The United Nations has called on communities in Iraq to reach out to each other, warning that increasing sectarian violence, continued lack of security and ongoing human rights violations posed "key" challenges as the country prepares for next week's elections. In a report to the Security Council, UN Secretary General Kofi Annan expressed satisfaction over "considerable achievement" despite the difficult conditions of keeping the political process on target against an "ambitious" timetable. However, Annan noted that Iraq remains beset with formidable security, political and economic challenges. "The forthcoming election and formation of a new permanent government will not mark the end of the country's political transition, but rather the beginning of a new phase in which responsible politics and leadership will make the difference between success and failure," he was quoted as saying by the Press Trust of India. The main thrust of the report concerns the need for national reconciliation between the majority Shiite Arabs and the Sunni Arabs and Kurds. --MORE 1406 Local Time 1106 GMT