2:00 P.M. EDT
Real Audio of Briefing
MR. DENIG: Good afternoon, ladies and gentlemen, and welcome to the Washington Foreign Press Center. We are pleased this afternoon to be able to present a briefing to you on an important development, the upcoming Forum for the Future meeting in Morocco, which will take place December 11th, which is part of an ongoing process to assist the development of the Middle East.
And we're very pleased today to welcome as our briefers, Under Secretary of State for Economics, Business and Agricultural Affairs, Alan Larson, and Mr. Faryar Shirzad, the Senior Director for International Economic Affairs at the National Security Council.
Each one of these gentlemen will have a brief opening statement, and after that, will be glad to take your questions.
Mr. Shirzad.
MR. SHIRZAD: Thank you for the introduction and the opportunity to brief all of you. As Paul mentioned, yesterday, the Kingdom of Morocco formally announced its intention to host the first ever Forum for the Future. The event will be held in Rabat on December 11th. The United States, in its capacity as the president of the G-8, has been asked to serve as a co-chair of this event and we're pleased to accept that responsibility and to serve as the co-chair on that date.
As the Moroccans announced, the Forum for the Future brings together regional and G-8 foreign, economic, and other ministers, as well as civil society and business representatives, for an ongoing dialogue on reforms to promote democracy, rule of law, human rights and open market economy reforms.
The event is designed to build on and add momentum to a number of developments that have occurred over the last year, and is designed to respond to the momentum for reform that has emerged from the Broader Middle East region. And these include efforts that have been made by the Arab League, and efforts in May in Tunis in the form of statements by civil society and business leaders and other representatives of governments and the region in Alexandria at the Dead Sea, Sana'a, Istanbul and elsewhere.
The event is also building on the Partnership for Progress and a Common Future that was launched at the Sea Island G-8 Summit, hosted by the United States this year. This event marks a beginning, and, for the United States, the cornerstone of our effort to try to work with governments in the region and with civil society and business leaders to promote economic reform, political reform and efforts to broaden prosperity in the region.
Thank you.
MR. DENIG: Secretary Larson.
UNDER SECRETARY LARSON: Good afternoon. In preparation for the December meeting launching the Forum of the Future, Secretary Powell and Moroccan Foreign Minister Benaissa held a meeting on the 24th of September in New York that was attended by 25 ministers of the Broader Middle East region and of the G-8. It was an extraordinarily productive session that really helped to launch the idea of holding this meeting. And the decision was taken there that Morocco would be the host of the first meeting of the Forum of the Future. About ten days later, Moroccan Finance Minister Oualalou and Secretary of the Treasury Snow held a similar meeting here in Washington on the margins of the World Bank and IMF meetings that deepened some of the cooperation on the financial issues that are to form a major part of the agenda at the meeting in Morocco on the 11th.
That agenda is really about working together to create greater opportunities for the next generation in the Broader Middle East. Some of the specific ideas that are going to be discussed will be ideas to have a microfinance initiative that would make loans to small entrepreneurs. There is a proposal that is gaining steam for a regional facility of the International Finance Corporation that could make loans to small businesses. And finance ministers will also be discussing a creative idea for a network of funds that could bring together some of the regional financial institutions to exchange views about how to bring more capital into the region.
A similar but different idea is a proposal for a task force on investment that would bring the business community in support of governments as they try to address the issues of their business climates and investment climates that have a bearing on the flows of investment.
There's a very creative initiative that really originated from the region for having centers for entrepreneurship and business education that could help young people develop business skills so that they can be successful business leaders. There is a literacy initiative that is focused on the region's goals for achieving universal literacy.
And finally, there is the Democracy Assistance Dialogue that is being led by Yemen and Turkey, a partner of this entire exercise, and the Government of Italy. The important thing to emphasize, and it's really my last point, is that each of these initiatives have champions, and they have strong supporters from within the region who are leading in the development of these initiatives and whose work and whose preparation will really lay the foundations for the discussions that would be held in Morocco on the 11th of December.
I think with those introductory comments, Mr. Shirzad and I would be happy to try to answer any questions you have.
MR. DENIG: Okay. We'd ask, as usual, that you use the microphone, introduce yourself and your news organization. Let's start with Italy there, on the right.
QUESTION: Giampiero Gramaglia, Italian News Agency, ANSA.
I need some clarification. To what level is the conference in Morocco, if the presidents of this initiative for progress is rotating presidents, or if Morocco and the United States will serve as president after the end of the year, and if the Palestinians will be represented at the conference, at what level? And then I have a question, but those three clarifications, also.
UNDER SECRETARY LARSON: Well, it is a ministerial-level conference, and our expectation is that both the Secretary of State and Secretary of Treasury will attend for the United States. The Palestinians are invited, but we don't know the level of representation of every invitee at this stage.
And Morocco and the United States are hosting this meeting, but the decision about where the next meeting might be held is one that will be made in the future.
But there is no sense that this is a permanent responsibility. I think the responsibility will, in fact, rotate.
MR. DENIG: Okay. Follow-up question?
QUESTION: The question now. Do you expect that the events going on in Iraq, and as far as the Middle East is concerned with Mr. Arafat, will in some way influence the conference, or you consider this process apart from the main events in the area?
UNDER SECRETARY LARSON: You know, Foreign Minister Benaissa and Secretary Powell were asked a somewhat similar question under different circumstances in September and I think what they both said was, everyone involved with this process understands that pressing ahead for Middle East peace and completing the transformation of Iraq into a democratic and prosperous society are important tasks that will go on.
This is a separate issue. And this is about finding a way to support the aspirations within this region to build a better future for their own people. And I think the countries of the region understand that no one has a stronger stake in that effort than do they. And that's why this work is going ahead with a great deal of enthusiasm.
MR. DENIG: All right, let's go to Egypt, on the right here.
QUESTION: My name is Khaled Dawoud. I'm from Egypt's Al-Ahram newspaper.
I would just like any of you to elaborate a little bit on the Democracy Assistance Dialogue, what it exactly will include, what countries, I mean, what ideas you have in mind?
And just to follow up on my Italian colleague question it's concerning, okay, maybe the next conference will be held in another country other than Morocco, but will the United States always co-chair those meetings?
Thank you, sir.
MR. SHIRZAD: On the Democracy Assistance Dialogue, that's an effort that's been led by Yemen, Turkey and Italy; and it's something that they have been working on since the concept was launched at the Sea Island Summit. They intend to actually have a ministerial meeting of their own in late November, at which they will refine their agenda on that element of the broader agenda that came out of the Sea Island process.
Ultimately, what the Democracy Assistance Dialogue is supposed to do is bring together governmental leaders and other organizations to share ideas and undertake efforts towards democratization in the region, and the exact architecture of it is being developed among those three countries.
UNDER SECRETARY LARSON: On your other question, if it were to be decided in the future that it's a useful structure to have a partnership between a country in the region and a country of the G-8, the logical thing would be for that G-8 responsibility to go to the rotating president of the G-8. Next year the United Kingdom will take over the presidency. None of this has been decided, but within the G-8 itself leadership rotates among the countries.
MR. DENIG: Okay. Let's come up front to Germany please.
QUESTION: Michael Backfisch, Germany's business daily, Handelsblatt.
Secretary, microfinance initiative, literacy initiative are well-known formulas. How, since the G-8 Summit in Sea Island past June, how was the response so far in G-8 countries, especially among critics of the Iraqi war, like Germany and France? Is there more money on the table right now?
And secondly, how do you think the whole initiative, the Broader Middle East Initiative, will go in the post-Arafat era?
UNDER SECRETARY LARSON: My reading is that the work that has gone on this fall has been very encouraging. We felt, and I think our G-8 collaborators, including those in Germany, felt that the meeting in New York was really quite successful. Foreign Minister Fischer attended it. I understand from contacts with my German counterparts as recently as today that Germany remains very, very interested in this and is looking forward to the meeting in Rabat. I think that on details of German financial contributions you should address those to the German Government.
QUESTION: So there is no more capital on the table?
UNDER SECRETARY LARSON: I'm saying it's up to them to speak about how much capital they're putting on the table.
QUESTION: What about American capital on the table?
UNDER SECRETARY LARSON: Well, we've made a significant contribution already to the new IFC facility. The IFC facility was designed to raise a total of $100 million. Some of that is coming from the IFC itself, a portion of it. The United States is pledging, over two years, approximately $15 million of increased assistance. And we are working with other donors from within the G-8 and from the region to achieve that goal of $100 million by the time of the forum.
MR. DENIG: I'm sorry. The IFC stands for?
UNDER SECRETARY LARSON: Yeah. The International Finance Corporation.
MR. DENIG: Okay, first row here.
QUESTION: Thank you. Ron Baygents, Kuwait News Agency.
Just for the record, would you name the seven countries it says on here? "There will be leaders of seven countries that will be attending."
MR. SHIRZAD: I think you may be referring to the countries that attended the Sea Island Summit.
QUESTION: Okay, the question is -- that's the question. Who will actually be attending? Could you name, as far as who you know at this point, will be in attendance?
MR. SHIRZAD: Well, we don't have the exact invitations, the actual attendees determined yet. The Moroccans have now issued their invitation and they are waiting to hear back in terms of who will attend. The seven that you're referring to are the ones that attended this G-8 Summit in Sea Island.
QUESTION: Okay. My apologies. Can you go into the invitees?
MR. SHIRZAD: We can get you a specific list, but if you look at those who attended both Secretary Powell's meeting in New York on the margins of the General Assembly, and then Secretary Snow's meeting the week after with his finance ministry counterparts, we had attendance from the foreign and finance ministers from all the G-8 countries as well as most of the Broader Middle East. I forget the exact number.
UNDER SECRETARY LARSON: One way to look at it is, it includes countries from Morocco to Pakistan. And I think we had 25 participants at New York, and we expect a larger number in Morocco.
MR. SHIRZAD: 25 ministerial participants, you know, at the ministerial level.
QUESTION: And G-8 as well?
MR. SHIRZAD: That's right.
QUESTION: And then one other quick question is, is the Democracy Assistance Dialogue seen as the only, or primary vehicle for political reform in the region as far as these talks and discussions?
MR. SHIRZAD: Well, there are several pieces to it. One piece is there's this civil society dialogue that we've developed, which is an effort to create, essentially, a dialogue, or an ongoing discussion between civil society leaders and governments. And we launched that; it was a part of the Sea Island Declaration and it was a part of what we did in New York where we had a group of civil society leaders who attended, then ultimately issued a report and made a presentation to the foreign ministers at the meeting which Secretary Powell and Minister Benaissa chaired on the margins of the General Assembly. And the Moroccans' intent, as we understand it, is to host another one of these civil society dialogue meetings and then to, as a part of their agenda for the ministerial meeting, the plenary session that occurs on the 11th, is to have the civil society participants similarly report. That will be another element of the ongoing dialogue.
More broadly, though, what the whole forum is designed to do is to bring governmental leaders, in this instance, the foreign ministers, together to talk about the issues of democracy, political reform, to share experiences, share ideas, very much on building on initiatives coming out of the region and for countries who try to support each other in the efforts that they are undertaking on their own. This isn't an effort to impose anything from the outside, as much as it is to facilitate efforts that are already being undertaken within the region.
UNDER SECRETARY LARSON: If I could just underscore that very important last point that Mr. Shirzad made.
As work on this began in earnest, one of the things that became clear was that the region and some of the G-8 countries already are engaged in lots of activities in the area that might be described broadly as participation in governance. For example, we were able to catalogue examples of working with the region. The fact that many countries in the region are cooperating with many G-8 countries on parliamentary exchanges. Many countries from the region are cooperating with G-8 countries on projects related to the rule of law. There is a lot of cooperation between the region and the various G-8 countries on the training for an independent and professional judiciary and -- perhaps most importantly of all for those of you in the room -- working with the media on establishing training programs for a free and professional and independent press.
So those are things that are going on already at the instigation of the region. And as Mr. Shirzad was stressing, this is opening an avenue of cooperation, more generally, as countries in the region see opportunity and see that they would like to deepen cooperation in some other area. So it's just an opening up of possibilities rather than a fixed menu.
MR. DENIG: Okay. Let's go to Japan over there please.
QUESTION: Yes, Tsutomo Ishiai, Asahi Shimbun.
I have a question regarding the mechanism or procedure on how to expand participants in the future; for example, Libya or Syria or Iran, they are invited in New York, I understand. But if they wish to participate, what kind of procedure would be necessary, and what kind of mechanism they plan to take? Thank you.
MR. SHIRZAD: Well, the concept of the Forum for the Future was a design to have an open architecture. And so ultimately, the purpose of it is to keep an open process and allow for participation as appropriate, depending on the nature of the discussion that's taking place. We did not invite those countries to our session here in New York. Our understanding is that the Moroccans have, in fact, invited all three of those governments. In their capacity as the host of the event, they have decided to extend an invitation to them. So we understand that they have been invited, and that decision was theirs to make.
MR. DENIG: All right. Let's go to the gentlemen in the back on the right here, in the red tie. Sir, do you have a question?
QUESTION: I'm Michel Ghandour, Al Hurra Television.
Is -- will, Israel will be invited to this forum?
UNDER SECRETARY LARSON: It's our understanding that the Moroccans have not extended an invitation to Israel at this time. The basic answer, though, to questions like that, is the one that Mr. Shirzad gave, that, as going forward, we see this as an open architecture and we certainly see the possibility that discussions, and particularly in the area of economic cooperation and trade, would reach their full potential only if countries like Israel were involved. But it's our understanding there is not an invitation that's been extended to Israeli ministers at this point.
MR. DENIG: Okay, the lady right here.
QUESTION: Leila Benradja from Algeria News Agency.
How do you see the role of Algeria in these initiatives, especially in North Africa and Mahgreb region? Thank you.
UNDER SECRETARY LARSON: Could you repeat the first part of your question? How do we see the --
QUESTION: How do you see the role of Algeria in these initiatives, especially in the North Africa and Mahgreb regions?
UNDER SECRETARY LARSON: Well, one thing that was very interesting about the role of Algeria is that Algeria was one of the seven countries whose leader came to the Sea Island Summit. And in some of the discussions that took place early in this process, Algeria was a country that said that they had an experience of working with the G-8 that gave them a great deal of self confidence that this was a process that could be owned by and led by the region, because Algeria is a partner with the G-8, as part of the G-8 partnership with Africa. And it has had experience over several years of working in that context.
And so we found that when there were some general discussions that involved a number of other countries from the region and G-8 countries and the United States, the Algerians were among those that said, "Look, this is something that we should be embracing. We have no need to be afraid of this because we know how to cooperate with the G-8 and hold our own. We've been doing it for three years in the context of Africa's cooperation with the G-8."
Algeria also is one of the volunteers for helping to lead work. They're helping to lead some of the discussions on literacy. And we would anticipate that they would be able to play an important role in the Rabat meeting on that subject as well as on others.
MR. DENIG: Okay. Let's go to the Middle East here, please.
QUESTION: Aziz Fahmi, Middle East Broadcasting Center, MBC.
There has been a kind of not clear explanation about what is the footprint of the Broader Middle East? It was said before Savannah Summit that it will be announced in Savannah. We went to Savannah, and then it was not announced.
And now we have -- we heard that it is really up to any country to be included or not included. It's the country themselves of the region that will determine whether they want to be part of the initiative or not. So I just want to understand, is this a sort of reaction to something happening in the region that no footprint was announced? Is that a setback?
UNDER SECRETARY LARSON: No. The answer that we have always given has been the answer that Mr. Shirzad gave. We've always seen this as an open architecture. We've always felt that little was to be gained by drawing lines and saying, "These countries and regions are in, and these regions and countries are out." And one reason we've done that is, we gave the example of APEC, which started out with roughly nine participants, and it's grown to something closer to 21 now as additional countries have seen the benefits of participating and have chosen to get involved. And so we're quite comfortable with this concept of open architecture, and we don't see any need in the past or in the present to draw circles that include some and exclude others.
QUESTION: May I have a follow-up, please? Thank you.
But in general terms, is it fair to say that this would include northern Africa nation, Middle Eastern nation, and maybe a couple of nations -- most of nations in the east? In general terms?
UNDER SECRETARY LARSON: Well, in general terms, the countries that are now participating and invited to participate in the meeting in Morocco extend from Morocco to Pakistan. And what the future brings is something I think we just leave to the future.
MR. DENIG: Okay. Let's go to Turkey, please.
QUESTION: Reha Atasagan with Turkish Public Television.
Almost left in their wake, later, the start of the Moroccan meeting, Turkey is expecting -- will be receiving an answer from Brussels, yes, most probably. What will be the impact, then, on the Democracy Assistance Dialogue where Turkey is one of the three? What kind of an impact would -- do you expect a more positive impact?
MR. SHIRZAD: In terms of any decision made by the European Union? That would really have to be, probably, a question you would direct to the European Union.
But Turkey's involvement in this process is important. They're a partner country in this exercise, and they have have worked with us well in trying to be a partner in the process, especially on the Democracy Assistance Dialogue more broadly, but in terms of what impact that has in their relations with the European Union. I don't think Mr. Larson or I probably could speak to that with any authority.
QUESTION: No, I mean, when Turkey starts negotiating with the EU, then it will be at, for -- on Turkey's part, it will continue the process of reforms, but in accordance with the EU, you know. It will be EU then. So what impact would it make on the Democracy Assistance Dialogue where Turkey is a part of it?
MR. SHIRZAD: I think your question raises a good point, which is the whole Forum for the Future process -- this Democracy Assistance Dialogue or any other element of it --isn't intended to impose a single style or single formula of reform on any front, on the economic front or political front or anything of the sort. This is simply supposed to be a mechanism that facilitates efforts that countries want to take on their own, at their own speed, to deal with the issues of reform. And so whatever Turkey ultimately decides it wants to do in the context of its closer linkages with the European Union, that's something they'll have to decide on their own, and I don't think it will be constrained or affected in any way by their work in the Democracy Assistance Dialogue.
UNDER SECRETARY LARSON: You know, if I could, just from looking at this at a slightly different perspective, give a reinforcing answer. When Mr. Shirzad said that we see Turkey as a partner country, what it means in part is that Turkey is not typically seen as part of the Middle East, or for that matter, the Broader Middle East. It's a European country, and it's a country, as you point out, that hopes to be negotiating accession towards the European Union soon.
It's role as a partner country in this exercise is so valuable because it's had such a rich experience of having a practicing democracy, a strengthening in economy and a tolerant society. And in that sense, it has a lot to teach all of us.
And that experience has been very valuable as Turkey has worked with Yemen, a country of the Middle East, and Italy, a country that is a member of the European Union. Italy is deeply involved in the Democracy Assistance Dialogue right now as a member of the European Union, so I don't see anything in Turkey's status that, as a possible candidate for accession to the European Union, that would make it difficult to play this role. It perhaps gives it some added benefit in playing the role as a participant in this Democracy Assistance Dialogue.
MR. DENIG: Okay, let's go to Radio Sawa, please.
QUESTION: Samir Nader with Radio Sawa.
Mr. Secretary, you said there is -- no second meeting is planned. But I remember Secretary Powell in New York said there's a meeting in Egypt in the spring. And another question is, did any of the Arab governments you invited to the New York meeting in September boycott that meeting?
UNDER SECRETARY LARSON: What I meant to suggest is that a choice of a venue for a second meeting has not been made. But there is a clear commitment for the Forum to be an ongoing process, and there is strong expectation that there will be a second meeting of the Forum in 2005. In fact, there's an avid competition among countries of the Broader Middle East to be the host of that next meeting. So it will take place. The question is simply when and where.
As you also rightly pointed out, there is a related but different meeting that the Government of Egypt is proposing to host that would involve the G-8 and Arab countries. And that's designed to really zero in on some of the Arab-specific issues that Egypt and other countries would like to bring to the fore. As you know, there's been something called the Arab Human Development Report that has put a spotlight on certain of these issues. And so we look forward to participating in that meeting as well.
QUESTION: And my second question, any of the Arab governments you invited to the New York meeting, any of them boycotted that meeting?
UNDER SECRETARY LARSON: Well, I don't think any of them boycotted the meeting. We had very broad participation, and the Foreign Minister of Egypt was there, representatives of Saudi Arabia were there, and there were countries all throughout the region that were there.
There may have been one or two countries that simply couldn't come because their ministers weren't available for the meeting at that time. But I think the real message of the New York meeting, to be very honest, was that the attendance was so broad and so high-level -- Secretary Snow's meeting was similarly very successful -- that we expect that this first, full meeting of the Forum of the Future in Morocco is going to be more successful, still.
So, the basic message here is, to be honest, there were some apprehensions and some questions about this earlier on. But I think those are behind us. And I think that the countries of the region understand that this is something that is truly collaborative, where our role is designed to be reinforcing of their leadership and their efforts to promote opportunity and reform from within the region. And therefore, the participation has been very, very strong this autumn.
MR. SHIRZAD: I think I'd just reinforce that point. I think the New York and Washington meetings were very helpful in that regard. There was a little bit of uncertainty people had regarding what, exactly, this whole initiative was about, what form it would take, what the tone would be among those who were participating. And we had very broad, very high-level attendance and involvement in both, in New York and the Washington meetings.
But more importantly, everybody who was in attendance and who chose to speak was very positive. The tone among the participants was very good. Secretary Powell in his meeting, and Secretary Snow in his meeting, as well as Minister Benaissa and Minister Oualalou, were very clear to say that this was a partnership undertaken in an effort to encourage and to provide a helping hand where necessary to efforts that countries were taking on on their own. And I think that message was very well received. I mean, obviously, you'll have to talk to the participating countries, but there was no tone of negativity at all. It came out very well. It was a very positive event.
MR. DENIG: Okay, final question in the middle here.
QUESTION: Tim Kennedy, Arab News, Saudi Arabia.
You had mentioned the regional facility for the IFC. Is that to -- what country is that to be located in? And what's the value of having a regional presence of the IFC versus it being based here in Washington?
UNDER SECRETARY LARSON: Well, I said a regional facility. I didn't mean to suggest a regional location. In other words, the key concept behind a regional IFC facility is that you would have a dedicated pool of money with a staff that is zeroing in like a laser on the opportunities and challenges of promoting small business lending in this region. And one of the things that I think is paramount in having this IFC program work effectively is accompanying the money with the types of technical assistance that will help small businesses truly to develop.
Most of the work that I've seen on small business financing suggests that one of the things that both small businesses and institutions that lend to small businesses need is the sort of training and expertise that can help them to have access to the best practices, the most successful practices around the world. And this is really what the IFC regional facility is about. So it has a regional focus, a regional motive but it isn't going to be divorced from the International Finance Corporation here in Washington.
MR. DENIG: Thank you very much, Mr. Shirzad, Secretary Larson.
Thank you, ladies and gentlemen.
