World Trade Organization 08F0245 Final

World Trade Organization (WTO) 03/25/04 WTO meeting counseled_ Met with(b)(6) Trade-Senior Advisor, (6) (Trade) (b)(6) (b)(6) land (b)(6) (b) (6) To become a member of WTO Iraq will have to comply with certain requirements of the WTO. The process could easily take 4 to 5 years before Iraq becomes a member. Key trade issues deal with CPA-Trade wants the CPA-MOE to work with the Iraqi MOE in identifying any laws that would have a restrictive impact on three primary areas: National Treatment seems to deal with foreign individuals / companies doing business in Iraq. Exceptions for equitable treatment must be quantified. • What are the basic laws governing education? • Are there any laws that would prohibit foreign schools from being established in Iraq? • Are there different requirements for foreign teachers to teach in Iraq vs. Iraqi teachers. • If schools are started do they have to meet the same requirement as Iraqi teachers. • Are there any restriction of subject content? Are some subjects required? • Are foreign certifications / degrees recognized in Iraq? • Are there any professional laws / rules governing education in Iraq? Most Favorable Nation - seems to deal with primarily with the purchase of goods. Basically countries must be treated the same. • Can foreign text books be purchased duty free? Not subject to import tax. • Are purchases of all books school supplies from foreign sources treated the same as Iraqi sources? • Are there any restrictions on cross border delivery? • Are their any restrictions / requirements of what must be included in or excluded from course content? Example, pledges, pictures, specific content. • Are there any cross boarder issues such as internet / distant learning? Due Process is cross cutting WTO core requirement and basically addresses the issue of all organizations / people have the right to be heard. What education laws govern education in Iraq? Sexies Advises suit to fonget this tick, there are ather tel more is postan to MOE ANNA HAN AN IN TH AN 02835 C:/WTO Project Docmet # 12 08-5-0245 CPA-Trade wants CPA-MOE to submit a list of laws to them. The Iraqi Ministry of Trade will also be requesting the Iragi MOE to do the same. CPA-Trade will compare and explore differences. CPA-Trade will be sending out a questionnaire in a couple of days to be answered by the Iraqi-MOE. This will reportedly guide the Ministry through the process. --Original Message--- From: (b)(6) Sent: Thursday, March 25, 2004 1:22 PM To: Arsht, Leslye (SES); (b)(6) Subject: WTO World Trade Organization (WTO) 03/25/04 WTO meeting counseled. Met with (b)6) Trade-Senior Advisor, ](Trade) (b)(6) b(6) Jand (bx6) (bx6) To become member of WTO Irag will have tercomply with certain requirements of the WTO. The process could easily take 4 to 5 years before Iraq becomes a member. Key trade issues deal with (1) National Treatment, (2) Most Favored Nation Status, and (3) Due Process. National Treatment seems to deal with foreign individuals / companies doing business in Iraq. Exceptions for equitable treatment must be justified. 0 What are the basic laws governing education? & Are there any laws that would prohibit foreign schools from being established in Iraq? • A re there different requirements for foreign teachers to teach in Iraq vs. Iraqi teachers. sti" If schools are started do they have to meet the same requirement as Iraqi teachers. A re there any restrictions on subject content? Are some subjects required? A re foreign certifications / degrees recognized in Iraq? • Are there any professional laws / rules governing education in Iraq? Most Favorable Nation - seems to deal with primarily with the purchase of goods. Basically countries must be treated the same. 10 Can foreign text books be purchased duty free? Not subject to import tax. I Are purchases of all books school supplies from foreign sources treated the same as Iraqi sources? • A re there any restrictions on cross border delivery? A re their any restrictions / requirements of what must be included in or excluded from course content? Example, pledges, pictures, specific content. Are there any cross boarder issues such as internet / distant learning? Due Process is cross cutting WTO core requirement and basically addresses the issue of all organizations / people have the right to be heard. Process - CPA-Trade wants the CPA-MOE to work with the Iraqi MOE in identifying any laws that would have a restrictive impact on three primary areas: (1) National Treatment, (2) Most Favored Nation Status, and (3) Due Process. rage 1 0I 1 (b)(6) Comm -DON From: (b)(6) Maguire, Robert T. (SES) 1 в6 Sent: Tuesday, March 30, 2004 8:59 PM (b)(6) To: Cc: Luft, Rolf D. (SES-2) Subject: WTO Dear (b)(6) Thank you for meeting with Senior Advisor (b)(6) discriminatory treatment in your area of responsibility. The depth of your knowledge in the area of education is a priceless help for Iraq to complete this process. The WTO requests actual copies of Iraq's existing domestic laws, CPA orders, regulations, any questions you might have. Thank you for your assistance. Best personal regards, Robert Maguire •..... 3/31/2004 RESTRICTED WORLD TRADE WT/ACC/1 24 March 1995 ORGANIZATION (95-0651) ACCESSION TO THE WORLD TRADE ORGANIZATION * *= Foreign Trade Régime® roviding relevant statistical data for circulation to all Members. The Secretariat should check th onsistency of the Memorandum with the attached outline format and inform the Applicant an * ** ATTACHMENT Outline Format for a Memorandum on the Foreign Trade Régime? *** 4. Domestic trade in services including value and composition of foreign direct investment. S. Information on financial movements related to nationals working abroad, remittances, etc. VI. TRADE-RELATED SERVICES RÉGIME General General description of the overall market and regulatory structures of the most prominent conster, om, aporal series, me is i sons rotational fort isn document MTN.GNS/W/120, the "Services Sectoral Classification List" (Annex 7 refers). 'WTO procedures relating to the use of the WTO official languages will apply to documentation submitted. "This outline may be revised and amended, as necessary, in the light of experience. WT/ACC/1 Page 2 z. Policies affecting Trade in Services (a) Government departments, agencies, professional associations or other bodies with authority or a role relevant to the conduct of service activities; (b) Judicial, arbitral or administrative tribunals or procedures providing for the review of, or remedies in relation to, administrative decisions affecting trade in services: (c) Provisions, including those in international agreements, concerning qualification requirements and procedures, technical standards and licensing and/or registration requirements for the supply of services; (d) Provisions governing the existence and operation of monopolies or exclusive service suppliers; Provisions relating to safeguard measures as they apply to trade in services; (e) (f) Provisions relating to international transfers and payments for current transactions of services; (g) Provisions relating to capital transactions affecting the supply of services; (h) Provisions governing the procurement by governmental agencies of services; (i) Provisions concerning any form of aid, grant, domestic subsidy, tax incentive or promotion scheme affecting trade in services. Market Access and National Treatment Limitations or conditions applied to market access and national treatment. Please specify, whether applied on a horizontal (e.g., measures relating to foreign investment régime, movement of persons supplying a services, real estate ownership and conditions of establishment) or a sectoral basis: (a) Limitations on the number of service suppliers; Limitations on the total value of service transactions or assets; (b) (c) Limitations on the total number of service operations or on the total quantity of service output; (d) . Limitations on the total number of natural persons that may be employed in a particular service sector; (e) Restrictions on, or requirements of specific types of legal entity through which a service may be supplied; (f) Limitations on the participation of foreign capital; WT/ACC/1 Page 3 (g) Measures providing for less than the treatment accorded to national services or service suppliers. Most-Favoured-Nation Treatment Indicate any existing measures inconsistent with m.f.n. treatment. AVNEX ? SERVICES SECTORAL CLASSIFICATION LIST * ** V. EDUCATIONAL SERVICES 1. Primary education services. Secondary education services. 2. 3. Higher education services. 4. Adult education. Other education services. ANNEX 8 A. List of Foreign Trade Agreements. B. List of Trade Agreements or parts of them which contain preferential trade provisions, indicating by HS (2 digit) the tariff lines involved, the margin of preference granted, reciprocity provisions and details of any other preferential treatment. 1:00AM MEETINE TAURSDAY Rin MaISiN COALITION PROVISIONAL AUTHORITY BAGHDAD ACTION MEMO March 18, 2004 TO: ALL SENIOR ADVISORS (b)(6) FROM: Ministry of Trade SUBJECT: Preparing the Trade Policy Memorandum for WTO Accession The World Trade Organization granted Iraq Observer status in February. Iraq is now embarking on a two-to-five year "accession" process to become a full member of the WTO. WTO nembership involves taking on the legal obligations contained in hundreds of pages of comples reaties which address virtually every aspect of how a country regulates its commerce Iraq's compliance with these treaty obligations will ensure that the goods and services of other WTO member countries will not only reach the Iraqi market, but will find fair treatment here. The main benefit for Iraq will be that it will have reciprocal rights regarding Iraqi goods and services reaching, and being fairly treated, in the markets of the WTO's other 146 member countries. Taking on the rights and obligations contained in the WTO's treaties will require Iraq to bring its statutes, regulations, procedures and practices into substantial compliance before becoming a member of the organization and a party to those treaties. Perhaps most valuable for Iraq, however, is that the WTO accession process itself will be a powerful ally of existing forces for reform. With WTO Observer status and active participation in the WTO's accession process will come incentive, structure and technical assistance for reform of every aspect of Iraq's commercial regime. Changes to Iraqi statutory and regulatory law, and to other procedures and practices necessary for WTO compliance purposes will be an Iraqi-driven effort, to take place after July 1. Between now and June 30, however, CPA will be directing two efforts to help Iraq build a foundation and a framework for moving forward with the technically complex, and politically difficult, task of coming into WTO compliance. First, CPA will be directing an effort to train Iraqi officials from all Iraqi ministries that formulate policy addressed by WTO obligations. Second, CPA will be assisting an Iraqi inter- ministerial committee to begin to prepare its Trade Policy Memorandum, which will support Iraq's formal application for membership. Attached is a list of all of the policy or law subject- areas that must be reviewed to determine whether they conform to WTO obligations. Each CPA Ministry is respectfully requested to: 1. Review the entire list and advise CPA MOT (a) which policy or law subject-area is the responsibility of your CPA ministry, and the corresponding Iraqi ministry; and (b) whether there are any areas that should be covered by your CPA ministry, or your corresponding Iraqi ministry, which have been omitted. For each subject-area not presently regulated, please consider whether your ministry would be responsible for it, if it were to be regulated in the future. 2. Advise your respective Iraqi minister that the Iraqi Minister of Trade will be convening an Iraqi inter-ministerial committee for WTO accession issues, and that CPA requests that each Iraqi ministry will give the Iraqi Minister of Trade its full cooperation. If you could complete this work by March 31, it would be enormously helpful. ATTACHMENT: Iraq and the WTO - List of Policy or Law Subject-Areas •...aрe 2 UNCLASSIFIED IRAQ AND THE WTO This paper attempts to provide a brief snapshot of Iraq's existing rules and practices, as well as orders issued or planned by CPA, that have WTO implications. It includes a preliminary assessment of the relative importance of providing training in each area, rated according to low, medium, and high priority. I have not aimed for pinpoint accuracy or comprehensiveness in the descriptive section, and the recommendations are intended merely to serve as a starting point for discussion. I have followed the basic outline of the legal texts themselves. Where I have left a section out, it is because the section has no relevance for Iraq, or I am not aware of any laws or practices in Iraq that are relevant. For a good description of Iraq's commercial laws as they stood under the prior regime, readers should consult the Compendium of Iraq's Commercial Laws at www.export.gov/iraq. Finally, for the sake of simplicity, I have used the term "laws" for legal actions taken by CPA, even though CPA does not technically promulgate laws (it instead issues a series of orders, regulations, memoranda, and public notices). TRADE IN GOODS GATT 1994 (HIGH PRIORITY! Iraqis will need to be trained in such basic GATT principles as MFN status, national treatment, transparency, reciprocity, due process, and administrative and judicial review. As a general matter, these principles have been respected in all of the orders that CPA has issued. National Treatment Under the former regime, the hallmark of Iraq's commercial regime was that Iraqi, and in some instances, Arab, firms were given certain privileges, while foreign (especially non- Arab) firms were either denied those privileges or given lesser treatment. Because the principle of national treatment is so fundamental to the GATT and so critical to sound international trade and investment relationships, special attention should be given to training in this area. CPA has enshrined this principle in many of the commercial laws it CPA Laws Issued: • Foreign Investment (Order 39) • Tax Strategy Law of 2003 (Order 37) CPA Laws In Draft: 3 • Labor Law. Amends existing law to provide far greater flexibility in job creation, employment conditions, and labor mobility, including equal treatment of Iraqis and foreigners. • 2004 Tax Strategy • Foreign Companies Branch and Representation Office. Will provide equal treatment of Iraqi and foreign investors and simplifies procedures for setting up a branch or representative office. • Commercial Agencies and Distributorships. Will provide equal treatment of Iraqi and foreign investors and more flexible contractual relations. • Amendment to Company Low No. 21 of 1997. Facilitates conduct of privately held business in Iraq by both Iraqi and non-Iraqi companies. Eliminates most of the centrally planned and controlled aspects of the existing company law and facilitates the infusion of capital in private business. These are the ones I have found so far. There may be others, please advise. Due Process Iraq's entire legal and administrative system is woefully deficient in the types of due process protections that are embedded in nearly all of the WTO agreements. Procedures for notice and comment, public hearings, ex parte meetings, publication of official rules and decisions, administrative and judicial review, and appellate review, are very spotty in Iraq. Where they exist in law, they are administered in a discretionary and inconsistent fashion. Furthermore, the court system is weak and perceived as not being independent. From a commercial perspective, lack of due process protections - such as industry regulations appearing out of the blue - can have a devastating impact on business decisions. The concepts of stakeholder participation and legal redress in the administrative and legal process are very foreign to Iraq. Extensive training in this area, with an emphasis on the dire consequences that lack of appropriate due process protections can have on trade and investment, would be extremely fruitful. CPA Law Under Consideration: • Administrative Procedures Act Tariffs No one has been able to find a published tariff schedule in Iraq. However, at least one source indicates that, under the former regime, import tariffs were based on the Customs Cooperation Council Nomenclature, with duties generally applied on an ad valorem basis, ranging between 10 and 200 percent. Other anecdotal evidence suggests that, under the previous regime, import duties may have been negotiated individually for particular contracts. In addition, a lot of informal "transit fees" were applied at various order crossings, and these varied widely. They could be quite steep - as much as 80 vercent at the Kurdish border crossings. The fees were, and continue to be, particularl prevalent in the Kurdish provinces. In fact, many reports indicate that the transit fees 4 (b)(6) Drafted by were the main source of revenue for the two semi-autonomous Kurdish governments in the last few years. They may still be. It is difficult to predict what the Transitional Administration will do with the tariff issue. CPA has extended the tariff holiday to March 1, 2004. At that time, a general "reconstruction levy" of 5 percent was supposed to take effect for almost all imports. But this 5 percent levy has been delayed until April, 2004 because there are no trained customs officials at the border and there is no system set up for collecting the duties. Finally, negotiations are currently underway amongst the Iraqis about the status of the Kurdish provinces. It is likely they will retain some autonomy - whether this extends to border control is an open question. PArade Iseralizarion Policy 2004 (CPA Order 54). Extends tariff holiday to June 30, 2004. State-Trading Enterprises The Ministry of Trade has an STE for virtually everything that is imported into and exported from Iraq. In the past there were virtually no notification and review procedures, and zero transparency. Since the war, many STEs have become dysfunctional, and they basically control nothing entering or leaving the country. But they have not been disbanded or privatized, so there is a question of what role they will play under the Iraqi Transitional Administration. The only two STEs that continue to function are the ones involved in distributing food rations. These are the Grain Board, which imports wheat and grains, and the Foodstuffs Company, which imports food products, soap, detergent, and other items included in the food basket. CPA Notice Issued: • Administrative Procedures for Establishing Trading Agencies. Simplifies and facilitates administrative procedures for Iraqis to establish direct trading relationships with international trading companies. Customs Unions and Free Trade Areas Iraq is not a party to a customs union, but has bilateral FTAs in effect with many Arab countries. In addition, Iraq is a party to the Greater Arab FTA, which is being phased in The concepts of third party compensation and bound tariffs are probably not familiar to AGRICULTURE MEDIUM PRIORITY] The agriculture sector is highly subsidized and highly inefficient. The subsidies are primarily in the form of cheap energy and material inputs (price controls on oil, gas, 5 Drafted by (b)(6) water, fertilizer), not price supports for the agriculture products. There are no export subsidies. As such, one might argue that the subsidies are not especially trade-distortive. In addition, despite its natural comparative advantage in agriculture, Iraq has become a net importer of agricultural products. Currently, there are no tariffs or quotas on agriculture imports. USAID has issued a major contract to plan and implement reforms in this sector. The reforms are in the planning stages. SANITARY AND PHYTOSANITARY MEASURES (HIGH PRIORITY) Iraq to perform this function. TECHNICAL BARRIERS TO TRADE (HIGH PRIORITY) are an indu trial se is dis standari and profits or dim cation eat east until TRADE RELATED ASPECTS OF INVESTMENT MEASURES [LOW PRIORITY] TRIMS have not been an issue in Iraq, but this might just be because foreign investment, Drafted byloxes major issue for Iraq, even if the Transitional Administration lifts the CPA investment order, because there are too few local input industries in Iraq, and Iraq has never tried to become an export platform for anything other than oil and gas. CPA Law Issued: • Foreign Investment (CPA Order 39). Liberalizes the foreign investment regime, provides generally for equal "national treatment" for foreigners and Iraqi investors; some deposit requirements prior to engaging in retail sales activity. ANTIDUMPING [LOW PRIORITY] Iraq has no AD law and does not need one at this time. CUSTOMS VALUATION (HIGH PRIORITY] See the discussion under Tariffs above. CPA Law Issued: • Creation of Department of Border Enforcement. Creates a Department to handle customs processing, customs inspections, customs police, as well as other border fünctions, such as immigration issues and passport issuance. CPA Law Planne Institutes WTO-consistent customs controls. • Customs Law. PRE-SHIPMENT INSPECTION MEDIUM PRIORITY As stated above under the SPS section, Iraq has employed a Swiss firm, COTECNA, to review all shipment details since the start of the OFF program in 1996. While COTECNA's role is gradually being phased out, it still "authenticates" (the term used in UN Resolution 986 of 1995, which established the OFF program) a large percentage of the shipments currently entering Iraq. Authentication basically involves verifying the contents of the shipment. With respect to food shipments, COTECNA makes some kind of determination about whether the stuff is fit for human consumption, but it does not test medicines or verify industrial standards. Because Irag has little capacity to perform an inspection function at the border, it is conceivable that the Transitional Administration may contract out these activities to a private firm. RULES OF ORIGIN (LOW PRIORITY) At present, we have little information on Iraq's past or current practices in this area, but I would surmise that this would be a low priority for now. IMPORT LICENSING (HIGH PRIORITY Drafted by (6) Under the former regime, Iraq had an onerous system of licensing for both imports and old ways. CPA Law Issued: Trade Liberalization Policy 2004 (CPA Orders 12 and 54). Suspended all import license fees (though not the licenses themselves). As a practical matter, no impor licenses are currently required because there is virtually no commercial control of the borders. SUBSIDIES AND COUNTERVAILING MEASURES [MEDIUM PRIORITY] Iraq does not have a countervailing duty law and does not need one at this time. However, Iraqis will need extensive training in understanding what constitutes a subsidy, which subsidies are especially trade-distortive, and why certain categories of subsidies, notably export subsidies and import substitution subsidies, are prohibited. The point here is not that Iraq threatens to flood the world with subsidized goods, but that Iraqis need to understand the seriousness with which the WTO approaches the issue of subsidies and the controversy that subsidies can engender in international trade. Government involvement in the economy - including food rations sold for a song, cheap energy and material inputs, price controls -- is so deeply engrained in the Iraqi system that people may not appreciate its effects or the inefficiency it leads to. SAFEGUARDS (MEDIUM PRIORITY] Iraq does not have a safeguards law. We need to think about whether to advise them about how to institute one. There are several non-oil industries where Irag will have a natural comparative advantage, especially in the region. These include agriculture, agriculture inputs (fertilizers, phosphate and sulfate products), food processing, all kinds of construction materials (cement, bricks, glass), and miscellaneous raw materials. Without some protection early on, these industries will all be crushed by foreign competition. A safeguard mechanism may not be the most effective way to do this, but some modest tariff protection may be in order. TRADE IN SERVICES FINANCIAL SERVICES [HIGH PRIORITY] CPA Law Issued: • Banking Law. Allows 100% foreign ownership for 6 foreign banks; 50% ownership for all others. Allows repatriation of capital. CPA Laws In Draft: 8 Drafied by (bye) • Iraqi Securities Law Order. Applies certain aspects of modern securities law to assist Iraqis in transitioning to a market economy. • Central Bank of Iraq Low. Provides detailed rules for Central Bank's operations and supervision of banking system. • Bankrupicy Low. Modernizes dissolution, liquidation, and bankruptcy proceedings and creditor rights protection. CPA Laws Planned: • Secured Transactions Law. Modernizes secured lending regime. TELECOMMUNICATIONS (HIGH PRIORITY! CPA Law Issued: • Licensing Telecommunications Services and Equipment. Authorizes the Ministry of Transport and Communication to allocate the frequency spectrum and issue licenses for commercial services. Requires the Ministry to follow International Telecommunication Union standards and its Radio Regulations. CPA Law In Draft: • [A draft law is circulating that basically creates an Iragi FCC.] OTHER CPA Law Issued: • Suspension of Exclusive Agency Status of Iragi State Company for Water Transportation. Suspends the right of this state enterprise to act as the exclusive maritime agent in Iragi ports. TRADE RELATED ASPECTS OF INTELLECTUAL PROPERTY RIGHTS (HIGH PRIORITY) While Iraq has in place decent patent, trademark, and copyright laws, enforcement and egal recourse are problematic. Furthermore, under the former regime, the laws wer argely ignored. Many foreign companies were burned by trademark and patent CPA Law Planned: Drafted bylone, • Intellectual Property Law. Strengthens protection of patents, trademarks, trade names, and copyrights. SETTLEMENT DISPUTE (MEDIUM PRIORITY] It may be worth training Iraqis in the dispute settlement provisions of the WTO to enforce upon them the importance of due process procedures, and to ensure that they inderstand the concept of nullification and impairment, the consequences of disregarding commitments made in signing on to the WTO, and the interplay between domestic lav and international obligations. PLURILATERAL AGREEMENTS GOVERNMENT PROCUREMENT (HIGH PRIORITY] At the end of the Saddam Hussein regime, Iraq did not have a national law or set of egulations covering government procurement procedures. Some administrativ uidelines existed in several individual ministries but apparently they were not reall CPA Law Issued: • Contract and Grant Procedures. Establishes open and transparent bidding Some Closing Thoughts While the goal of many of the WTO agreements is to ensure that government programs are not used to block or impede imports, the primary goal of much of the training needec in iraq is to ensure that adequate programs, such as border procedures, inspections and certification procedures, exist in the first place. The programs need to be set up in such a vay that they cannot be manipulated to block imports, but Iraq is generally in need of mports, has few viable domestic industries other than oil and gas, and is not expected t future. The state sector. Iraq's state sector employs about 450,000 people, or about 7 percent of the workforce. As such, the state sector is no where near as large as it was in Russia, 10 Drafted by (by(6) Eastern Europe, or China. Still, government involvement in the economy is fairly pervasive. 11 Drafted bylores i . Page 1 of 1 Arsht, Leslye (SES) From: (GS-15) Sent: Thursday, Márch 25, 2004 10:48 AM To: Arsht, Leslye (SES): (b)6) Subject: OFF Allegation Leslye, (Trade) stopped by to follow-up on Ambassador Bremer's memo requiring I toid them that you had discussed records relating to the OFF program to be inventoried and safeguarded. is matter with senior MOE personnel last week and again yesterday and that you were pushing very hard t nsure that the MOE complied. They indicated the Ambassador is very interested in this matter. They woul Iso like to schedule sessions at MOE early next week to introduce the Board of Supreme Auditors (BAS taff to pertinent Iraqi Ministry officials who will oversee the collection of OFF documents/records. BAS apparently willing to inventory/help inventory the records. I told them I would talk with you when you return. We also discussed the status of the IG's appointment and they thought this would be a good project for the IG to be involved in. (b)(6) (b)(6) (G) 1, Ass DG Audit 3/25/2004. nis:: MINISTRY OF EDUCATION QUESTIONS & ANSWERS @: What does the "transition" mean for the Iraqi Ministry of Education? A: The Ministry has entered its final stage toward sovereignty. The Iraqi Education Ministry is now irtually autonomous as a result of steady and measured progress made during the past seve lonths. This formal organizational change recognizes the fact that during the past severa months the Ministry, and the Minister, have assumed greater responsibility for the administration of the nation's primary school system - as witnessed by the Senior Advisor offering advice when requested, rather than giving direction. With the formalization of the transition, the Senior Advisor's office will shift from an advisory office to a technical assistance resource for the Ministry. In order to reach this stage/milestone the Ministry has developed: • Short and long-term strategic plans; • A budget based on that plan; • The Ministry is reorganized to meet these priorities; • Fundamental management systems are being put in place e.g. EMIS and, • A system of checks and balances to deter and root out corruption. How much financial support has been given to Iraq's primary educational system since Q: liberation? In 2003, more than $70 million was applied to help rebuild Iraq's educational infrastructure. Funding was utilized to train more than 30,000 teachers, distribute millions of new textbooks and school supplies and refurbish more than 2,400 schools. In 2004, the United States will contribute $170 million with $88 million allocated for school construction and $82 million for on-construction related expenses such as teacher training. Q: For generations, Iraq's educational systems were utilized by the regime to disseminate propaganda to advance the goal of the oppressive dictatorship. What has been done to clear away the former ba'ath elements and to improve the quality of instruction? A: As was the case for all ministries, Furqa-level and above personnel were removed from the Winistry. Throughout Iraq's schools, teachers, principals (referred to as headmasters anc readmistresses) and supervisors were also removed. Approximately 12,000 in total wer removed and provided two options, either to appeal or to take retirement. Upon completion of de- ba'athification, the Coalition and the Ministry embarked upon an aggressive teacher training program that has trained more than trained over 32,000 secondary school teachers and 3,000 supervisors in effective instructional delivery and classroom management. Q: There are many teachers still trying to get back to work what is the Ministry doing about this? A: For de-ba'athification the Ministry has instituted an appeals process established by the Governing Council. If former employees successfully appeal, they are re-instated. Those with longer service have the option to retire rather than appeal. Q: The Ministry has engaged a national dialogue on curriculum reform highlighted this past week during a national conference in Baghdad. What progress has been made on this subject? A: The Ministry began the process of reforming Iraqi's politically charged and outdated curriculum last October with a national dialogue covering the philosophical aspects of the education system. Governors in many of the Governorates held their own meetings around the document developed by the Ministry which contained a series of questions for consideration. During the ensuing weeks and months, discussion and feedback came from throughout iraq's civic, business, religious and political sectors. This week's second national conference examined that feedback and presented a framework and process for undertaking reform of the curriculum. On curriculum reform, three principles were adopted: 1) the process will be evidenced-based 2) the Ministry will consider international experience, recognizing the benefit of learning from other countries efforts; and 3) the process will be completely Iraqi-led Q: How will the curriculum change be addressed in the next year? How will the curriculum reflect current history - will the Coalition be treated as liberators or occupiers? A: As stated by the Minister at the completion of the second national conference on curriculum reform this past week, the Ministry has recognized the immediate need for an interim curriculum for civics, religion, and history for the coming year and will make the creation of these curricula the immediate priority. The curriculum will reflect the reality that many view the removal of Saddam Hussein as a liberation from an oppressive regime while simultaneously placing the Coalition in the role of an occupying force during the interim period prior to the transition of sovereignty. The important factor is that this decision will be made solely by Iraqi's. Q: With the lead up to the full transfer of sovereignty to the Iraqi people on June 30, what is the most difficult challenge facing the Ministry? There are many complicated issues facing Irag's education system that have been made A: significantly easier to address with the completion of the Ministry's long range plan. The Ministry has a plan to repair 10,000 schools in just four years and to address much needed professional development for Iraq's teachers, a process that has already begun. With tens of millions of dollars in funds from the United States and international partnerships with the British Council, UNESCO and World Bank, the Ministry is well positioned to meet these challenges as it works to build incentives for parents to put children back in school and for the system to keep them there. Q: What is being done to combat fraud and corruption in Iraqi Government ministries? A: Minister Alwan takes the subject of corruption very seriously. The Inspector General of the Ministry of Education has been named and has begun to take a broad look at all Ministry programs and policies to ensure that they are being implemented as intended. The objective is to deter and root out future corruption. Allegations of misallocation of funds within an Iragi Government Ministry should be reported to established Iraqi Commission on Public Integrity may also investigate allegations of corruption.