ANNUAL SESSION OF THE WORLD FOOD PROGRAM EXECUTIVE

UNCLAS SECTION 01 OF 04 ROME 002629 SIPDIS FROM U.S. MISSION IN ROME STATE FOR AS/PRM, PRM/P, EUR/WE, EUR/NE AND IO/D USAID FOR A/AID, AA/DCHA, AA/AFR, BHR/FFP, PPC/DP, PPC/DC USDA/FAS/FOR CHAMBLISS/TILLSWORTH GENEVA FOR RMA AND NKYLOH/USAID UNCLASSIFIED PAGE 02 ROME 02629 01 OF 04 310722Z BRUSSELS FOR KFULLER USUN FOR LSHESTACK NSC FOR JDWOKEN OMB FOR TSTOLL PARIS PASS TO USMISSION OECD E.O. 12958: N/A TAGS: EAID EAGR AORC PREF EAGR AORC PREF EAGR AORC PREF EAGR AORC PREF KUNR WFP UN KUNR EAID WFP UN KUNR EAID WFP UN KUNR EAID WFP UN SUBJECT: ANNUAL SESSION OF THE WORLD FOOD PROGRAM EXECUTIVE BOARD, ROME, MAY 20-23, 2002 -------------- SUMMARY -------------- ¶1. THE BOARD SESSION TOOK PLACE AGAINST THE BACKDROP OF EVER- INCREASING EMERGENCY NEEDS AND HOW BEST TO PROVIDE THE NECESSARY LEVEL OF RESOURCES TO ENSURE AN ADEQUATE LEVEL OF EMERGENCY FUNDING FOR WFP. ON PROTECTION FROM SEXUAL EXPLOITATION AND OTHER ABUSES OF POWER BY UN PERSONNEL IN HUMANITARIAN CRISES, THE BOARD FELT THAT THE UN IN GENERAL AND ITS AGENCIES IN PARTICULAR MUST PROMPTLY IMPLEMENT MEASURES TO PREVENT ABUSES AND EXPLOITATION, HOLD VIOLATORS ACCOUNTABLE AND ENSURE THE INTEGRITY OF UN OPERATIONS. ON INDIRECT SUPPORT (ISC) COSTS, THE BOARD DECIDED TO KEEP THE CURRENT 7.8 PERCENT ISC RATE IN PLACE FOR 2002 PENDING REVIEW AND DECISION BY THE BOARD AT ITS NEXT SESSION IN OCTOBER 2002. A PLEDGING TARGET OF USD 2.67 BILLION WAS APPROVED FOR THE 2002-2003 BIENNIUM. FINALLY, THIS MARKED THE FIRST ANNUAL BOARD FOR THE NEW EXECUTIVE DIRECTOR JIM MORRIS WHO RECEIVED HIGH MARKS FOR HIS "HANDS-ON" APPROACH AND DEEP SENSE OF COMMITMENT TO ASSISTING THE WORLD'S HUNGRY UNCLASSIFIED PAGE 03 ROME 02629 01 OF 04 310722Z POOR, ESPECIALLY POOR CHILDREN. END SUMMARY. -------------- --- ANNUAL REPORT OF THE EXECUTIVE DIRECTOR FOR 2001 -------------- --- ¶2. THE BOARD APPROVED WFP EXECUTIVE DIRECTOR JIM MORRIS' ANNUAL REPORT FOR 2001, FAVORABLY ACKNOWLEDGING WFP ASSISTANCE TO 77 MILLION PEOPLE IN 82 COUNTRIES. EXPENDITURES TOTALED USD (U.S. DOLLARS) 1.9 BILLION (SHIPMENT OF 4.2 MILLION TONS),OF WHICH EMERGENCY AND RELIEF RELATED OPERATIONS ACCOUNTED FOR 86 PERCENT OF THE BUDGET. DONOR SUPPORT IN 2001 WAS THE HIGHEST IN WFP'S HISTORY. THE BOARD ACKNOWLEDGED WFP'S KEY ROLE IN AVERTING A CATASTROPHIC FOOD CRISIS IN AFGHANISTAN THIS PAST WINTER. NOTE: SINCE SEPTEMBER 11 THROUGH END APRIL 2002, WFP DELIVERED NEARLY 350,000 TONS OF FOOD WITHIN AFGHANISTAN, AT AN UNPRECEDENTED RATE AVERAGING NEARLY 1,500 TONS PER DAY TO ASSIST SOME 6.6 MILLION PEOPLE. END NOTE. -------------- SECURITY FOR HUMANITARIAN WORKERS -------------- ¶3. THE BOARD NOTED THE UN GENERAL ASSEMBLY'S ADOPTION OF RESOLUTION 56/255, SECTION VIII, APPROVING THE COST-SHARING ARRANGEMENT FOR THE UNITED NATIONS SECURITY MANAGEMENT SYSTEM, INCLUDING WFP'S FUNDING OF ITS SHARE OF THE OFFICE OF THE UNITED NATIONS SECURITY (UNSECOORD) COORDINATOR. IT REQUESTED WFP TO PLAY AN ACTIVE ROLE IN THE DEVELOPMENT OF THE GOVERNANCE MECHANISM FOR SECURITY MANAGEMENT IN THE UN UNCLASSIFIED PAGE 04 ROME 02629 01 OF 04 310722Z SYSTEM. NOTE: USDEL LEARNED THAT THE NEW HEAD (ASSISTANT SECRETARY-GENERAL) OF UNSECOORD WILL BE TUN MYAT, A CAREER SIPDIS WFP-OFFICER PRESENTLY UN HUMANITARIAN COORDINATOR IN IRAQ. END NOTE. -------------- -------------- PRELIMINARY REVIEW OF THE INDIRECT SUPPORT COST (ISC) RATE -------------- -------------- ¶4. IN 1998, THE BOARD APPROVED THE USE OF A SINGLE INDIRECT SUPPORT COST (ISC) RATE OF 7.8 PERCENT APPLICABLE FOR ALL MULTILATERAL AND DIRECTED MULTILATERAL CONTRIBUTIONS FOR WFP'S FOUR PROGRAM CATEGORIES: DEVELOPMENT PROJECTS, EMERGENCY OPERATIONS (EMOPS),PROTRACTED RELIEF AND RECOVERY OPERATIONS (PRROS),AND SPECIAL (SO) OPERATIONS. THIS PRELIMINARY WFP REVIEW (SUBJECT TO A MORE COMPLETE ANALYSIS/SCRUTINY BY ITS EXTERNAL AUDITOR BY OCTOBER 2002) INDICATED AN ACTUAL EXPENDITURE OF USD 238.8 MILLION AGAINST AN ADJUSTED PSA (PROGRAM SUPPORT AND ADMINISTRATION) BUDGET OF USD 239.7 MILLION DURING THE BIENNIUM 2000-2001. ¶5. THE BOARD DECIDED TO KEEP THE CURRENT 7.8 PERCENT ISC UNCLASSIFIED UNCLASSIFIED PTQ2418 PAGE 01 ROME 02629 02 OF 04 310722Z ACTION PRM-00 INFO LOG-00 NP-00 AGRE-00 AID-00 AMAD-00 CIAE-00 WHA-00 SRPP-00 EB-00 EUR-00 UTED-00 TEDE-00 INR-00 IO-00 NSAE-00 NSCE-00 OES-01 OIC-02 OMB-01 TEST-00 SAS-00 /004W -------------- B61B04 310723Z /38 P 310754Z MAY 02 FM AMEMBASSY ROME TO SECSTATE WASHDC PRIORITY 3980 INFO EU MEMBER STATES COLLECTIVE AMEMBASSY OTTAWA AMEMBASSY BERN USDA FAS WASHDC 2152 USEU BRUSSELS 2668 USMISSION GENEVA USMISSION USUN NEW YORK AMEMBASSY PARIS UNCLAS SECTION 02 OF 04 ROME 002629 SIPDIS FROM U.S. MISSION IN ROME STATE FOR AS/PRM, PRM/P, EUR/WE, EUR/NE AND IO/D USAID FOR A/AID, AA/DCHA, AA/AFR, BHR/FFP, PPC/DP, PPC/DC USDA/FAS/FOR CHAMBLISS/TILLSWORTH GENEVA FOR RMA AND NKYLOH/USAID UNCLASSIFIED PAGE 02 ROME 02629 02 OF 04 310722Z BRUSSELS FOR KFULLER USUN FOR LSHESTACK NSC FOR JDWOKEN OMB FOR TSTOLL PARIS PASS TO USMISSION OECD E.O. 12958: N/A TAGS: EAID EAGR AORC PREF EAGR AORC PREF EAGR AORC PREF EAGR AORC PREF KUNR WFP UN KUNR EAID WFP UN KUNR EAID WFP UN KUNR EAID WFP UN SUBJECT: ANNUAL SESSION OF THE WORLD FOOD PROGRAM EXECUTIVE BOARD, ROME, MAY 20-23, 2002 RATE IN PLACE FOR 2002 PENDING REVIEW AND DECISION BY THE BOARD AT ITS NEXT SESSION IN OCTOBER 2002. IN GENERAL, THE BOARD FELT THAT A REVIEW OF THE OVERALL STRUCTURE OF PSA COSTS, INCLUDING FIXED AND VARIABLE COSTS AND A COMPARATIVE LOOK AT ADMINISTRATIVE AND SUPPORT BUDGETS OF COMPARABLE UN ORGANIZATIONS TO THE EXTENT FEASIBLE - NEEDS TO BE PURSUED. NOTE: THE INSISTENCE BY SEVERAL BOARD MEMBERS ON THE EXPRESS NEED FOR A COMPARATIVE STUDY OF SUPPORT COSTS IN OTHER UN AGENCIES DIMS THE PROSPECT FOR CONCLUDING THIS ISSUE AT THIS OCTOBER'S BOARD. END NOTE. ¶6. WFP WAS TASKED WITH DOING THE NECESSARY ANALYSIS, INCLUDING FUNDING OPTIONS, AND PROVIDING THIS INFORMATION TO ITS EXTERNAL AUDITOR (THE FRENCH GOVERNMENT'S COUR DES COMPTES) IN ORDER TO OBTAIN RECOMMENDATIONS FROM THE EXTERNAL AUDITOR AT THE OCTOBER 2002 BOARD MEETING. THE SECRETARIAT WILL CIRCULATE TO THE BOARD BY THE FIRST WEEK IN SIPDIS JUNE AN ANNOTATED OUTLINE OF THE DOCUMENT(S) TO BE SUBMITTED FOR CONSIDERATION IN OCTOBER 2002. MOREOVER, AN INFORMAL CONSULTATION WITH THE BOARD ON ISC/PSA IS SCHEDULED FOR UNCLASSIFIED PAGE 03 ROME 02629 02 OF 04 310722Z SEPTEMBER. ¶7. THE ISC DISCUSSION DEMONSTRATED THAT THE MODE OF CALCULATING INDIRECT SUPPORT COSTS REQUIRES FURTHER REFINEMENT. THE U.S. POSITION REMAINS THAT WFP'S INDIRECT SUPPORT COSTS REFLECT A REASONABLE MEASURE OF COSTS WHICH WOULD USUALLY ACCOMPANY AN ACTIVITY. MOREOVER, THE U.S. FAVORS THE ESTABLISHMENT OF DECLINING MARGINAL COSTS ASSOCIATED WITH DONATIONS I.E., AS THE QUANTITY OF DONATIONS INCREASE, THERE WOULD BE A DECREASE IN OVERHEAD COSTS ON A PER UNIT BASIS. ON THE MARGINS OF THE ISC DISCUSSION, IT WAS APPARENT TO USDEL THAT: (A) THE PRESENT WFP ACCOUNTING SYSTEM (WINGS) IS A MAJOR IMPROVEMENT CAPABLE OF GENERATING THE DATA TO ESTABLISH APPROPRIATE RATES; AND (B) THE NEW EXECUTIVE DIRECTOR JIM MORRIS AND HIS CHIEF OF STAFF MICHAEL STAYTON ARE SEIZED WITH THE PROBLEM AND COMMITTED TO SUCCESSFULLY RESOLVING IT. MORRIS RELATED THAT WFP WAS NOW PRODUCING (AS OF APRIL, 2002 A MONTHLY FINANCIAL STATEMENT) AND THAT HE IS PERSONALLY COMMITTED TO "MINIMIZING OUR FIXED COSTS" AND KEEPING "CASH BALANCES AT REASONABLE LEVELS." MORRIS REITERATED THAT: "WE NOW HAVE THE CAPABILITY TO BETTER IDENTIFY UNUSED PROGRAM FUNDS TO EITHER RETURN TO OR ASK TO HAVE THEM REPROGRAMMED BY OUR DONORS." -------------- -------------- CONSOLIDATED FRAMEWORK OF WFP POLICIES: ESTABLISHING AND MAINTAINING A GOVERNANCE TOOL -------------- -------------- ¶8. WFP PRESENTED A CONSOLIDATED FRAMEWORK (COMPENDIUM) OF APPROVED WFP POLICIES WHICH THE BOARD WELCOMED. THE BOARD UNCLASSIFIED PAGE 04 ROME 02629 02 OF 04 310722Z ASKED THE SECRETARIAT TO MAINTAIN AN UPDATED VERSION OF IT ON THE WFP WEBSITE, INCORPORATING NEW POLICY DECISIONS AFTER EACH BOARD SESSION AS APPROPRIATE. -------------- URBAN FOOD INSECURITY -------------- ¶9. THE BOARD AGREED THAT WFP FOOD ASSISTANCE IN EMERGENCY AND DEVELOPING SETTINGS SHOULD ADDRESS URBAN FOOD SECURITY WHEN APPROPRIATE. THE BOARD SUGGESTED A SET OF WFP GUIDELINES TO ASSIST COUNTRY OFFICES IN PROGRAMMING MORE EFFECTIVELY IN URBAN SETTINGS. ¶10. THE LARGER PROBLEM FOR WFP IS THAT ITS DEVELOPMENT PORTFOLIO HAS FALLEN FROM ALMOST USD 1 BILLION A DECADE AGO TO USD 273 MILLION IN 2001. GERMANY, A SUPPORTER OF DEVELOPMENT FOOD AID, SUGGESTED FOR 2003, AN INDEPENDENT EXTERNAL EVALUATION OF WFP'S DEVELOPMENT PORTFOLIO (WHICH IT IS WILLING TO PARTIALLY FUND). THE NETHERLANDS VOICED SUPPORT FOR SUCH A STUDY. -------------- --- UNCLASSIFIED UNCLASSIFIED PTQ2419 PAGE 01 ROME 02629 03 OF 04 310723Z ACTION PRM-00 INFO LOG-00 NP-00 AGRE-00 AID-00 AMAD-00 CIAE-00 WHA-00 SRPP-00 EB-00 EUR-00 UTED-00 TEDE-00 INR-00 IO-00 NSAE-00 NSCE-00 OES-01 OIC-02 OMB-01 TEST-00 SAS-00 /004W -------------- B61B13 310723Z /38 P 310754Z MAY 02 FM AMEMBASSY ROME TO SECSTATE WASHDC PRIORITY 3981 INFO EU MEMBER STATES COLLECTIVE AMEMBASSY OTTAWA AMEMBASSY BERN USDA FAS WASHDC 2153 USEU BRUSSELS 2669 USMISSION GENEVA USMISSION USUN NEW YORK AMEMBASSY PARIS UNCLAS SECTION 03 OF 04 ROME 002629 SIPDIS FROM U.S. MISSION IN ROME STATE FOR AS/PRM, PRM/P, EUR/WE, EUR/NE AND IO/D USAID FOR A/AID, AA/DCHA, AA/AFR, BHR/FFP, PPC/DP, PPC/DC USDA/FAS/FOR CHAMBLISS/TILLSWORTH GENEVA FOR RMA AND NKYLOH/USAID UNCLASSIFIED PAGE 02 ROME 02629 03 OF 04 310723Z BRUSSELS FOR KFULLER USUN FOR LSHESTACK NSC FOR JDWOKEN OMB FOR TSTOLL PARIS PASS TO USMISSION OECD E.O. 12958: N/A TAGS: EAID EAGR AORC PREF EAGR AORC PREF EAGR AORC PREF EAGR AORC PREF KUNR WFP UN KUNR EAID WFP UN KUNR EAID WFP UN KUNR EAID WFP UN SUBJECT: ANNUAL SESSION OF THE WORLD FOOD PROGRAM EXECUTIVE BOARD, ROME, MAY 20-23, 2002 PROTECTION FROM SEXUAL ABUSE AND EXPLOITATION IN HUMANITARIAN CRISES -------------- --- ¶11. A LARGE NUMBER OF BOARD MEMBERS COMMENTED THAT THE PROBLEM OF SEXUAL EXPLOITATION IN HUMANITARIAN CRISIS SITUATIONS NEEDS TO BE DIRECTLY FOCUSED ON BY THE UN IN GENERAL AND UN AGENCIES IN PARTICULAR. A NUMBER OF DONORS (LED BY USDEL) INSISTED THAT THE UN HIRE MORE WOMEN EMPLOYEES FOR UN-LOCAL HIRE JOBS, DEPLOY MORE WOMEN INTERNATIONAL STAFF AND MAINSTREAM WOMEN'S CONCERNS INTO UN OPERATIONS. SPECIFICALLY IN WEST AFRICA, IT WAS HIGHLIGHTED THAT THE INVESTIGATION (PRESENTLY BEING CONDUCTED BY THE UN'S OFFICE OF INTERNAL OVERSIGHT SERVICES (OIOS)) NEEDED TO BE QUICK, OPEN AND THOROUGH IN ORDER TO ASSURE THAT THE PROBLEM HAD BEEN ADEQUATELY ADDRESSED AND JUSTICE DONE. ¶12. STEPS TAKEN TO DATE BY WFP ARE AS FOLLOWS: -ALL STAFF, NATIONAL AND INTERNATIONAL, HAVE BEEN ADVISED OF UN RULES AND WFP'S "ZERO-TOLERANCE" POLICY WITH REGARD TO UNCLASSIFIED PAGE 03 ROME 02629 03 OF 04 310723Z SUCH ABUSES OF POWER; -IN WEST AFRICA, WFP IS RE-DEPLOYING AND RECRUITING STAFF TO INCREASE THE PERCENTAGE OF WOMEN MONITORS; -WFP IS ASSIGNING MORE INTERNATIONAL STAFF TO MONITOR ACTIVITIES AND WILL EMPLOY 10 EX-PEACE CORPS VOLUNTEERS IN GUINEA; -MEMORANDA OF UNDERSTANDING WITH NGOS ARE BEING REVISED TO SET CLEARER STANDARDS OF CONDUCT TO PREVENT ABUSES; -ALBEIT NO WFP INTERNATIONAL STAFF WERE MENTIONED IN THE INITIAL REPORT PREPARED BY CONSULTANTS FOR SAVE THE CHILDREN AND THE OFFICE OF THE HIGH COMMISSIONER FOR REFUGEES, WFP IS COMMITTED TO "FOLLOWING UP VIGOROUSLY ON ALL ACCUSATIONS." -------------- WFP PLEDGING TARGET 2003-2004 -------------- ¶13. THE BOARD APPROVED A PLEDGING TARGET OF USD 2.67 BILLION FOR THE BIENNIUM 2003-2004 (DEVELOPMENT, EMERGENCIES (EMOPS) AND PROTRACTED RELIEF AND RECOVERY OPERATIONS (PRROS). THE AMOUNT CORRESPONDS ROUGHLY TO THE 2001-2002 TARGET OF USD 2.6 BILLION AND IS ALREADY CONTAINED IN THE PREVIOUSLY APPROVED 2002-2005 STRATEGIC AND FINANCIAL PLAN. THE UNITED STATES AGREED WITH THE POSITION ADOPTED BY THE BOARD THAT, IN GENERAL, "PLEDGING CONFERENCES (INCLUDING THIS ONE SCHEDULED FOR NOVEMBER 2002) HAVE OUTLIVED THEIR USEFULNESS." THE BOARD URGED THE UN GENERAL ASSEMBLY TO DECIDE IN FAVOR OF CEASING TO CONVENE PLEDGING CONFERENCES OF THIS NATURE AT UN HEADQUARTERS IN NEW YORK. UNCLASSIFIED PAGE 04 ROME 02629 03 OF 04 310723Z -------------- HOUSING ALLOWANCE OF THE EXECUTIVE DIRECTOR -------------- ¶14. THE BOARD REVIEWED THE LEVEL OF ALLOWANCES OF THE WFP EXECUTIVE DIRECTOR AND DECIDED THAT THE HOUSING ALLOWANCE SHOULD CONSTITUTE REIMBURSEMENT OF THE ACTUAL COSTS OF A SUITABLE PROPERTY, CURRENTLY SET AT USD 127,000 PER ANNUM, INCLUSIVE OF SERVICES AND UTILITIES. FURTHER, COSTS SHOULD BE INDEXED AGAINST THE ITALIAN RETAIL PRICE INDEX AND REVIEWED AT FIVE-YEAR INTERVALS BY THE BUREAU AND THE BOARD, BEGINNING WITH THE THIRD REGULAR SESSION OF THE EXECUTIVE BOARD IN 2006. THE REVIEW WOULD TAKE INTO ACCOUNT MARKET RATES AND THE ALLOWANCES PAID TO THE OTHER AGENCY HEADS (FAO, IFAD) IN ROME. -------------- -------------- OCHA REPORTS ON THE CONSOLIDATED APPEALS (CAP) PROCESS -------------- -------------- ¶15. THE UN'S OFFICE FOR THE COORDINATION OF HUMANITARIAN UNCLASSIFIED UNCLASSIFIED PTQ2420 PAGE 01 ROME 02629 04 OF 04 310723Z ACTION PRM-00 INFO LOG-00 NP-00 AGRE-00 AID-00 AMAD-00 CIAE-00 WHA-00 SRPP-00 EB-00 EUR-00 UTED-00 TEDE-00 INR-00 IO-00 NSAE-00 NSCE-00 OES-01 OIC-02 OMB-01 TEST-00 SAS-00 /004W -------------- B61B1D 310724Z /38 P 310754Z MAY 02 FM AMEMBASSY ROME TO SECSTATE WASHDC PRIORITY 3982 INFO EU MEMBER STATES COLLECTIVE AMEMBASSY OTTAWA AMEMBASSY BERN USDA FAS WASHDC 2154 USEU BRUSSELS 2670 USMISSION GENEVA USMISSION USUN NEW YORK AMEMBASSY PARIS UNCLAS SECTION 04 OF 04 ROME 002629 SIPDIS FROM U.S. MISSION IN ROME STATE FOR AS/PRM, PRM/P, EUR/WE, EUR/NE AND IO/D USAID FOR A/AID, AA/DCHA, AA/AFR, BHR/FFP, PPC/DP, PPC/DC USDA/FAS/FOR CHAMBLISS/TILLSWORTH GENEVA FOR RMA AND NKYLOH/USAID UNCLASSIFIED PAGE 02 ROME 02629 04 OF 04 310723Z BRUSSELS FOR KFULLER USUN FOR LSHESTACK NSC FOR JDWOKEN OMB FOR TSTOLL PARIS PASS TO USMISSION OECD E.O. 12958: N/A TAGS: EAID EAGR AORC PREF EAGR AORC PREF EAGR AORC PREF EAGR AORC PREF KUNR WFP UN KUNR EAID WFP UN KUNR EAID WFP UN KUNR EAID WFP UN SUBJECT: ANNUAL SESSION OF THE WORLD FOOD PROGRAM EXECUTIVE BOARD, R OME, MAY 20-23, 2002 AFFAIRS (OCHA) REPRESENTATIVE ROSS MOUNTAIN PROVIDED TO THE BOARD AN UPDATE ON THE UN'S CAP PROCESS OVER THE PERIOD 1992- ¶2001. HIS MAIN CONCLUSIONS: -COHERENCE WITHIN THE HUMANITARIAN COMMUNITY IS STRAINED BY THE NUMBER OF "ACTORS," E.G., THE NUMBER OF NGOS PROVIDING RELIEF HAS GROWN FROM 938 IN 1972 TO 26,881 IN 1999; -CRISIS OFTEN MOVE FASTER THAN ORGANIZATIONS' CAPACITY TO RESPOND; -ALTHOUGH THE UN HAS RAISED USD 17 BILLION THROUGH CAP APPEALS OVER THE PAST DECADE, ONLY ABOUT A THIRD OF HUMANITARIAN ASSISTANCE IS CHANNELED THROUGH THE UN. IN 2001, 27.8 PERCENT OF OVERALL HUMANITARIAN ASSISTANCE WENT THROUGH THE CAP, WHICH MOUNTAIN CATEGORIZED AS PART OF A "FALL IN UN MARKET SHARE;" -THERE IS AN INEQUITABLE DISTRIBUTION OF RESOURCES BETWEEN DIFFERENT CAP COUNTRIES; -FINALLY, THAT DONORS ARE GENERALLY MORE SUPPORTIVE OF FOOD ASSISTANCE THAN FUNDING THE NON-FOOD ELEMENTS OF THE CAPS. NOTE: MOUNTAIN WAS RETICENT TO COMMENT ON THE QUALITATIVE UNCLASSIFIED PAGE 03 ROME 02629 04 OF 04 310723Z ASPECTS OF THE CAP PROCESS AND WHY DONORS IN GENERAL WERE NOT MORE SUPPORTIVE OF USING UN AGENCIES AS THEIR MAJOR CONDUIT FOR HUMANITARIAN ASSISTANCE. END NOTE. -------------- COMMENT -------------- ¶16. THE U.S. CONTINUES TO PROVIDE A HIGH SHARE OF WFP'S BUDGET (SOME 63 PERCENT IN 2001) AND WFP IS HEAVILY RELIANT ON THE U.S. TO MEET THE EVER GROWING NUMBER OF HUMANITARIAN CRISIS WORLDWIDE. IT IS EVIDENT THAT MOST OTHER DONORS ARE EITHER SATISFIED OR RESIGNED TO MAINTAINING THEIR PRESENT LEVEL OF CONTRIBUTIONS. FOR 2002, WFP'S SECOND LARGEST DONOR, THE EUROPEAN COMMISSION, WILL MODESTLY RAISE ITS "CORE" SUPPORT TO WFP FROM 90 MILLION EURO (USD 79.2 MILLION) TO 100 MILLION EURO (USD 88 MILLION); CANADA AND JAPAN HAVE SIGNIFICANTLY SLASHED SUPPORT. THE MAJOR CHALLENGE OF THE NEW EXECUTIVE DIRECTOR JIM MORRIS, WHO RECEIVED HIGH MARKS FOR HIS "HANDS-ON" APPROACH AND DEEP SENSE OF COMMITMENT TO ASSISTING THE WORLD'S HUNGRY POOR (ESPECIALLY POOR CHILDREN),IS GOING TO BE GETTING WFP'S OTHER DONORS TO DO A LOT MORE. THE FIRST "LITMUS" FUNDING TEST FOR EXPANDED DONOR SUPPORT WILL BE THE FOOD CRISIS IN SOUTHERN AFRICA, WHICH RECEIVED, ALONG WITH NORTH KOREA, AFGHANISTAN, PALESTINIAN TERRITORY AND ANGOLA, MAJOR RESOURCE "BILLING" DURING THE ANNUAL BOARD SESSION. HEILEMAN UNCLASSIFIED > 2002ROME02629 - Classification: UNCLASSIFIED