US embassy cable - 02ROME1335

REPORT OF IFAD 25TH GOVERNING COUNCIL

Identifier: 02ROME1335
Wikileaks: View 02ROME1335 at Wikileaks.org
Origin: Embassy Rome
Created: 2002-03-15 10:15:00
Classification: UNCLASSIFIED
Tags: AORC EAID IFAD EAID AORC IFAD EAID AORC IFAD
Redacted: This cable was not redacted by Wikileaks.
This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS SECTION 01 OF 03 ROME 001335 
 
SIPDIS 
 
TREASURY FOR WSCHUERCH, MJASKOWIAK 
USDA FOR FAS/LYNN REICH AND DAVID WINKELMAN 
STATE FOR IO/EDA ROSE BERSTEIN 
USAID FOR AA/PPC;DAA/G/EGAD;AFS 
 
FROM FODAG 
 
E.O. 12958:  N/A 
TAGS: AORC, EAID, IFAD, EAID AORC, IFAD, EAID AORC, IFAD 
SUBJECT:  REPORT OF IFAD 25TH GOVERNING COUNCIL 
 
 
                       UNCLASSIFIED 
 
PAGE 02        ROME  01335  01 OF 03  151055Z 
REF:  (01) ROME 06528 
 
1.  SUMMARY: THE 25TH SESSION OF THE INTERNATIONAL FUND 
FOR AGRICULTURAL DEVELOPMENT (IFAD) GENERAL ASSEMBLY MET 
FEBRUARY 19-20.  NIGERIAN PRESIDENT OBASANJO'S KEY NOTE 
SPEECH EMPHASIZED THE IMPORTANCE OF CREATING AN ENABLING 
ENVIRONMENT -- ESPECIALLY PEACE  -- IN ORDER TO ATTACK 
POVERTY.  IFAD MEMBERS APPLAUDED PRESIDENT BAGE'S 
INTRODUCTION OF INTERACTIVE PANELS AND ROUNDTABLES 
(INCLUDING A PANEL SESSION WITH NEW YORK-BASED SWEDISH 
PERMREP RUTH JACOBI, WHO SPOKE ON THE DRAFT MONTERREY 
DECLARATION).  THE UNITED STATES STRESSED EFFECTIVE 
ALLOCATION OF IFAD RESOURCES, A CONTINUED FOCUS ON 
ASSESSING IFAD'S IMPACT ON REDUCING RURAL POVERTY, AND 
ENCOURAGED MANAGEMENT FOCUS ON OPERATIONAL EFFICIENCY, 
STRATEGIC PLANNING AND FINANCIAL SOUNDNESS.  MANY 
COUNTRIES URGED ADOPTION OF THE O.7 ODA TARGET AND 
REGRETTED LACK OF MOVEMENT ON THIS IN THE FINANCING FOR 
DEVELOPMENT DRAFT DECLARATION.  IFAD MEMBERS APPROVED A 
NEW ROUND OF CONSULTATIONS ON THE SIXTH REPLENISHMENT OF 
IFAD'S RESOURCES (SEPTEL).  END SUMMARY 
 
25TH GOVERNING COUNCIL 
------------------------------- 
 
2.  THE 25TH SESSION OF THE IFAD GOVERNING COUNCIL MET 
FEBRUARY 19-20.  WILLIAM E. SCHEURCH, DEPUTY ASSISTANT 
SECRETARY, INTERNATIONAL DEVELOPMENT, DEBT AND 
 
SIPDIS 
ENVIRONMENTAL POLICY (TREASURY) HEADED THE U.S. 
DELEGATION AND SERVED AS THE VICE-PRESIDENT OF THE 
COUNCIL.  WASHINGTON DELEGATES COMPRISED JONATHON CONLY, 
                       UNCLASSIFIED 
 
PAGE 03        ROME  01335  01 OF 03  151055Z 
USAID DEPUTY ASSISTANT ADMINISTRATOR, BUREAU FOR ECONOMIC 
GROWTH, AGRICULTURE AND TRADE AND DAVID WINKELMAN, 
FAS/USDA.  FODAG STAFF ALSO ATTENDED. 
 
3.  NIGERIAN PRESIDENT OBASANJO GAVE THE KEYNOTE ADDRESS 
IN WHICH HE RECALLED NIGERIA'S LONG-STANDING COMMITMENT 
TO IFAD.  HE CALLED POVERTY THE MAIN CAUSE OF VIOLENCE, 
INSECURITY AND TERRORISM AND STATED THAT, AMONG THE 
ELEMENTS OF THE ENABLING ENVIRONMENT IN COMMITMENT ONE OF 
THE WORLD FOOD SUMMIT PLAN OF ACTION, AN "ENABLING PEACE" 
WAS THE MOST IMPORTANT. HE EMPHASIZED THAT ERADICATION OF 
POVERTY WAS THE BEST WAY TO ERADICATE HUNGER AND POINTED 
OUT THAT INVESTMENTS IN HEALTH AND EDUCATION WERE NOT 
SUSTAINABLE UNLESS YOU WERE ABLE TO ALSO IMPROVE "HUMAN 
ECONOMIC PRODUCTION."  OBASANJO RECALLED THAT FORMER 
PRESIDENT CLINTON HAD TOLD HIM THAT ENDING THE WEST'S 
AGRICULTURAL SUBSIDIES WOULD INCREASE THE INCOME OF 
DEVELOPING COUNTRY BY USD 20 BILLION/YEAR (COMMENT: A 
POINT PICKED UP BY NUMEROUS SUBSEQUENT SPEAKERS.  END 
COMMENT). OUTGOING WORLD FOOD PROGRAM EXECUTIVE DIRECTOR 
CATHERINE BERTINI DELIVERED A STATEMENT FROM UN SYG KOFI 
ANNAN TO THE COUNCIL.  SPEAKING AFTERWARDS IN HER OWN 
CAPACITY, BERTINI REMINDED DELEGATES THAT THE BEST WAY TO 
REDUCE HUNGER WAS TO SEND GIRLS TO SCHOOL. 
 
4.  IFAD PRESIDENT LENNART BAGE (SWEDEN), SPOKE OF THE 
NEED TO GIVE HOPE AND DIGNITY BACK TO THE RURAL POOR, 
ENDORSED ACCESS FOR IFAD TO THE WORLD BANK HIPC (HIGHLY 
INDEBTED POOR COUNTRY) TRUST FUND TO OFFSET IFAD HIPC 
COSTS AND OBSERVED THAT THE GAP BETWEEN RICH AND POOR 
SHOWED THAT "OUR RHETORIC HAS NOT BEEN MATCHED BY 
                       UNCLASSIFIED 
 
PAGE 04        ROME  01335  01 OF 03  151055Z 
APPROPRIATE ACTION."  HE ANNOUNCED THAT IFAD'S NEW VICE- 
PRESIDENT WOULD BE NIGERIAN CYRIL ENWEZE (VICE PRESIDENT 
OF OPERATIONS AT THE AFRICAN DEVELOPMENT BANK), REPLACING 
JOHN WESTLEY(U.S.) 
 
PANEL FEATURES DISCUSSION OF MONTERREY DRAFT DECLARATION 
--------------------------------------------- ----------- 
 
5.  A NEW FEATURE OF THE COUNCIL -  A PANEL DISCUSSION - 
LED OFF WITH SWEDISH UN PERM REP RUTH JACOBI DISCUSSING 
THE RECENTLY CONCLUDED FINANCING FOR DEVELOPMENT PREPCOM 
IN NEW YORK.  JACOBI STATED THAT THE DRAFT WAS THE 
"MAXIMUM AGREEMENT POSSIBLE AMONG 189 COUNTRIES." SHE 
ACKNOWLEDGED THAT IT WAS NOT "REVOLUTIONARY" BUT COULD BE 
A PLATFORM FOR FORWARD LOOKING STEPS.  OTHER SPEAKERS 
EXPRESSED DISAPPOINTMENT WITH THE DRAFT OUTCOME, 
ESPECIALLY BECAUSE OF LACK OF MOVEMENT ON ODA TARGETS AND 
ON DEBT.  THE ROME-BASED BRAZILIAN PERMREP STATED WITH 
VEHEMENCE THAT "ONE DEVELOPED COUNTRY" HAD DENIED ACCESS 
TO NGO'S DURING THE NEGOTIATIONS AND DERIDED WHAT HE 
CALLED THAT COUNTRY'S "DOUBLE STANDARD" CONCERNING NGO 
PARTICIPATION.  DUTCH REP (AMBASSADOR BERTELING), 
 
                       UNCLASSIFIED 
 
                           UNCLASSIFIED     PTQ6673 
 
PAGE 01        ROME  01335  02 OF 03  151056Z 
ACTION IO-00 
 
INFO  LOG-00   NP-00    AF-00    AID-00   AMAD-00  CIAE-00  COME-00 
      CTME-00  DODE-00  ITCE-00  SRPP-00  EB-00    EXME-00  EUR-00 
      UTED-00  TEDE-00  INR-00   ITC-01   NSAE-00  OES-01   OIC-02 
      OMB-01   OPIC-01  SS-00    STR-00   TEST-00  SAS-00     /006W 
                  ------------------752483  151056Z /38 
R 151015Z MAR 02 
FM AMEMBASSY ROME 
TO SECSTATE WASHDC 2761 
USMISSION USUN NEW YORK 
AMEMBASSY ABUJA 
USMISSION GENEVA 
INFO USDA FAS WASHDC 2054 
DEPT OF TREASURY WASHDC 
 
UNCLAS SECTION 02 OF 03 ROME 001335 
 
SIPDIS 
 
TREASURY FOR WSCHUERCH, MJASKOWIAK 
USDA FOR FAS/LYNN REICH AND DAVID WINKELMAN 
STATE FOR IO/EDA ROSE BERSTEIN 
USAID FOR AA/PPC;DAA/G/EGAD;AFS 
 
FROM FODAG 
 
E.O. 12958:  N/A 
TAGS:  AORC, IFAD, EAID 
SUBJECT:  REPORT OF IFAD 25TH GOVERNING COUNCIL 
 
                       UNCLASSIFIED 
 
PAGE 02        ROME  01335  02 OF 03  151056Z 
RESPONDING TO CALLS FOR INCREASED ODA FOR AGRICULTURE, 
NOTED THAT THE NETHERLANDS -- WHICH SUPPORTED THE 0.7 
PERCENT ODA TARGET -- HAD FOUND THAT DEVELOPING COUNTRIES 
THEMSELVES WERE NOT GIVING PRIORITY TO AGRICULTURE IN 
THEIR REQUESTS TO DONORS. 
 
ROUNDTABLE ON REGIONAL STRATEGIES 
------------------------------------- 
6.  ON THE SECOND DAY, MEMBERS SPLIT UP TO ATTEND FIVE 
ROUNDTABLES ON REGIONAL STRATEGIES, WHICH FEATURED 
SPEAKERS FROM GOVERNMENT, ACADEMIA, THE PRIVATE SECTOR 
AND NGO'S.  PARTICIPANTS MADE SUGGESTIONS FOR IMPROVING 
THE REGIONAL STRATEGIES USING IFAD'S PREPARED STRATEGIES 
AS A BASIS FOR DISCUSSION.  COMMENT:  SOME INTERVENTIONS 
WERE THOUGHTFUL; SOME WERE OF MARGINAL UTILITY (E.G., 
VENEZUELA WANTED A REFERENCE TO "POLITICAL INSTABILITY" 
DUE TO "COUP D'ETAT'S" DELETED FROM THE LATIN AMERICAN 
STRATEGY PAPER); NONETHELESS, THE ROUNDTABLES ENABLED 
DELEGATES TO ENTER INTO DEEPER DISCUSSIONS THAN THE 
NORMAL GOVERNING COUNCIL FORMAT HERETOFORE HAD PROVIDED 
AND FEATURED EXCELLENT SPEAKERS. END COMMENT. 
 
7.  THE ROUNDTABLE DISCUSSIONS CONCLUDED AMID SOME 
CONFUSION AS TO THE STATUS OF THE COUNTRY STRATEGIES.  A 
FEW LATIN COUNTRIES STATED THAT ADDITIONAL COMMENTS 
(INCLUDING WRITTEN COMMENTS) WOULD BE MADE ON THE LATIN 
AMERICAN REGIONAL STRATEGY, AND THAT THE STRATEGY WOULD 
NOT BE CONSIDERED "APPROVED" UNTIL ALL COMMENTS HAD BEEN 
RECEIVED AND A REVISED STRATEGEY CIRCULATED. 
 
U.S. STATEMENT 
                       UNCLASSIFIED 
 
PAGE 03        ROME  01335  02 OF 03  151056Z 
-------------- 
 
8.  AS A RESULT OF THE INNOVATIVE FORMAT (AND BECAUSE OF 
TIME CONSTRAINTS), COUNTRY STATEMENTS (OTHER THAN THOSE 
PRESENTED FOR THE RECORD) WERE DISCOURAGED.  NONETHELESS, 
A SIZEABLE NUMBER OF IFAD MEMBERS (INCLUDING USDEL) MADE 
FORMAL STATEMENTS.  HEAD OF DELEGATION WILLIAM SCHUERCH 
DELIVERED THE U.S. STATEMENT.  HE NOTED THAT IFAD, WITH 
ITS FOCUS ON RURAL POVERTY, WAS UNIQUE AMONG 
INTERNATIONAL INSTITUTIONS, AND THUS WELL POSITIONED TO 
PLAY AN IMPORTANT ROLE IN MEETING THE WORLD FOOD SUMMIT 
GOALS. THE UNITED STATES ALSO EMPHASIZED THAT 
DEMONSTRATED INSTITUTIONAL EFFECTIVENESS AND PUBLICLY 
MEASURED RESULTS WOULD GENERATE GREATER CONFIDENCE AMONG 
DONORS AND, MORE LIKELY, ENHANCE SUPPORT.  THE UNITED 
STATES ALSO REINFORCED THE IMPORTANCE OF THE FIFTH 
REPLENISHMENT'S PLAN OF ACTION, AND BROACHED THE IDEA OF 
DISCUSSING WHETHER THE CURRENT "LIST" FORMAT (CATEGORIES 
FOR DONORS, RECIPIENTS, AND THE OPEC GROUP) ACTUALLY 
DIVIDED THE IFAD MEMBERSHIP ARTIFICIALLY AND IMPEDED 
NEGOTIATIONS.  LOOKING AHEAD TO THE SIXTH REPLENISHMENT, 
USDEL INDICATED THAT THE UNITED STATES WOULD BE LOOKING 
AT 
 
-- CONTINUED FOCUS ON ASSESSING IFAD'S IMPACT ON 
ACHIEVING SUSTAINABLE REDUCTIONS IN RURAL POVERTY; 
 
-- STRENGTHENING IFAD'S CAPACITY TO ASSESS THE ENABLING 
POLICY AND INSTITUTIONAL ENVIRONMENT IN BORROWING 
COUNTRIES TO HELP ENSURE EFFECTIVE ALLOCATION OF 
RESOURCES; 
                       UNCLASSIFIED 
 
PAGE 04        ROME  01335  02 OF 03  151056Z 
 
-- MANAGEMENT FOCUS ON OPERATIONAL EFFICIENCY, STRATEGIC 
PLANNING AND FINANCIAL SOUNDNESS; 
 
-- MAXIMIZING IFAD'S CATALYTIC ROLE THROUGH INNOVATION 
AND PROMOTION OF NEW APPROACHES THAT ARE REPLICATED AND 
LEVERAGED BY OTHER DEVELOPMENT PARTNERS. 
 
OTHER ITEMS 
------------ 
 
9.  THE COUNCIL ADOPTED WITHOUT DISCUSSION THE AUDITED 
FINANCIAL STATEMENTS AND THE PROPOSED ZERO REAL GROWTH 
ADMINISTRATIVE BUDGET FOR 2002 OF USD 41.7 MILLION 
(INCLUDING CONTINGENCY FUND OF USD 165,000).   THE 
COUNCIL HEARD STATEMENTS ON THE FIFTH REPLENISHMENT, 
PROGRESS REPORTS ON THE PLAN OF ACTION FROM IFAD V, ON 
THE PROCESS RE-ENGINEERING PROGRAM; ON THE POPULAR 
COALITION TO ERADICATED HUNGER AND POVERTY AND ON THE 
PROGRESS REPORT ON THE GLOBAL MECHANISM OF THE UN 
CONVENTION TO COMBAT DESERTIFICATION. 
 
                       UNCLASSIFIED 
 
                           UNCLASSIFIED     PTQ6674 
 
PAGE 01        ROME  01335  03 OF 03  151056Z 
ACTION IO-00 
 
INFO  LOG-00   NP-00    AF-00    AID-00   AMAD-00  CIAE-00  COME-00 
      CTME-00  DODE-00  ITCE-00  SRPP-00  EB-00    EXME-00  EUR-00 
      UTED-00  TEDE-00  INR-00   ITC-01   NSAE-00  OES-01   OIC-02 
      OMB-01   OPIC-01  SS-00    STR-00   TEST-00  SAS-00     /006W 
                  ------------------75248D  151056Z /38 
R 151015Z MAR 02 
FM AMEMBASSY ROME 
TO SECSTATE WASHDC 2762 
USMISSION USUN NEW YORK 
AMEMBASSY ABUJA 
USMISSION GENEVA 
INFO USDA FAS WASHDC 2055 
DEPT OF TREASURY WASHDC 
 
UNCLAS SECTION 03 OF 03 ROME 001335 
 
SIPDIS 
 
TREASURY FOR WSCHUERCH, MJASKOWIAK 
USDA FOR FAS/LYNN REICH AND DAVID WINKELMAN 
STATE FOR IO/EDA ROSE BERSTEIN 
USAID FOR AA/PPC;DAA/G/EGAD;AFS 
 
FROM FODAG 
 
E.O. 12958:  N/A 
TAGS:  AORC, IFAD, EAID 
SUBJECT:  REPORT OF IFAD 25TH GOVERNING COUNCIL 
 
                       UNCLASSIFIED 
 
PAGE 02        ROME  01335  03 OF 03  151056Z 
SIXTH REPLENISHMENT AGREEMENT 
----------------------------- 
 
10. THE GOVERNING COUNCIL AGREED TO COMMENCE 
CONSULTATIONS ON THE SIXTH REPLENISHMENT, AND REQUESTED A 
REPORT AT THE NEXT GOVERNING COUNCIL MEETING IN 2003 ON 
THE PROGRESS (SEPTEL REPORTS ON THE FIRST CONSULTATION). 
 
11.  DAS SCHUERCH DID NOT HAVE AN OPPORTUNITY TO CLEAR 
THIS CABLE PRIOR TO DEPARTING ROME.   HEILEMAN 
 
                       UNCLASSIFIED 
 
> 
 2002ROME01335 - Classification: UNCLASSIFIED 


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