WFP FOOD AID - A "FIRST CUT" ON FUTURE WFP

UNCLAS SECTION 03 OF 03 ROME 000341 SIPDIS FROM U.S. MISSION IN ROME UNCLASSIFIED PAGE 02 ROME 00341 03 OF 03 291510Z STATE FOR A/S IO HOLMES, A/S PRM DEWEY, IO/EDA WINNICK USAID FOR AA/DCHA WINTER, D/DCHA/FFP LANDIS, DCHA/PPE USDA/FAS FOR MCHAMBLISS/RTILSWORTH USUN NEW YORK FOR CSERWER NSC FOR JDWORKEN NAIROBI FOR REDSO NESTES TOKYO FOR USAID REP E.O. 12958: N/A TAGS: EAID EAGR AORC PREF EAGR AORC PREF EAGR AORC PREF EU WFP UN EUEAID WFP UN EUEAID WFP UN SUBJECT: WFP FOOD AID - A "FIRST CUT" ON FUTURE WFP PROGRAMMING DIRECTIONS BOARD MEMBERS THAT THE BREADTH AND LOCATIONS OF WFP'S ACTIVITIES MUST BE REDUCED, ESSENTIALLY NONE OF THE REGIONAL GROUPS ON THE BOARD WANT THEIR "OX TO BE GORED." THE FIGHT TO FOCUS AND CONCENTRATE WFP'S FOOD AID PORTFOLIO IS FAR FROM OVER. HALL UNCLASSIFIED > @@@OASYS@@@ UNCLASSIFIED PTQ1513 PAGE 01 ROME 00341 01 OF 03 291509Z ACTION IO-00 INFO LOG-00 AF-00 AID-00 AMAD-00 CIAE-00 COME-00 CTME-00 WHA-00 SRPP-00 EAP-00 EB-00 EUR-00 E-00 UTED-00 TEDE-00 INR-00 NSAE-00 NSCE-00 OES-00 OIC-02 OMB-01 SSO-00 STR-00 TEST-00 TRSE-00 USIE-00 PRM-00 SAS-00 /003W -------------- 2DA85F 291705Z /38 P 291436Z JAN 03 FM AMEMBASSY ROME TO SECSTATE WASHDC PRIORITY 7851 INFO EU MEMBER STATES COLLECTIVE AMEMBASSY OTTAWA AMEMBASSY BERN AMEMBASSY NAIROBI USDA FAS WASHDC 2482 USEU BRUSSELS 3070 USMISSION GENEVA USMISSION USUN NEW YORK AMEMBASSY TOKYO UNCLAS SECTION 01 OF 03 ROME 000341 SIPDIS FROM U.S. MISSION IN ROME STATE FOR A/S IO HOLMES, A/S PRM DEWEY, IO/EDA WINNICK USAID FOR AA/DCHA WINTER, D/DCHA/FFP LANDIS, DCHA/PPE UNCLASSIFIED PAGE 02 ROME 00341 01 OF 03 291509Z USDA/FAS FOR MCHAMBLISS/RTILSWORTH USUN NEW YORK FOR CSERWER NSC FOR JDWORKEN NAIROBI FOR REDSO NESTES TOKYO FOR USAID REP E.O. 12958: N/A TAGS: EAID EAGR AORC PREF EAGR AORC PREF EAGR AORC PREF EU WFP UN EUEAID WFP UN EUEAID WFP UN SUBJECT: WFP FOOD AID - A "FIRST CUT" ON FUTURE WFP PROGRAMMING DIRECTIONS REF: (A) ROME 00007 -------------- SUMMARY -------------- ¶1. WORLD FOOD PROGRAM (WFP) PRESENTED "NOTES FOR A CONSULTATION ON STRATEGIC ISSUES" IN ROME ON JANUARY 14, ¶2003. WFP REITERATED ITS INTENT TO INTENSIFY ITS FOCUS IN COUNTRIES WITH THE GREATEST NEED - WHICH IT DEFINED AS THOSE WITH A PER CAPITA GROSS DOMESTIC PRODUCT (GDI) OF LESS THAN USD 885 AND A RATE OF UNDER-5 CHILD STUNTING GREATER THAN 30 PERCENT. THE TARGET WOULD BE TO DEDICATE 75 PERCENT OF WFP'S DEVELOPMENT RESOURCES TO THESE 29 COUNTRIES BY THE END OF THE 2004-2005 BIENNIUM. WFP FURTHER PROPOSED FOUR PROGRAM WORK OBJECTIVES: A) SUPPORTING UNIVERSAL PRIMARY EDUCATION AND REDUCING GENDER DISPARITY IN ACCESS TO EDUCATION; B) SUPPORTING IMPROVED HEALTH OF CHILDREN AND VULNERABLE GROUPS THROUGH NUTRITION EDUCATION; C) SAVING LIVES IN CRISIS SITUATIONS; AND D) PRESERVING LIVELIHOODS IN CRISIS UNCLASSIFIED PAGE 03 ROME 00341 01 OF 03 291509Z SITUATIONS. THE NOTES RECOGNIZED THAT WFP RISKS LOSING ITS EFFECTIVENESS IF ITS RESOURCES AND CAPACITY ARE SPREAD TOO THIN. END SUMMARY. -------------- BACKGROUND -------------- ¶2. THESE NOTES FORM PART OF A WORK IN PROCESS LEADING UP TO A STRATEGIC FRAMEWORK TO BE SUBMITTED FOR EXECUTIVE BOARD APPROVAL IN MAY 2003. THE NOTES REFLECT THE WFP SECRETARIAT'S RECOGNITION THAT WFP'S DEVELOPMENT PORTFOLIO SIPDIS HAS PRECIPITOUSLY FALLEN OVER THE PAST DECADE - FROM ALMOST U.S. DOLLARS 1 BILLION A DECADE AGO TO U.S. DOLLARS 273 MILLION THIS PAST YEAR, WITH THE CLEAR IMPROBABILITY THAT THIS TREND WILL BE REVERSED IN THE FUTURE. DESPITE THE ISSUANCE OF THE WFP FOOD FOR DEVELOPMENT POLICY (FAAD) IN 1999, THE REALITY IS THAT A NUMBER OF MAJOR DONORS (EC, SWEDEN, JAPAN, THE NETHERLANDS) HAVE MADE A POLICY DECISION NOT TO CONTRIBUTE TO WFP'S DEVELOPMENT PROGRAM. MOREOVER, THE UNITED STATES HAS REPEATEDLY ASKED THAT BOTH WFP AND THE EXECUTIVE BOARD REFOCUS ON THE KEY RECOMMENDATION OF THE 1994 TRIPARTITE EVALUATION OF WFP (NORWAY, THE NETHERLANDS, AND CANADA) WHICH SUGGESTED THAT WFP REDUCE THE NUMBER OF COUNTRIES IN WHICH IT FUNCTIONS TO ABOUT 50. -------------- WHAT WFP PROPOSES FROM THIS POINT ONWARD -------------- ¶3. WFP'S SECRETARIAT SUGGESTS GENERALLY PURSUING THE UN'S UNCLASSIFIED PAGE 04 ROME 00341 01 OF 03 291509Z FIRST MILLENIUM DEVELOPMENT GOAL(MDG),I.E., THE ERADICATION OF HUNGER AND POVERTY. SPECIFICALLY, IN CRISIS (CONFLICT/DISPLACEMENT, NATURAL DISASTER, DROUGHT/FLOOD, HIV/AIDS, ECONOMIC SHOCKS) - WFP WOULD CAST ITS FOOD ASSISTANCE AS PREVENTING VULNERABLE PEOPLE FROM SLIDING INTO CHRONIC HUNGER. WFP SEES ITSELF WELL POSITIONED TO CONTRIBUTE TO MEETING THE MDG BOTH IN EMERGENCIES AND IN MORE STABLE SITUATIONS AND IS THEREFORE NOT LIMITED TO ACTIVITIES SUPPORTED THOUGH ONE FUNDING MECHANISM I.E., DEVELOPMENT. ¶4. WFP LISTED FOUR PROGRAM WORK OBJECTIVES: A) SUPPORTING UNIVERSAL PRIMARY EDUCATION AND REDUCING GENDER DISPARITY IN ACCESS TO EDUCATION; B) SUPPORTING IMPROVED HEALTH OF CHILDREN AND VULNERABLE GROUPS THROUGH NUTRITION EDUCATION; C) SAVING LIVES IN CRISIS SITUATIONS; AND D) PRESERVING LIVELIHOODS IN CRISIS SITUATIONS. TWO THEMES DESCRIBE HUMANITARIAN OBJECTIVES. GENDER CONSIDERATIONS WOULD APPLY TO ALL THEMES AS A CROSS-CUTTING ISSUE. ¶5. IN GENERAL, THE TIGHTENED WORK OBJECTIVES IMPLY MORE DIRECT FEEDING ACTIVITIES, ESPECIALLY FOR CHILDREN. ON FOOD- FOR-WORK, THERE WOULD BE INCREASED CONCENTRATION ON PRESERVING LIVELIHOODS DURING CRISES; THERE WOULD ALSO BE A UNCLASSIFIED UNCLASSIFIED PTQ1515 PAGE 01 ROME 00341 02 OF 03 291510Z ACTION IO-00 INFO LOG-00 AF-00 AID-00 AMAD-00 CIAE-00 COME-00 CTME-00 WHA-00 SRPP-00 EAP-00 EB-00 EUR-00 E-00 UTED-00 TEDE-00 INR-00 NSAE-00 NSCE-00 OES-00 OIC-02 OMB-01 SSO-00 STR-00 TEST-00 TRSE-00 USIE-00 PRM-00 SAS-00 /003W -------------- 2DA883 291705Z /38 P 291436Z JAN 03 FM AMEMBASSY ROME TO SECSTATE WASHDC PRIORITY 7852 INFO EU MEMBER STATES COLLECTIVE AMEMBASSY OTTAWA AMEMBASSY BERN AMEMBASSY NAIROBI USDA FAS WASHDC 2483 USEU BRUSSELS 3071 USMISSION GENEVA USMISSION USUN NEW YORK AMEMBASSY TOKYO UNCLAS SECTION 02 OF 03 ROME 000341 SIPDIS FROM U.S. MISSION IN ROME STATE FOR A/S IO HOLMES, A/S PRM DEWEY, IO/EDA WINNICK USAID FOR AA/DCHA WINTER, D/DCHA/FFP LANDIS, DCHA/PPE UNCLASSIFIED PAGE 02 ROME 00341 02 OF 03 291510Z USDA/FAS FOR MCHAMBLISS/RTILSWORTH USUN NEW YORK FOR CSERWER NSC FOR JDWORKEN NAIROBI FOR REDSO NESTES TOKYO FOR USAID REP E.O. 12958: N/A TAGS: EAID EAGR AORC PREF EAGR AORC PREF EAGR AORC PREF EU WFP UN EUEAID WFP UN EUEAID WFP UN SUBJECT: WFP FOOD AID - A "FIRST CUT" ON FUTURE WFP PROGRAMMING DIRECTIONS CORRESPONDING DECREASE IN FOOD-FOR-WORK FOR ASSET CREATION, NATURAL RESOURCES ACTIVITIES IN THE DEVELOPMENT PORTFOLIO. -------------- IN HOW MANY COUNTRIES SHOULD WFP WORK? -------------- ¶6. WFP FLOATED A "BALLON D'ESSAI" ("TRIAL BALLOON") TO FOCUS ITS DEVELOPMENT RESOURCES ON 29 COUNTRIES WHOSE PER CAPITA GROSS DOMESTIC PRODUCT (GDI) IS LESS THAN U.S. DOLLARS 885 AND WHOSE RATE OF UNDER-5 CHILD STUNTING IS GREATER THAN 30 PERCENT. THE TARGET WOULD BE TO DEDICATE 75 PERCENT OF WFP'S DEVELOPMENT RESOURCES TO THESE 29 COUNTRIES BY THE END OF THE 2004-2005 BIENNIUM. NOTE: WFP PRESENTLY IMPLEMENTS DEVELOPMENT ACTIVITIES IN 54 COUNTRIES. END NOTE. THERE WAS CONSIDERABLE REACTION TO THIS PROPOSAL, PARTICULARLY FROM ASIAN AND LATIN AMERICAN PERMANENT REPRESENTATIVES PRESENT. CONTINUING DISCUSSIONS ARE NECESSARY NOT ONLY TO REACH CONSENSUS ON THIS DE FACTO "DOWNSIZING" CRITERIA, BUT ALSO TO DEVELOP SPECIFIC COUNTRY PHASE OUT TIMETABLES. IT WAS UNCLASSIFIED PAGE 03 ROME 00341 02 OF 03 291510Z NOTED THAT WFP ALSO HAS EMERGENCY OR RECOVERY OPERATIONS IN AN ADDITIONAL 12 COUNTRIES WHO FIT THE PROPOSED GDI/STUNTING CRITERIA. -------------- INCREASING RESOURCES TO SUPPORT WFP'S WORK -------------- ¶7. WFP'S EXECUTIVE DIRECTOR WANTS TO INCREASE WFP'S REVENUE BASE FROM ABOUT 1.9 BILLION DOLLARS TO 3 BILLION DOLLARS PER YEAR. THIS REQUIRES GREATLY EXPANDED TRADITIONAL DONOR SUPPORT, REACHING OUT CREATIVELY TO NON-TRADITIONAL DONORS, ENGAGING THE PRIVATE SECTOR, AND IMPROVING LEVERAGE OF RESOURCES. FOR EXAMPLE, INDIA, AN EMERGING DONOR, HAS AGREED TO DONATE 1 MILLION TONS OF WHEAT FOR AFGHANISTAN. OTHER EMERGING DONORS INCLUDE ALGERIA, VIET NAM, THAILAND, THE REPUBLIC OF SOUTH AFRICA (RSA),THE RUSSIAN FEDERATION AND PAKISTAN. IN ADDITION, WFP IS BEGINNING TO SEEK OUT PRIVATE SECTOR PARTNERSHIPS, COGNIZANT THAT UNICEF RECEIVES MORE THAN 30 PERCENT OF ITS REVENUES FROM PRIVATE DONATIONS. ¶8. SPECIFICALLY, WFP WILL: -ASK CASH DONORS TO ALLOW WFP TO "TWIN" THEIR CASH WITH THE COMMODITY CONTRIBUTIONS FROM EMERGING DONORS (SEE REF A); -ASK THOSE DONORS THAT PREFER TO HAVE THEIR CASH DONATIONS USED TO PURCHASE FOOD TO ALLOW WFP TO PURCHASE THAT FOOD FROM EMERGING DONORS, WHERE SUCH A TRANSACTION MEETS THE TEST OF TIMELINESS OF DELIVERY, QUALITY OF PRODUCT AND COST COMPETITIVENESS; -ASK DONORS TO ESTABLISH A FUND (OR OTHER FINANCIAL UNCLASSIFIED PAGE 04 ROME 00341 02 OF 03 291510Z FACILITY) UNDER WHICH WFP WOULD HAVE AVAILABLE CASH TO MATCH WITH THE COMMODITY CONTRIBUTIONS OF EMERGING DONORS; -ASK PRIVATE-SECTOR DONORS TO ALLOW WFP THE MAXIMUM FLEXIBILITY (ALONG THE ABOVE LINES) IN USING CASH CONTRIBUTIONS TO LEVERAGE COMMODITY CONTRIBUTIONS FROM EMERGING DONORS. -------------- COMMENT -------------- ¶9. SIMPLY, WAR AND DROUGHT (PARTICULARLY IN SUB-SAHARAN AFRICA) HAVE DRASTICALLY RATCHETED UP HUMANITARIAN FOOD AID NEEDS AND OVERWHELMED WFP'S RESOURCING CAPACITY. THE STRATEGIC NOTES PAPER RECOGNIZES THAT THE ORGANIZATION'S ACTUAL AND ANTICIPATED DEVELOPMENT RESOURCES ARE ABOUT HALF OF WHAT ARE NEEDED FOR APPROVED COUNTRY PROGRAMS. WFP IS INTENT ON FINDING WAYS OF MAXIMIZING INPUTS FROM EMERGING DONORS, BUT THIS RUNS INTO THE CONVENTIONAL FULL COST RECOVERY BARRIER WHERE ALL DONORS ARE OBLIGATED TO PAY ALL COSTS, BOTH DIRECT AND INDIRECT, ASSOCIATED WITH THEIR DONATION. CLEARLY, WFP RECOGNIZES THAT IT RISKS LOSING ITS EFFECTIVENESS IF ITS RESOURCES AND CAPACITY ARE SPREAD TOO THIN. AND, WHILE THERE IS CONSENSUS AMONG OECD EXECUTIVE UNCLASSIFIED > 2003ROME00341 - Classification: UNCLASSIFIED