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| Identifier: | 04ROME1843 |
|---|---|
| Wikileaks: | View 04ROME1843 at Wikileaks.org |
| Origin: | Embassy Rome |
| Created: | 2004-05-12 12:53:00 |
| Classification: | UNCLASSIFIED |
| Tags: | EAID EAGR PREF EFIN AORC WFP |
| 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 02 ROME 001843
SIPDIS
FROM U.S. MISSIONIN ROME
STATE FOR A/S HOLMES, PRM/P, IO/EDA KOTOK
USAID FOR AA/DCHA WINTER, DCHA/FFP LANDIS
USDA/FAS FOR CHAMBLISS, TILSWORTH
USMISSION GENEVA FOR AMBASSADOR MOLEY AND USAID/KYLOH
BRUSSELS FOR AFRICA WATCHERS AND USAID/LERNER
NSC FOR JDWORKEN AND AFRICA DIRECTORATE
E.O. 12958: N/A
TAGS: EAID, EAGR, PREF, EFIN, AORC, WFP
SUBJECT: GROWING THE WFP DONOR BASE
-------
SUMMARY
-------
1. WFP CONVENED AN INFORMAL CONSULTATION AT ITS HEADQUARTERS
ON MAY 5, 2004, IN ORDER TO DISCUSS WITH MEMBER COUNTRIES
ITS PLANS TO EXPAND ITS DONOR BASE. EMERGING (NON-
TRADITIONAL) AND NEW DONORS CONTRIBUTED U.S. DOLLARS (USD)
151 MILLION AND CONTRIBUTIONS FROM THE PRIVATE SECTOR THIS
PAST YEAR IN CASH AND SERVICES TOTALED USD 29 MILLION. WFP
IS INTENT UPON GROWING ITS RESOURCE BASE EXPONENTIALLY,
BASED ON ITS CALCULATION OF ANTICIPATED NEEDS THROUGHOUT THE
WORLD, RATHER THAN UPON PAST COMMITMENTS OR ANTICIPATED
TRADITIONAL DONOR-FUNDING AVAILABILITIES. WFP ANNOUNCED THAT
IT PLANS TO OPEN OFFICES IN BERLIN, PARIS, AND RIYADH, AND
STRENGTHEN ITS OUTREACH CAPACITY IN DUBAI. EXECUTIVE
DIRECTOR JIM MORRIS SUMMED UP THE EXPANDED FUNDING GOAL AT
THE COMMENCEMENT OF THE CONSULTATION: "WE NEED TO PUT
REDUCING HUNGER AT THE TOP OF THE INTERNATIONAL AGENDA." END
SUMMARY.
2. THE ALL-DAY CONFERENCE WAS SCHEDULED BECAUSE OF THE
REALIZATION THAT GLOBAL FOOD AID NEEDS CONTINUE TO INCREASE
IN RESPONSE TO INCREASING NUMBERS OF CONFLICTS, DROUGHTS,
NATURAL DISASTERS, COMPLEX EMERGENCIES AND DEVELOPMENT
CHALLENGES. IN VIEW OF THE INCREASED COSTS NECESSARY TO
ADDRESS GLOBAL FOOD AID NEEDS, AND IN CONSIDERATION OF WFP'S
APPROVED BUDGET FOR THE 2004-2005 BIENNIUM OF USD 4.78
BILLION, THIS CONSULTATION WAS AN OPPORTUNITY FOR WFP TO
SHARE ITS THOUGHTS AND SOLICIT FURTHER THINKING FROM MEMBER
COUNTRIES ABOUT HOW ITS ROBUST REVENUE GOALS MIGHT BE
ACHIEVED.
3. IN BRIEF, WFP PLANS TO EXPAND RELATIONS WITH CURRENT
DONORS, ENGAGE NEW DONORS AND WORK IN PARTNERSHIP WITH THE
PRIVATE SECTOR. ONE RELATIVELY UNTAPPED AREA IS
CONTRIBUTIONS FROM THE RECIPIENT COUNTRY ITSELF. RECENTLY,
HONDURAS MADE A CONTRIBUTION TO WFP OF USD 3.7 MILLION FOR
IN-COUNTRY SCHOOL FEEDING ACTIVITIES AND THE GOVERNMENT OF
BANGLADESH REPORTEDLY MAKES AVAILABLE USD 10 MILLION AND
60,000 METRIC TONS OF WHEAT PER ANNUM TO SUPPORT WFP
UNDERTAKINGS. WFP EXPECTS THIS TREND TO GROW EVEN FURTHER.
TO MAXIMIZE THE VOLUME OF RESOURCES AVAILABLE TO ITS
BENEFICIARIES, WFP ALSO WENT ON RECORD IN STATING THAT IT
MUST BE ABLE TO ACCEPT ALL REASONABLE OFFERS OF COMMODITIES,
GOODS AND SERVICES, AND MUST DO SO IN TRADE-NEUTRAL WAYS
THAT MEET THE PRINCIPLE OF FULL-COST RECOVERY.
4. WHILE FULL-COST RECOVERY WOULD REMAIN THE RULE FOR ALL
DONATED COMMODITIES, WFP PROPOSED THAT COUNTRIES WOULD BE
"ELIGIBLE FOR SPECIAL ASSISTANCE" IN MEETING FULL-COST
RECOVERY SHOULD THEIR PER CAPITA GROSS NATIONAL INCOME BE
USD 2,975 OR LESS, IN CONFORMITY WITH THE OECD DEVELOPMENT
ASSISTANCE COMMITTEE'S INCOME DEFINITION FOR LEAST
DEVELOPED, LOW-INCOME AND LOWER MIDDLE-INCOME COUNTRIES.
5. SPECIFICALLY APPLICABLE TO "TWINNING," (I.E., A MECHANISM
TO MATCH NON-TRADITIONAL DONORS OF FOOD AID COMMODITIES WITH
TRADITIONAL OR PREFERABLY NON-TRADITIONAL DONORS OF CASH FOR
THE DELIVERY OF HUMANITARIAN ASSISTANCE IN FOOD
EMERGENCIES), ONLY COUNTRIES THAT MEET THE OECD CRITERIA
CLASSIFICATION OF LEAST-DEVELOPED, LOW-INCOME OR LOWER
MIDDLE-INCOME COUNTRIES WOULD BE PERMITTED TO DONATE
COMMODITIES, FOR WHICH ANOTHER DONOR OR DONORS WOULD BE
REQUESTED TO ASSIST IN ENSURING FULL-COST RECOVERY.
6. WFP SUGGESTED IT WOULD APPROACH MULTILATERAL CASH DONORS
ABOUT A PORTION OF THEIR CONTRIBUTIONS BEING USED TO SUPPORT
TWINNING ARRANGEMENTS IN ORDER TO REACH A GREATER NUMBER OF
BENEFICIARIES.
7. MEMBER COUNTRY RESPONSES TO WFP'S PRESENTATION WERE
MIXED. WHILE PAKISTAN FOUND WFP'S PRESENTATION EMINENTLY
DOABLE, IT QUESTIONED WHETHER THE OECD LIST WAS THE BEST
MEASURE FOR PROVIDING SPECIAL TREATMENT IN ASSISTING TO MEET
FULL-COST RECOVERY. MANY EUROPEAN COUNTRIES CRITICIZED THE
MOTIVES OF COUNTRIES THAT GIVE IN-KIND DONATIONS, INCLUDING
GERMANY, NORWAY, AND THE NETHERLANDS. THERE WERE REPEATED
ROME 00001843 001.2 OF 002
Y 5, 2004, IN ORDER TO DISCUSS WITH MEMBER COUNTRIES
ITS PLANS TO EXPAND ITS DONOR BASE. EMERGING (NON-
TRADITIONAL) AND NEW DONORS CONTRIBUTED U.S. DOLLARS (USD)
151 MILLION AND CONTRIBUTIONS FROM THE PRIVATE SECTOR THIS
PAST YEAR IN CASH AND SERVICES TOTALED USD 29 MILLION. WFP
IS INTENT UPON GROWING ITS RESOURCE BASE EXPONENTIALLY,
BASED ON ITS CALCULATION OF ANTICIPATED NEEDS THROUGHOUT THE
WORLD, RATHER THAN UPON PAST COMMITMENTS OR ANTICIPATED
TRADITIONAL DONOR-FUNDING AVAILABILITIES. WFP ANNOUNCED THAT
IT PLANS TO OPEN OFFICES IN BERLIN, PARIS, AND RIYADH, AND
STRENGTHEN ITS OUTREACH CAPACITY IN DUBAI. EXECUTIVE
DIRECTOR JIM MORRIS SUMMED UP THE EXPANDED FUNDING GOAL AT
THE COMMENCEMENT OF THE CONSULTATION: "WE NEED TO PUT
REDUCING HUNGER AT THE TOP OF THE INTERNATIONAL AGENDA." END
SUMMARY.
2. THE ALL-DAY CONFERENCE WAS SCHEDULED BECAUSE OF THE
REALIZATION THAT GLOBAL FOOD AID NEEDS CONTINUE TO INCREASE
IN RESPONSE TO INCREASING NUMBERS OF CONFLICTS, DROUGHTS,
NATURAL DISASTERS, COMPLEX EMERGENCIES AND DEVELOPMENT
CHALLENGES. IN VIEW OF THE INCREASED COSTS NECESSARY TO
ADDRESS GLOBAL FOOD AID NEEDS, AND IN CONSIDERATION OF WFP'S
APPROVED BUDGET FOR THE 2004-2005 BIENNIUM OF USD 4.78
BILLION, THIS CONSULTATION WAS AN OPPORTUNITY FOR WFP TO
SHARE ITS THOUGHTS AND SOLICIT FURTHER THINKING FROM MEMBER
COUNTRIES ABOUT HOW ITS ROBUST REVENUE GOALS MIGHT BE
ACHIEVED.
3. IN BRIEF, WFP PLANS TO EXPAND RELATIONS WITH CURRENT
DONORS, ENGAGE NEW DONORS AND WORK IN PARTNERSHIP WITH THE
PRIVATE SECTOR. ONE RELATIVELY UNTAPPED AREA IS
CONTRIBUTIONS FROM THE RECIPIENT COUNTRY ITSELF. RECENTLY,
HONDURAS MADE A CONTRIBUTION TO WFP OF USD 3.7 MILLION FOR
IN-COUNTRY SCHOOL FEEDING ACTIVITIES AND THE GOVERNMENT OF
BANGLADESH REPORTEDLY MAKES AVAILABLE USD 10 MILLION AND
60,000 METRIC TONS OF WHEAT PER ANNUM TO SUPPORT WFP
UNDERTAKINGS. WFP EXPECTS THIS TREND TO GROW EVEN FURTHER.
TO MAXIMIZE THE VOLUME OF RESOURCES AVAILABLE TO ITS
BENEFICIARIES, WFP ALSO WENT ON RECORD IN STATING THAT IT
MUST BE ABLE TO ACCEPT ALL REASONABLE OFFERS OF COMMODITIES,
GOODS AND SERVICES, AND MUST DO SO IN TRADE-NEUTRAL WAYS
THAT MEET THE PRINCIPLE OF FULL-COST RECOVERY.
4. WHILE FULL-COST RECOVERY WOULD REMAIN THE RULE FOR ALL
DONATED COMMODITIES, WFP PROPOSED THAT COUNTRIES WOULD BE
"ELIGIBLE FOR SPECIAL ASSISTANCE" IN MEETING FULL-COST
RECOVERY SHOULD THEIR PER CAPITA GROSS NATIONAL INCOME BE
USD 2,975 OR LESS, IN CONFORMITY WITH THE OECD DEVELOPMENT
ASSISTANCE COMMITTEE'S INCOME DEFINITION FOR LEAST
DEVELOPED, LOW-INCOME AND LOWER MIDDLE-INCOME COUNTRIES.
5. SPECIFICALLY APPLICABLE TO "TWINNING," (I.E., A MECHANISM
TO MATCH NON-TRADITIONAL DONORS OF FOOD AID COMMODITIES WITH
TRADITIONAL OR PREFERABLY NON-TRADITIONAL DONORS OF CASH FOR
THE DELIVERY OF HUMANITARIAN ASSISTANCE IN FOOD
EMERGENCIES), ONLY COUNTRIES THAT MEET THE OECD CRITERIA
CLASSIFICATION OF LEAST-DEVELOPED, LOW-INCOME OR LOWER
MIDDLE-INCOME COUNTRIES WOULD BE PERMITTED TO DONATE
COMMODITIES, FOR WHICH ANOTHER DONOR OR DONORS WOULD BE
REQUESTED TO ASSIST IN ENSURING FULL-COST RECOVERY.
6. WFP SUGGESTED IT WOULD APPROACH MULTILATERAL CASH DONORS
ABOUT A PORTION OF THEIR CONTRIBUTIONS BEING USED TO SUPPORT
TWINNING ARRANGEMENTS IN ORDER TO REACH A GREATER NUMBER OF
BENEFICIARIES.
7. MEMBER COUNTRY RESPONSES TO WFP'S PRESENTATION WERE
MIXED. WHILE PAKISTAN FOUND WFP'S PRESENTATION EMINENTLY
DOABLE, IT QUESTIONED WHETHER THE OECD LIST WAS THE BEST
MEASURE FOR PROVIDING SPECIAL TREATMENT IN ASSISTING TO MEET
FULL-COST RECOVERY. MANY EUROPEAN COUNTRIES CRITICIZED THE
MOTIVES OF COUNTRIES THAT GIVE IN-KIND DONATIONS, INCLUDING
GERMANY, NORWAY, AND THE NETHERLANDS. THERE WERE REPEATED
ROME 00001843 002.1 OF 002
IONARY FLAGS ON POSSIBLE
"CONFLICT OF INTEREST" WERE RAISED BY A NUMBER OF OECD
DELEGATES. ON THIS LATTER ISSUE, WFP PROVIDED A SAMPLE CODE
OF CONDUCT (USED BY UNHCR FOR GOVERNING PRIVATE SECTOR
DONATIONS) AND HANDED OUT A SUMMARY OF PRIVATE-SECTOR DONOR
SELECTION CRITERIA USED BY THE UN SECRETARY-GENERAL'S
OFFICE, UNICEF, UNDP, AND UNHCR; AND CHECK LISTS RELATED TO
MAINTAINING THE INTEGRITY OF THE PROCUREMENT PROCESS AND
ENSURING NO UNFAIR ADVANTAGE, AS USED BY THE UNSG'S OFFICE,
UNICEF, UNDP, UNHCR AND FAO.
---------------------------------------
WFP - "GEARING UP TO SCALE MT. EVEREST"
---------------------------------------
8. WFP COMMENTED THAT THE GLOBAL CORPORATE SPONSORING MARKET
IS APPROXIMATELY USD 39-52 BILLION, WITH LESS THAN USD 1.12
BILLION SPENT ON HUMANITARIAN ASSISTANCE. WFP'S OBJECTIVE IS
TO RAISE 10 PERCENT OF ITS RESOURCES FROM THE PRIVATE SECTOR
BY 2007, SOME USD $300 MILLION PER ANNUM. THEY UNDERLINED
THAT UNICEF CURRENTLY FUNDS ABOUT ONE-THIRD OF ITS BUDGET
FROM NON-GOVERNMENTAL SOURCES.
9. THE DRIVER OF THE EXPONENTIAL INCREASE IN THE WFP BUDGET
OVER THE PAST TWELVE YEARS (I.E., SINCE THE U.S. ASSUMED THE
EXECUTIVE DIRECTORSHIP OF THE ORGANIZATION) HAS BEEN THE
U.S. GOVERNMENT. OVERALL, DONOR SUPPORT TO WFP 1992-2003
TOTALED USD 19.94 BILLION, OF WHICH THE UNITED STATES
CONTRIBUTED USD 8.77 BILLION (44 PERCENT). THE UNITED STATES
ALSO DRIVES THE GLOBAL FOOD AID AGENDA; WE PROVIDED, IN
2003, 57 PERCENT OF ALL GLOBAL FOOD AID AND 51 PERCENT OF
ALL EMERGENCY FOOD ASSISTANCE.
-------
COMMENT
-------
10. WITH MASSIVE OPERATIONS IN IRAQ, SOUTHERN AFRICA AND
ETHIOPIA, 2003 WAS A "BANNER" FUND RAISING YEAR FOR WFP. USD
2.6 BILLION IN CONTRIBUTIONS WERE GENERATED.
EMERGING (NON-TRADITIONAL) AND NEW DONORS CONTRIBUTED USD
151 MILLION AND CONTRIBUTIONS FROM THE PRIVATE SECTOR
TOTALED USD 29 MILLION. BASED ON ITS CALCULATION OF
ANTICIPATED NEEDS THROUGHOUT THE WORLD, RATHER THAN UPON
PAST COMMITMENTS OR ANTICIPATED DONOR-FUNDING
AVAILABILITIES, WFP IS FIRMLY COMMITTED TO RAISING ITS
REVENUE BASE EVEN HIGHER. AS PART OF ITS IMMEDIATE NEXT
STEPS, WFP ANNOUNCED THAT IT PLANS TO OPEN OFFICES IN
BERLIN, PARIS, AND RIYADH, AND STRENGTHEN ITS OUTREACH
CAPACITY IN DUBAI. EXECUTIVE DIRECTOR JIM MORRIS SUMMED UP
THE EXPANDED FUNDING GOAL AT THE COMMENCEMENT OF THE
CONSULTATION: "WE NEED TO PUT REDUCING HUNGER AT THE TOP OF
THE INTERNATIONAL AGENDA." CLEVERLEY
ROME 00001843 002.2 OF 002
IONARY FLAGS ON POSSIBLE
"CONFLICT OF INTEREST" WERE RAISED BY A NUMBER OF OECD
DELEGATES. ON THIS LATTER ISSUE, WFP PROVIDED A SAMPLE CODE
OF CONDUCT (USED BY UNHCR FOR GOVERNING PRIVATE SECTOR
DONATIONS) AND HANDED OUT A SUMMARY OF PRIVATE-SECTOR DONOR
SELECTION CRITERIA USED BY THE UN SECRETARY-GENERAL'S
OFFICE, UNICEF, UNDP, AND UNHCR; AND CHECK LISTS RELATED TO
MAINTAINING THE INTEGRITY OF THE PROCUREMENT PROCESS AND
ENSURING NO UNFAIR ADVANTAGE, AS USED BY THE UNSG'S OFFICE,
UNICEF, UNDP, UNHCR AND FAO.
---------------------------------------
WFP - "GEARING UP TO SCALE MT. EVEREST"
---------------------------------------
8. WFP COMMENTED THAT THE GLOBAL CORPORATE SPONSORING MARKET
IS APPROXIMATELY USD 39-52 BILLION, WITH LESS THAN USD 1.12
BILLION SPENT ON HUMANITARIAN ASSISTANCE. WFP'S OBJECTIVE IS
TO RAISE 10 PERCENT OF ITS RESOURCES FROM THE PRIVATE SECTOR
BY 2007, SOME USD $300 MILLION PER ANNUM. THEY UNDERLINED
THAT UNICEF CURRENTLY FUNDS ABOUT ONE-THIRD OF ITS BUDGET
FROM NON-GOVERNMENTAL SOURCES.
9. THE DRIVER OF THE EXPONENTIAL INCREASE IN THE WFP BUDGET
OVER THE PAST TWELVE YEARS (I.E., SINCE THE U.S. ASSUMED THE
EXECUTIVE DIRECTORSHIP OF THE ORGANIZATION) HAS BEEN THE
U.S. GOVERNMENT. OVERALL, DONOR SUPPORT TO WFP 1992-2003
TOTALED USD 19.94 BILLION, OF WHICH THE UNITED STATES
CONTRIBUTED USD 8.77 BILLION (44 PERCENT). THE UNITED STATES
ALSO DRIVES THE GLOBAL FOOD AID AGENDA; WE PROVIDED, IN
2003, 57 PERCENT OF ALL GLOBAL FOOD AID AND 51 PERCENT OF
ALL EMERGENCY FOOD ASSISTANCE.
-------
COMMENT
-------
10. WITH MASSIVE OPERATIONS IN IRAQ, SOUTHERN AFRICA AND
ETHIOPIA, 2003 WAS A "BANNER" FUND RAISING YEAR FOR WFP. USD
2.6 BILLION IN CONTRIBUTIONS WERE GENERATED.
EMERGING (NON-TRADITIONAL) AND NEW DONORS CONTRIBUTED USD
151 MILLION AND CONTRIBUTIONS FROM THE PRIVATE SECTOR
TOTALED USD 29 MILLION. BASED ON ITS CALCULATION OF
ANTICIPATED NEEDS THROUGHOUT THE WORLD, RATHER THAN UPON
PAST COMMITMENTS OR ANTICIPATED DONOR-FUNDING
AVAILABILITIES, WFP IS FIRMLY COMMITTED TO RAISING ITS
REVENUE BASE EVEN HIGHER. AS PART OF ITS IMMEDIATE NEXT
STEPS, WFP ANNOUNCED THAT IT PLANS TO OPEN OFFICES IN
BERLIN, PARIS, AND RIYADH, AND STRENGTHEN ITS OUTREACH
CAPACITY IN DUBAI. EXECUTIVE DIRECTOR JIM MORRIS SUMMED UP
THE EXPANDED FUNDING GOAL AT THE COMMENCEMENT OF THE
CONSULTATION: "WE NEED TO PUT REDUCING HUNGER AT THE TOP OF
THE INTERNATIONAL AGENDA." CLEVERLEY
NNNN
2004ROME01843 - Classification: UNCLASSIFIED
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