Identifier
Created
Classification
Origin
04ROME815
2004-03-03 10:53:00
UNCLASSIFIED
Embassy Rome
Cable title:  

FIRST REGULAR SESSION OF THE WORLD FOOD PROGRAM

Tags:  EAID EAGR AORC PREF KUNR KHIV WFP UNHCR 
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UNCLAS ROME 000815 

SIPDIS


FROM U.S. MISSION IN ROME

STATE FOR NEA/IR AMBASSADOR RAPHEL, AS/PRM DEWEY, AS/IO
HOLMES, PRM/P, EUR/WE, EUR/NE AND IO/EDA BEHREND/KOTOK
USAID FOR A/AID, AA/DCHA WINTER, AA/AFR, DCHA/FFP LANDIS,
PPC/DP, PPC/DC
USDA/FAS FOR U/S PENN, CHAMBLISS/TILSWORTH/GAINOR
GENEVA FOR AMBASSADOR MOLEY, RMA LYNCH AND NKYLOH/USAID
USUN FOR AMBASSADOR NEGROPONTE AND MLUTZ
BAGHDAD FOR LSINGER, JWARLICK AND JLAPENN
BRUSSELS FOR AFRICA WATCHERS AND USAID/LERNER
NSC FOR JDWORKEN AND AFRICA DIRECTORATE

E.O. 12958: N/A
TAGS: EAID EAGR AORC PREF KUNR KHIV WFP UNHCR
SUBJECT: FIRST REGULAR SESSION OF THE WORLD FOOD PROGRAM
EXECUTIVE BOARD, ROME, FEBRUARY 23-26, 2004

-------
SUMMARY
-------

UNCLAS ROME 000815

SIPDIS


FROM U.S. MISSION IN ROME

STATE FOR NEA/IR AMBASSADOR RAPHEL, AS/PRM DEWEY, AS/IO
HOLMES, PRM/P, EUR/WE, EUR/NE AND IO/EDA BEHREND/KOTOK
USAID FOR A/AID, AA/DCHA WINTER, AA/AFR, DCHA/FFP LANDIS,
PPC/DP, PPC/DC
USDA/FAS FOR U/S PENN, CHAMBLISS/TILSWORTH/GAINOR
GENEVA FOR AMBASSADOR MOLEY, RMA LYNCH AND NKYLOH/USAID
USUN FOR AMBASSADOR NEGROPONTE AND MLUTZ
BAGHDAD FOR LSINGER, JWARLICK AND JLAPENN
BRUSSELS FOR AFRICA WATCHERS AND USAID/LERNER
NSC FOR JDWORKEN AND AFRICA DIRECTORATE

E.O. 12958: N/A
TAGS: EAID EAGR AORC PREF KUNR KHIV WFP UNHCR
SUBJECT: FIRST REGULAR SESSION OF THE WORLD FOOD PROGRAM
EXECUTIVE BOARD, ROME, FEBRUARY 23-26, 2004

--------------
SUMMARY
--------------


1. The WFP Board first regular session for 2004 took place
against the backdrop of an unprecedented level of emergency
needs. In 2003, WFP received U.S. dollars (USD) 2.6 billion
in donor contributions in support of its operations
worldwide (plus an additional USD 1.2 billion from the Oil-
for-Food account for its work in Iraq). Executive Director
Morris reported that WFP reached 110 million beneficiaries
this past year and challenged the organization "to do more,
and do it better." UN High Commissioner for Refugees Rudd
Lubbers addressed the Board at its opening session and
strongly endorsed WFP efforts linking food and nutrition in
fighting HIV/AIDS and urged national governments to include
refugee populations in their AIDS-related strategies.
Getting emergency needs assessments right; proceeding with
five pilots designed primarily to authorize spending against
forecasted resources (rather than confirmed contributions)
in order to improve the organization's business practices;
approval (on an exceptional basis) to exclude from indirect
support costs the cargo preference premiums for ocean
transport from U.S. contributions for the period October
2001-December 2003; measures needed to improve the quality
of WFP's protracted relief and recovery operations - all
received major Board attention. Development programs valued
at USD 23.42 million and USD 210.1 million in protracted
relief and recovery operations (PRROs) were approved.


2. U.S. Mission/Rome Ambassador Tony Hall noted that the
United States contributed USD 1.4 billion through the World

Food Program in 2003, the largest single year U.S. voluntary
donation to a UN agency in history. Ambassador Hall thanked
WFP for directly moving 2.76 million tons of critically
needed commodities over the past ten months to assist some
27 million Iraqis; working to renegotiate USD 1.5 billion in
food procurements of Oil-for-Food contracts; responding
admirably to the terrible Baghdad bombing of August 19; and
facilitating the procurement of more than one million tons
of the 2003 Iraqi wheat harvest. End summary.

-------------- --------------
Report of the WFP Executive Director on Current and Future


Strategic Issues
-------------- --------------


3. WFP Executive Director Jim Morris highlighted WFP's 2003
receipt of USD 2.6 billion in donor contributions, (plus an
additional USD 1.2 billion from the Oil-for-Food account for
its work in Iraq) which enabled the organization to reach
110 million beneficiaries this past year. He challenged WFP
"to do more, and do it better." He reported that WFP had
raised USD 95 million in 2003 from non-traditional donors
which included: USD 19.8 million from the Republic of South
Africa; USD 11.0 million from Russia; USD 10.92 million form
the OPEC Fund; USD 6.35 million from the Dutch private firm,
TPG; and USD 1 million from Kuwait. And, having just
returned from Australia (where he met with Foreign Minister
Downer and Deputy Foreign Minister, Mrs Galles),Morris
confirmed an additional Australian dollars (AUD) 13 million
contribution, essentially for WFP programs in Eritrea,
Ethiopia and southern Africa. Morris highlighted
humanitarian operations in Iraq, Afghanistan, Sudan, Chad,
North Korea, Liberia, and initial steps to respond to the
rapidly deteriorating situation in Haiti. Morris commented
that WFP presently has 135 duty stations which are listed at
a Phase 3 or higher level on the UN's security status
rating.


4. U.S. Mission/Rome Ambassador Tony Hall congratulated WFP
Executive Director Jim Morris and the entire WFP
organization for their untiring efforts on behalf of the
world's hungry poor, noting that the United States
contributed USD 1.4 billion through the World Food Program
in 2003, the largest single year voluntary donation to a UN
agency in history. Ambassador Hall thanked WFP for directly
moving 2.76 million tons of critically needed commodities
over the past ten months to assist some 27 million Iraqis;
working tirelessly to renegotiate USD 1.5 billion in food
procurements of Oil-for-Food contracts; responding admirably
to the terrible Baghdad bombing of August 19; and
facilitating the procurement of more than one million tons
of the 2003 Iraqi wheat harvest.


5. In another major war - against the global scourge of
HIV/AIDS, Ambassador Hall commented that we all need to make
the case that (a) good nutrition is the first line of


defense in warding off the detrimental effects of the
disease; and (b) adequate nutrition is essential to
obtaining the maximum effectiveness from HIV/AIDS-fighting
drugs. He thanked UN High Commissioner Ruud Lubbers for
coming to address the Board and underlined the U.S.
Government's commitment to and concern for the well-being of
refugees and displaced persons, even those in the most far-
flung and oft-forgotten locales, including through
substantial cash donations to WFP for refugee feeding
programs.

--------------
Emergency Needs Assessments - ENA
--------------


6. The Board took note of WFP's strategy related to
strengthening emergency needs assessments. It requested that
the Secretariat provide an update on progress made in
implementing improvements, along with a proposed
implementation plan, including cooperation with other
agencies/partners, a timetable and budget implications - to
the Third Regular Session of the Board in October 2004.
USAID's Lauren Landis commended WFP for organizing two inter-
agency workshops during 2003 directly related to emergency
needs assessments. She noted that, at these meetings,
participants: (a) argued for comparability and minimum data
sets; (b) endorsed regional and sub-regional approaches to
assessments; (c) promoted approaches that distinguish acute
from chronic needs; (d) urged more detailed ENA analysis on
livelihoods; (e) concluded that specific methodological
issues needed refinement on estimates of potential for
commercial and regional cross border imports to fill a
domestic food supply gap; and (f) endorsed an increased
focus on how markets can bolster food security in emergency
situations. USDEL commented that the shortfalls identified
by these workshops are accurate and require concerted
attention.


7. On the upcoming FAO/WFP food and crop assessments in
Southern Africa, particularly those in Malawi, Mozambique
and Zimbabwe, USDEL looks forward to a report on the results
of the Southern Africa experimental pilot to improve overall
FAO/WFP crop and food security assessments, with the
expectation that FAO/WFP will incorporate pre-assessment


planning into all of its assessments. Note. USDEL met
separately with the European Commission, UK and Sweden to
further explore how to keep this process moving forward,
given that they (particularly the EC) have raised a number
of red flags related to the rigor of the UN's needs
assessment process. End note.

--------------
Humanitarian Principles
--------------


8. The Board approved the ten humanitarian principles
presented in the policy document. USDEL noted that the UN's
Inter-Agency Standing Committee (IASC) has not reached an
agreement among international humanitarian assistance
agencies on a set of common principles. This WFP document
can help deliver a clear and productive message with respect
to why the UN is present in humanitarian operations and how
it will go about its work. USDEL concluded that, while we
wait for the IASC to reach agreement, perhaps the WFP
principles, as endorsed by this Board, can be used to spur
the IASC process to completion.

-------------- --
Business process review: Pilot-financing paper
-------------- --


9. In March 2003, the WFP Secretariat began a business
process review designed primarily to authorize spending
against forecasted resource flows, rather than against
confirmed contributions, as is currently the case. In
general, WFP proposes: a) a multi-scenario approach in
program planning where cost category "ranges" will be
provided to donors, instead of fixed rates for each project;
b) a single cash account will be used at the project level;
and c) at the end of the project, WFP will provide donors
with an actual expense report, with reconciliation done pro
rata, taking into consideration overall project
expenditures. For 2004, WFP proposes using its Operational
Reserve to provide from USD 14 million up to USD 49 million
for advanced funding for five pilots: DRC PRRO; West Africa
Coastal PRRO; Palestinian Territories Emergency Operation
(EMOP); Indonesia PRRO; and the Cambodia PRRO.



10. The Board approved the use of WFP's Operational Reserve
to finance the five pilot projects on the basis of forecast
contributions, as an exception. In general, while supportive
of WFP's new streamlined financial model, the Board noted
the risk of potential shortfalls resulting from flawed
contribution forecasting. Hence, the Board agreed with WFP's
prudent approach to more thoroughly field-test the new
project-financing model using the proposed five pilots
throughout 2004.

-------------- --------------
Basis for calculation of indirect support (ISC) on ocean
transport costs
-------------- --------------


11. The Board approved, on a limited basis, the exceptional
measure adopted by the Executive Director in October 2001 to
exclude the cargo preference contributions for ocean
transport from United States contributions. The Board's
approval is limited to the biennium 2002-2003 ending
December 31, 2003, and does not constitute a precedent for
WFP's future treatment of donor contributions. This topic
will be further discussed septel.

-------------- --------------
Summary report of the thematic evaluation of the protracted
relief and recovery operation (PRRO) category
-------------- --------------


12. The Board decided that, at its annual session in 2004
(May),it would examine the measures taken by WFP to
strengthen PRROs and render a decision on the process to be
followed. USDEL commented that this evaluation points to a
number of weaknesses including targeting, assessments,
monitoring and evaluation (M&E) systems, untimely
introduction of recovery strategies, limited WFP staff
capacity, insufficient access to beneficiaries, etc. This is
of particular concern insofar as, against a 2002-2003 PRRO
category estimated outlay of USD 777 million, WFP projects a
2004-2005 estimated PRRO expenditure of USD 2.0 billion (a
ratcheting up of USD 1.29 billion). Simply, the identified
programming shortfalls potentially increase WFP's risks in
the area of results based management. USDEL concluded that
serious attention by senior management was required to


address the wide range of shortfalls noted.

-------------- --------------
Information note on the Special Operations (SO) program
category
-------------- --------------


13. The Board indicated that it would re-examine this topic
at its Annual Session in May 2004. USDEL noted WFP's
commitment at the UN's Fifth Session of the High Level
Committee on Management (HLCM)(New York, June 12-13, 2003),
to accept the responsibility of administering air transport
service for UN agencies in humanitarian, and "other"
activities that are not directly or specifically for
peacekeeping, with effect from January 1, 2004. We suggested
further clarification of WFP's and other UN agencies' roles
following the HLCM's decision, and encouraged information on
this decision and its implications to be disseminated
throughout the UN and donor community.

--------------
Other Issues
--------------


14. USD 210.1 million in protracted relief and recovery
operations were approved as follows: Armenia, USD 11.56
million; Nepal (Bhutanese refugees),USD 7.6 million;
Cambodia, USD 46.88 million; Indonesia, 115.37 million;
Sudan (Eritrean refugees),USD 15.52 million; and Republic
of Congo, USD 13.16 million. Each PRRO approval discussion
is being reported septel. Development programs valued at USD
23.42 million were approved for The Gambia (USD 6.92
million) and Benin (USD 16.5 million) were approved and are
also being reported septel.


15. WFP provided an update on its response to the HIV/AIDS
pandemic. As of December 2003, WFP had HIV/AIDS-related
activities in 41 countries: 30 in Africa, six in Latin
America/Caribbean, four in Asia and one in Eastern Europe.
Their paper reviewed partnership strengthening; program
policy, coordination and support; country-level HIV-related


programming; assessment and program monitoring; technical
policy and operational research; HIV/AIDS advocacy; and the
WFP workplace and HIV/AIDS. Two research papers with the
International Food Policy Research Institute (IFPRI): a)
HIV/AIDS and Food Crises: RENEWAL in Africa; and b)
Rethinking food aid to fight AIDS - were handed out. Note.
UN High Commissioner for Refugees Rudd Lubbers addressed the
Board at its opening session and strongly endorsed WFP
efforts linking food and nutrition in fighting HIV/AIDS and
urged national governments to include refugee populations in
their AIDS-related strategies. End note.


16. WFP's operational guidelines on the donation of foods
derived from modern biotechnology were accepted by the Board
without debate.


17. The Board endorsed an information note on WFP's security
upgrade program, including its headquarters, to enable the
effective and efficient conduct of WFP activities while
ensuring the security and safety of staff as a high
priority. Executive Director Morris reported that WFP has
added four regional security advisors (bringing the total to
six),and is recruiting additional security personnel in the
field to be deployed in Indonesia, Somalia, Ethiopia, Ivory
Coast, Yemen, Colombia and Chechnya. Moreover, WFP is
recruiting a Head of Security to be located in Rome. Note.
Currently, security issues are handled by WFP's Management
Services division.


18. On the policy for staff recruitment and geographical
representation of member states, the Board was generally
supportive of the Informal Methodology used by WFP to
establish appropriate geographic and gender representation
among international professional staff. This occurred
despite lengthy interventions of a number of developing
countries led by India. WFP announced that it was
undertaking this year a strategic management review of its
human resources policy. Executive Director Morris announced
that WFP was planning to offer medical insurance coverage to
national employees worldwide.

--------------
Personal Comment from Ambassador Hall
--------------



19. In my intervention to the Board, I informed them that "I
had just returned from a 5-week, 7-state, speaking tour
across America, where I spoke with retired executives and
students, with those concerned about international hunger
and those new to the issue. They were all moved to want to
do more. Most people feel that way when they are confronted
with the startling reality that 24,000 people die every day
from hunger and related diseases. All of us around this
table need to continue our efforts, within our various
spheres of influence, to get out the message that we can do
something about this problem of hunger. In order to reach
more of the 842 million people who are chronically hungry,
we have to be relentless in trying to generate the political
will to cut hunger in half by 2015."


20. For my small part, I will be leading a "Hunger Tour to
the Horn of Africa" in April. As we approach the twentieth
anniversary of the Great Famine in Ethiopia, I want to bring
others to see first-hand the problems of hunger and the
solutions that give us hope.


21. Minimize considered. Hall


NNNN
2004ROME00815 - Classification: UNCLASSIFIED