US embassy cable - 04ROME2274

UNCLAS  ROME 002274 
 
SIPDIS 
 
 
FROM U.S. MISSION TO THE UN AGENCIES IN ROME 
 
NSC FOR DWORKEN 
STATE FOR IO/EDA, PRM/P, E, EB/IFD/ODA, EB/TPP/ABT, IO/EDA, 
WHA/EPSC, WHA/CEN 
TREASURY FOR OSDI - JASKOWIAK, BLOOMGARDEN, BRUBAKER 
USAID FOR AA/LAC, DAA/DCHA GRIGSBY, DCHA/FFP LANDIS 
USDA/FAS FOR CHAMBLISS/TILSWORTH/GAINOR 
 
E.O. 12958:   N/A 
TAGS: EAID, EAGR, EFIN, AORC, SENV, GT, XK, WFP, FAO, IFAD 
SUBJECT:  FOOD SECURITY IN GUATEMALA: VISIT OF ALTERNATE 
PERMREP, APRIL 25 - MAY 2, 2004 
 
1.  Summary:  Travel of U.S. Mission Rome's Alternate 
Permanent Representative to Guatemala provided an 
opportunity for review of selected projects of the World 
Food Program (WFP), the UN Food and Agriculture Agency (FAO) 
and the International Fund for Agricultural Development 
(IFAD) in rural areas around the Lago de Atitlan (Solola') 
and in Alta Verapaz.  The field visits provided graphic 
evidence of poverty and need, as well as vivid 
demonstrations of how the UN agencies are working 
effectively, filling complementary roles, to address these 
issues.  Although Guatemala has the highest rate of chronic 
malnutrition in Latin America -- the legacy of years of 
civil strife and economic and climatic uncertainties -- it 
is encouraging that the new reform-minded government has 
identified combating hunger and malnutrition as a top 
priority.  Among the issues that need to be addressed are 
the continuity of school feeding programs in the face of 
fluctuating donor support, unsustainable use of forests and 
other resources, the need for strengthened regional 
cooperation, and the potential impact of HIV/AIDS.  End 
summary. 
 
BACKGROUND 
---------- 
 
2.  Alternate Permrep to the UN Agencies for Food and 
Agriculture in Rome, Willem Brakel, visited Guatemala April 
25 - May 2 to review the field activities of the Rome- 
headquartered UN agencies for food and agriculture, and 
(septel) to participate in the FAO Regional Conference for 
Latin America.  Also participating in several of the site 
visits were WFP/FAO Desk Officer Sharon Kotok 
(State/IO/EDA), and Guatemala-based Regional Food for Peace 
Officer David Hull.  This report does not purport to be a 
comprehensive review of food security or rural development 
activities in Guatemala, but rather seeks to highlight 
noteworthy activities and lessons learned, particularly with 
regard to actual and potential synergies among the programs 
of WFP, FAO, IFAD and other UN agencies and their 
complementarity with USG bilateral assistance.  This cable 
may be read in conjunction with septel covering field visits 
in Nicaragua.  The assistance of the WFP and FAO Permanent 
Representations, the IFAD Country Program Manager, and the 
USAID Mission and U.S. Embassy in facilitating the visit is 
gratefully acknowledged. 
 
3.  Guatemala currently has the highest rate of malnutrition 
in Latin America, affecting 49.3% of children under five, 
according to the 2002 National Survey of Maternal-Child 
Health.  According to WFP, the World Bank and other 
agencies, food security in Guatemala has been deteriorating 
for a number of years.  Domestic food production failed to 
keep up with population growth from 1990 to 1997.  Local 
production of the country's major food staples covers only 
an estimated 60 percent of demand.  As a result, many poor 
families face food shortages.  The situation has been 
exacerbated by climatic irregularities, a decades-long 
history of political instability, and recent unfavorable 
international economic developments such as the precipitous 
decline of coffee producer prices. 
 
GOVERNMENT'S STAND ON HUNGER 
---------------------------- 
 
4.  The Guatemalan government has recognized hunger as a 
serious problem and publicly stated its intention to make 
food security a priority.  For instance, at the opening of 
the FAO Regional Conference on April 28, we heard President 
Oscar Berger reaffirm that "our government ... has 
recognized with sincere humility Guatemala's sad food 
picture, and has made the commitment, decisively and on a 
priority basis, to fight to substantially raise the 
 
 
nutritional level of all of the children of Guatemala, which 
occupies a shameful place on the world scene in this and 
other aspects of human wellbeing.  We frankly accept that, 
throughout all its history and with only brief exceptions, 
our country has not made the effort to overcome the low 
levels of nutrition of Guatemalan children.  And almost 
always when efforts of this type have been carried out, they 
have been of a remedial nature, without attacking the 
fundamental causes that explained and gave rise to this 
historic flaw....  We aspire to attaining high nutrition 
levels for all Guatemalans, and we know that the path to 
this objective is through increasing the productivity of 
agriculture and [other] economic sectors of our country." 
 
5.  The importance the Guatemalan government attaches to 
food security was reinforced by Andres Botran, Commissioner 
of the Front Against Hunger, during his meeting with us on 
April 26.  Vice President Eduardo Stein and First Lady Wendy 
de Berger launched the Front in February 2004.  Botran, 
whose family is prominent in the business community, is 
particularly focused in getting the private sector more 
involved.  He said he is working to complete within the 
coming weeks a master plan to reduce hunger.  He talked a 
lot about transparency in handling private sector donations 
and the utility of putting more information on the Internet. 
Botran, who is articulate and enthusiastic, is undoubtedly 
raising the profile of the fight against hunger, but it 
remains to be seen how much in the way of new mechanisms and 
resources he can bring to this effort. 
 
WFP OPERATIONS 
-------------- 
 
6.  WFP's 2001-2004 Country Program (CP) in Guatemala aims 
to achieve a sustainable improvement in food security and 
nutrition for approximately 245,850 beneficiaries in areas 
targeted by vulnerability assessment and mapping.  There is 
special focus on areas affected by internal conflict, with 
high vulnerability to natural disasters and a high rate of 
social exclusion.  WFP's contribution under the CP amounts 
to about $15.3 million.  The anticipated host government 
contribution is $23.4 million.  The CP is being implemented 
through the following activities: (1) food assistance and 
training to pre-school children and expectant and nursing 
mothers, (2) primary school feeding, (3) support for food- 
insecure households in the resettlement process, (4) 
creation of assets to cope with natural disaster-related 
vulnerability, and (5) disaster mitigation and emergency 
preparedness.  In addition, Guatemala benefits from the 
$66.8 million Protracted Relief and Recovery Operation 
(PRRO) for Central America, providing targeted food 
assistance in 2003-2006 for persons affected by shocks and 
the recovery of livelihoods.  The USG contributes an 
estimated 86% of resources to WFP programs in Guatemala; 
Japan and Switzerland are the other major donors. 
 
FAO ACTIVITIES 
-------------- 
 
7.  FAO has four major ongoing activities in Guatemala under 
its Technical Cooperation Program (TCP) amounting to $1.15 
million and including activities related to (1) 
diversification of production in coffee-growing areas, (2) 
support for the national agricultural and livestock census, 
(3) strengthening regulation and management of the shrimp 
fishery and the capacity of fisheries authorities, and (4) 
fire management in the agricultural lands and forests of 
Peten.  In addition, there are two major projects supported 
by voluntary Trust Fund contributions: $1.64 million from 
Spain for implementation of the Special Program for Food 
Security (SPFS) and $0.7 million from Italy to support 
national food security and poverty-reduction programs. 
 
 
IFAD-FUNDED PROGRAMS 
-------------------- 
 
8.  IFAD's loan portfolio includes three ongoing projects in 
Guatemala: the National Rural Development Program for the 
Western Region - SDR 21.55 million ($31 million); Rural 
Development Program for the Verapaces (PRODEVER) - SDR 10.45 
million ($15.0 million); and the Rural Development and 
Reconstruction Program for the Quiche Department (PRODERQUI) 
- SDR 10.45 million.  PRODEVER (see below) targets 
marginalized and subsistence producers, landless rural 
families, woman-headed households, microenterprises and 
small traders; its aim is to reduce rural poverty by 
strengthening community organizations, increasing 
participation and gradually transferring responsibilities 
for the implementation of services to the beneficiaries.  An 
additional IFAD project in eastern Guatemala is in the 
design stage. 
 
USG ACTIVITIES 
-------------- 
 
9.  USAID's program in Guatemala, valued at $44.98 million 
(FY 2004 budget request), covers objectives in health and 
education, increasing rural incomes, and democracy.  In the 
area of food security, there are ongoing USG activities 
under the McGovern-Dole initiative with U.S. NGO, Food for 
the Poor ($5 million); Food for Progress and 416(b) surplus 
stocks with PCI ($4 million), and private PL-480 with wheat 
millers ($6 million).  A government-to-government Food for 
Progress ($5 million) is in the pipeline.  FY 2004 Title II 
activities to date have amounted to $13.9 million.  In 
addition, USAID is funding development of a Meso American 
Food Security Early Warning System (MFEWS). 
 
PROJECTS VISITED 
---------------- 
 
10.  The following are highlights of sites visited. 
 
(1)  WFP Primary School Feeding, San Pablo La Laguna, 
Solola': 
 
Hemmed in by steep hills and with three major volcanic peaks 
forming a dramatic backdrop, scenic Lago de Atitlan is one 
of Guatemala's prime tourist destinations, yet the 
inhabitants of some of the lakeside towns are among the 
country's poorest.  The local population, particularly the 
indigenous people, suffered grave human rights violations in 
the 1970s.  We visited San Pablo La Laguna, an isolated town 
of about 5,700 that is most easily reached by boat.  An 
estimated 84% of the population lives below the poverty line 
and 89% of first-grade children are chronically malnourished 
-- the highest rate in the country.  At the local primary 
school, we saw a project that distributes balanced hot meals 
to some 930 children daily.  WFP provides dry skimmed milk 
and corn-soy blend, the Ministry of Education contributed 
$0.13 daily per child, and the children's mothers take turns 
preparing the food.  Teachers report a marked improvement in 
student attendance (particularly among girls) and 
performance since the project started in 2003. 
 
(2)  FAO Special Program for Food Security projects, San 
Pablo and San Pedro La Laguna, Solola': 
 
We visited small indigenous community associations where 
members, mostly women, are encouraged to diversify their 
household diet and increase their income by planting 
vegetable gardens and raising chickens in henhouses made of 
cheap locally available materials.  The plots of land were 
very small, but even in the cramped space these communities 
 
 
were seen to result in an improved standard of living, 
though questions remain about the continuity and 
sustainability of these activities once external support 
ends.  One U.S. Peace Corps volunteer is participating in 
the project. 
 
(3)  WFP/FAO Productive Project, Smallholder Community of 
Xibalbay, Solola': 
 
This fully operational project aims to reduce food 
insecurity by diversifying and intensifying agricultural 
production through the introduction of an irrigation system. 
About 13 km of piping, together with branches, ditches, 
terracing, greenhouses and related infrastructure are 
involved.  Some 250 indigenous families have received 
training in agronomy (staggered planting, integrated pest 
management, post-harvest treatment) and marketing.  They are 
currently producing flowers and vegetables such as broccoli 
and tomatoes for sale domestically and internationally.  The 
project demonstrates the benefits of coordinated support 
from various agencies and donors:  FAO/SPFS provided 
$179,500 in materials and technical assistance; WFP provided 
$16,000 in food rations as an incentive for the community to 
provide manual labor and transportation services valued at 
$84,000; the Spanish cooperation agency provided 
agricultural items; the Agriculture Ministry did feasibility 
and topographic studies. 
 
(4)  WFP Community Distribution Center, Santa Cruz Verapaz, 
Alta Verapaz: 
 
We visited this distribution center, housed in a municipal 
warehouse, which assists 75 children and their families 
suffering from acute malnutrition.  The project, slated to 
run from September 2003 to February 2006, involves WFP 
(which provides $5,625 in food assistance every two months), 
UNICEF (which provides training and educational materials) 
and national and local health officials.  A young nurse 
practitioner explained how he maintains records on each 
child and how he imparts lessons on hygiene and nutrition to 
the mothers.  We saw several women from the community 
preparing a hot meal for the children.  Once the children 
have recovered nutritionally, food assistance will be 
provided under food-for-work and food-for-training schemes. 
 
(5)  WFP Preschool Day Care Center, - San Cristobal Verapaz, 
Alta Verapaz: 
 
This is one of a number of daycare centers in Verapaz, each 
operated by a woman caregiver in her own home under a 
countrywide initiative of the Secretariat of Social Works, 
under the patronage of Guatemala's First Lady.  About a 
dozen children under six years of age were being cared for 
in this modest but clean facility.  The children's parents 
are generally low-income workers active in agriculture, 
laundry or street vending.  WFP provides food to these 
centers in order to improve the nutritional status of the 
preschool children, while the Ministry of Education provides 
teachers to enhance cognitive skills. 
 
(6)  WFP Food-for-Work Housing Project for Displaced 
Persons, Nuevo Porvenir Community, Coban, Alta Verapaz: 
 
This project assists a group of 87 families that fled from 
Huehuetengango to Mexico in 1982 during the civil conflict, 
and who only returned to Guatemala in 1997.  They were 
resettled on a 1300-hectare farm/ranch that they operate as 
a cooperative.  Recently, WFP provided $5,665 in food 
assistance for the construction of 25 houses (14 of which 
have been completed); 62 houses were built in 1999 under 
Phase 1 of this program.  Our visit on April 30 showed that 
this community continues to face many difficulties, despite 
 
 
the support they have received from the National Peace Fund 
(FONAPAZ), the National Housing Fund (FOGUAVI) and WFP.  The 
settlement is located at the end of a long, badly maintained 
dirt road, 43 km north of the town of Coban.  There is no 
electricity, no adequate supply of potable water, and the 
nearest clinic is 15 km away.  While grateful for the food 
assistance, community representatives told us that the 
cereals given have been almost entirely in the form of rice, 
which is not a significant part of their traditional diet. 
(WFP explained that it takes local eating habits into 
account, but is constrained by the commodities the donors 
supply.)  Some men from the community have returned to 
Mexico to work, but other remain, hoping to make a living 
growing coffee and cardamom, and raising livestock.  They 
will need further support in terms of training, municipal 
services and infrastructure if they are to succeed. 
 
(7) IFAD-PRODEVER: Rural Access Road, Jolomijixito III, La 
Tinta, Alta Verapaz: 
 
This is the first of four IFAD-funded projects visited under 
the government's Rural Development Program for Alta and Baja 
Verapaz (PRODEVER).  We witnessed the inauguration of a 2-km 
access road that connects the village of Jolomijixito III in 
the Sierra de las Minas with a neighboring town and to the 
Polochic Valley that they overlook.  IFAD Vice President 
Cyril Enweze was guest of honor at a colorful opening 
ceremony that brought the local citizenry together with 
government officials at the federal, departmental and 
municipal level.  The new road is one of seven, totaling 
13.45 km in length, intended to facilitate access of local 
producers to markets and services in Alta Verapaz.  PRODEVER 
staff complained to us that the federal government's Natural 
Protected Areas Commission has been slow to grant 
construction permits in this area, which is a designated 
buffer zone for an adjacent natural reserve.  While their 
frustration is understandable given that the forest is 
already heavily settled and largely cleared for cultivation, 
it is regrettable that the Commission seems to be perceived 
as an adversary, rather than as an ally in the effort to 
develop the area sustainably. 
 
(8) IFAD-PRODEVER: Sierra Las Minas Farmers' Cooperative 
Enterprise, Jolomijixito III, La Tinta, Alta Verapaz: 
 
On the outskirts of the village, we visited a farmers' 
cooperative that has started a poultry egg business. 
Community leaders had approached PROVEDER for assistance in 
2003, and with the latter's training and assistance a group 
of 15 was able to organize itself and develop the business 
skills necessary to set up the egg project.  Business 
appears to be booming, and the cooperative has expanded from 
15 to 30 active members. 
 
(9) IFAD-PRODEVER: Local Capacity Strengthening, Santa 
Catalina La Tinta: 
 
This project was designed by PRODEVER in 2002 to promote the 
organization, good management and productivity of rural 
communities.  Some 120 persons representing 80 different 
community organizations received weekly training over the 
course of 14 weekends.  Participants were taught hands-on, 
practical skills needed for the development and management 
of community development projects.  We visited the Santa 
Catalina's municipal building, where a small Internet center 
has recently been set up.  There we met Francisco Cac Rax, 
who heads the Chab'il Tul Association of Plantain Producers 
of the Polochic Valley.  Don Francisco, like other project 
beneficiaries, has learned to use e-mail and the Web to make 
contacts and obtain market information. 
 
(10) IFAD-PRODEVER: Cardamom Production Project, Santa 
 
 
Rosario, Senahu', Alta Verapaz: 
On the northern slopes of the Polochic Valley we visited a 
pilot project for the drying and sale of cardamom seeds. 
The herbaceous cardamom plant, originally from South Asia, 
thrives in some coffee-growing areas of Guatemala where it 
could be a potential alternate source of income for 
erstwhile coffee producers.  Sold fresh to local buyers, the 
cardamom "cherries" do not get a good price, but if 
producers from a community pool their resources and prepare 
their own dried seeds, production becomes much more 
lucrative.  The cooperative headed by Don Ricardo Chub has 
bought and installed two driers, and after an initial pilot 
run this past season hopes to scale up operations for the 
next harvest, in August. 
 
CONCLUSIONS 
----------- 
 
11.   U.S. Mission Rome offers the following observations 
and comments based on the visit to Guatemala. 
 
-- The Guatemalan government's explicit identification of 
food security as a priority issue is encouraging, but a lot 
will depend on how the rhetoric is followed up with concrete 
actions.  The turnover in key government personnel involved 
in food and nutrition activities has hampered progress. 
 
-- The continuity and sustainability of WFP school feeding 
program remains in doubt, partly because of uncertain USG 
funding commitments.  Concerned parties may wish to consider 
additional ways to publicize and call attention to the 
issue. 
 
--  FAO's Special Program on Food Security in Guatemala is 
doing important work in some parts of the country to address 
longer-term issues of agricultural productivity and 
increasing rural incomes. 
 
-- We saw good examples of the complementary roles of WFP 
and FAO in the field, particularly at Xilbalbay.  Further 
opportunities for cooperation and coordination should be 
explored. 
 
-- Other forms of cooperation may allow FAO to multiply the 
impact of its limited resources.  For instance, the 2002 
Aide Memoire between FAO and the Inter-American Institute 
for Cooperation on Agriculture (IICA) provides a framework 
for closer collaboration between FAO and IICA that remains 
underutilized. 
 
-- IFAD is an important partner in addressing rural poverty 
in the areas where it is active, targeting some of the 
poorest populations, particularly indigenous groups.  The 
emphasis on decentralization and strengthening of municipal 
governments and local communities is noteworthy. 
Construction of access roads is a tool to stimulate commerce 
and other services that benefits the entire community in 
hitherto-isolated villages. 
 
-- Even though IFAD has no permanent staff in country, its 
energetic Rome-based Country Program Manager has developed 
very close and effective working relations with federal and 
local officials and other stakeholders though twice-yearly 
country visits.  He is very engaged with and knowledgeable 
about the projects and the key players. 
 
-- More could be done on a regional basis to tackle the 
problems of food insecurity.  This is particularly important 
with regard to pockets of food insecurity concentrated along 
border areas that tend to fall between the cracks of 
national programs. 
 
 
-- Various elements of the U.S. Embassy and USAID Mission 
involved in humanitarian relief and food security issues may 
wish to explore opportunities for closer coordination. 
 
-- More attention should be given to the potential impact of 
HIV/AIDS on food security. 
 
-- We were struck during the trip along the Polochic River 
Valley and elsewhere at the apparent scale of environmental 
degradation, including extensive clearing and cultivation of 
steep hillsides, rampant deforestation, and encroachment 
into designated natural protected areas.  The environmental 
sustainability of development in rural areas is a deep 
concern, and this bodes ill for rural food security in the 
medium and long term. 
 
-- Further efforts could be made to enhance the contribution 
of the expatriate Guatemalan community in the U.S. and 
elsewhere to food security -- through remittances, 
investments and donations. 
 
Hall 
 
 
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	2004ROME02274 - Classification: UNCLASSIFIED