US embassy cable - 04ROME1415

UNCLAS SECTION 01 OF 03 ROME 001415 
 
SIPDIS 
 
 
FROM U.S. MISSION IN ROME 

AMEMBASSY LIMA FOR AMBASSADOR STRUBLE AND ACTING USAID 
DIRECTOR YAMASHITA 
STATE FOR AS/IO HOLMES, PRM/P, WHA/AND, WHA/EPSC FOR SUMMIT 
COORDINATING OFFICE AND IO/EDA BEHREND/KOTOK 
USAID FOR AA/LAC, DAA/DCHA GRIGSBY, DCHA/FFP LANDIS 
USDA/FAS FOR CHAMBLISS/TILSWORTH/GAINOR 
GENEVA FOR AMBASSADOR MOLEY AND NKYLOH/USAID 
USUN FOR LTAMLYN/MLUTZ 
BRUSSELS FOR USAID/LERNER 
NSC FOR JDWORKEN 
 
E.O. 12958: N/A 
TAGS: EAID, EAGR, AORC, PREF, SENV, FAO, WHO, WFP, UNESCO 
SUBJECT: USAID/ROME HUMANITARIAN ATTACHE VISITS WFP PROGRAMS 
IN THE PERUVIAN ANDEAN REGION OF HUANCAVALICA 
 
REF: (A) ROME 1392, (B) ROME 1010, (C) 03 ROME 5076 
 
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SUMMARY 
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1. US MISSION/ROME HUMANITARIAN ATTACHE TIM LAVELLE VISITED 
PERU MARCH 27-31, AND TRAVELED TO THE PERUVIAN ANDEAN REGION 
OF HUANCAVALICA TO REVIEW WFP OPERATIONS. WFP'S PROGRAM IS 
RIGHTLY FOCUSED IN THE PERUVIAN HIGHLANDS, WHERE POVERTY 
RATES ARE NEARLY DOUBLE THAT OF COASTAL REGIONS. WFP'S 
PROGRAM IN PERU IS AT A CROSSROAD. THE NEEDS OF THE ANDEAN 
GEOGRAPHIC DEPARTMENTS CONTINUE TO BE OVERWHELMING, BUT 
    RESOURCES ARE FEW. WFP EXECUTIVE DIRECTOR JIM MORRIS WILL 
VISIT LIMA NEXT MONTH AND US MISSION ENCOURAGES EMBASSY AND 
USAID PERU TO ACTIVELY ENGAGE JIM MORRIS AT THAT TIME. END 
SUMMARY. 
 
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BACKGROUND 
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2. US MISSION/ROME HUMANITARIAN ATTACHE TIM LAVELLE VISITED 
PERU MARCH 27-31, AND TRAVELED TO THE PERUVIAN ANDEAN REGION 
OF HUANCAVALICA TO REVIEW WFP OPERATIONS. AT PRESENT, WFP 
FOOD ASSISTANCE RESOURCES ARE PRINCIPALLY TARGETED TO THREE 
OF PERU'S POOREST, MOST FOOD-INSECURE DEPARTMENTS - 
AYACUCHO, APURIMAC AND HUANCALAVELICA. PROGRAMS INCLUDE 
SCHOOL FEEDING (PROVISION OF A DAILY-FORTIFIED BISCUIT AND 
AN ENRICHED DRINK) AND FOOD-FOR-WORK INTERVENTIONS DIRECTED 
TO REHABILITATION OF ANDEAN MICRO-WATERSHEDS. IN ADDITION 
LITERACY TRAINING FOR 14,000 WOMEN IS PROVIDED, WITH 
PARTICULAR EMPHASIS ON NUTRITION, HYGIENE AND INCOME- 
GENERATING ACTIVITIES. 
 
3. CHRONIC MALNUTRITION AMONG CHILDREN IN THE HIGHLANDS OF 
PERU IS OF CRISIS PROPORTIONS. IN HUANCAVALICA, SOME 53.4 
PERCENT OF CHILDREN UNDER FIVE SUFFER FROM GROWTH 
RETARDATION (STUNTING). NATIONALLY, UP TO 60 PERCENT OF 
PERU'S UNDERNOURISHED CHILDREN LIVE IN THE ANDEAN MOUNTAINS. 
IN GENERAL, OVER HALF OF RURAL PERUVIANS ARE CONSIDERED 
EXTREMELY POOR, THAT IS LIVING ON LESS THAN ONE  U.S. DOLLAR 
(USD) PER DAY. 
 
    4. HISTORICALLY, PERU HAS BEEN A MAJOR RECIPIENT OF P.L. 480 
TITLE II ASSISTANCE THROUGH U.S. AND LOCAL NON-GOVERNMENTAL 
ORGANIZATIONS (NGOS). IN PAST YEARS, USD 50 MILLION HAD BEEN 
COMMITTED ANNUALLY. THE LEVEL IS PRESENTLY REDUCED TO USD 20 
MILLION, AND THERE IS IN PLACE A NEGOTIATED PHASE-OUT OF 
TITLE II ASSISTANCE SCHEDULED BY 2008. NOTE. NO USAID P.L. 
480 TITLE II IS PRESENTLY CHANNELED THROUGH WFP. USAID DOES, 
HOWEVER, SUPPORT TITLE II PROGRAMS THROUGH NGOS IN 
HUANCAVELICA, APURIMAC, AND AYACUCHO, AND ALSO IN OTHER 
SIERRA (HIGHLAND) PROVINCES THAT EXTEND INTO THE HIGH AMAZON 
REGION, WHERE POVERTY AND MALNUTRITION IS ALSO HIGH.  TITLE 
II AND USAID'S POVERTY REDUCTION AND ALLEVIATION (PRA) 
PROJECT INPUTS ARE INCREASING RURAL ECONOMIC OPPORTUNITIES. 
HOWEVER, SOCIAL SAFETY NET NEEDS, WHEN TITLE II IS PHASED 
OUT, MAY OUTSTRIP THE GOP'S ABILITY TO RESPOND. END NOTE. 
 
5. PERU'S BUDGET DEVOTES SOME USD 250 MILLION ANNUALLY TO 
FOOD AND NUTRITION PROGRAMS THROUGH A VARIETY OF MINISTRIES 
AND PROGRAMS. A MAJOR HURDLE IS LINKING THESE FOOD AND 
NUTRITION ASSISTANCE INTERVENTIONS TO COMPLEMENTARY HEALTH, 
SANITATION AND BEHAVIORAL CHANGE SERVICES. USAID, THROUGH 
TITLE II PARTNERS, AND WFP, IS ASSISTING THE GOP'S NATIONAL 
FOOD AID AGENCY (PRONAA) AND MUNICIPALITIES TO FOCUS FOOD 
ASSISTANCE ON CRITICAL NUTRITION PROGRAMS FOR CHILDREN UNDER 
 
ROME 00001415  002 OF 003 
 
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WFP'S OPERATIONS IN-COUNTRY - (6240.0), PROMOTION OF 
SUSTAINABLE DEVELOPMENT OF ANDEAN MICRO-WATERSHEDS; AND 
(4808.0), FOOD ASSISTANCE TO PRE-SCHOOL AND PRIMARY SCHOOL 
CHILDREN IN RURAL AREAS 
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6. AT PRESENT, WFP RUNS TWO MODEST FOOD AID INTERVENTIONS 
(LISTED ABOVE). LIFE-OF-PROJECT DELIVERIES AGAINST PROJECT 
6240 (MICRO-WATERSHEDS) TOTAL 16,287 METRIC TONS VALUED AT 
    USD 5 MILLION (ALL MULTILATERAL FUNDING); LIFE-OF-PROJECT 
FUNDING AGAINST 4808 (SCHOOL FEEDING) TOTALS 18,405 MTS, 
VALUED AT USD 6.48 MILLION (USDA/FAS IS THE MAJOR FUNDER). 
THE MICRO-WATERSHEDS PROJECT FOCUSES ON 32 SITES IN 
AYACHUCHO, APURIMAC AND HUANCAVALICA. INTERVENTIONS INCLUDE 
FOOD-FOR-WORK FOR SOIL CONSERVATION AND WATER-MANAGEMENT; 
SUPPORT TO MICRO-CREDIT; TRAINING ACTIVITIES FOR WOMEN; AND 
IMPROVING SCHOOL INFRASTRUCTURE. THE SCHOOL FEEDING 
INTERVENTION, IN THE GEOGRAPHIC DEPARTMENTS LISTED ABOVE 
PLUS THE BORDER REGION WITH ECUADOR, TARGETS APPROXIMATELY 
82,500 PRIMARY SCHOOL STUDENTS. DEWORMING OF THE TARGET 
POPULATION IS AN INTEGRAL PART OF THE SCHOOL FEEDING 
PROJECT. 
 
7. OVERALL CONTRIBUTIONS RECEIVED BY WFP (BOTH DEVELOPMENT 
AND EMERGENCY FOOD ASSISTANCE), IN THE PERIOD 1999-2003, ARE 
64,605 METRIC TONS, VALUED AT USD 19.64 MILLION. CANADA IS 
THE LEADING DONOR (USD 7.61 MILLION, 38.7 PERCENT), FOLLOWED 
BY THE UNITED STATES (USD 5.48 MILLION, 27.9 PERCENT). 
 
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WFP FOOD AID-RELATED OBSERVATIONS 
--------------------------------- 
 
8. PRESENCE: WFP'S FIELD-LEVEL PRESENCE IS EXCEEDINGLY 
LIMITED, AS FOLLOWS: HUANCAVALICA, 2 LOCAL STAFF, WORKING 
OUT OF A GOP OFFICE - NO VEHICLE; AYACUCHO, 1 LOCAL STAFF, 
WFP OFFICE WITH VEHICLE; APURIMAC, 1 LOCAL STAFF WITH A 
MOTORCYCLE (WORKING OUT OF HOME); PIURA, 1 LOCAL STAFF WITH 
A MOTORCYCLE (WORKING OUT OF HOME). THERE PRESENTLY EXIST NO 
MEMORANDA OF UNDERSTANDING WITH INTERNATIONAL NON- 
    GOVERNMENTAL ORGANIZATIONS (NGOS). THERE ARE, HOWEVER, 
WORKING RELATIONSHIPS WITH A MODICUM OF LOCAL NGOS AND 
COMMUNITY ORGANIZATIONS. WFP'S LIMA OFFICE (WHICH INCLUDES 
AN INTERNATIONAL STAFFER WHO SERVES AS COUNTRY DIRECTOR) 
TOTALS 11 (INCLUDING SUPPORT STAFF), PLUS TWO CONSULTANTS. 
 
9. WAREHOUSING: WFP RELIES ON PRONAA TO PURCHASE LOCALLY, 
TRANSPORT AND STORE ITS FOOD ASSISTANCE. IN HUANCAVALICA, 
THERE ARE PRONAA FACILITIES IN THE DEPARTMENTAL CAPITAL. 
IMPORTED WHEAT IS SOLD COMMERCIALLY THROUGH WFP ARRANGEMENTS 
WITH THE GOP, WITH PROCEEDS GOING INTO A WFP-CONTROLLED FUND 
FOR LOCAL PURCHASES THROUGH PRONAA. 
 
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U.S. MISSION/ROME CONCLUSIONS AND RECOMMENDATIONS 
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10. AS APPROVED BY THE WFP EXECUTIVE BOARD IN OCTOBER 2003 
(REF C), 90 PERCENT OF WFP'S DEVELOPMENT RESOURCES WILL BE 
FOCUSED BY 2007 IN 36 COUNTRIES, 29 OF WHICH WILL BE LEAST 
DEVELOPED COUNTRIES (LDCS). THIS DOES NOT LEAVE THE WFP 
SECRETARIAT MUCH "WIGGLE ROOM." HOWEVER, HOME-GROWN 
 
SIPDIS 
TERRORISM (SENDERO LUMINOSO - "SHINING PATH"), ALBEIT 
CONSIDERABLY REDUCED, CONTINUES ITS DESTABILIZING SUBVERSIVE 
 
ROME 00001415  003 OF 003 
 
ACTIVITIES IN THE ANDEAN 
REGION. 
 
11. THE LONG-TERM VALUE OF EDUCATION, PARTICULARLY FOR 
GIRLS, TO IMPROVED NUTRITION FOR FUTURE GENERATIONS CANNOT 
BE OVERSTATED. WFP AND OTHER UN AGENCIES SHOULD ACTIVELY 
PURSUE ADDITIONAL PARTNERSHIPS AND COMPLEMENTARY FUNDING TO 
COVER NON-FOOD COSTS AND ENSURE HIGH-QUALITY EDUCATION. 
 
12. HUMANITARIAN ATTACHE MET WITH MONSIGNOR ISIDRO BARRIO 
(SPANISH CITIZEN), BISHOP OF HUANCAVALICA. HUANCAVALICA HAS 
AN EXTENSIVE SOCIAL OUTREACH NETWORK (CARITAS) AND IT IS 
HIGHLY RECOMMENDED THAT WFP WORK OUT AN OPERATIONAL MODUS 
    OPERANDI SOONEST WITH THEM. NOTE. IN A MEETING WITH MON. 
JOSE RAMON MARTINEZ (FIRST SECRETARY) TO THE PAPAL NUNCIO IN 
LIMA ON MARCH 31, HE WAS SUPPORTIVE OF EXPLORING CLOSER TIES 
BETWEEN CARITAS AND WFP. 
 
13. UNICEF (WITH WHOM WE ALSO MET IN LIMA ON MARCH 31) IS 
STRONGLY ENCOURAGED TO FOCUS ON SUPPORTING EDUCATION, PUBLIC 
NUTRITION AND DISEASE SURVEILLANCE SYSTEMS, IN THE WFP 
ANDEAN AREAS. UNICEF PERU'S PROGRAM COORDINATOR, MS. 
ESPERANZA VIVES, SPOKE OF A RECENT ALLOTMENT FROM UNICEF'S 
VOLUNTARY SUPPORT COMMITTEE/SPAIN, TO ASSIST PRIMARY 
EDUCATION IN THE DEPARTMENT OF AYACUCHO. 
 
14. THE INSTALLATION OF WFP'S FINANCIAL SYSTEM WINGS IS SEEN 
AS A PRIORITY. WINGS' TRAINING TO DATE FOR WFP PERU STAFF 
HAS BEEN SPOTTY. 
 
15. WFP/UN SHOULD INTENSIFY EFFORTS TO PROMOTE INCOME- 
GENERATING ACTIVITIES WHEREVER POSSIBLE. HUANCAVALICA 
PRESENTS AN IDEAL WORKING ENVIRONMENT FOR A JOINT FAO/WFP 
UNDERTAKING RELATED TO INTENSIFICATION OF VEGETABLE 
CULTIVATION FOR BOTH HOME CONSUMPTION AND COMMERCIAL SALE. 
IN THIS REGARD, US MISSION WILL EXPLORE POSSIBILITIES WITH 
THE ROME-BASED DANISH PERMREP (PRESENTLY SERVING AS VICE- 
PRESIDENT OF THE WFP BOARD) AND THE FIRST SECRETARY OF THE 
PERUVIAN EMBASSY TO THE UN AGENCIES (2004 PRESIDENT OF THE 
WFP BOARD). SIMPLY, MICRO-WATERSHED AND RELATED DEVELOPMENT 
PROJECTS NEED SUSTAINED TECHNICAL EXPERTISE IN ORDER TO 
ACHIEVE PROJECT OBJECTIVES. 
 
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    COMMENT 
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16. WFP'S PROGRAM IN PERU IS AT A CROSSROAD. THE NEEDS OF 
THE ANDEAN GEOGRAPHIC DEPARTMENTS CONTINUE TO BE 
OVERWHELMING, BUT RESOURCES ARE FEW. WFP EXECUTIVE DIRECTOR 
JIM MORRIS WILL VISIT LIMA NEXT MONTH AND IS SCHEDULED TO 
MEET INTER ALIA WITH PRESIDENT TOLEDO, THE UN TEAM, SEVERAL 
KEY DONORS AND THE PRIVATE SECTOR. REPORTEDLY, WITH 
INTERNATIONAL COPPER PRICES UP, PERU IS MORE COMFORTABLE 
MACRO ECONOMICALLY, AND IN THE BEST POSITION IN SOME TIME TO 
INCREASE ITS SOCIAL SAFETY NET OUTLAYS. MORRIS HAS HAD GOOD 
SUCCESS IN OBTAINING INCREASED PRIVATE SECTOR SUPPORT. FOR 
EXAMPLE, TPG, THE DUTCH MULTINATIONAL, WILL PROVIDE WFP WITH 
ROUGHLY USD 11 MILLION IN 2004; EACH OF THEIR 160,000 
EMPLOYEES IS COMMITTED TO FEEDING A SCHOOL CHILD AND THE 
COMPANY IS COMMITTED TO MATCHING THAT. US MISSION ENCOURAGES 
EMBASSY AND USAID TO ACTIVELY ENGAGE JIM MORRIS ON WFP'S 
FUTURE DIRECTION IN PERU. HALL 
 
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 2004ROME01415 - Classification: UNCLASSIFIED