UNDP BURMA SETTLES IN FOR NEW PHASE

C O N F I D E N T I A L SECTION 01 OF 02 RANGOON 001219 SIPDIS STATE FOR EAP/BCLTV, EB, AND IO COMMERCE FOR ITA JEAN KELLY TREASURY FOR OASIA JEFF NEIL CINCPAC PASS FPA E.O. 12958: DECL: 09/20/2012 TAGS: EAID ECON BM UNDP SUBJECT: UNDP BURMA SETTLES IN FOR NEW PHASE REF: A. RANGOON 1069 ¶B. RANGOON 767 Classified By: COM CARMEN MARTINEZ FOR REASONS 1.5 (B,D) ¶1. (C) Summary: The UNDP is in a holding pattern in Burma as it awaits both UNDP board and Burmese government approval for its ongoing efforts in the countryside. UNDP has no new major projects on the drawing board, but wants more flexibility in its mandate. UNDP's relations remain somewhat rocky with its new GOB point of contact, but we do not think this is an issue which requires UNDP board attention. End summary. A Desire for More Flexibility ¶2. (SBU) UNDP would like further flexibility in its programming here, but will not make any specific requests for new projects at the UNDP board meeting beginning September ¶23. UNDP Deputy Resident Representative Akiko Suzaki and Assistant Resident Representative David Dallah told us that in the upcoming year the UNDP here would focus on carrying out existing grassroots programs, and implementing agricultural and socio-economic assessments that the board approved in concept last year. ¶3. (SBU) Ms. Suzaki and Mr. Dallah repeated their complaint (see Ref B) that the UNDP is unable to work efficiently here because of its mandate's restrictions regarding cooperation with government authorities. They said that the recent UN review of UNDP's Burma activities concluded that the UNDP's Human Development Initiative (HDI) program here would be far more cost effective if it were able to take advantage of technical and professional staff resident in various Burmese government ministries. The UNDP representatives also said that there are difficulties in coordinating actions with other UN agencies which are permitted to work with and through host government officials. ¶4. (SBU) Though it does not plan to raise the matter during board discussions of Burma, the UNDP is considering preparation of a macroeconomic study aimed at advising the GOB on ties between economic reform and poverty reduction. This is a regional UNDP program, which the agency is currently carrying out in China, Cambodia, Vietnam, Bangladesh, Nepal, and Indonesia. The idea is to complete a case study and then proffer policy recommendations to the government, with the aim of building capacity within the government and local "think tanks." Though the UNDP representatives stressed that this program was not conceived locally, we expect that the UNDP office here asked headquarters to include Burma in this regional program. Obstructionist "Shining Star" Sees the Light ¶5. (C) The newly appointed liaison for UNDP and UNICEF activities, Minister for National Planning and Economic Development U Soe Tha, is apparently easing his initial bureaucratic stance toward UNDP projects. U Soe Tha assumed the UNDP portfolio in July 2002 (Ref A) at the expense of the creative and more economically savvy Brigadier General David Abel. According to UNDP staff here, after a rocky start the relationship with U Soe Tha has improved markedly. Though the Minister has not yet approved UNDP's activities for the upcoming year, UNDP representatives are optimistic and pleased that the Minister and his staff have become more responsive. The UNDP officials believe that someone higher in the food chain has encouraged U Soe Tha to show progress, and quickly. ¶6. (C) Comment: We think it unnecessary to raise during the UNDP board's Burma deliberations the matter of U Soe Tha's administration of UNDP's activities. However, it might be useful to urge the Burmese government to act promptly on approval of UNDP's country projects. UNDP staff here said that a more aggressive intervention would have been welcome in July, but now, they fear, any pointed criticism could have negative consequences. We will continue to monitor this evolving relationship, especially as it impacts UNDP's efforts to work with Aung San Suu Kyi and the NLD. End comment. Martinez