International Compact

with Iraq

AM Meeting

‘FRAMEWORK FOR NORMALIZATION’ NEEDED MORE THAN EVER, SECRETARY-GENERAL

SAYS AT MILESTONE PRESENTATION OF INTERNATIONAL COMPACT FOR IRAQ

Iraq ’s Vice-President Introduces Compact Document;

New Co-Chair of Initiative Sets April Target Date for Formal Launch

As the International Compact with Iraq was formally presented to the international community at a Headquarters meeting this morning, United Nations Secretary-General Ban Ki-moon told the gathering of Member States, regional and multilateral organizations that Iraq needed the “framework for normalization” more than ever.

The Secretary-General said the initiative should be seen as a “national compact” among Iraqis, where agreement would be reached on the necessary security and political steps towards normalization and revitalizing the national economy.  Meanwhile, it should function as an “international compact” between Iraq and its partners, allowing the international community to channel support according to priorities decided by Iraqis themselves.

Describing as “heart-wrenching” the almost daily attacks on innocent Iraqi civilians that had left immense suffering and pain in their wake, he said that, beyond the political violence and sectarian strife, a humanitarian crisis was stretching the patience and ability of ordinary people to cope with everyday life.  The United Nations was strengthening its humanitarian efforts and working with Iraq’s neighbours and other countries in the region to address the increasing needs of those who had left the country temporarily, those displaced internally and those suffering from diminishing access to basic public services.

The International Compact with Iraq is an initiative of that country’s Government for a new partnership with the international community.  Jointly chaired by the Government of Iraq and the United Nations, it started in July 2006, with the support of the World Bank, and is focused on Iraq’s long-term economic development, while stressing progress in the political and security fields, through a mutually re-enforcing relationship.  Today’s meeting follows the Compact Preparatory Group meetings in the United Arab Emirates and Kuwait last September and October, respectively and the two events in New York last September and November.  The Compact seeks to consolidate peace in war-torn Iraq and to pursue the country’s long-term political, economic and social development over the next five years.

Iraq’s Vice-President Adil Abdal Mahdi formally introduced the International Compact document, outlining its major principles:  improving the investment climate; tackling political, security and economic problems simultaneously; normalizing Iraq’s relations in the region and internationally; setting up a democratic State with a federal Government on the Iraqi people’s own terms; working with the international community to alleviate the country’s debt burden and set up a reconstruction mechanism; and resolving social problems through a national reconciliation process and by distributing national resources in a just manner.

Ibrahim Gambari, the newly-appointed Special Adviser on the International Compact with Iraq and Other Political Issues, and the Compact’s United Nations Co-Chair, said that the time had come to empower the Government of Iraq, and the country’s constitutional review process was important for the strengthening of democracy and the rule of law.  Immediate steps were also needed to tackle security issues while respecting human rights, and it was important to address the situation of refugees and internally displaced persons, among other objectives. Mr. Gambari also said that the target date for the initiative’s formal launch at a high-level event would be near the end of April at a venue to be announced. 

Ashraf Jehangir Qazi, Special Representative of the Secretary-General for Iraq, stressed the particular importance of linking the Compact with current and future domestic, regional and international initiatives.  Among other priorities was the need for funds from the United Nations High Commissioner for Refugees (UNHCR).  The Government had begun to address the challenges facing Iraq, some of which could be carried out in the framework of the Compact, which provided for emergency response, including working with internally displaced persons.  The Compact’s institutional underpinning would be strengthened by the establishment of its secretariat.

Out of the approximately 100 delegations participating in the meeting, some 30 speakers delivered statements in support of the Compact, saying it had been shaped by the serious challenges facing Iraq, and that its objectives and strategies composed an integrated plan to overcome them.

The meeting heard statements by the representatives of Saudi Arabia, Italy, Germany (on behalf of the European Union), Republic of Korea, Iran, United States, Japan, United Arab Emirates, France, Syria, Turkey, United Kingdom, Canada, Romania, Kuwait, Egypt, El Salvador, Spain, Denmark, Kazakhstan, Australia, Viet Nam and China.

Also speaking were representatives of the World Bank, International Monetary Fund (IMF), Islamic Development Bank, European Commission, Organization of the Islamic Conference, and the International Reconstruction Fund Facility for Iraq.

Statements

BAN KI-MOON, Secretary-General of the United Nations, said as he opened the meeting that today’s event offered an opportunity to bring the larger international community to consider how best to support the people of Iraq under the Compact.  “We are all aware of the difficult situation in Iraq.  It is heart-wrenching to see almost daily attacks on innocent civilians, which have left immense suffering and pain in their wake.”  Beyond the political violence and sectarian strife, a humanitarian crisis was stretching the patience and ability of ordinary people to cope with everyday life.  The United Nations was now strengthening its humanitarian efforts and working with Iraq’s neighbours and other countries in the region to address the increasing needs of those who had left Iraq temporarily, those displaced inside the country and those suffering from diminishing access to basic public services.

Given those circumstances, some might question why a Compact would be necessary or appropriate, he said, adding that he understood those concerns.  However, a framework for normalization was required now more than ever.  There was also a view that there was a multitude of initiatives on Iraq, which had yet to yield tangible results.  While there was certainly a need to streamline and consolidate those initiatives, and to concentrate on achievable goals, the Compact focused, unlike other initiatives, on Iraq’s long-term economic development, while also stressing progress in the political and security fields through a mutually reinforcing relationship.

He said the Compact aimed to achieve its objectives in two ways, the first being a “national compact” among Iraqis, whereby they would agree upon the necessary security and political steps towards normalizing the situation and revitalizing the national economy.  The second way, an “international compact” between Iraq and its partners, would set out the Government’s agenda for the next five years with regard to economic and social reform.  That shared vision and mutual commitment would allow the international community to channel support in accordance with the priorities decided upon by Iraqis themselves.  The Compact should be seen as a tool for unlocking Iraq’s own potential by seeking to achieve concrete results in public sector resource management, institution building and human development, in line with the Millennium Development Goals.

The Compact also emphasized a more holistic approach to energy management, he said.  Towards that end, the Government’s recent efforts to adopt new oil and gas legislation were encouraging.  Indeed, a viable arrangement to share the nation’s oil wealth and natural resources could also help build much needed trust and confidence among the country’s communities.  Welcome progress had also been made in adopting other key legislative acts, which, however, might not achieve their full impact unless the same consensus was expressed in the Iraqi Constitution.  That made a genuine and meaningful constitutional review all the more important.  Above all, it was essential that all communities come together in a spirit of dialogue to find lasting solutions.  As they did so, they should be able to count on the active support of Iraq’s neighbours and the international community.

Describing the Compact as an important framework for fulfilling precisely that shared responsibility towards Iraq and its people, he said the United Nations was committed to supporting its implementation.  Through the Secretary-General’s good offices and those of his Special Representative in Iraq, the United Nations would make every effort to ensure that the international community remained engaged.  Ibrahim Gambari had been appointed Special Adviser on the International Compact with Iraq and Other Political Issues and would succeed Mark Malloch Brown as Co-Chair of the Compact.  He would be in active contact with all concerned to move the process forward.

The challenges ahead were immense, he said in conclusion, adding:  “I am sure you will all agree we cannot leave Iraq on its own to cope with them.”  The Compact was intended to help the Government build a secure, unified, federal and democratic nation, founded on the principles of freedom and equality, capable of providing peace and prosperity for all Iraqis.  A positive political progress and a reduction in violence were essential to success.  To maintain the momentum generated by today’s meeting, the Government of Iraq was encouraged to agree on the date and venue for the launch of the International Compact.  “I am hopeful that, through our concerted efforts, we can help to build a country at peace with itself, with its neighbours and with the wider international community,” he said.

ADIL ABDAL MAHDI, Vice-President of Iraq, said the International Compact document had managed to capture the Government’s vision for a stable Iraq at peace with itself, and contained provisions for adopting a State based on a constitution that upheld the right to free elections and the just distribution of wealth.  The document also paid heed to the importance of non-intervention in the domestic affairs of other States, he said.  Indeed, since the fall of the dictatorial previous regime, Iraq had striven to build cordial relations with other countries.  But while the country still suffered under the weight of international terrorism, sectarian violence, unemployment and destroyed civil infrastructure, it was fortunately blessed with fertile land, ample natural resources –- including great capacities in gas and oil -- and an educated populace, which it would do well to harness.

He said the International Compact document was founded on the following major principles:  to improve the investment climate; to tackle political, security and economic problems simultaneously; to normalize Iraq’s relations in the region and internationally; to set up a democratic State, with a federal Government, on the Iraqi people’s own terms; to work with the international community to alleviate the country’s debt burden and set up a mechanism for reconstruction; and to resolve social problems through a national reconciliation process and by distributing the country’s resources in a just manner.

Iraq stood ready to implement practical solutions to security problems, which manifested in suicide bombings sometimes instigated by those from outside the country, he said.  Such acts of violence undermined both the rule of law and the State, and had led to a massive displacement of people, damaged oil pipelines and electricity pylons, and destroyed universities and schools.  Yet, the country had persevered, holding successful parliamentary elections, instituting a national unity Government and working towards a constitution.  A campaign was under way to impose the rule of law and clear Iraq of saboteurs, with the help of the Multinational Forces in Iraq.  Though that effort was still in its early stages, sectarian violence seemed to have declined.  Thousands of families had been able to return to their homes in the suburbs, while the number of car bombs and suicide attacks had been reduced.

On the political track, he said, the national reconciliation process initiated by the Prime Minister continued apace, with many meetings having been held in Amman, Cairo, Damascus, the United Arab Emirates, Saudi Arabia and Baghdad.  It was important to embark on a political process that had a stable political regime as its outcome, and that respected the will of Iraqis.  There was a need for new political institutions based on respect for human rights, a renunciation of violence and sectarianism and a deep respect for the rule of law.  The country must ensure that dictators would not return to power.

He said the milestone 10 March conference in Baghdad -- which had seen the participation of Egypt, Bahrain, International Compact members, the United Nations, the European Union and the Arab League -- had been a success, especially in setting up a security plan and developing ways to help displaced Iraqis.  There had also been bilateral meetings, with neighbouring countries and those further away like the United States and the European nations, which boded well for Iraq’s positive relations with the world.

Iraq’s problematic history made the work or national rebuilding complex and difficult, requiring cooperation from all Iraqis, he said.  As a result, the Government was reviewing de-Ba’athification and studying a draft budget for 2007, which would include a $10 billion allocation to investment projects.  Furthermore, Iraq was committed to working with the International Monetary Fund (IMF) and would soon hold its third and fourth review meetings in order to extend that institution’s programme for the country by a further six months.  Bilateral agreements with commercial debtors would be held to settle the question of debt and an Iraqi delegation was in Saudi Arabia to discuss that issue with Gulf State donors, in line with Paris Club principles.

Noting that the Cabinet had recently voted on an oil law aimed at achieving the just distribution of resources among all Iraqis and the country’s different regions, he said that law had been prepared by Iraqi experts and discussed by federal and local authorities.  It would safeguard the oil industry.  Parliament had adopted a separate investment law to help attract foreign investors, whom it would give full safeguards.  Under that law, an independent investment body would be set up with many branches throughout Iraq and with clear terms of reference.

Since 2003, the independent Central Bank, had taken steps to control inflation and to develop a strong currency, he continued.  It had succeeded in raising the value of the Iraqi dinar by 15 per cent and would work with the IMF to further tackle severe inflation.  The Finance Minister and Central Bank officials would work in 2007 to reform the banking system.  Plans were also in place to re-open 143 Government-run industries and plants that had stopped working during the war.  Those efforts would take place initially in secure provinces and serve as models for “difficult” areas.

ASHRAF JEHANGIR QAZI, Special Representative of the Secretary-General for Iraq, noted that today’s meeting brought the Compact’s preparatory process to a close.  The document had been finalized and presented to the partners and the time had come to agree on a date for the launch of the implementation phase within the framework to be agreed by the Government of Iraq and its international partners.  The broader international community had a major stake in that process.

Pointing out that the Compact was not an exclusively economic initiative, he said it also had political and social aspects, reflecting Iraq’s priorities.  It was particularly important to link the Compact with current and future domestic, regional and international initiatives, securing further support as had been done on 10 March at the Baghdad meeting of Iraq’s neighbours, the permanent members of the Security Council and others.  Among other priorities was the need for funds from the United Nations High Commissioner for Refugees (UNHCR).  The Government had begun to address the challenges facing Iraq, some of which could be carried out in the framework of the Compact.  It had provisions for emergency response, including working with internally displaced persons, for example.

The Compact’s institutional underpinning would be strengthened by the establishment of its secretariat, he said.  In addition, the United Nations country team for Iraq had developed a joint priority action plan, in accordance with the development and humanitarian mandates of United Nations agencies.  However, some questions would have to be answered between the present time and the Compact’s final launch, particularly with respect to the joint monitoring matrix.  One of those questions was whether each issue should be separately noted for regular Government briefings to its international partners regarding its achievements and challenges.  That would strengthen the sense of partnership and facilitate the disbursement of already-agreed assistance. 

“We are partners in the International Compact,” he said, noting that Government measures to provide security in Baghdad were complemented by a legislative programme, which included the adoption of the budget law for 2007, the Cabinet agreement on oil revenue sharing and other laws to be presented to Parliament for approval.  An election commission had been formed to prepare for new elections, probably later this year.  On the regional and international level, conferences were being held and planned to secure regional and international support for the Compact process.  With the Compact’s preparatory phase concluded, the ball was now in the court of Iraq’s partners.  The time had come to quickly launch the implementation phase so as to pass the fruit of the partnership on to the Iraqi people.

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For information media • not an official record