCC indicators, and
thus understands the emphasis on education in the MCC threshold
program announcement. Over the long run, however, he thought that
Niger's primary need is to increase agricultural productivity so
that people could have enough to eat and higher incomes. He
indicated that if Niger reaches the compact level, he would like to
see a focus on agriculture (especially increasing irrigation), as
this would help address many of the areas where Niger is lagging.
He said that full stomachs equal less corruption.

5. (SBU) Much of the meeting was taken up with the Ambassador
stressing the need to reduce corruption and improve other MCC
performance indicators to qualify for the "compact" phase. She
mentioned the MCC suspension of Gambia, as well as the more positive
MCC cases of Benin, Burkina Faso and Mali. The Nigeriens are fully
aware that potentially high levels of assistance are at stake.

6. (SBU) The Ambassador emphasized that corruption is the critical
indicator for the GON to control, as slippage below the bar in that
indicator alone is enough to disqualify a country from the MCC
program. She also reminded the PM that scores are not determined on

NIAMEY 00001252 002 OF 003


the basis of a fixed scale, but vary from year-to-year depending
upon the performance of all the other nations being graded.

7. (SBU) The PM said poverty was at the heart of corruption. He
said that his government is doing all it can to combat corruption,
citing the three commissions set up to come up with proposals on the
subject. He said a study found that a minimum wage of CFA 115,000
($221) a month is required to allow a decent standard of living, as
compared to the actual minimum wage of CFA 35,000 ($70). The GON
could not afford to raise minimum wage to the higher level, the PM
said. He said that one reason the GON moved to a continuous work
day (i.e. allowing civil servants to leave earlier by reducing the
long lunch period) was to make it easier for civil servants to
engage in income generating activities after work.

8. (SBU) Nonetheless, the PM said he wants to change people's
outlook about corruption so that corruption is no longer viewed as
acceptable. The Ambassador said that the GON needs to show what it
is doing to fight corruption in order to address external
perceptions of corruption and GON anti-corruption efforts. USAID
project coordinator suggested that Niger make efforts to report on
progress made in this area.

9. (SBU) The Ambassador raised concerns about slippage over the
past several months in some civil liberties (such as the jailing of
journalists) and noted GON actions to address the education scandal.
The PM responded that donors underestimate the GON's influence over
legal issues, noting that it is up to the courts to apply the laws.
He said the GON only takes legal action against journalists when
they involve other countries or put Niger's stability and peace in
jeopardy. (This is an apparent reference to journalists who were
prosecuted for claiming that the PM was tilting Niger's foreign
policy toward Iran and away from the West.) The PM said the GON
would come down hard on anyone who said that Islamic extremists were
at work in the country because the opposite is true. He said that
"90 percent of what journalists are printing in Niger is lies, but
the GON generally does nothing about it." He added that people are
putting many false reports on the internet. He claimed that the
laws being applied to journalists are ones the journalists
participated in drafting in 1997. He mentioned that a new set of
laws on this subject is in the works and should be ready for
adoption by the National Assembly in March 2007. He suggested the
new laws will do away with jail sentences and put in place a system
of fines. He noted that even the President could be brought to
justice if he violated the law. The Ambassador suggested that it
may be better to refute any untruths said about him and his
government with the truth in a "point-by-point" fashion, rather than
jailing people.

10. (SBU) On the education scandal (MEBA affair - ref b), the PM
noted that putting two ministers in jail is no small thing and that
this had never happened in any other African countries. The SecGen
explained that one of the problems in the MEBA affair was the
donors' requirement to decentralize the distribution of school
supplies, which reduced the GON's ability to monitor corruption.
The PM stressed that the new public contracting mechanism being put
in place would prevent a repetition of anything like the MEBA affair
and that the GON had learned some useful lessons from this scandal.
He noted that his government is no longer involved in the MEBA case
and it is entirely in the hands of the high court. The SecGen said
that a challenge to increasing the number of schools and staffing
them is hiring and paying additional contract teachers, but it is
difficult to get cash salaries to the contract teachers in remote
locations

11. (SBU) The Ambassador raised the matter of the GON's decision in
October to expel the Mohamid Arabs as another example of something
that can tarnish Niger's external image. The PM acknowledged that
the reaction at the ground level got out of hand in this case, but
his government quickly rectified its initial misguided reaction. He
noted that other ways have been found to take care of this problem
and that the GON has no intention of expelling any groups,
especially as thousands of Nigeriens reside in other countries.

12. (SBU) In response to a question about the high cost of creating
a business (an MCC indicator where Niger falls short), the PM said

NIAMEY 00001252 003 OF 003


that this was being taken care of and soon Niger would have the
lowest business start-up costs in the sub-region. (The PM was
presumably referring to proposals to cut some business taxes in the
draft budget currently being discussed by the National Assembly -
ref a).

13. (SBU) Finally, USAID project manager raised the matter of
Niger's high population growth rate. The PM responded that he
recognizes the importance of this topic and this is why a Ministry
was created to deal with population issues. He said he had rejected
that Ministry's draft population policy (reftel C) because it was
proposing to replicate what has been done for 25 years without
achieving any results other than an increased population growth
rate. He has asked his Population Ministry to develop a new plan
that reflects the characteristics of Niger, and that is realistic
and practical. He mentioned working more closely with local
marabouts (religious figures) and others to bring the population
growth rate down from 3.3% to 3.0% by 2015. He emphasized the need
for people to return to the tradition of spacing children so women
would have a child no more often than every three years. He noted
that educating young girls and others would be helpful in this
area.

14. (SBU) The Ambassador closed the meeting by informing the PM and
his staff that she would share additional information on the next
steps regarding a threshold program, as soon as more information
from MCC becomes available.

ALLEN

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