Identifier
Created
Classification
Origin
02ROME1335
2002-03-15 10:15:00
UNCLASSIFIED
Embassy Rome
Cable title:  

REPORT OF IFAD 25TH GOVERNING COUNCIL

Tags:  AORC EAID IFAD 
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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

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 EAID IFAD EAID AORC IFAD EAID AORC IFAD
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 EAID IFAD EAID AORC IFAD EAID AORC IFAD
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

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2002ROME01335 - Classification: UNCLASSIFIED